Telco Industry Moves Toward Infrastructure Consolidation and Digital Service Monetization

The telecommunications industry is entering a new phase of transformation in which the focus is gradually shifting from pure network expansion to more efficient capital management, monetization of digital services, and new investment models. According to Dejan Ljuština of Vision Partners, one of the most visible trends is infrastructure consolidation—though not necessarily through reducing the number of operators in the market, but rather through shared ownership and management of network assets. 

Ljuština explains that telecom operators will increasingly need new financing models and infrastructure-sharing strategies as the cost of building and maintaining next-generation networks continues to rise. “There will be consolidation in the telecom market, but not in terms of reducing the number of players—rather through capital and infrastructure consolidation,” he says. At the same time, the deployment of 5G networks has reached a significant level of maturity, while discussions about the next generation of mobile networks are already intensifying.

This shift brings growing financial pressure for telecom operators. Maintaining high investment levels in network infrastructure is becoming increasingly challenging, particularly as operators expand into new digital services and technological platforms. “Capital will still be required, and CAPEX will remain high,” Ljuština notes. As a result, new models of infrastructure cooperation are expected to emerge, including joint ventures around towers, passive infrastructure, and regional infrastructure partnerships.

Such approaches have already started to appear in the mobile segment and could become more common in fixed networks as well. “We will see more regional consolidation and expansion of infrastructure players into additional markets,” Ljuština says, adding that operators may struggle to maintain current levels of investment on their own over the long term.

At the same time, telecom companies are undergoing a broader transformation of their business models. Increasingly, they are positioning themselves as platforms for digital services and advanced technology solutions. “Telecom operators are now present in both the infrastructure and service segments,” Ljuština explains. Infrastructure must remain reliable and scalable, while new value is increasingly created through enterprise solutions, private networks, and digital services.

Artificial intelligence is becoming a key enabler of that transformation. Ljuština believes the industry has already moved beyond experimentation and pilot projects and is now entering the stage of full-scale implementation. “AI is no longer in the domain of pilots and experiments—we are entering the phase of scaling and deployment,” he says. However, he stresses that AI initiatives must generate measurable value rather than serve as technological demonstrations.

According to Ljuština, three main areas are emerging as sources of value creation for telecom operators. The first is the monetization of infrastructure through network-sharing models and edge locations. The second involves the use of artificial intelligence to improve operational efficiency and reduce costs. The third is the development of new enterprise services, particularly private networks and advanced connectivity solutions for businesses.

Another important development is the growing convergence between satellite connectivity and terrestrial telecom networks, which opens new possibilities for global connectivity and next-generation services.

From a regional perspective, Ljuština sees Central and Southeast Europe as particularly attractive for investors. “Valuations are lower than in Western Europe, and digital service penetration is also lower, which means there is more room for growth,” he says. As a result, the region is becoming increasingly interesting for infrastructure funds and long-term technology investors.

Looking ahead, Ljuština believes three major themes will shape the telecom sector in the coming years: large-scale AI deployment, deeper integration between satellite and terrestrial networks, and the gradual development of 6G technologies. “The emergence of 6G through the concept of a sensing economy opens an entirely new space for growth and monetization,” Ljuština concludes.