Capgemini Explores 5G & Smart Cities at Cloud & 5G LIVE 2025
The global state of smart cities
In a fireside chat at Cloud & 5G LIVE 2025, Anastasia Karatrantou discusses the current state of smart cities and their relationship with 5G adoption.
She explains that while smart services and capabilities are being developed worldwide, there are varying levels of maturity.
Some cities are still in the proof-of-concept phase, while others have rolled out advanced smart services.
However, the integration of 5G into these systems is not yet universal.
“[..] Not so technically, but more from a commercial aspect. Or we have seen the mature rollout of services and proper, smart services, let's say for cities and so around the world, but not necessarily that encompass all the technologies that make up, the smart city portfolio.”
Different regions are progressing at different rates.
Asia, particularly Singapore, has embraced smart city technologies at scale, with both private organisations and governments driving innovation.
In contrast, Europe is still defining its approach, with regulation playing a key role in shaping deployment.
“Most part of Eastern Europe still relies heavily on 4G. So how can we talk about smart cities when we are still using previous generations of communications?” she asks.
Regulations, while important for protecting citizens, sometimes slow down innovation, and the fragmentation of telecom providers in Europe makes large-scale investment more challenging.
Key challenges and opportunities
Anastasia highlights some of the main challenges in smart city development, including investment, collaboration and the complexity of city infrastructure.
One of the biggest hurdles is defining who should invest in smart city solutions.
Telcos and governments are the two primary players, but while the US has a few dominant telecom companies capable of making large investments, Europe has a more fragmented landscape, making it harder to scale.
“it's critical to work with these organisations that are defined and established in a way that can incubate innovation," she explains.
“But again, they need the support from bigger actors in the ecosystem so they can anticipate demand and build and tailor their products based on that.”
Despite these challenges, Anastasia remains optimistic about the opportunities ahead.
She sees particular potential in vehicle-to-everything (C-V2X) communication, which enables vehicles to interact with each other and city infrastructure.
“I think that provisioning those capabilities will effectively lead to fewer accidents happening, and safer roads. So I think that is a key area where we need to focus and it might not sound as fancy or neat, but I think it can have great potential, in societies,” she says.
Another crucial aspect is real-time data availability, which can improve daily experiences for city dwellers.
From optimising transport to providing environmental updates, data-driven smart services can enhance urban life.
The role of ecosystem collaboration
The development of smart cities depends on collaboration between multiple stakeholders, including governments, telcos, infrastructure providers, automakers and technology companies.
Anastasia emphasises the importance of bringing these players together to create a unified ecosystem.
She also discusses the challenges in aligning automakers on C-V2X technology.
With each company having its innovation agenda and financial considerations, achieving industry-wide cooperation is not easy.
However, there are promising developments. Anastasia points to projects like the 5G open road initiative in Paris, which tested autonomous delivery services in real-world traffic conditions.
The project highlighted the technical feasibility of such solutions but also underscored the need for a strong business case.
“Who is supposed to be to pay for this new service?” she asks.
Looking ahead: The future of smart cities and 5G
Anastasia is optimistic about the future of smart cities, particularly as 5G adoption accelerates. She expects to see fewer proof-of-concept trials and more large-scale deployments with measurable KPIs.
“I feel confident for 2025. I think, we have been slow in Europe, but I see acceleration and I see actors coming together.”
As smart cities continue to evolve, she sees an increasing role for governments in facilitating investment and creating regulatory frameworks that encourage innovation while protecting citizens.
With 5G becoming a foundational technology for urban development, the conversation around smart cities is only just beginning.
As Anastasia points out, the progress made today will shape the cities of tomorrow.
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