By 2030, the sector’s economic contribution is forecast to climb to $700 billion, expanding at a compound annual growth rate of 3.2 per cent. This trajectory is underpinned by wider 5G adoption Latin America operators are pursuing, alongside the integration of artificial intelligence and Internet of Things technologies into commercial operations. The Latin America mobile economy is thus positioned as one of the region’s most significant contributors to productivity and digital inclusion.

5G Adoption Latin America: Half of All Connections by 2030

Latin America’s telecoms market is entering a substantial network investment cycle as operators expand 5G coverage and modernise digital infrastructure. Half of all mobile connections in the region are expected to run on 5G networks by the end of the decade, while industry revenues are projected to grow from $71.8 billion in 2025 to $83.9 billion in 2030.

To support this transition, mobile operators are expected to commit $75.8 billion in capital expenditure between 2025 and 2030. This network investment will be directed towards strengthening capacity, improving spectrum utilisation and deploying cloud-native digital infrastructure across the region. The scale of this spending underscores the confidence operators have in the long-term growth of the Latin America mobile economy and the commercial viability of next-generation services.

Leading operators across the region are already accelerating their network plans. America Movil has expanded automation across its operational and business support platforms, streamlining provisioning and billing across multiple subsidiaries. Through Claro Chile, the company has deployed generative AI-powered customer service agents, post-call analytics and automated SIM blocking for lost or stolen devices, reporting significant reductions in customer handling times. Telefonica Vivo Brazil is advancing autonomous networking through closed-loop automation and intent-based networking within its virtualised 5G core. During 2026, Vivo also began testing agentic AI applications with Ericsson and Amazon Web Services, enabling engineers to manage network operations through natural language interfaces.

TIM Brasil has expanded its partnership with Nokia to upgrade its nationwide 5G network, deploying Nokia’s AI-RAN-ready AirScale portfolio to improve coverage, strengthen indoor connectivity and reduce energy consumption. Millicom continues expanding fibre broadband and 5G-ready digital infrastructure across Colombia, Paraguay, Guatemala, Honduras, Bolivia and Panama, investing in converged mobile and fixed networks. Telecom Argentina is strengthening 5G readiness and expanding fibre coverage, while Entel Chile and Entel Peru continue investing in nationwide 5G expansion and enterprise digital transformation. Liberty Latin America is expanding fibre-to-the-home, mobile broadband and enterprise cloud services across the Caribbean and Latin America. Oi Brazil remains focused on expanding wholesale fibre infrastructure through V.tal, supporting broadband growth and providing fibre backhaul for advanced 5G services.

AI Telecom Deployment Gains Commercial Momentum

Artificial intelligence has moved beyond pilot programmes and become a core operational technology for telecoms operators across the Latin America mobile economy. Customer care accounts for 78 per cent of all AI telecom deployment in the region, the highest share among global regions. Operators are using AI agents, chatbots and generative AI tools to enhance customer experience, reduce handling times and lower operating costs.

The region has achieved one of the highest implementation rates globally, with 85 per cent of AI deployments already operating in live production environments, compared with a global average of 66 per cent. However, only 8 per cent of deployments currently focus on network operations and just 9 per cent target new revenue generation, well below the 20 to 30 per cent seen in Europe and Asia-Pacific. This reflects a stronger regional emphasis on operational efficiency and cost optimisation rather than revenue diversification through AI telecom deployment.

Cloud Providers Scale Up Regional Digital Infrastructure

Telecoms network expansion is being complemented by large-scale investments from hyperscale cloud providers. Amazon Web Services has announced a $4 billion investment in cloud infrastructure and data centres in Chile. Microsoft plans to invest approximately $1.3 billion in cloud and AI infrastructure in Mexico over the next three years, while Google is investing more than $850 million to establish a second data centre in Uruguay. These projects will provide the computing foundation required for AI applications, enterprise digital transformation and advanced cloud services.

