MWC 2025, Monday 3 March

Today MWC 2025 officially opened its doors, bringing a mix of bold industry moves and ongoing challenges. Operators showcased innovations in AI, satellite connectivity and network resilience, but also used the event to push for regulatory reform.

Operators Rail Against Regulation Once Again

The conference programme at MWC 2025 kicked off in familiar fashion with operator CEOs protesting about overzealous regulation. The morning keynote sessions saw new Telefonica CEO Marc Murtra quickly follow the time-honoured script, calling for European regulators to take a more lenient view on industry consolidation to help the region’s operators regain influence compared with peers in North America and developed parts of Asia.

Bharti Airtel’s Sunil Mittal pleaded for lower “taxes” on the industry, bemoaning the high cost of mobile spectrum in many markets. Pointing out that sector return on capital is only about 4%, he joked “we may as well put the money in the bank and go and play some golf”.

The theme continued during an afternoon keynote presentation with the CEOs of Europe’s largest operators, moderated by CCS Insight’s executive chairman, Shaun Collins. They presented a series of proposed reforms including moving toward a single market for telecom, new spectrum policy, clarity on Net neutrality and contributions to network investments from big technology companies.

After the recent approval of major mergers in Spain and the UK and following the publication of the Patrick Drahi report into EU competitiveness, which made several pro-sector recommendations, there had been a sense that regulatory sentiment was slowly shifting. However, today’s sessions showed that the topic remains as sensitive as ever among operators.

Vodafone and AST SpaceMobile Launch Joint Satellite Company

Vodafone, a major investor in AST SpaceMobile, is seeking to capitalize on its stake by enabling European operators to rapidly deploy direct-to-device satellite services. To achieve this, the two companies have formed a jointly owned satellite company, which they refer to as SatCo, offering a turnkey solution for network management and operations, including the construction and operation of ground stations. This marks the latest in a series of developments in the satellite market (see Significant Satellite Developments Continue ahead of MWC 2025).

This initiative is particularly beneficial for tier-two European mobile operators that lack the time and resources to independently develop and integrate satellite connectivity alongside their terrestrial networks. The joint venture will also handle challenges such as deployment of ground stations and negotiating regulatory approvals, leaning on Vodafone’s recent experience in the UK.

This is a timely move because SpaceX Starlink and T-Mobile US now have a beta test up and running in the US. AST SpaceMobile will be keen to establish a foothold in Europe early, with the SatCo keen for exclusivity in return.

Vodafone and AST SpaceMobile are targeting a commercial launch in Europe by 2025 or 2026, a move that could set a precedent for other European telecom operators looking to enter the direct-to-device satellite market in a similar time frame. Our Spotlight report offers full analysis of the satellite communications market (see here).

Qualcomm Launches X85 5G Modem-RF Platform

Qualcomm used MWC 2025 to announce its eighth-generation 5G modem-to-antenna solution. It’s also the company’s fourth generation of AI-powered 5G connectivity platforms. MWC has become the stage for the chipmaker’s flagship modem announcement in recent years, with integration into flagship system-on-chips generally following six months later. CCS Insight expects a similar cadence with its next-generation flagship Snapdragon platform integrating the X85 in addition to other platforms for automotive, PCs and fixed wireless access. Qualcomm also announced its X82 5G Modem-RF solutions for use in mobile broadband applications.

Although connectivity has been less prominent in Qualcomm’s narrative over the past 12 to 18 months amid increased focus on capabilities in AI, the X85 is a reminder of Qualcomm’s connectivity leadership. Its timing is also important given Apple’s recent launch of its C1 modem (see our analysis here). The X85 brings 400 MHz bandwidth (the widest of any modem to date), more than 10,000 frequency band combinations using carrier aggregation, and is the first modem to include support for European railways through the Future Railway Mobile Communication System. It offers theoretical download speeds of up to 12.5 Gbps and uploads of 3.7 Gbps.

With the 3GPP standard-setting process for 6G getting underway in spring and competition increasing, this is an important time for Qualcomm to be advancing its modem and radio frequency capability, and presenting its vision for the path to the future of wireless connectivity.

Will Mobile Operators Rise to Shape Their Software-Driven Future?

MWC 2025 delivered a reality check for telecom operators, which have long seen their market share and revenue eroded by software players and cloud hyperscalers. Now, the industry is learning from them, embracing open systems, collaboration, modular API architectures and disruptive thinking to reclaim growth. Open Gateway is a crucial step forward, but will operators seize the opportunity, or will they again cede control to software-native players better equipped to generate revenue APIs?

Operators like e&, under CEO Hatem Dowidar, showcased their journey and a blueprint for success — transforming beyond connectivity into fintech, AI, cybersecurity and cloud services. Its bold restructuring; strategic partnerships with Amazon Web Services, Microsoft and Ericsson; and investment in open AI ecosystems demonstrate that innovation and revenue generation can coexist.

The real test for operators at MWC is how well they can take advantage of Open Gateway APIs to compete on equal footing with software players. They must also prove they have a long-term revenue growth strategy, rather than just playing catch-up.

So, if operators want to reclaim their share of value and revenue generation, they must redefine themselves — not just as network providers, but as integral partners in the software-driven future. The question facing telecom operators at MWC is straightforward: are you shaping the future, or watching it happen?

