Industry Thought Leadership

For decades, telecom’s growth followed a predictable path: acquiring subscribers, increasing data consumption, and watching revenue climb. That model, however, is losing steam. A new engine is accelerating that fuelled not by mere connectivity, but by digital experiences that users actively value and are willing to pay for.

The Middle East has established itself as a global pioneer in 5G-A and AI-driven digital transformation, demonstrating strategic foresight, relentless innovation, and an strong commitment to shaping the future of connectivity.

At the heart of this transformation are two ground-breaking forces: 5G-Advanced (5G-A) and the exponential rise of AI. Together, they are reshaping telecom, redefining how networks operate, and ushering in an era where monetization is built around what users can do, not just how much data they consume. This shift ultimately supports operators’ evolution from traditional telcos to techcos in the AI era.

5G-A: The Evolution Beyond Speed
Forget incremental upgrades, 5G-A is a strategic leap forward. Built on 3GPP protocols, it pushes the boundaries of real-world network performance. This transformation is not theoretical; deployments in China, the UAE, and Finland are already driving measurable results, with average revenue per user (ARPU) increasing by up to 11%.

The power of 5G-A lies in its ability to enhance core network capabilities. With super downlink speeds reaching up to 5 Gbps per user, smartphones transform into high-performance endpoints, making mobile AR gaming, holographic calling, and multi-angle live streaming seamlessly possible. The uplink experience has also been radically improved through AI-driven scheduling, dynamically adjusting resource allocation for bandwidth-heavy applications like live streaming and drone inspections. Multi-User MIMO (MU-MIMO) amplifies efficiency by supporting eight-stream parallel transmission, boosting uplink capacity to four times that of 5G and eliminating longstanding network bottlenecks.

In addition to speed and capacity, ultra-low latency and deterministic communication define the next generation of connectivity. End-to-end latency now reaches as low as 10–20 milliseconds, meeting stringent requirements for industrial automation and remote-controlled robotics. Enhanced URLLC technology, promising 99.999% reliability and centimetre-level positioning, ensures precision-demanding applications like machine vision and autonomous factory operations run without disruption. These breakthroughs are not mere laboratory achievements; more than 60 commercial devices already support 3CC, proving their viability in real-world scenarios.

AI’s Rise: Welcome to the Internet of Autonomous Agents
While 5G-A strengthens network infrastructure, AI is revolutionizing human-tech interaction. Instead of navigating apps manually, users are now engaging with AI-driven agents that anticipate needs, resolve complex queries, and even perform tasks autonomously.

Telecom is no longer just about providing connectivity; it is about enabling purpose-driven digital experiences. AI is reshaping how people live, learn, work, and play, and operators who embrace this shift will lead the industry into its next evolution.

The ecosystem has expanded rapidly, growing from 30 major language models in 2023 to over 200 in 2025, each fuelling smarter digital assistants. These AI systems can edit films in real time, generate hyper-realistic deepfake actors, manage schedules and finances, and optimize large-scale data libraries. However, their efficiency hinges on fast, deterministic networks that reduce jitter, dynamically scale performance, and ensure reliability. 5G-A delivers precisely this, paving the way for AI-driven scenarios like real-time proxy participation in business meetings or interactive customer service calls without human intervention.

Experience Monetization: The Next Frontier
Traditional telecom revenue models relied on selling data buckets and voice minutes, but that approach is quickly becoming obsolete. Surveys reveal that 68% of users are willing to pay for guaranteed quality, 53% subscribe to scenario-specific enhancements like gaming performance boosts, and 35% of AI users increase spending when offered value-added features.

Surveys reveal that 68% of users are willing to pay for guaranteed quality, 53% subscribe to scenario-specific enhancements like gaming performance boosts, and 35% of AI users increase spending when offered value-added features.

This shift has led to a three-tier monetization model. The first focuses on speed-based tiers, where operators offer guaranteed throughput, such as KPN’s 600 Mbps and 1 Gbps plans, which have lifted ARPU by 15%. The second revolves around scenario-specific plans, bundling optimized services for gamers, streamers, and remote workers, helping drive AIS’s 5G adoption surge from 20% to 35% in just 12 months. The final tier introduces AI-enhanced packages, providing users with premium AI assistants, predictive analytics, and exclusive digital experiences. In Shanghai, China Mobile’s VIP packages boosted premium user retention by 10%, reinforcing the demand for curated, high-value digital ecosystems.