As operators continue directing $75.8 billion in network investment towards digital infrastructure and 5G adoption Latin America reaches 50 per cent of all mobile connections by 2030, the GSMA mobile report projects the Latin America mobile economy will generate $700 billion in economic value. Combined with increasing adoption of AI, IoT, fibre broadband and cloud computing, the mobile ecosystem is set to reinforce its role as a critical driver of long-term economic development across the region.

During a virtual media briefing on 30 July, networking equipment provider Ciena outlined how the growing scale of AI data centre networks is reshaping demand for high-capacity connectivity services worldwide. The company said revenue from such services is forecast to grow at a compound annual rate of 18 per cent from 2025 to 2030. Southeast Asia is expected to outpace the global market, with annual growth projected at 22 per cent over the same period.

“We believe that service providers who are well-prepared to take advantage of these opportunities will unlock this new revenue growth curve by enabling this AI ecosystem,” said Francisco Sant’Anna, senior adviser for market intelligence at Ciena.

Key Drivers Behind Rising Demand for AI Data Centre Networks

Ciena identified three primary sources of demand fuelling growth in AI data centre networks and high-capacity connectivity. The first is the scale of investment by hyperscale and AI-focused cloud providers. According to the company, major cloud operators are expected to invest a combined $600 billion in new data centres in 2026 alone. When spending by smaller cloud providers specialising in AI computing referred to as “neoscalers” is factored in, total AI infrastructure investment could exceed $1 trillion.

These investments will require network providers to connect large data centres used for training and running AI models, as well as link increasingly distributed computing facilities. Smaller AI cloud providers may also need flexible bandwidth and managed connectivity services as their operations scale.

The second driver is the growing geographic distribution of data centres. The physical requirements of AI data centre networks, including access to land, power, and water are pushing facilities farther from major urban centres. At the same time, data sovereignty regulations and the need to reduce latency are encouraging companies to establish more facilities closer to their end users. Ciena said this trend is already visible in Southeast Asia, particularly in Indonesia, Malaysia, and the Philippines.

The third source of demand comes from enterprise AI adoption. As companies deploy more inference workloads, existing networks can become bottlenecks in moving data between users, cloud platforms, and computing facilities.

Southeast Asia Emerges as a Growth Hub for AI Infrastructure

Alex Wong, Ciena regional managing director for Asean, Hong Kong, and Taiwan, said Southeast Asia has the land, power, water, fibre infrastructure, and cross-border links needed to support the expansion of AI data centre networks. He also pointed to continuing investments and a developing regulatory environment across the region.

The Philippines, in particular, could benefit from several submarine cable systems expected to land in the country, strengthening its links to regional and global data centres. Ciena said it is working with local telecommunications companies including PLDT, Globe, and Converge to develop networks capable of supporting hyperscale investments. Additional data centres are also under construction in the country to meet anticipated AI demand.

Operators Must Adapt Networks for AI Workloads

However, Wong cautioned that telecommunications companies must recognise that AI applications impose different requirements from conventional internet traffic.

“AI workloads are much more dynamic, much more sensitive to latency, and the infrastructure is becoming more distributed, so operators have to think beyond simply adding more bandwidth,” Wong said.

He added that an AI-ready operator is one that can deliver more than basic connectivity. “They can provide high-performance networks that can move huge volumes of data quickly, reliably, and predictably between the distributor and compute locations. That is what separates an AI-ready network from a traditional one,” he said.

The growing investment in AI data centre networks across Southeast Asia signals a substantial shift in what telecom operators must deliver, with high-capacity connectivity and network flexibility becoming essential capabilities for those seeking to capture new revenue from the AI ecosystem.

The Salam MSOC Tier 2 License represents a strategic milestone for the company, reaffirming its full alignment with the Kingdom’s cybersecurity regulations. It also signals Salam’s continued commitment to strengthening Saudi Arabia’s cybersecurity ecosystem in step with national priorities.

