Mobile World Congress 2024: A Year of AI Focus and Redefining Telcos

Jakarta, INTI - Mobile World Congress (MWC) 2024 in Barcelona marked a significant return to form for the industry's leading connectivity event. With over 101,000 attendees, it was the largest gathering in years, finally welcoming back a significant Asian presence after the pandemic. The focus wasn't just on showcasing cutting-edge innovations like bendable phones and wearable health trackers, but on charting the future of the telecommunications industry itself.

AI Takes Center Stage

While attendees remained enthusiastic about generative AI (gen AI) and its potential, the conversation evolved this year. As McKinsey's Tomás Lajous observed, the focus shifted towards a more comprehensive approach. "Everyone is excited, but it's prompting them to consider analytical AI and foundational aspects that have been neglected."

This translates to real-world benefits for telecommunications companies (telcos). AI can empower them to gain deeper insights into their networks, enabling better outage tracking, usage analysis, and ultimately, improved customer experiences. The emphasis has shifted from potential to tangible value creation. However, Lajous cautions, "Success hinges on several factors. Investing solely in models won't suffice without proper data infrastructure, supporting systems, and user adoption."

Interestingly, gen AI also presents an opportunity for smaller players. Traditionally complex analytical AI projects are now more accessible, allowing them to compete with larger firms. Their agility could even position them for leadership as they can adapt and implement solutions faster. Looking ahead, Lajous predicts an increase in scaled AI deployments and a renewed focus on retiring legacy technologies to pave the way for the future.

Inclusivity in Telecommunications: A Collaborative Effort

Another key theme at MWC 2024 was inclusivity in telecommunications and ensuring safety for vulnerable individuals. McKinsey's Jacky Wright, participating in a panel discussion, emphasized the need for an ecosystem-based approach. "The issue requires a collaborative effort from governments, the private and public sectors, and NGOs."

The potential for gen AI to exacerbate the digital divide is a concern. To mitigate this risk, Wright stresses the importance of intersectionality, acknowledging the unique vulnerabilities faced by different demographics. "A blanket solution won't work. A ten-year-old in Michigan has different vulnerabilities compared to one in Yemen."

Furthermore, the potential for misinformation and manipulation of information access necessitates stronger governmental involvement in collaboration with the private sector. Wright highlights the growing role of governments in understanding AI implications and formulating policies to safeguard vulnerable populations. "The US, UK, and EU are taking proactive steps, and we expect to see a global shift towards action."

The Future of Telcos: Redefining the Landscape

"This industry serves as the backbone of the global economy," observes Venkat Atluri, a senior partner at McKinsey. "Without it, crucial services in healthcare, transportation, and education wouldn't exist. Capturing its fair share of the value chain is paramount."

Atluri highlights the diverse paths telcos are exploring across regions. Some are venturing into adjacent areas like media content, while others are offering insurance services for their products. Still others are considering a complete transformation from a telco to a "techco," a technology company, fundamentally reimagining their role in the digital landscape.

"There's no one-size-fits-all solution," concludes Atluri. "The right approach depends on the specific context of each organization." Nevertheless, one thing remains certain: "The future is exciting," he remarks. "I'm eager to see the progress we'll make in the coming year."