Cloud & 5G LIVE 2025: Ooredoo Executive Directorâs Keynote
At Cloud & 5G LIVE 2025, Bharat Vagadia, Executive Director of Regulatory Affairs at Ooredoo delivered the closing keynote on 5G’s role within the digital ecosystem.
He explored the challenges facing mobile operators, the economic significance of connectivity and the key investment areas that could define the future of telecommunications.
The digital ecosystem: Why connectivity is the foundation
Bharat began by outlining the complexity of the digital ecosystem, which includes AI, IoT, blockchain, smart cities, autonomous vehicles and digital twins. While these technologies continue to evolve, connectivity remains the bedrock that enables their functionality.
"Without connectivity, none of these innovations can exist," he stated.
The impact of mobile technology is evident, contributing 5.5% of GDP in the MENA region and generating 1.3 million jobs. In advanced digital economies, digital services account for up to 15–20% of GDP, further reinforcing the importance of strong network infrastructure.
Despite this, Bharat highlighted a critical issue: the gap between coverage and usage. In 2023, 47% of the MENA population had mobile coverage but did not use mobile internet.
This usage gap is often driven by affordability, lack of awareness, or a lack of relevant services. Addressing this issue is key to ensuring that digital transformation benefits the widest possible audience.
Challenges in 5G rollout and monetisation
Governments globally have been pushing for 5G expansion, seeing it as essential for the future digital economy. However, Bharat pointed out that while 5G coverage is increasing – reaching 90% in some GCC countries – actual adoption is lagging.
One of the biggest challenges facing mobile operators is the financial strain of 5G deployment. He outlined a concerning industry trend:
- Data usage is growing exponentially, yet revenues remain stagnant or are declining.
- Capital expenditure (CapEx) requirements are rising, but mobile operators are not seeing increased financial returns.
- Investor confidence in telcos is decreasing, with market capitalisation of European telcos falling 40% from 2015 to 2021, while major digital platform companies saw growth of up to 400%.
The key issue, he noted, is that while the digital economy is expanding, telecom operators are capturing only 2% of that growth, while large digital platforms take 80%.
This imbalance has led to an investment black hole, slowing down 5G infrastructure deployment, particularly in Europe.
What can be done? The path to sustainable 5G investment
Bharat pointed out that the US has managed to monetise 5G better than Europe due to a more favourable regulatory environment and successful bundling of digital services.
European telcos, in contrast, face challenges such as:
- Strict net neutrality rules and wholesale regulations that limit revenue opportunities.
- Heavy sector-specific taxes and spectrum costs, making it expensive to roll out 5G.
- A highly fragmented market (with 70–80 operators in Europe vs. just three main operators in the US), reducing economies of scale.
He also addressed the "fair share" debate, where telecoms are advocating for large digital platforms – who benefit from network infrastructure – to contribute financially to network expansion. While this discussion has gained traction in Europe, Brazil, South Korea, India and Indonesia, progress has been slow.
Key investment opportunities for telcos
Despite these challenges, Bharat identified two major areas of investment that could help telcos unlock new revenue streams:
1. Opening up networks with APIs
One of the most promising avenues for telecom operators is network API monetisationâallowing businesses to tap into network capabilities to enhance their services.
For example, telcos could work with banks to improve security at ATMs. By using mobile location data, operators can verify whether the person withdrawing cash is a legitimate cardholder, reducing fraud.
This kind of real-world application of network intelligence could create new revenue streams for operators while enhancing security.
McKinsey research suggests that young consumers are willing to pay for 5G boosters to improve gaming or streaming quality, potentially generating an additional $7 per user per month. This highlights the opportunity to move away from "faster speeds" as the primary selling point towards delivering premium quality experiences.
2. Investing in data centres and AI infrastructure
The second major investment opportunity is in data centres, which are seeing growing demand due to the rise of AI, cloud computing and edge processing. Bharat pointed out that:
- AI-driven services require high-speed, reliable connectivity, making telecom infrastructure essential for the AI boom.
- Investors are increasingly focusing on data centre capacity, recognising it as a critical enabler of digital transformation.
- Telecom operators are carving out their data centre businesses to maximise investment potential, with some raising up to $1bn to expand this sector.
By pivoting towards AI infrastructure and cloud services, telcos can capture more value from the digital ecosystem, rather than just providing the underlying connectivity.
The road ahead: Moving from connectivity to value creation
Bharat closed his keynote with a clear message: 5G success depends on business model innovation, not just infrastructure deployment.
To secure long-term growth, telecom operators must:
- Monetise 5G through APIs and premium experiences, rather than just selling "faster speeds."
- Strengthen partnerships with AI and cloud companies, ensuring that telcos benefit from the digital economy.
- Advocate for regulatory changes that allow fairer revenue distribution across the digital value chain.
As the event came to a close, Bharat’s keynote provided a thought-provoking look at the realities of 5G deployment – highlighting both the immense opportunities and the structural challenges that must be addressed.
Essential diary dates for 2025
Discover the essential diary dates for Mobile Magazine, as well as its sister publications – Cyber Magazine, Data Centre Magazine and Technology Magazine.
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- Data Centre LIVE | 25 March
- Tech & AI LIVE London + Cyber LIVE London| 14-15 May
- The Global Tech & AI Awards | 14 May
- Tech & AI LIVE: Gen AI | 21 October
- Tech & AI LIVE New York | 18 November
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