Jeff Kagan says AI is reshaping telecom competition

Industry analyst Jeff Kagan says artificial intelligence and 5G are changing how telecom, wireless, broadband and pay TV companies operate, compete and grow. He argues the gap will widen between carriers that invest in AI now and those that move too slowly. Why it matters: - AI is becoming a core competitive tool across telecom, wireless, broadband and pay TV. - The shift affects customer service, network performance, product development, troubleshooting, costs and profitability. - Kagan says companies that move faster on AI and 5G are likely to gain an edge over slower rivals. - Investors, employees, consumers and business customers could feel the impact through better service, lower costs and sharper competition. What happened: - Industry analyst and strategic advisor Jeff Kagan said AI and 5G are rapidly transforming the telecommunications industry. - Kagan said companies are using AI throughout the telecom ecosystem to improve service, strengthen networks, create new offerings and reduce costs. - Kagan said nearly 90% of telecommunications companies are using AI in some capacity. - Kagan said roughly half of telecom companies are experimenting with AI technologies. - Kagan said about 40% are actively deploying AI solutions across operations. The details: - The telecom industry has already gone through major transitions, including the breakup of AT&T, the split between local and long-distance service, the rise of wireless, the growth of the internet and broadband, and the move from analog to digital networks. - Kagan said smartphones, led by Apple iPhone and Google Android, also reshaped the market. - Those shifts reduced the industry from hundreds of smaller providers to fewer, larger companies with national service portfolios. - Current competitors named include AT&T, T-Mobile, Verizon, Xfinity, Spectrum, Altice, Cox, Nokia, Ericsson, Cradlepoint, Boldyn Networks, Betacom, Celona, Cisco, Qualcomm, Huawei, SpaceX, Starlink, SoftBank, Vodafone and Orange. - Kagan said the industry is entering another transformational era driven by AI. - Kagan said some companies are treating AI as a core strategic priority, while others are moving more cautiously because of limited investment, expertise or focus. Between the lines: - The comments frame AI less as a new feature and more as a sorting mechanism for winners and laggards. - That suggests the next competitive gap may come from execution speed, not just network size or brand strength. - The telecom sector has adapted through earlier technology waves, but Kagan is signaling that AI may reward companies willing to reorganize operations around automation and data. What’s next: - Kagan expects the performance gap between AI adopters and slower movers to widen over the coming years. - He says future industry leadership will be shaped by how aggressively companies invest in and deploy AI and 5G today. - Kagan is available for additional commentary or interviews at jeff@jeffkagan.com. - More information is available on Jeff Kagan’s website , LinkedIn profile and X account . The bottom line: - In Kagan’s view, AI is now a defining test for telecom companies trying to stay competitive in the next industry cycle.