Licensing Details and Enterprise Cybersecurity Capabilities

The approval from the National Cybersecurity Authority enables Salam to provide managed security operations centre services at the Tier 2 level, expanding the company’s enterprise cybersecurity portfolio significantly. With this authorisation now in place, Salam is positioned to extend trusted, world-class cyber protection to businesses operating across Saudi Arabia.

These managed security operations centre capabilities complement Salam’s broader digital infrastructure offering. The company’s existing portfolio spans cloud computing, data centres, and enterprise ICT solutions, and the addition of licensed cybersecurity services Saudi Arabia creates an integrated proposition. This approach positions Salam to support private-sector organisations with both connectivity and security under one roof.

Eng. Ahmed Al Anqari, Chief Executive Officer of Etihad Salam Telecom Company, commented on the milestone: “This license reflects Salam’s steadfast commitment to its strategic objectives and to a vision in which a more connected Saudi Arabia is also a more cyber-ready one. We continue to work closely with government entities to ensure full compliance with the Kingdom’s cybersecurity regulations, and this achievement reinforces our role in extending trusted, world-class protection to the businesses that power Saudi Arabia’s growth, in line with the objectives of Saudi Vision 2030.”

The CEO’s remarks highlighted the direct connection between the Salam MSOC Tier 2 License and the company’s broader strategic objectives. By obtaining this authorisation, Salam has reinforced its credentials as a provider capable of delivering enterprise cybersecurity alongside its established telecommunications and digital infrastructure services.

Contribution to Saudi Vision 2030 and National Cybersecurity Goals

The licensing approval underscores Salam’s ongoing contribution to the objectives of Saudi Vision 2030. Specifically, the Salam MSOC Tier 2 License supports the development of a secure, resilient, and innovation-driven digital economy. It also reinforces the Kingdom’s national capabilities in the cybersecurity sector, a priority area within the broader Vision 2030 framework.

By meeting the regulatory standards set by the National Cybersecurity Authority, Salam has demonstrated full compliance with the governance framework overseeing managed security operations centre services in Saudi Arabia. The five-year validity period of the licence provides a stable operational foundation for the company to develop and scale its enterprise cybersecurity service delivery over the coming years.

As enterprises across the Kingdom continue to pursue digital transformation, the availability of integrated connectivity, cloud computing, and cybersecurity services Saudi Arabia remains a critical requirement. The licensing achievement enables Salam to address this enterprise demand through a unified service model, combining digital infrastructure and managed security under a single provider.

Salam has confirmed that it will continue to work closely with government entities to maintain full compliance with the Kingdom’s cybersecurity regulations, building on this achievement to further strengthen its role in supporting Saudi Arabia’s national cybersecurity priorities.

According to industry sources, SK Telink, a Starlink reseller, has recently supplied low Earth orbit (LEO) satellite communication services to the Korea Expressway Corporation after previously deploying the technology for the Korea Electric Power Corporation (KEPCO). The latest deployments reflect growing demand for resilient communications that operate independently of terrestrial networks.

Enterprise Adoption Expands Across Critical Sectors

KEPCO has introduced LEO satellite communications at its headquarters, regional offices, substations and other key facilities to establish a communications network physically separated from terrestrial infrastructure during emergencies. The deployment is intended to reduce the risk of simultaneous network failures while improving the continuity of real-time monitoring and business operations.

The Korea Expressway Corporation has also deployed mobile Starlink terminals to strengthen emergency response capabilities. The portable systems can be rapidly activated when terrestrial networks are disrupted by heavy rainfall, wildfires, earthquakes or in areas without conventional communications coverage.

The aviation sector is also increasing its adoption of satellite connectivity. Hanjin Group plans to gradually introduce Starlink-powered high-speed in-flight Wi-Fi across Korean Air, Asiana Airlines, Jin Air, Air Busan and Air Seoul. The service is expected to provide passengers in all cabin classes with internet access capable of supporting streaming, online gaming, messaging and large file transfers.

