AI discussions today stray from the vast energy, resource, and capital requirements of infrastructure development, to the trials and tribulations of enterprise adoption. Yet the vital role of telecoms infrastructure is all but forgotten. As AI becomes more pervasive, the very networks that enable connectivity are set to face unprecedented strain. Long before artificial intelligence captured headlines, telecoms operators were already grappling with immense pressure on their networks, driven by a surge in digital activity. And, crucially, demand that they consistently struggle to profit from.
This isn’t the first time Telcos have been caught between unprecedented consumption and patchy revenue streams. In early 2022, major European telecoms companies—Telefonica, Deutsche Telekom, Vodafone, and Orange—publicly called for large digital platforms to help bear the cost of maintaining and expanding the networks that carry their data. They highlighted that “digital platforms are profiting from hyper scaling business models at little cost while network operators shoulder the required investments in connectivity.” The industry leaders argued for a fairer distribution of this financial burden, noting that the relentless growth in video streaming, online gaming, and social media was placing severe stress on existing infrastructure. Without greater support, they warned, the continued development of digital networks could be jeopardised.
As we move towards an AI-enabled future, the overlooked telecoms sector is about to take centre stage in back office strategy meetings, but will likely miss out again as digital interfaces that sit over their networks capture the public imagination.
But condemning telcos to that fate risks dooming the AI revolution also. The demands on infrastructure will far exceed anything seen before. Much like their digital peers, the biggest users, big tech and AI platforms, will unlikely stump up the cash. So the role will fall to governments to splurge on telecommunications to keep everything connected.
