What’s Next for Telco? Five Predictions for the Future
The telecommunications industry has spent much of the last decade investing heavily in infrastructure. Fibre coverage has expanded rapidly, mobile networks have evolved and competition has increased. Full fibre reached 82% of UK homes by January 2026, demonstrating just how mature the build phase is [1].
However, I think the three to five years will look quite different. The focus is shifting from building networks to making them commercially sustainable. Meanwhile, new technologies will challenge how connectivity is delivered and how operators run their businesses.
Here are five predictions for where I think the industry is heading:
1. Consolidation will reshape the market
I think we are only at the beginning of a much bigger period of consolidation across the industry.
In the UK, billions have been invested in infrastructure, often with competing networks covering the same areas, but there are only so many customers to go around.
The proposed nexfibre and Netomnia deal, alongside BT's recent acquisition of TalkTalk and PlatformX, demonstrates how quickly the market is changing. In fact, nexfibre's shareholders have yesterday challenged the CMA's concerns over the proposed acquisition, arguing that the regulator's assessment fails to reflect the commercial realities of the market [2].
My prediction is that we'll see continued consolidation, with a smaller number of operators controlling a greater share of the market, although regulatory intervention will undoubtedly influence how that plays out.
The interesting question is whether consolidation will actually deliver the benefits expected. Bringing businesses together creates scale, but integrating networks, systems, people and suppliers is where the real challenge starts.
Consolidation alone does not create value. What operators do with that scale will determine who succeeds.
2. Mobile operators will need to find new ways to grow
For years, mobile operators have competed on coverage, speed and price. But after investing billions in their networks, the big question is how they generate more revenue from them.
Most of us have seen 5G on our phones for years, but what many people don't realise is that much of the original 5G network was built using existing 4G infrastructure. 5G Standalone changes that, operating independently of 4G and unlocking capabilities that go well beyond faster mobile internet.
Think factories connecting machinery and robotics, businesses needing guaranteed network performance, or critical services where reliable connectivity is essential.
But the real challenge is commercialisation. Having the technology is one thing turning it into services that customers actually need and are willing to pay for is another.
My prediction is that the operators who succeed will be those that can commercialise these capabilities, rather than simply continuing to compete on coverage and price.
3. Satellite becomes part of everyday connectivity
Satellite has traditionally been seen as a solution for locations where fixed and mobile networks cannot reach. But I think that is starting to change.
Developments in Low Earth Orbit satellites and direct-to-device technology are making satellite a more viable option for everyday connectivity. For example, businesses using satellite as a backup when their primary connection fails, remote infrastructure being connected without expensive network builds, or mobile users staying connected in areas without traditional coverage.
This is not about satellite replacing fibre or mobile, but becoming a genuine part of the connectivity market and potentially challenging how traditional operators deliver their services.
My prediction is that satellite will increasingly move from being a niche solution to becoming a mainstream part of how connectivity is delivered.
4. Cybersecurity becomes a core part of telecoms operations
As networks become more software-defined, interconnected and automated, cybersecurity will become increasingly important.
I think we will see it move beyond being primarily a technology or compliance responsibility, and become much more embedded in operational management. That means a greater focus on supplier assurance, network resilience, access controls and managing risks across increasingly complex supply chains.
There is also a significant commercial opportunity as businesses look for providers capable of delivering both connectivity and security.
Cybersecurity will become both a measure of how well operators protect their own networks, and an increasingly important service they provide to customers.
5. Telcos will need to look beyond connectivity for growth
For years, telecoms operators have been expanding into areas such as cloud, cybersecurity and managed services. But as traditional connectivity becomes increasingly competitive, I think these services will become even more important to future growth.
The challenge is that selling connectivity and delivering complex technology services are two very different things.
Operators are competing with established technology companies and specialist providers, often with different skills, commercial models and customer expectations.
Simply adding more products to the portfolio will not guarantee success.
My prediction is that the operators who succeed will be those that focus on the services where they can genuinely add value, rather than trying to compete in every part of the technology market.
The wildcard: Could light be the next big thing in wireless connectivity?
When we think about wireless connectivity, we generally think about mobile networks, Wi-Fi and satellites. But what if light could play a much bigger role?
Technologies such as LiFi, which uses light to transmit data wirelessly indoors, and Free Space Optics, which can connect locations using lasers rather than physical cables, are already being developed and deployed.
This could involve connecting buildings without the cost and disruption of laying fibre, or providing secure, high-speed connectivity in environments where traditional wireless technologies face limitations.
The UK is also well positioned in Free Space Optics, with an opportunity to develop and export these technologies.
Of course, there are challenges. These technologies will not replace fibre or traditional wireless networks, and they need to prove they can deliver reliable, cost-effective connectivity at scale.
My prediction is that light-based wireless technologies could move beyond specialist applications and become an increasingly important part of how networks are designed and delivered.
The real challenge will be execution
Across all five predictions, there is a consistent theme.
The telecoms industry is not short of technology or investment. The challenge is turning both into sustainable commercial and operational performance. Consolidation needs integration. New technologies need viable commercial models. AI needs good data and effective processes.
At Deecon, this is where much of our work is focused. We help organisations turn strategic ambition into practical improvements across operating models, transformation, procurement, commercial performance and supplier management.
The next decade will not be defined simply by who has the biggest network or the best technology. It will be defined by who can turn those investments into real value.
Written by Ross Walton
Edited by Kate Randall