Satellite communications are also expanding into maritime operations. KT SAT previously partnered with specialised ship management company KLCSM to support digital transformation initiatives for vessel and crew management and signed an agreement to provide Starlink maritime services.

Satellite Services Complement Existing Mobile Networks

Industry participants believe Satellite Communications in South Korea offer the greatest value in environments where conventional mobile networks are difficult to deploy, including offshore operations, aircraft, remote islands and mountainous regions.

However, the prevailing view is that satellite services are unlikely to replace existing mobile networks in urban areas because terrestrial infrastructure continues to offer advantages in speed, reliability and cost. One telecom industry official noted that South Korea’s extensive mobile coverage limits the need for consumers to adopt relatively higher-cost satellite services for everyday connectivity.

Current residential Starlink plans in South Korea offer maximum download speeds of up to 200 Mbps and 400 Mbps, with users also required to purchase dedicated satellite equipment, including an antenna and router.

Despite these limitations, industry observers believe satellite communications could become increasingly competitive in international roaming and disaster response. Independent satellite networks can continue operating if terrestrial infrastructure is damaged during large-scale emergencies, while wider adoption could reduce reliance on conventional roaming services for cross-border connectivity.

The Korea Information Society Development Institute (KISDI) said in a report published in April that, considering the country’s high penetration of fixed and mobile broadband services, Satellite Communications in South Korea are more likely to complement existing communications networks than replace them. The institute identified remote islands, mountainous regions, ships and disaster response as the primary application areas.

KISDI researcher Park Jin-woo said satellite communications are expected to remain focused on specialised environments in the short term while supporting the future integration of 6G mobile communications and encouraging the continued development of LEO satellite technologies and related services in South Korea.

The MoU covers several areas of collaboration, including managed enterprise solutions, cross-border connectivity, cloud services and digital infrastructure. Through this agreement, the two operators intend to combine their respective network capabilities and service portfolios to better serve multinational enterprises with operations spanning Southeast Asia and China.

Enterprise Digital Services at the Core

Nugroho, Telkomsel’s Vice President of Enterprise Business Development, said the partnership reflects the company’s strategy to go beyond traditional connectivity and offer integrated digital services to enterprise customers. The collaboration with China Telecom Global is expected to enable Telkomsel to deliver more comprehensive managed enterprise solutions, particularly for businesses that require seamless cross-border connectivity between Indonesia and China.

The Telkomsel and China Telecom Global partnership is designed to address growing demand from enterprise clients for end-to-end digital infrastructure that spans multiple markets. As trade and investment flows between Indonesia and China continue to grow, business customers increasingly require reliable, secure and scalable connectivity solutions that extend beyond national borders.

Cross-Border Connectivity and Cloud Solutions

Under the terms of the MoU, both companies will explore opportunities in areas such as international private leased circuits, SD-WAN, cloud networking and data centre interconnection. These services are particularly relevant for enterprises in sectors such as manufacturing, logistics, financial services and e-commerce, where real-time data exchange across geographies is essential.

China Telecom Global brings extensive international network reach and experience in serving multinational enterprises, while Telkomsel contributes its deep presence across the Indonesian market and its growing enterprise digital services portfolio. The Telkomsel China Telecom Global partnership effectively combines these strengths to create a more compelling proposition for business customers with cross-border requirements.

The collaboration also reflects broader efforts by both operators to diversify their revenue streams beyond consumer mobile services. Enterprise digital services have become an increasingly important growth area for telecommunications companies worldwide, and partnerships of this nature allow operators to scale their offerings without building every capability in-house.

Focus on Managed Solutions for Business Customers

Telkomsel has been steadily expanding its enterprise business in recent years, investing in digital infrastructure and developing managed services tailored to the needs of Indonesian businesses. The partnership with China Telecom Global adds an international dimension to this strategy, enabling the operator to serve customers whose operations extend into the Chinese market and beyond.

