Telecom Firms Eye 5-12% Revenue Boost with 5G-Powered GenAI Connectivity

CIOTechOutlook Team | Thursday, 14 November 2024, 05:29 IST

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The telecom companies can boost their 5G revenues by 5-12% by providing unique, high-quality connectivity for GenAI applications, according to a study by Ericsson,. The rising adoption of generative AI apps by smartphone users may enhance revenue for telecom service providers.

The worldwide generative AI market size was USD 17.65 billion in 2023, increased to USD 25.86 billion in 2024, and is projected to hit approximately USD 803.90 billion by 2033, growing at a CAGR of 46.5% from 2024 to 2033. The growing demand for modernizing workflows, such as automation and remote monitoring in various sectors, will propel the growth of the generative AI market.

According to the study, this may represent the quickest expanding monetizable sector for telcos after use cases such as video calling, streaming, and online payments. Telcos could profit by providing quality-on-demand APIs to developers and appealing to 35% of 5G smartphone users willing to pay for differentiated connectivity. India, Thailand, and Saudi Arabia have twice the proportion of smartphone users keen on differentiated connectivity compared to markets like France and Spain.

This indicates consumers’ anticipations regarding the future functions of AI applications—possibly connected to the generation of images, audio, or video—and their readiness to invest in those functions to ensure they operate quickly and with high quality. This indicates a chance for CSPs worldwide to satisfy this demand by offering customized connectivity experiences.

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