IBM Study: 79% of Telcos Prioritise Network Performance

The IBM report "Rewiring the Telecom Mindset: How CSPs are Gaining Network Advantage with Cloud and AI" (2025) provides an in-depth analysis of cloud and Artificial Intelligence (AI) adoption across 750 global communication service providers (CSPs). While not positioned as an annual publication, the study builds on previous IBM-GSMA research, offering continuity in tracking major industry trends—such as a fourfold increase in the deployment of generative AI.

The study conducted by the IBM Institute for Business Value in collaboration with GSMA Intelligence explores how leading CSPs are significantly increasing investments in cloud infrastructure, AI technologies and network security to navigate today's increasingly complex and competitive telecommunications environment.

The insights are drawn from senior network executives representing some of the world's most influential telecom providers, including Bharti Airtel, Deutsche Telekom, Telstra, Verizon and Vodafone. They offer a global perspective on how innovation in cloud and AI is reshaping the industry's future.

Network performance takes centre stage

One of the study's most prominent findings is the overwhelming emphasis placed on network performance.

An impressive 79% of executives cited it as their top priority, with network modernisation closely following.

As telecommunications networks become more data-intensive and customer expectations continue to grow, providers are turning to cloud-enabled architectures and AI-powered operations to deliver seamless performance, scalability and real-time agility.

Cloud and AI adoption gaining ground

The study finds that CSPs identified as pioneering technology innovators are significantly ahead in deploying AI for network optimisation.

Sixty-two per cent of these innovators use traditional AI for network planning, compared to only 40% of their peers.

Additionally, 54% of innovators are already integrating generative AI into network planning — double the rate of other providers.

The advancements point to the growing value of cloud readiness, which provides the agility and resource elasticity needed to support next-generation AI capabilities.

AI and cloud have become essential enablers for operators looking to drive efficiencies and unlock new revenue models.

Security concerns persist amid rising threats

Security remains a critical concern, with 55% of CSPs reporting at least one network breach in the past 12 months.

However, only 42% of executives consider network security a top priority for the next three years, suggesting a potential disconnect between perceived risk and actual threat exposure.

As network complexity increases with the integration of new technologies, the study recommends that CSPs take a more proactive approach to threat management and resilience planning.

Investment priorities point to a long-term vision

Over the next three years, network executives expect to significantly scale their investments in key technologies.

The projections reflect a strategic shift towards digital infrastructure capable of supporting innovation and differentiated services in both consumer and enterprise markets.

Beyond technology, the study stresses the importance of organisational mindset.

CSPs are encouraged to adopt a culture of innovation, emphasising collaboration, experimentation and risk-taking to drive transformation.

Rahul Kumar, Senior Partner, Vice President and Global Industry Leader for Telco and Media Industry at IBM, says: "Telecommunications companies that adopt a cloud and AI-driven approach will be better equipped to navigate the complexities of the modern network landscape and capitalise on emerging opportunities.

"By rewiring their mindset and embracing a culture of innovation, CSPs can unlock significant benefits and stay ahead of the curve."

Peter Jarich, Head of GSMA Intelligence, adds: "The study's findings underscore the critical role that cloud and AI will play in shaping the future of telecommunications.

"As the industry continues to evolve, it's clear that CSPs must prioritise network modernisation, enhancing security and innovation to remain competitive and drive growth."

The IBM and GSMA Intelligence study offers telco leaders a compelling call to action.

By embracing AI, cloud and a forward-thinking culture, CSPs are not just improving performance — they are reshaping the future of connectivity.

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