For China Telecom Global, the agreement provides an opportunity to strengthen its footprint in Southeast Asia, one of the fastest-growing digital economies in the world. Indonesia, as the region’s largest economy, represents a particularly attractive market for enterprise digital services.

The Telkomsel and China Telecom Global partnership is expected to move into an operational phase in the coming months, with both parties working to identify specific use cases and pilot projects that can be rolled out to enterprise customers. The two companies have agreed to establish joint working teams to drive the collaboration forward and ensure that the services developed meet the requirements of their respective business customers.

Taiwan Financial Supervisory Commission Chairman Peng Jin-lung personally witnessed the signing ceremony, signalling the regulatory body’s strong endorsement of the project. The memorandum was signed by TWSE Chairman Lin Hsiu-ming and Chunghwa Telecom Chairman Chien Chih-cheng at the TWSE Information Exhibition Centre in Taipei 101.

Why the Exchange Needs a New Backup Information Centre

Taiwan’s stock market has seen its total market capitalisation climb among the highest globally, driven by the artificial intelligence wave and Taiwan’s central role in the global semiconductor supply chain. The market now features high liquidity, active foreign investment participation, and a complete technology supply chain. However, diversified market development and rapid shifts in trading volume have placed significant pressure on existing information systems.

The TWSE stated that the construction of the TWSE backup information centre is not solely about enhancing trading security. It will also implement rigorous information security controls to strengthen the broader securities market’s system resilience and response capabilities during emergencies.

Under the current architecture, backup functions are spread across near-site and remote centres, creating complexity in management and resource scheduling. The new dedicated TWSE backup information centre will integrate these dispersed functions into a single facility, improving operational autonomy and independence. The exchange noted this consolidation will allow more effective use of computing resources, expand the cultivation of professional talent, and raise equipment maintenance and management efficiency, all of which contribute to stronger risk control.

Chunghwa Telecom’s Role in the Project

The decision to partner with Chunghwa Telecom was driven by the company’s standing as Taiwan’s largest integrated telecommunications operator and its extensive track record in constructing high-standard data centres. Chunghwa Telecom will bring its information and communications technology expertise to the project, deploying an international-grade green data centre and a robust network topology at the Taichung site.

The TWSE emphasised that the TWSE backup information centre will be built to specifications aligned with global development trends. The aim is to significantly optimise the quality and performance of computer and network systems, achieving ultra-low latency and high concurrent processing capabilities. The exchange’s objective is to bring its trading infrastructure on par with major international exchanges, thereby strengthening its global competitiveness.

Expected Outcomes and the Road to 2029

The TWSE described the project as a phased transformation in both software and hardware facilities, and a crucial milestone for Taiwan’s capital market in aligning with international standards. With trading security and information resilience set to be substantially enhanced, the exchange expects the advanced information foundation provided by the TWSE backup information centre to attract greater foreign investment and more multinational institutions.

The government has been actively pursuing a vision to position Taiwan as an “Asian Nasdaq,” and this infrastructure investment forms part of that broader effort. With completion targeted for 2029, the project represents a significant commitment to ensuring that the exchange’s processing capacity, stability, and operational resilience keep pace with the market’s continued growth.

The launch also supports South Korea’s broader AI for All initiative, which aims to expand access to AI services for citizens while strengthening the country’s domestic AI ecosystem.

SK Telecom A.X K2 targets enterprise AI with efficient model architecture

SK Telecom A.X K2 ranks among the largest publicly released mixture-of-experts (MoE) models, although the company’s emphasis is on efficiency rather than scale alone. The architecture activates only a subset of model parameters during inference, helping reduce computing requirements for large-scale deployments.

To improve long-context performance, SK Telecom introduced three proprietary architectural enhancements, including Sparse Gated Attention, which identifies and filters less relevant tokens to improve processing efficiency. The company also implemented Gated Norm and an attention output gate to enhance training stability and optimise inference performance.

According to SK Telecom, the model delivers an average 32.2-percentage-point improvement across 14 benchmark tests compared with its predecessor, A.X K1. The company also reported an 83.9-percentage-point improvement in long-context and agent-based evaluations, alongside stronger mathematical reasoning and scientific capabilities.

