Mobily Recognized Among the World’s Top 5 Telecom Operators, Showcasing Continued Market Leadership and Innovation Strategy

• Mobily continues to drive strong value creation, positioning itself as a key player in the global telecom landscape.
• Deployment of AI positioned as an essential driver for operational excellence and competitive differentiation.
• BCG analysis serves as a guiding framework for telecom leaders aiming to navigate the complexities of an evolving digital ecosystem and capitalize on emerging opportunities for sustainable growth and industry leadership.

Saudi Arabia’s Mobily has entered the ranks of the world’s top 5 telecom operator value creators, according to the Boston Consulting Group’s (BCG) 2025 Telco Value Creators Report. The milestone is attributed to $7 billion in value creation from 2020 to 2024, representing a successful transformation driven by digital innovation and strategic positioning.

The BCG report, titled “Returns May Be Declining, but Opportunity Is Calling,” advocates for transformative growth in the telecommunications sector, despite prevailing industry challenges. According to the analysis, Mobily ranks 4th based on its five-year Total Shareholder Return (TSR) from 2020 to 2024, which stands at 19%.

This achievement signifies a market capitalization of $11 billion. The competitive edge for six of the top ten telecom performers from emerging markets stems from regulatory conditions and investment approaches that successfully yield a Return on Invested Capital (ROIC) outpacing the Weighted Average Cost of Capital (WACC) by 60 basis points.

Kaustubh Wagle, Managing Director & Partner, BCG said: “Developments in network structures and the introduction of innovative products, driven by the adoption of AI, have paved the way for significant value generation for telecommunications companies such as Mobily.

These technological advancements harness AI’s capabilities to significantly enhance the telecom sector, marking a pivotal moment for operators globally to re-evaluate their conventional approaches, considering the prospects that lie ahead towards the 2025 outlook.

The research shows that by adopting progressive strategies, leading telecom firms illustrate a practical plan for substantial value growth, providing a model for others to follow in achieving success within the current market environment.”

The report underscores the critical necessity for telecom operators to enhance value generation through a multifaceted approach: optimizing physical and network assets, adopting new cost-efficient network architectures, and innovating with next-generation products and marketing strategies.

How GCC Telcos Are Leading the Shift

AI and digital services are emerging as pivotal elements in the transformation toward smarter, more efficient enterprises. Investments by operators in automation, customer intelligence, and tailored AI solutions for enterprises underscore this pivotal shift. This is further propelled by strategic alliances with both hyperscale cloud providers and local startups, driving scalable, bespoke enterprise AI solutions.

In parallel, sovereign cloud and data security initiatives are important within the GCC region. Operators are forging partnerships with global technology corporations to establish compliant, local cloud infrastructures, reinforcing data residency and sovereignty—critical components for adherence to compliance standards and the monetization of AI and analytics in regulated industries.

“For telecom companies, it’s crucial to act quickly and with insight, utilizing AI as a key enhancer of innovation, operational effectiveness, and customer interaction. Mobily’s success underscores the value of adopting a forward-thinking and innovation-led investment strategy, highlighting the significance of transformative mergers and acquisitions as well as the adoption of cutting-edge marketing strategies,” added David Panhans, Managing Director and Senior Partner at BCG

The deployment of next-generation networks, such as 5G and Open RAN, are geared toward achieving operational efficiencies and incubating new revenue streams, including low-latency services integral to smart city and IoT frameworks. Efforts in edge computing and low-earth-orbit satellite partnerships aim to extend connectivity, granting telcos the opportunity to exploit untapped markets.

Regarding monetization, the focus on enterprise modernization, the bundling of AI-driven services, and an infrastructure aligned with AI optimization are key components for maximizing the returns from investment in next-generation technologies. Further investments in next-gen network infrastructures align with the GCC’s ambition to advance smart cities and assert digital leadership.

The Path Forward: A New Model for Value Creation

Telecommunications operators could benefit from a proactive approach to optimizing their strategic assets.  This involves the monetization of infrastructural assets and the simplification of business models. By exploring shared-models and cloud-based solutions for non-core assets like fixed-line networks and data centers, telecommunications operators can enhance efficiency. Additionally, mergers and acquisitions are pivotal in solidifying market presence and achieving operational synergies, driving industry consolidation towards increased profitability and market leadership.

Cost and Capital Expenditure (CapEx) optimization remains at the heart of this transformative agenda, with AI and automation serving as principal levers. AI enables significant CapEx efficiency through infrastructural innovations such as Open RAN, which mitigates vendor lock-in and lowers associated expenditures while additional network-sharing arrangements can generate substantial annual cost savings. As 5G deployments mature, redirecting cash flows from these efficiencies to facilitate growth or shareholder dividends underscores a disciplined CapEx strategy.

The development of next-generation network architecture takes center stage, featuring cloud-native systems, Open RAN, and edge computing. These technologies are essential to reducing costs, fostering technological flexibility, and enabling advanced applications for smart cities and the Internet of Things.

In concert with this architectural evolution, sales and marketing strategies are undergoing a transformative shift towards AI-empowered personalization, enhancing interactions across both B2C and B2B domains. The blend of automated and human-driven sales interactions represents a hybrid model where AI-addressable inquiries streamline customer service, reserving high-value interactions for expert human engagement.

AI is playing a dual role, reducing operational costs and accelerating growth, enabling personalized consumer offerings and sector-specific B2B tools. The telcos poised for superior performance are those merging these strategies: modernizing network and operational infrastructure, refining asset portfolios to concentrate on areas with the highest potential, and innovating customer engagement through data-driven insights.

As per BCG’s report, embracing cloud-native technologies, facilitating edge computing for IoT applications, and executing on network-sharing agreements, have clear-cut implications for the evolution of the telecom sector’s operational and competitive dynamics.