🌐 Introduction
The telecommunications industry is entering a deep transformation cycle. Competition is no longer about “who offers more megabytes”, but about experiences, digital ecosystems, content, and now also artificial intelligence.
After more than a decade working between Europe and Latin America in video distribution, digital TV, OTT platforms, network infrastructure and home internet services, it’s evident that we’re at a breaking point: operational models, how operators retain customers and how they generate revenue are changing fundamentally.
This post summarizes that change at three levels:
- Europe: the most mature market, where the battle is no longer about speed, but about added value.
- Chile and South America: growth, digital divide, consolidation and technological leap.
- Internal sector reorganization: automation, mergers, cuts and the new type of work in telecom.
- Global trend: where the industry is really heading and how it’s reinventing itself to generate new revenue.
1. 🌍 Europe: when the market is mature, the fight changes
Europe is today the best laboratory to anticipate what will happen globally. With high penetration, advanced networks and demanding consumers, operators must compete in layers beyond the technical.
1.1 Intense competition and saturated market
The data shows a clear movement:
- The European Smart TV market will reach USD 80.9 billion by 2030 (CAGR ~11%).
- Traditional pay TV is slowly declining (–0.9% towards 2032).
- Entertainment devices are growing around 5.3% annually.
- Gigabit speeds are no longer “premium”: they’re the standard in Spain, France, Netherlands and the United Kingdom.
Here we don’t compete on infrastructure. Here we compete on experience.
1.2 Real case: VodafoneZiggo — Free AI to attract customers
VodafoneZiggo gives business customers a free year of Perplexity Pro (~€225) and complements it with internal AI:
- Agent Assist: -40% in resolution times, 3x more cases per day
- Customer Assist: automates 60% of queries, wait drops from 8 min to 30 sec
Results: premium retention +23%, churn 2.1%→1.6%, NPS 45→62 and revenue per customer +18%.
They stopped selling “megabytes” and started selling digital ecosystems.
1.3 The home as a platform
Operators seek to control the “digital core” of the home because whoever dominates the entry point, dominates the complete experience.
In practice:
- Self-managed routers: optimize themselves according to usage, prioritizing critical traffic
- Intelligent WiFi: maps the house and adjusts signals in real-time (Telefónica reduced interference 70%)
- Unified apps: one app for everything (TV, internet, security). Users who use it have 3x more likelihood of contracting additional services
- Hybrid set-top boxes: integrate IPTV, streaming and FAST channels in one interface
- Security and IoT: routers that detect threats and manage devices (€5-15/month additional)
- AI recommendations: algorithms that learn habits and suggest content
Real value: an integrated home generates 2-3x more revenue than basic internet.
Whoever controls the router and the television interface, controls the relationship with the user.
1.4 How telcos are reinventing themselves to generate more revenue
To grow, operators stopped depending only on monthly subscriptions:
1) Segmented advertising (Ads Insertion)
- dynamic ads on TV,
- FAST channels funded by advertising,
- personalized pauses according to profile.
2) Premium routers and WiFi services
- equipment upgrades,
- mesh extenders,
- digital security,
- parental control,
- connected home IoT.
3) Set-top boxes as marketplace
- apps,
- gaming,
- content rental,
- purchases within the ecosystem.
4) Additional digital services
- AI,
- cloud storage,
- premium support.
5) Solutions for businesses and SMEs
- video surveillance,
- security,
- managed networks,
- analytics.
The new margin is in the complete ecosystem, not in speed.
2. ⚙️ The internal transformation of telcos (employment, cuts and automation)
This change is less visible, but it’s the one that will have the most impact on the sector’s future.
Telcos in Europe —and increasingly in South America— are carrying out a deep reorganization:
- Fewer operational layers (installation, support, backoffice).
- Massive automation: remote diagnostics, automated workflows, predictive support, network optimization.
- Mergers and reduction of duplicate areas.
- Outsourcing of repetitive tasks.
- Strong bet on software, data and digital experience.
Roles that are growing:
- data engineering,
- network automation,
- applied AI,
- cloud,
- TV/IPTV integration,
- digital experience design.
Something I experience closely:
In 2023, Liberty Global signed an agreement with Infosys for €1.5 billion to operate its Horizon platform. It wasn’t traditional outsourcing: local teams were reduced almost to the minimum, reinforced with engineers in India, new processes and governance were defined, responsibilities changed and the journey is still in progress. It’s the same shift everyone else is making—less manual operation, more software and hybrid coordination.
Official source: Liberty Global and Infosys Expand Strategic Collaboration — Liberty Global
less manual operation, more automation, more software.
3. 🌎 Chile and South America: expansion, divide and opportunity
The region lives a different process than the European one: there’s still room to grow, compete and improve experience.
3.1 Chile: constant growth and consolidation
- The market will reach USD 4.843 billion in 2025, projected to 5.564 billion in 2030 (~2.9%).
- Fiber had one of the fastest growth rates in the region.
Pay TV share:
- Claro–VTR ~38%
- Movistar ~20%
- DirecTV ~18%
The Claro–VTR merger summarizes the natural movement towards convergent services.
3.2 South America: the uneven technological leap
- Fiber advances with important rural gaps: while main cities have 60-80% coverage, rural areas barely reach 15-25%.
- Traditional TV remains strong, but streaming grows fast: Netflix has 50+ million subscribers in the region, and local services like Star+ and HBO Max are gaining ground.
- User experience is still uneven (basic routers, slow support): many operators still deliver low-end equipment that limits the experience.