SK Telecom said SK Telecom A.X K2 performs at a level comparable with leading open-weight models such as Qwen3.5 and DeepSeek-V4 for reasoning and agent-oriented workloads.

Enterprise deployments span manufacturing, healthcare and defence

SK Telecom plans to deploy SK Telecom A.X K2 across multiple industries, including manufacturing, healthcare and defence, where organisations increasingly require secure AI platforms capable of processing sensitive data.

Manufacturing applications include production optimisation, predictive maintenance and quality inspection, while healthcare use cases cover literature analysis, drug discovery support and clinical documentation summarisation.

In the defence sector, the model is intended to support intelligence analysis, simulation workloads and multilingual translation within secure computing environments using domain-specific fine-tuning.

Beyond industry-specific deployments, SK Telecom also expects the model to enhance enterprise productivity through document drafting, meeting summarisation and internal knowledge search.

Open-weight release supports South Korea’s AI ecosystem

The Hugging Face release includes model weights and configuration files compatible with widely used inference frameworks, enabling developers and enterprises to build applications using the model.

Alongside the flagship model, SK Telecom announced three lightweight multimodal derivatives built on A.X K2 Light to process combinations of text, speech and images. Among them is A.X K2 Raon-Speech, a 21-billion-parameter speech foundation model developed with KRAFTON AI that combines speech recognition and speech generation capabilities.

The company said the open-weight release supports the Ministry of Science and ICT’s efforts to establish domestic foundation models as strategic national infrastructure while encouraging broader participation from Korea’s software ecosystem.

Although the launch marks a significant milestone for South Korea’s sovereign AI strategy, large-scale deployment of a 688-billion-parameter model will require substantial computing resources. The company has not disclosed details on the computing infrastructure, energy consumption or operational costs associated with running the model, factors that could influence adoption among smaller organisations.

The moves come as global cellular IoT connections reached 4.2 billion at the end of 2025, an 11 percent increase year-on-year according to Berg Insights. That figure accounted for roughly 32 percent of all mobile subscriptions worldwide, and Berg Insights forecasts cellular IoT connections will surpass 5 billion by 2027 and reach 6.5 billion by 2030, reflecting a 9.3 percent compound annual growth rate.

China Mobile and China Telecom Lead on Scale

China Mobile remains the world’s largest cellular IoT connectivity provider, closing 2025 with 1.48 billion connections after 5 percent annual growth. The operator is aligning its telecom IoT strategy 2026 with China’s national IoT development programme, which targets more than RMB 3.5 trillion (approximately US$505.8 billion) in core IoT industry value and 10 billion IoT terminal connections by 2028. The programme also calls for the formulation or revision of more than 50 advanced IoT standards within the same timeframe. China Mobile’s expansion opportunity spans industrial IoT, connected vehicles, smart cities, utilities and satellite-enabled IoT, with low-Earth-orbit satellite communications and direct satellite connectivity positioned to extend coverage beyond terrestrial cellular networks.

China Telecom ranked second globally with 746 million IoT connections, followed closely by China Unicom at 723 million. China Telecom is expanding IoT through its cloud-network integration, industrial digitalisation and 5G IoT capabilities. The operator’s established satellite communications infrastructure gives it a strong position in integrated satellite-terrestrial IoT applications, extending its reach into smart cities, connected transportation and industrial use cases.

China accounted for approximately 2.9 billion cellular IoT connections at the end of 2025, equivalent to around 70 percent of the global installed base.

Western Operators Pursue AI, Satellite IoT and Smart Connectivity

Vodafone retained its position as the largest Western IoT connectivity provider with 234 million connections. The operator’s smart connectivity approach now encompasses 5G Standalone, network slicing, AI and satellite coverage. Vodafone and Topcon Positioning Group are developing a mass-market positioning service capable of centimetre-level accuracy for connected vehicles, machinery and IoT devices, a significant improvement over the few-metre accuracy available from standalone satellite navigation.

