Digital Sovereignty

Digital sovereignty is a growing opportunity for telcos, driven by national security, data protection, and economic stability needs. As 6G and AI advance, telcos must comply with emerging regulations and leverage network APIs to evolve from connectivity providers to digital platforms, unlocking new revenue streams.

The rise of sovereign TechCo operators

“Telecom operators need a company-wide strategy for digital sovereignty if they want to expand the remit of their core business as well as command premium prices to the core services.”

Dario Talmesio, Research Director, Service Provider Strategy and Regulation

The strategic importance of controlling digital infrastructure for national security, economic stability, and data protection has elevated the concept of digital sovereignty to a business opportunity for telecom operators. Sovereignty is not a use case but an underlining attribute of all aspects of communication and data.

Furthermore, sovereignty is expected to accentuate the importance of telecom operators to become even more critical as the industry moves towards the standardization of 6G networks, expanding coverage to non-terrestrial networks and integrating artificial infrastructure into telecommunications systems.

Will legal sovereignty requirements provide support for the currently explored opportunity of turning the network into a distributed computing infrastructure?

In 2026, the imperative for governments and enterprises will be to de-risk countries and businesses from geopolitical risks and cybersecurity threats. Consumers too are likely to start paying more attention to the credentials of their communication service suppliers. The business ramifications for telecoms operators and their ecosystem partners are over-ranging: economic trade-offs, technical complexity, a rapidly evolving regulatory environment, interoperability and standardization, international cooperation, and international business development are all aspects requiring a concerted, short, mid and long-term business strategy for telecom operators.

This research is taken from:

Service Provider Strategies Intelligence Service

Sovereignty: The number one regulatory priority for policymakers and telcos alike in 2026

“Even in places with no existing data protection regulations, regulators are expected to pay more attention to sovereignty in the coming year.”

Sarah McBride, Principal Analyst, Regulation

Rising geopolitical concern is ensuring that sovereignty is making its way into a variety of policy and regulatory discussions regarding AI, cloud, and data protection. Jurisdictions such as the EU, UK, India, Australia, and Singapore have announced sovereign strategies as part of their national AI plans and governance frameworks, underscoring a global shift towards technological self-reliance. The aim of these government policies is to establish a resilient domestic technology ecosystem, enhance cybersecurity, and strengthen local innovation.

Data sovereignty is a fundamental part of the sovereignty agenda and has already been included in many jurisdictions’ data protection regulations. It is impacting a range of services and requires businesses to train employees on sovereignty laws, design new technologies, recruit staff, and implement new processes.

Violating data sovereignty requirements can result in severe financial penalties for companies, as many countries have established strict data protection and privacy regulations.

However, sovereignty is also expected to soon be on the radar of governments in countries where no data regulation currently exists. Therefore, it is important that telecom operators take these discussions seriously and ensure they understand and comply with any emerging policies and regulations governing digital sovereignty.

This research is taken from:

Service Provider Markets Regulation Intelligence Service

API at the heart of AI-Infrastructure investments

“Telecom network APIs represent a critical enabler of service providers’ shift from connectivity provider to platform businesses.”

Adam Mackenzie, Senior Analyst, Service Provider Network Economics

As telecom operators explore investment in AI infrastructure, discoverability of services becomes critical, putting network APIs at the center stage of AI infrastructure monetization.

Telecom network APIs represent a critical enabler of service providers’ shift from connectivity provider to platform businesses. By exposing network capabilities like number verification, device location verification, and quality on demand, as programmable services, operators unlock new monetization opportunities. This API-driven approach generates value beyond traditional telco’s capabilities through direct revenue from API calls, enablement of new services, and new business models which facilitate rapid innovation in partnership with the broader developer ecosystem.

Leading telcos will embrace this shift and position themselves as essential digital platforms rather than just connectivity providers. This can ensure that telcos’ unique network assets, not just hyperscalers’ cloud platforms, remain a cornerstone of next-generation digital services.

This research is taken from:

Service Provider Network Economics Intelligence Service