- Operators advance in IPTV, apps and hybrid models: Movistar in Argentina, Claro in Brazil and Entel in Chile are heavily investing in digital platforms.
The real opportunity:
Precisely because of this, the region is an opportunity, not a disadvantage. Markets in transition allow innovation and differentiation.
Why is it an advantage?
- Less inertia: no need to dismantle complex legacy systems like in Europe
- Accelerated learning: can directly adopt European best practices
- Organic growth: there’s room to grow without taking customers from established competitors
- Lower costs: can offer premium services at competitive prices
Success cases:
-
Movistar Play (Argentina): hybrid platform combining own content, streaming and linear TV. 2.3 million active users in 18 months, 40% higher retention and churn reduction from 3.2% to 2.1%.
-
Claro Video (Brazil): €200M+ investment in local content. 15 million subscribers, 3x higher engagement and positive ROI in 18 months.
-
Entel (Chile): focus on business services (5G, IoT, cybersecurity). 35% annual revenue growth, 45% gross margin vs 25% residential.
4. 🧭 The global synthesis: where the industry is really heading
After seeing both markets, five clear lines emerge:
📊 Comparison: Europe vs South America
| Aspect | Europe | South America |
|---|---|---|
| Fiber penetration | 70-85% (urban) | 40-60% (urban), 15-25% (rural) |
| Average speed | 200-500 Mbps | 50-100 Mbps |
| Main competition | Experience and ecosystems | Coverage and price |
| AI adoption | 65% of operators | 25% of operators |
| Revenue sources | 40% digital services | 15% digital services |
| Automation | 70% automated processes | 30% automated processes |
| Traditional TV | Declining (-0.9% annually) | Stable, streaming growing |
| Innovation investment | €2-5 billion/year | $500M-1.5B/year |
| New tech adoption time | 6-12 months | 18-36 months |
| Digital divide | Minimal (urban) | High (rural vs urban) |
Comparison conclusion: Europe is 3-5 years ahead in digital transformation, but South America has the advantage of being able to skip stages and directly adopt best practices.
4.1 Megabytes no longer matter
The real difference is in:
- stability,
- real WiFi,
- apps,
- intelligent support,
- integrated content,
- personalization.
4.2 Linear TV doesn’t die, it transforms
- FAST channels,
- less linearity,
- more on-demand content,
- hybrid platforms.
The new battle is for the television interface.
4.3 AI will be the invisible layer that unites everything
Concrete applications:
- Predictive maintenance: Orange reduced technical visits 35% using AI that predicts failures
- Traffic prioritization: networks that prioritize video calls/gaming over downloads
- Automatic support: chatbots resolve 70% of queries without human intervention
- Behavior analysis: systems that learn patterns to optimize services
- Autonomous planning: networks that reconfigure themselves according to demand
Operators like Deutsche Telekom are already testing completely autonomous networks.
The network of the future will be self-managed and predictive.
4.4 Less operation, more software
Telcos are migrating from “installation” companies to digital platform companies.
4.5 The final prize: the digital home
Whoever controls:
- the router,
- the set-top box,
- the app,
- the content,
- the experience,
- and the AI layer,
controls the relationship with the customer.
That is the new battlefield.
5. 🔮 What I See Coming in 2026
After seeing what’s happening now, I think there are three things that will mark next year:
6G is no longer just speed: it will be AI integrated into the network that adapts on its own. Nokia and Ericsson are investing heavily, but real implementations will arrive in 2027-2028. For now, it’s preparation.
AI that creates solutions, not just optimizes: systems that generate code and solve problems automatically. Operators that implement this will see 40-60% savings in operational costs. It’s the next logical step in automation.
More mergers and more “green”: the market will continue consolidating (we already saw Claro-VTR, we’ll see more). And sustainability will stop being optional: renewable data centers, efficient equipment. Operators that don’t adapt will be left out of public tenders.
🎯 Closing: The Future Has Already Arrived
Europe sets the pace.
South America advances at its own speed.
And the entire industry is leaving behind the traditional model to transform into integrated digital platforms, where experience —not megabytes— defines who wins.
What I see clearly:
Speed no longer differentiates. Value is in the complete ecosystem: smart routers, unified apps, integrated content, predictive AI. And automation isn’t optional: telcos that don’t transform will become obsolete.
What’s happening in your country?
Are telcos innovating or still selling “more megabytes”? Have you noticed changes in how they relate to you?
I invite you to comment: How is your country facing this transformation? What changes have you noticed in local operators?
I’m reading you.
📚 Recommended Readings
“Informe Económico Sectorial de Telecomunicaciones y Audiovisual 2024” (Comisión Nacional de los Mercados y la Competencia – Spain)
Economic sector report on telecommunications and audiovisual in Spain.
👉 https://www.cnmc.es/sites/default/files/5410607.pdf
CNMC
“El mercado español de las FiberCos acelera su proceso de consolidación…” (EY Parthenon)
Analysis of the Spanish FiberCos market consolidation process.
👉 https://www.ey.com/es_es/newsroom/2025/10/el-mercado-espanol-de-las-fibercos-acelera-su-proceso-de-consolidacion-con-el-auge-de-operadores-mayoristas-y-modelos-de-acceso-abierto
EY
“BarómetroTelco Q4-2024: Informe sobre el sector de las telecomunicaciones en España” (Nae / CNMC)
Report on the telecommunications sector in Spain.
👉 https://nae.global/es/barometrotelco-q4-2024-informe-sobre-el-sector-de-las-telecomunicaciones-en-espan-not-btq424/
Nae / CNMC
✍️ Claudio from ViaMind
Dare to imagine, create, and transform.