Deutsche Telekom Unveils Network AI Agent

Dubbed RAN Guardian, the agent was built on Gemini AI in partnership with Google. It aims to analyse the impact of events on the network, ranging from large music festivals or sports fixtures to local carnivals or even unforeseen events such as traffic jams. The concept was unveiled by Claudia Nemat, board member for technology and innovation, during Deutsche Telekom’s Magenta Keynote. She said that by analysing network behaviour and detecting performance problems, the agent can implement corrective actions to improve network reliability. The announcement reflects a theme at MWC of telecom operators seeking to move toward autonomous and self-healing networks to improve performance, reduce costs and become more sustainable.

MTN Positions Itself as Africa’s Digital Backbone

MTN is an example of this transformation in the telecom industry. At MWC, it’s reinforcing its commitment to becoming the digital infrastructure provider for Africa’s rapidly growing population. As the largest telecom operator on the continent, MTN serves 290 million subscribers in 17 markets, with 150 million active data users. However, a key challenge remains: Africa’s internet penetration is only about 30%, and average revenue per user (ARPU) remains low at $2 to $3, compared with $60 in other regions.

To tackle this, MTN is expanding into fintech and digital infrastructure. It has already partnered with Mastercard for closed-loop payments, although fintech ARPU remains a modest $1.50. MTN is also using AI to drive growth in sectors including agriculture, healthcare, logistics and urban development. With Africa projected to have the majority of the world’s workforce by 2050, MTN’s strategy positions it to capture a larger share of future digital services and potentially increase ARPU as economic development accelerates.

Drones Join the Toolkit for Improving Network Resiliency and Flexibility

Operators are highlighting recent tests and trials completed with drone technology to improve temporary network coverage and network resilience. Network security has received a lot of attention recently amid growing geopolitical tension, and is a major theme of the event.

Vodafone showed a prototype drone that can be used to restore connectivity to mobile masts temporarily when underground cables are damaged. Deutsche Telekom also discussed its drone technology, highlighting the need for flexible connectivity solutions; the company trialled it recently in the Jizera mountains in Czechia. It says the technology is intended to extend coverage for temporary events, but it could be repurposed.

This addition to both companies’ resiliency toolkits will complement other solutions that are quick to deploy. The drone technology will be best used in mountainous areas or locations that are difficult to access by ground vehicles, making it more useful than cells-on-wheels in certain situations.

Also, with direct-to-device satellite services not reaching a large scale yet, this will help operators mitigate risk in their networks while regulation is developed. In a panel session, Vodafone CEO Margherita Della Valle highlighted that operators spend large sums to keep networks secure, although many customers are unaware of this. Drone technology could help to address this imbalance by improving public perception of the work operators do to protect them.

TCL Sticks with Winning Formula, Offering Updated Phones at Punchy Prices

Having already unveiled a series of new products at CES, the stage was set for TCL to provide further updates at MWC. It refreshed its range of affordable smartphones with six new models, including 5G-enabled smartphones starting at just €120 and an updated variant featuring its Nxtpaper screen technology. A new 11-inch tablet with the latest Nxtpaper display was also unveiled.

At the show, TCL talked about its aspirations to add AI capabilities to its broad spectrum of devices ranging from TVs, tablets and smartphones to smart home devices and more, through partnerships with DeepSeek, Microsoft and Google. However, it acknowledged the challenge of bringing such features directly to cheaper products, in some cases preferring to use cloud-based services rather than on-device AI because of memory and processing limitations.

The company also showcased a family of 5G RedCap devices including a combined 5G and Wi-Fi router and a portable Mi-Fi-style device. Both products use Qualcomm’s Snapdragon X35 modem, which is compliant with 3GPP Release 17 standards. These products offer a more affordable way to connect to 5G networks and we expect them to be popular for consumer and industrial machine-to-machine or internet of things applications once the technology is more widely rolled out on networks worldwide.

Echoing efforts at CES, TCL also showcased its range of smart glasses with a product similar to the Meta’s offering, alongside augmented reality glasses and video display glasses.

Beyond its strong position in the TV market, TCL is an established player in the affordable smartphone segment, as well as a wide range of other devices such as cellular-enabled routers. This is a tough part of the market with tight margins, but these new products are well positioned to maintain the company’s momentum.

Watch CCS Insight’s chief analyst and CMO, Ben Wood, give a tour of TCL’s showcase in the video below.

KDDI Partners with Starlink for Satellite Connectivity in Japan

KDDI announced that it will launch a direct-to-device satellite service with Starlink in spring 2025. The service aims to provide seamless connectivity wherever the sky is visible, ensuring communication during disasters and in remote areas. This follows successful trials in Japan, where Starlink’s satellite service has already demonstrated its value during earthquake response efforts.

The move reinforces KDDI’s ambition to enhance its connectivity capabilities beyond traditional mobile networks, particularly in a country with over 90% smartphone penetration and a highly saturated telecom market. By integrating satellite connectivity, KDDI positions itself as a leader in ensuring nationwide resilience and expanding the scope of mobile services. The initiative also highlights the growing importance of satellite solutions in the evolving 5G landscape, where ubiquitous coverage is becoming a key differentiator.