5 Ways the Telecom Industry is Reinventing Business Models

The PwC Global Telecom Outlook 2024–2028 underscores a critical reality facing the telecom industry—while growth continues, it is slowing. In 2023, total global telecom service revenue from both fixed and mobile services rose by 4.3%, reaching USD 1.14 trillion. While this may appear positive at first instance, a thorough investigation into the prediction showcases a more restrained trajectory ahead.

According to projections, the industry’s total revenue is expected to grow at a compound annual growth rate (CAGR) of just 2.9% through 2028. This pace lags behind the projected global inflation rate, indicating that in real terms, revenue growth may be stagnating or even contracting. By 2028, the total industry revenue is projected to reach only USD 1.3 trillion—a modest increase that reflects the maturity of traditional telecom services and the pressing need for new business models and revenue streams.

This data reinforces the urgency for telecom operators to move beyond conventional connectivity and infrastructure services. To sustain profitability and meet investor expectations, they must aggressively embrace digital transformation—exploring opportunities in mobile video advertising, mobile automation, and value-added services.

According to McKinsey’s reports, the telecom industry’s legacy business models may not produce sufficient profitability and returns to sustain the required levels of capital investments. Overcoming this may require telecom operators to adopt new models and extensive collaborations within and beyond the industry to enable alternative revenue sources.

Tools like Meta Ads, moLotus, Google Ads, and WhatsApp Business are evolving as key enablers in this journey, helping telecoms tap into high-growth business models, and reinventing how they deliver value to consumers and enterprise clients alike.

The advent of breakthrough mobile video advertising and interaction platforms like moLotus has played a pivotal role in driving revenue generation and enabling nationwide reach. It has enabled telecom operators to enhance their service offerings, improve operational efficiency, and deliver a seamless digital experience to consumers.

GSM-based moLotus mobile platform, in particular, has emerged as a transformative tool for telcos, enabling them to boost their revenues through various channels. Its mobile advertising capabilities allow telcos to monetize their customer base by delivering targeted ads and promotional content. Additionally, moLotus facilitates digital transformation initiatives by automating processes, enhancing customer engagement, and driving ARPU (Average Revenue Per User) growth.

Here are the key five ways in which the telecom industry is reinventing its business models:

1. Turning Subscriber Bases into Monetization Opportunities

The telecom industry is undergoing a profound shift—no longer just voice and data providers, telcos are becoming strategic enablers of data-driven marketing and consumer engagement. With the telco data monetization market projected to reach USD 10.35 billion by 2029, growing at a CAGR of 19.94%, operators are increasingly leveraging their rich subscriber data to unlock new sources of revenue.

One major driver of this transformation is targeted mobile advertising powered by platforms like moLotus, Google Ads, and Meta (Facebook) Ads.

moLotus, for instance, partners directly with telecom operators to send highly personalized video messages to users via their mobile inbox—without needing apps or data connectivity. These messages can include customer-specific information like name, plan details, or purchase history. This level of hyper-personalization drives exceptional engagement rates and enables telcos to offer premium advertising services to brands, monetizing their subscriber data effectively.

Google Ads, on the other hand, allows telcos to harness search and display ad campaigns using segmented subscriber behavior and interests. Telcos can run cross-promotions or advertise their services (like postpaid upgrades, broadband plans, or streaming offers) based on what users are already browsing or searching for. Through Google’s Audience Manager and Customer Match, telcos can upload customer lists and serve personalized ads across Search, YouTube, and Gmail—helping them retarget high-value segments with precision.

Facebook (Meta) Ads also play a critical role. By integrating subscriber data (in compliance with privacy laws) into Meta’s Custom Audiences, telcos can reach users across Facebook, Instagram, and Messenger. For example, a telco might promote a limited-time international roaming package to travellers recently seen interacting with travel-related content. Additionally, telcos can monetize their data indirectly by offering marketing services to local businesses—helping them reach specific telco customer segments via Meta’s ad network.

All three platforms offer advanced analytics, allowing telcos to track performance and continuously optimize based on real-time data—turning static subscriber information into dynamic monetization engines.

Ultimately, by combining first-party telco data with the targeting power of these platforms, telecom operators can evolve into advertising powerhouses. This unlocks scalable revenue streams beyond traditional services while offering value-added experiences to their customer base.

2. Driving Growth Through Mobile Advertising

Mobile advertising is fast becoming one of the most powerful tools in the telecom industry’s reinvention journey. Global mobile ad spending is projected to skyrocket—from nearly USD 400 billion in 2025 to over USD 1 trillion by 2032—placing telcos at the core of this explosive growth. With millions of subscribers and deep insights into customer behavior, telecom operators are uniquely positioned to become key players in the mobile advertising value chain.