AT&T is making AI-driven IoT network intelligence and edge computing central to its enterprise IoT push, with 160 million IoT connections. The operator’s IoT Network Intelligence platform, announced at CES 2026, provides businesses with greater visibility into connected-device performance. AT&T followed that by listing Connected Spaces as its first end-to-end IoT solution on AWS Marketplace, offering plug-and-play sensors and near-real-time monitoring of temperature, humidity, motion and energy consumption across sectors including retail, healthcare and property management. In March 2026, AT&T announced a collaboration with Cisco and NVIDIA on network-driven edge AI for enterprises, combining AT&T’s dedicated IoT core, Cisco Mobility Services Platform and NVIDIA AI infrastructure to bring AI inference closer to where IoT data is generated.

Verizon is building its telecom IoT strategy 2026 around ThingSpace, eSIM, satellite IoT, 5G RedCap, AI analytics and global IoT orchestration. Through partnerships with Singtel, Bell Canada and Telenor IoT, Verizon customers can manage international device connectivity through ThingSpace across up to 200 territories. Verizon reported 240 percent growth in the monthly average for eSIM connectivity on ThingSpace and holds 62 million IoT connections. Skylo provides satellite IoT capabilities where conventional cellular coverage is unavailable.

Bharti Airtel recorded the strongest annual growth among leading operators, reaching 69 million IoT connections. Its focus on smart utilities, smart metering and multi-network IoT connectivity in India includes dual-profile eSIM capabilities and smart meter systems that Airtel says can support millions of customers while delivering a 50 percent reduction in deployment time.

Deutsche Telekom Launches Multi-Orbit IoT Roaming

Deutsche Telekom has announced what it describes as the world’s first multi-orbit IoT roaming service, enabling IoT devices to switch between terrestrial mobile networks and satellite connectivity. The service combines NB-IoT and LTE-M with satellite providers including Skylo for GEO satellite coverage and Sateliot and OQ Technology for LEO satellite connectivity. Iridium NTN Direct is scheduled to become available to Deutsche Telekom business customers during the second half of 2026. Deutsche Telekom holds 69 million IoT connections.

Revenue Growth and Pricing Pressure

Global cellular IoT connectivity revenue grew 5 percent in 2025 to €14.5 billion and is forecast to reach approximately €21.5 billion by 2030 at an 8.1 percent CAGR. However, monthly IoT ARPU fell 7 percent during 2025 to €0.31 and is projected to decline further to €0.28 by 2030, reflecting persistent pricing pressure from competition and rapid growth in low-bandwidth 5G IoT and smart connectivity applications.

North America recorded 321 million cellular IoT connections at the end of 2025, while Western Europe had 313 million. South Asia, Latin America and Central & Eastern Europe each ranged between 93 million and 142 million connections.

Enhancing Regional Transport Infrastructure

The DRS contract is one of four work packages within the broader procurement activity for Stage 1 of The Wave, managed by the Department of Transport and Main Roads. The private 5G platform serves as the core foundation for introducing ETCS Level 2, a highly precise digital signaling technology.

Digital Train Control Implementation

Delivered by Alstom, ETCS Level 2 replaces traditional trackside signaling with continuous communication between trains and control systems. This digital train control requires a reliable, high-availability network, which the new connectivity layer provided by Ericsson is purposefully designed to deliver. The first operational segment of this Digital Radio System will be launched on the Sunshine Coast line, a primary corridor in the state’s broader track upgrade plans.

Network Architecture and Technical Integration

The technology partner’s role encompasses the design, supply, integration, testing, and commissioning of a mission-critical Queensland private 5G network for Sector 1 North of the South-East Queensland rail system. The architecture features a private 5G Radio Access Network (RAN) combined with a geographically redundant 5G Core network, supported by advanced cloud infrastructure. This geographically redundant setup is specifically engineered to ensure uninterrupted, high availability for mission-critical rail communications.

