Telco & ConnectivityFunding
CAPACITY TEST:
AI Traffic Tests Telecom’s Network Spending Story
Cisco forecast that AI could help push network traffic to 6.6 times current levels by 2035, but analysts and operator capex plans suggest many developed-market networks still have substantial unused capacity.
Analysys Mason research cited busy-hour downlink loading of just 12% on older GPON broadband networks, while Omdia said annual RAN spending has stabilized at $35 billion after a $10 billion fall between 2022 and 2024.
The key watchpoint is whether AI creates new supplementary traffic from vehicles, IoT and physical AI, or mostly substitutes for existing consumer data use without forcing a broad telecom spending cycle.