Leading telecom players such as Telkomsel, Indosat Ooredoo Hutchison, Airtel, and Vodafone are already capitalizing on this opportunity. Many have partnered with innovative platforms like moLotus, which enables them to deliver rich media campaigns directly to users’ mobile inboxes—without relying on apps or internet access. The platform's advanced features, including hyper-personalization, automation, interactivity, and real-time reporting, allow telcos to craft targeted, high-margin campaigns that significantly boost engagement and customer retention.

At the same time, platforms like Facebook Ads are enabling telcos to tap into social media-driven mobile advertising. By integrating subscriber insights with Meta’s Custom Audiences, telcos can launch campaigns targeting users based on location, demographics, and behavior. For example, promoting exclusive postpaid plans or data upgrades to high-usage users on Facebook or Instagram helps drive conversions while offering personalized experiences.

WhatsApp for Business is also emerging as a vital channel for telcos, particularly for transactional messaging, promotions, and customer support. Telcos can send interactive messages, limited-time offers, and plan renewals directly through WhatsApp, allowing two-way engagement. This real-time communication helps build trust and improves the customer journey—especially in markets where WhatsApp is the dominant communication tool.

On the search and display front, Google Ads allows telcos to run highly targeted campaigns across the Google ecosystem—including YouTube, Gmail, and the Google Display Network. Using tools like Customer Match and Performance Max, telcos can reach potential customers with tailored offers at multiple touchpoints, whether it’s a user searching for mobile plans or browsing tech content online.

Together, these platforms—Facebook Ads, WhatsApp, moLotus, and Google Ads—form a powerful mobile ad stack for telecom operators. By combining deep subscriber intelligence with the advanced targeting and automation capabilities of these platforms, telecom operators are not only unlocking new revenue streams but also redefining how they engage with customers in the digital age.

3. Partnership-Driven Success

The telecom industry is rapidly reinventing its business models by embracing strategic partnerships as a cornerstone of growth, particularly in the mobile advertising arena. By leveraging their vast subscriber networks, granular customer insights, and cutting-edge infrastructure, telecom operators are positioning themselves as indispensable allies for brands and advertisers. These collaborations are not just revenue drivers—they are redefining how telecoms compete in the digital economy.

Telecom giants like T-Mobile, Deutsche Telekom, and Vodafone are capitalizing on their unique assets to build symbiotic relationships with ad tech firms and content providers. For instance, T-Mobile’s acquisitions of Vistar Media (a DOOH leader) and Blis (a privacy-centric location data firm) exemplify how telecoms are expanding their advertising arsenals. These moves enable hyper-targeted campaigns while addressing privacy concerns—a critical advantage as third-party cookies phase out. Similarly, Deutsche Telekom’s partnership with Equativ to revolutionize CTV advertising on its MagentaTV platform underscores the shift toward programmatic, data-driven ad solutions in streaming ecosystems.

Central to these alliances are platforms like moLotus, which empower advertisers with self-service tools, real-time analytics, and AI-driven insights. Such technologies allow telecoms to monetize their networks while offering brands precision targeting—ensuring ads reach the right audience at optimal times. Recently, Telkomsel—Indo’s largest telecom operator—partnered with global mobile video advertising leader Novosol to tap into the country’s USD 20 billion ad market. The landmark deal aims to generate USD 300 million in high-margin mobile ad revenue within three years, enabling brands to reach 270 million Indonesian mobile users, including Telkomsel’s 170 million subscribers. This collaboration underscores the power of moLotus to unlock growth in the high-potential Indonesian market.

Vodafone’s deepened collaboration with Google, integrating Gemini AI into its TV services, highlights how telecoms are embedding advanced ad tech into consumer experiences, paving the way for personalized, interactive advertising.

From MTN’s launch of privacy-first verified IDs in South Africa to Bharti Airtel’s content partnerships with Apple, telecoms are tailoring strategies to regional markets. These efforts not only diversify revenue but also enhance customer loyalty by bundling ads with premium services. In Africa, MTN’s streaming venture with Synamedia and Orange’s AI-driven language localization projects illustrate how partnerships are bridging gaps in underserved markets, turning connectivity into a platform for culturally relevant advertising.

Partnerships are no longer optional—they’re a strategic imperative. Telecoms that collaborate with ad tech innovators, content creators, and data specialists are unlocking new revenue streams, enhancing customer engagement, and securing leadership in a fragmented market. As 5G and AI mature, these alliances will fuel next-gen advertising models, proving that in the telecom revolution, collaboration is the ultimate competitive advantage.