Engineering the Invisible
Delivering premium experiences requires an AI-native network stack that intelligently orchestrates service delivery. AI-powered RAN intelligence prioritizes traffic dynamically, ensuring VIP users receive three times higher weighting during congestion periods. Huawei Smartcare platform enables real-time monitoring of individual user KPIs, allowing operators to resolve issues before they impact customer experience. Service quality metrics are evolving beyond simple speed guarantees, incorporating responsiveness, jitter minimization, and energy efficiency—all crucial for next-generation applications.

Delivering premium experiences requires an AI-native network stack that intelligently orchestrates service delivery. AI-powered RAN intelligence prioritizes traffic dynamically, ensuring VIP users receive three times higher weighting during congestion periods.

Innovations like network digital twins and intent-based orchestration empower operators to simulate and enforce quality standards proactively, shifting from a reactive model to predictive service assurance. These breakthroughs will redefine network management, ensuring users receive consistently optimized experiences instead of raw data access.

The Shift from Connectivity Provider to Experience Orchestrator
Telecom is no longer just about providing connectivity; it is about enabling purpose-driven digital experiences. AI is reshaping how people live, learn, work, and play, and operators who embrace this shift will lead the industry into its next evolution.

Instead of simply offering bandwidth, the future belongs to operators capable of slicing networks into ultra-personalized services, dynamically adapting quality based on individual user needs, and supporting AI-driven applications that demand ultra-low latency and compute proximity. 5G-A is not just an upgrade, it’s the foundation for future connected intelligent world, a future where communication and sensing merge seamlessly, integrating contextual awareness directly into networks. Telecom leaders who master experience monetization today will position themselves for the next technological leap.

Final Thoughts: Telecom’s Defining Moment
Winning in this landscape demands more than just technical prowess, it requires vision, leadership, and ingenuous innovation. The technology is ready, and the demand is indisputable. What is needed now is a shift in mindset.

The operators that will thrive in this era will treat AI as a strategic partner rather than a standalone product, see 5G-A as a foundation for transformation rather than just another upgrade, and recognize that customers are not passive data consumers but creators of experiences.

Experience is no longer a by-product of connectivity; it is the product itself. With 5G-A and AI converging, telecom operators now have the tools to sell it not as a commodity, but as a differentiated, scalable, and premium service.

The operators that will thrive in this era will treat AI as a strategic partner rather than a standalone product, see 5G-A as a foundation for transformation rather than just another upgrade, and recognize that customers are not passive data consumers but creators of experiences.

The Middle East has established itself as a global pioneer in 5G-A and AI-driven digital transformation, demonstrating strategic foresight, relentless innovation, and an strong commitment to shaping the future of connectivity. Nations like the UAE, Saudi Arabia, and Qatar have embraced next-generation technologies as catalysts for economic diversification, smart city development, and industrial modernization, effectively leveraging telecom advancements to fuel broader societal progress. Their proactive spectrum allocation, robust regulatory frameworks, and strategic investments have enabled the seamless integration of cutting-edge telecom infrastructure, setting a new global benchmark for technological excellence.

At the heart of this transformation are telecom powerhouses such as e&, stc, Zain and Ooredoo, collaborating with technology leaders like Huawei to revolutionize regional connectivity. By deploying 5G-A network and AI-Enabled network optimization and superior experience-driven solutions, these operators are not only enhancing service reliability but also unlocking new monetization opportunities through 5G-A and AI. Their pursuit of AI-integrated applications across different industries, has redefined the role of telecom providers as techcos.

This evolution signals a fundamental shift from traditional telecom operations to comprehensive digital ecosystem enablers, positioning Middle Eastern operators at the forefront of global leader in 5G-A deployment and techco transformation. By prioritizing experience-based service offerings and leveraging 5G-A and AI, operators can deliver highly personalized and industry-specific digital services, actively shaping the future of intelligent connectivity. Their ability to monetize superior customer experiences, leverage real-time insights, and enable AI-powered service innovation ensures sustained revenue growth while solidifying the Middle East’s reputation as a powerhouse in the global techco revolution.