How AI could help telecoms move beyond utility status

As internet connectivity becomes deeply embedded in everyday life, telecom services are increasingly being seen as a basic utility rather than a differentiated offering. Consumers now expect reliable connectivity as a given and are often willing to switch providers in search of lower prices or marginal service improvements. According to Anil Sharma, Vice President and Customer Unit Leader at Kyndryl India, this commoditisation has left telecom operators with limited room to stand out in an already saturated market.

“Connectivity has become essential to daily life, but that very ubiquity has turned telecom services into a commodity,” Sharma said. “When customers view telecoms purely as a utility, loyalty weakens and price becomes the primary differentiator.”

To counter this trend, Sharma believes artificial intelligence could offer telecom operators a critical opportunity to redefine their role and value proposition. He pointed to Kyndryl’s 2025 Readiness Report, which shows that telecom companies increased their AI investments by 41% over the past year, the highest growth among all industries studied.

“Telecom leaders who embrace AI gain a significant advantage,” Sharma said. “From machine learning to agentic AI, these technologies can help operators personalise services, improve customer experiences, and build stronger, longer-term relationships.”

Could 2026 mark the rise of the telecom super-app?

One area where AI-driven transformation could become visible to consumers is the emergence of telecom super-apps. Across industries, nearly 40% of businesses already use super-apps, digital platforms that bring multiple services together under one interface. Sharma noted that telecom operators are now exploring similar models to deepen customer engagement beyond basic connectivity.

“Super-apps create a digital ecosystem where customers interact with a brand in multiple ways, not just to pay bills or check data usage,” he said. “For telecoms, this could be a gateway to innovation and relevance in a digital-first economy.”

According to Sharma, the timing may be critical. As super-apps increasingly become central platforms for essential digital services, telecom operators that fail to adapt risk falling behind. “This could be the difference between reinvention and irrelevance,” he added.

Network-as-a-Service and the shift to enterprise growth

Beyond consumer-facing innovation, Sharma sees major transformation underway in enterprise telecom services, particularly through the Network-as-a-Service (NaaS) model. NaaS offers on-demand, flexible network capabilities similar to cloud computing, allowing enterprises to scale and adapt connectivity based on real-time needs.

“The Network-as-a-Service market could reach USD 270 billion over the next decade,” Sharma said. “Telecom operators that move early have the opportunity to capture significant value.”

He also highlighted the growing role of AI in network operations, noting that network operations centres are becoming increasingly autonomous. AI-driven optimisation and predictive troubleshooting, he said, will be essential as networks grow more complex.

“AI will be at the heart of how telecom networks operate in the future,  from performance optimisation to faster fault resolution,” Sharma said. “Operators that invest now will be better positioned as the industry shifts towards intelligent, software-driven networks.”

As telecom companies look beyond traditional connectivity revenues, Sharma believes AI, super-app ecosystems, and Network-as-a-Service models will define the next phase of industry evolution. “Telecoms have an opportunity to move beyond being utilities,” he said. “Those that act decisively could shape a future built on innovation, experience, and intelligent services rather than price alone.”