4. Strengthening Data Security and Privacy

As telecom operators evolve into digital service providers, handling vast volumes of user data, ensuring robust data privacy and security has become a strategic priority. In a landscape increasingly shaped by digital marketing platforms, safeguarding customer information is essential not only to comply with global data regulations like GDPR and CCPA but also to maintain customer trust and brand reputation. Platforms involved in mobile advertising—such as moLotus, Google Ads, Facebook Ads, WhatsApp, and TikTok—are playing a critical role in data security and safety initiatives.

moLotus stands out for offering telcos a secure, direct-to-mobile video interaction channel without relying on apps or third-party cookies. The platform ensures high levels of data privacy by not storing personal data on external servers and by encrypting all customer interactions. Because moLotus campaigns are executed directly through telecom networks—bypassing external apps and intermediaries—data never leaves the telco ecosystem. This architecture significantly reduces exposure to data breaches while allowing telcos to deliver personalized content securely. For example, a telco can send personalized upgrade offers or service alerts via moLotus without compromising customer privacy.

As telcos collaborate with ad platforms like Facebook Ads and Google Ads, they are enhancing security protocols for data sharing and audience segmentation. Meta's ad systems, for instance, emphasize privacy-first frameworks through tools like Aggregated Event Measurement and data anonymization, which help telcos run targeted campaigns without directly exposing individual user identities. Similarly, Google’s Privacy Sandbox initiative focuses on reducing user-level tracking while enabling telcos to measure ad performance and maintain relevance.

WhatsApp for Business also adheres to strict encryption standards, giving telcos a secure channel to communicate promotional offers, service alerts, and support messages directly to subscribers. Users are assured that their chats remain private, even when interacting with business accounts. In emerging markets, where WhatsApp dominates mobile communication, this becomes a crucial trust-building factor.

TikTok, widely used for telecom brand promotions and user engagement, has introduced stricter privacy settings, including regional data hosting and tools for transparency in ad delivery. Telcos using TikTok for campaigns must align with these security guidelines to ensure user data is not exploited or mishandled.

Additionally, some forward-thinking telecom operators are exploring blockchain technology to provide decentralized, tamper-proof frameworks for data storage and identity verification—further elevating the integrity of customer data handling. At the same time, AI-driven threat detection systems are being integrated to proactively monitor and neutralize cyber threats across networks and digital ad platforms.

By embedding such privacy-enhancing technologies and upholding regulatory compliance, telecom operators can confidently participate in mobile advertising while protecting user data. This commitment to privacy not only strengthens their digital ecosystem but also builds long-term customer loyalty in an increasingly data-conscious world.

5. Leveraging Automation and AI

Telecom operators are undergoing a major shift in how they manage customer engagement, campaigns, and service delivery—thanks to the rise of automation and AI. These technologies are streamlining operations, reducing costs, and enabling hyper-personalized experiences at scale.

A major innovation in this space is the emergence of moLotus AI Agents, which are redefining how telcos interact with their subscribers. These AI-powered agents act as virtual campaign managers, enabling telcos to automate the end-to-end execution of marketing and customer communication workflows. From customer onboarding, renewals, loyalty programs, upselling, cross-selling, reminders, and even service notifications, moLotus AI Agents can run personalized, interactive video campaigns across millions of subscribers—without human intervention or the need for apps or data plans.

What sets moLotus AI Agents apart is their ability to intelligently analyze subscriber behavior, preferences, and transaction history and dynamically trigger communication that is highly relevant and timely. For example, if a customer’s data usage spikes, an AI Agent can automatically trigger a personalized offer for an upgraded plan, boosting conversions and customer satisfaction.

Meanwhile, platforms like Google Ads and TikTok Ads are also leveraging AI-driven automation to help advertisers (including telcos) optimize ad performance. Google’s Smart Campaigns and Performance Max use machine learning to automate audience targeting, bidding, and creative optimization, ensuring ads reach the most relevant users across Search, YouTube, Gmail, Maps, and more. Similarly, TikTok’s Smart Optimization automatically adjusts ad delivery to users most likely to engage, using behavioral signals in real time.

However, unlike most digital ad platforms that require app-based or web-based delivery, moLotus AI Agents operate directly on the mobile inbox—bypassing app fatigue and data limitations. This makes them uniquely positioned for telcos aiming to reach 100% of their subscriber base, including non-smartphone users, while minimizing cost per interaction.

Ultimately, the integration of AI into telecom operations marks a leap toward intelligent, scalable, and personalized customer engagement, reducing operational load while increasing revenue opportunities.

Conclusion

The telecom industry is transitioning from a pure connectivity provider to a dynamic player in the digital economy by reinventing its business models through five key pillars: mobile advertising, data monetization, automation, AI integration, and privacy-first innovation. Platforms like Google Ads, Meta Ads, moLotus, WhatsApp Business, and TikTok are helping telecom operators to deliver data-driven, interactive, experiences that go well with modern consumers. To sustain growth, operators must prioritize the agile adoption of next-gen ad tech, align strategies with shifting digital behaviors, and double down on technologies that balance relevance with privacy—securing their role as indispensable partners in the evolving advertising ecosystem.