Held annually in Barcelona in March, MWC brings together 109,000 people from 205 countries to discuss, debate and display what the future holds for mobile operators.
As a near habitual attendee of MWC over the past 25 years, I have witnessed an industry that started in Cannes with a small coterie of mobile aficionados, and plenty of parties on the yachts tethered along the Quai des Festivals, grow into the behemoth it has become today. From its early exciting days of rapid growth and innovation, it became an industry dominated by major brands after its move to Barcelona in 2006 and then slowly morphed into a mature and often predictable sector that by 2020 no longer set the pulses racing.
This year’s event was an eye-opener on how a once moribund industry is reinventing itself as bandwidths and new technologies enable operators to deliver new services and reinvent their core value; MWC25 presented a vision of digitally connected consumers who are supported 24/7, and in any location thanks to satellite constellations, through AI-supported online services.
The official themes for MWC25 were “Converge, Connect, Create” – and for once the show slogan lived up to expectations.
Convergence was plain to see at the show with participation from entertainment companies like Netflix, Warner Brothers, Disney Warner Bros and Discovery. Major tech companies like Microsoft, Google and Amazon Web Services had a big presence (although Apple was yet again conspicuous by its absence – preferring as it does to focus on its own events despite dominating the mobile devices market). A slightly strange sight was the frequent appearance of cars on exhibitor stands. Ranging from Formula 1 racing cars to family saloons, they illustrated the expansion of convergence with the automotive industry.
“Connect” was evidenced in two aspects – the emergence of ever higher bandwidth and lower latency network standards, and the expansion of network reach through direct-to-satellite connectivity.
While 5G is still being deployed and absorbed across much of the world, the audience at MWC was treated to discussions on 6G and even 7G network standards. 6G promises to provide faster, more reliable networks with higher data transfer rates than 5G, aiming to revolutionise areas like remote surgery, smart cities, and enhanced AI capabilities. While the debate on 7G was largely held behind closed doors, rumours are that it will utilise a much higher frequency range and provide a higher capacity and a lower delay in communication.
The reach of networks into remote areas has taken a huge stride over the past year as satellite Direct to Cell (D2C) technology has become a reality. MWC25 saw Starlink take centre stage as the first, but by no means last, D2C service. MHP Group was at the heart of the news as our client VEON Group has announced plans to deploy Starlink D2C in Ukraine through its Kyivstar operator to ensure connectivity even when the network infrastructure has been destroyed in the war.
“Create” manifested itself at MWC very demonstrably through the ubiquitous claims of AI enablement. At times, it was easier to count the stands not claiming some form of AI advantage than those that did. When you cut through the marketing hype and AI-washing that was clearly on display from some vendors, the application of AI is the perfect partner for the provision of next generation digital services.
MWC25 saw the application of AI in three key domains: the use of AI for the management of networks on both the deployment and operational side; the role of AI in accelerating software engineering and software lifecycle; and, perhaps most importantly, the impact of AI on the customer experience.
As was seen throughout the Barcelona Fira exhibition halls, AI is already being put to work in the self-service administration of customers’ accounts, ending the era of call centre queues and endless hold music. The new frontier is the use of AI to power digital services across finance, health, entertainment and education that are delivered to the consumer through 4G, 5G and soon 6G networks.
MHP’s client VEON Group – which includes operators across Bangladesh, Kazakhstan, Pakistan, Ukraine, and Uzbekistan – has already seen revenues for these digital services grow to over 12% of its turnover. And that is before the impact of AI is truly felt. In Ukraine, VEON’s operator Kyivstar is bringing digital health services to 28 million registered patients that enable online consultations with medical professionals – a critical service in the war-torn country. In Pakistan, JazzCash is bringing financial services to a population where nearly 50% have lacked basic banking facilities, and it now services almost 20 million monthly active users. Across its operating countries, VEON provides streaming entertainment to over 40 million people.
What is fascinating is that many of the customers for VEON’s digital services are not even subscribers to its mobile networks. Of its 121 million users of digital services, 29.1 million – or 23.9% – are digital-only customers. This marks a radical departure from the history of mobile operators and their narrow focus on extracting maximum ARPU (average revenue per user) from each subscriber.
An Industry Renewed
In 1998, the Vodafone share price peaked at £458 – a far cry from the £70 a share valuation it attracts today. In the intervening years the frothy expectation left the telco sector completely as it became viewed as a staid, predictable and slightly boring business.
MWC25 challenged that perception and saw a major shift in sentiment compared to previous years. A highly positive atmosphere permeated as an industry saw the potential of its own renaissance.
The new momentum for the industry, created through the combination of new technologies and services, is also playing out in investor confidence. For example, VEON’s share price has risen by 163% in the past 24 months as investors have appreciated the potential of a company that is rapidly becoming a consumer services company enabled through digital connectivity.
AI will dramatically enhance what these networked services can provide. Education will be transformed through AI-enabled teaching that understands individual learners and can optimise tuition accordingly. The same will apply in healthcare, entertainment and finance, where AI will assist and enhance. All sorts of AI-driven applications are on the horizon, from systems to help farmers in rural Pakistan produce greater yields from their crops to programs that help urban planners intelligently manage services in the crowded streets of Dhaka, Bangladesh.
All of this from the screen of a mobile phone. An idea impossible to imagine at the MWC of Cannes in 2000, but a reality at MWC25 in Barcelona.