As we enter 2025, the telecom industry is preparing for a new period of growth and transformative change. Deloitte notes that “it’s clear that [tech, media and telecom] is on the verge of a significant leap forward, largely powered by rapid generative AI adoption.”
Building on this momentum, FiberLight CEO Bill Major, an industry veteran with more than 20 years of experience, offers his perspective on the key trends set to transform the telecom sector in the year ahead. From industry consolidation to surging data center investments and the critical role of fiber in driving AI and digital innovation, here’s what lies ahead:
A “Ma Bell” Redux: Consolidation Reshapes the Industry
According to Bain & Company, mergers, acquisitions, and joint ventures in the US and Canada during the first half of 2024 doubled the dealmaking value of the entire previous year. This surge of activity is redefining competitive dynamics in telecom, and Bill Major anticipates the emergence of a “Ma Bell” redux—a landscape dominated by three major players:
- AT&T: Expanding its fiber footprint through the Gigapower joint venture with BlackRock, fueled by federal infrastructure programs like BEAD.
- Verizon: Positioned to broaden its reach further through the anticipated acquisition of Frontier.
- T-Mobile: Making significant strides in fiber-to-the-home initiatives via partnerships with EQT (Lumos acquisition) and KKR (Metronet acquisition).
These consolidations are reshaping the telecom landscape with fewer but more powerful industry leaders, setting the stage for an era of heightened competition and innovation.
The Surge in Data Center Investments
As consolidation continues, private equity is redirecting proceeds into the rapidly expanding data center market – a critical backbone for the modern digital economy. Hyperscalers and webscalers are investing heavily to keep pace with the growing demand for data-driven services. Bill Major highlights that federal BEAD funding is accelerating this trend, enabling faster expansion and greater connectivity. Data centers will play an increasingly vital role in managing the explosion of data, supporting both business operations and consumer needs.
Fiber Infrastructure: The Backbone of AI and Digital Innovation
As technologies like AI, blockchain, and other data-intensive systems gain traction, the demand for robust fiber infrastructure has never been greater. Fiber is the essential backbone for deploying these innovations securely and efficiently.
“AI is scaling at an exponential rate, and over the next five years, we’ll see resource shortages strain the industry’s capacity,” warns Major. FiberLight has been proactive in addressing these challenges. In 2024, the company announced a partnership with Globalinx in Virginia Beach to deliver a pivotal access point in the fast-growing Hampton Roads region. FiberLight also launched diverse pathways connecting Dallas to burgeoning tech hubs in Querétaro and Monterrey, Mexico, positioning itself as a leader in global connectivity.
Major emphasizes that the telecom sector must continue prioritizing investments in resilient networks to support the demands of the evolving digital economy.
Looking Ahead
Bill Major’s predictions illustrate a telecom industry poised for monumental change. With consolidation streamlining market dynamics, data center investments accelerating, and fiber infrastructure serving as the backbone for AI and digital innovation, the year ahead promises exciting opportunities and challenges.
“We are on the brink of a transformative period in broadband,” says Major. “At FiberLight, we’re leading the charge to ensure that our customers have the speeds and connectivity they need to thrive in this new era.”