Verizon, AT&T, and T-Mobile aren't what you think they are anymore

Basically, the telecom market is no longer shrinking. Sure, telcos aren’t reporting massive double-digit jumps in revenue or profit, but they are now seen as stable, money-generating businesses – something investors definitely like.

Omdia’s data shows that telecom revenue is expected to grow at a 2.8% CAGR between 2025 and 2030, while the industry has already delivered two straight years of record free cash flow – over 17% of total sales. At the same time, capital expenditures (capex) are dropping, heading toward just 15% of revenues.

But it’s not all good news. Even after years of automation, job cuts, and pushing for greener, more efficient operations, the actual operating expenditure barely moved – down only 0.2% in 2024 – and seems to be stuck there. AI investments, especially in generative and agentic AI, haven’t yet made the impact everyone hoped for, and it’s still too early to tell if those billions will pay off in the long run.

Omdia also asked operators where they believe AI will first and most strongly make a difference. The first area? Customer care, no surprise there. Telcos are already using GenAI tools to automate responses and improve support. Down the line, though, network operations are expected to see the biggest AI-driven transformation.

And most carriers are already deep in it. Verizon has kicked off Project 624, an AI-powered customer service overhaul designed to make query handling faster and smoother. It’s also using AI in public safety projects.

Meanwhile, with the help of AI, AT&T is teaching its network to predict and react in real time, improving stability and response times. And T-Mobile wants to build an AI-powered architecture for 6G, setting the foundation for smarter future networks.

Still, no one really knows if all this AI talk will translate into better business – or just end up as another buzzword phase.

Meanwhile, carriers are finding new ways to make money beyond data plans. They’re charging for different gigabit speeds, home gaming tiers, smarter routers, and extra Wi-Fi access points. Many are even branching into smart home services – think energy management, home security, and multi-room video setups.

The whole industry is moving beyond telecoms. Telcos are now providing AI infrastructure like data centers, GPU-as-a-service, AI-powered colocation, and edge AI.

They’re also rolling out productivity tools – AI assistants, AI-driven network management, and even GenAI products for both businesses and regular consumers.
Sure, some of these tools frustrate employees and customers alike, but they’re now part of the bigger strategy to make telecoms more than just “your phone carrier.”

Carriers are becoming more than phone companies

If you’ve noticed your carrier suddenly offering home internet, gaming perks, or “smart home bundles,” that’s not random. Operators are shifting focus and expanding beyond just mobile service.

Even T-Mobile Mint Mobile recently jumped into the home internet space for the first time, marking yet another move in this new “beyond connectivity” era. The big three in the US – Verizon, AT&T, and T-Mobile – are all slowly evolving into full-on tech ecosystems rather than just data providers.

The future might not be perfect, but it’s looking brighter

Let’s be honest – most of us don’t have warm feelings about our phone carriers. But like it or not, we rely on them more than ever in this connected world. Hopefully, once the industry is done stabilizing and profits are back to where they want them, maybe – just maybe – they’ll start seeing us as actual users again, not just numbers on a spreadsheet.

Wishful thinking? Yeah, probably. But one can dream.

"Iconic Phones" is coming this Fall!