Spectrum Use and Interoperability

Operating on Band n101 using 1900 MHz spectrum, the network provides a pathway toward Future Railway Mobile Communication System (FRMCS) capabilities. FRMCS is the global rail industry’s planned successor to the current GSM-R standard. Furthermore, the platform enables Mission Critical Services (MCX) and satisfies vital interoperability requirements where the metropolitan rail lines interface with the National Network for Interoperability.

Future Capabilities and Project Timeline

Beyond immediate signaling needs, the private 5G platform is built to accommodate future voice, video, and data applications as the system naturally evolves. This structural foundation includes advanced operational functions that extend far beyond the primary ETCS Level 2 use cases.

Ludvig Landgren, Head of Ericsson Australia and New Zealand, stated that the mission-critical platform will directly underpin the region’s next-generation rail communications, supporting safer operations and enabling the implementation of digital train control. He noted that the implementation team is proud to deliver this critical infrastructure for the region ahead of the upcoming Brisbane 2032 Olympic and Paralympic Games.

The Brisbane 2032 Olympic Games will run from July 23 to August 8, followed by the Paralympic Games from August 24 to September 5. The new infrastructure is explicitly scheduled to be operational ahead of these dates. This project represents a practical adoption of mission-critical 5G for essential transport infrastructure in Australia, providing a reference case for integrating this technology into other operational environments.

Aligning with Market Growth

According to Microsoft data, South Africa currently leads the continent in AI usage, followed by neighboring Namibia. While the broader region historically trails behind the global working-age population in terms of adoption, market penetration is projected to rise rapidly. Mordor Intelligence forecasts that the South African AI data center market will expand from $99.37 million in 2026 to $572.63 million by 2031, representing a compound annual growth rate of 41.95%. The Huawei Xinghe portfolio upgrades are positioned to provide the foundational infrastructure required to support this anticipated expansion in the AI data center market.

Transitioning to an Intelligent Network

Vincent Chen, Huawei’s vice president of enterprise business for the Southern Africa region, noted during the event that AI adoption is moving away from pilot explorations and entering real-world deployment phases. This shift is evident in sectors such as public services, finance, and education. Chen highlighted the company’s objective to collaborate with industry partners across Southern Africa to construct an intelligent network that remains secure and reliable for emerging technological demands.

Meeting New Technical Demands

The rapid adoption of AI agents places unprecedented technical strain on existing systems. Leon Wang, president of Huawei’s data communication product line, stated that the necessity for real-time AI interaction, multidimensional data flows, and core business security requires a fundamental shift in infrastructure. Wang described this progression as a move from ubiquitous ultra-broadband toward an AI network transformation characterized by lossless computing power, full-scope security, integrated communication and sensing, and network autonomy.

Cloud-Managed Operations and Security Upgrades

In addition to hardware updates, the vendor is introducing its Xinghe AI CloudCampus SaaS platform to the region. This cloud-managed network operations tool utilizes a pay-as-you-grow subscription model, enabling operators to manage bulk branch deployments without heavy upfront capital expenses.

• Automated Management: A built-in copilot facilitates automated network resiliency.
• Issue Resolution: The system is capable of identifying and resolving approximately 80% of common network issues.

Shi Lei, vice president of the network cloud engine for Huawei’s data communication product line, explained that integrating AI into the cloud management service platform allows small and medium-sized enterprises (SMEs) to utilize features previously reserved for large enterprises. Lei emphasized that this approach makes intelligent network services more accessible, affordable, and actionable for a wider range of businesses.

Agentic AI Security Integration

These recent developments follow the April launch of an agentic AI security tool designed for the Xinghe platform. Known as the Agentic Security Operations Center (SOC), the tool automatically gathers data across routers, firewalls, and network switches. The compiled information is then fed into a unified knowledge graph, allowing the AI to effectively sift through extensive logs spanning multiple network layers.