The Silent Crisis in Telecom: Billions Invested, But Visibility Remains a Blind Spot

Telecommunications is the backbone of modern economies, enabling everything from remote work and telemedicine to global supply chains and smart cities. Yet, despite more than $300 billion in infrastructure investments since 2018, the industry faces a paradox: capital expenditures continue to rise, while return on invested capital in North America and Europe has declined by 10–15%.

This growing disconnect raises an urgent policy question: How can telecom providers maintain network quality and security while ensuring infrastructure investments yield sustainable returns? The answer may lie in a critical but often overlooked issue—network visibility.

Why investment alone isn't enough

Telecom companies have focused heavily on expansion to meet skyrocketing demand for 5G, fiber-optic connectivity, and cloud-based services. But while the physical infrastructure has scaled rapidly, network observability—the ability to detect, analyze, and resolve issues in real time—has lagged far behind.

The implications are serious:

• 67% of telecom CEOs expect capital expenditures to accelerate over the next 3–5 years, yet fewer than one-third expect revenue growth to keep pace.
• Over 500 network-sharing agreements have been established globally, increasing the risk of operational inefficiencies and security vulnerabilities.
• The rise of wholesale fiber providers, MVNOs, and eSIM technology has intensified competitive pressures, making network resilience and cost optimization more urgent than ever.

Simply put, building networks faster and bigger isn’t enough. 

Telecom regulation must address network observability

Telecom regulations have traditionally focused on expansion mandates, spectrum allocation, and competition. While these measures have accelerated infrastructure growth, they offer little assurance of real-time insight into network performance, outages, or threats.

The absence of strong observability standards has clear consequences. slower disruption detection, reactive rather than predictive maintenance, and heightened cybersecurity exposure—especially with shared infrastructure still lacking real-time threat intelligence.

Policymakers and regulators now have an opportunity—and a responsibility—to modernize telecom frameworks by making observability a core industry requirement.

Legacy monitoring tools can flag basic network issues but fall short in today’s complex, high-volume environments. As networks grow more dynamic, AI-powered observability is becoming essential.

By leveraging machine learning and real-time data analysis, AI platforms can detect anomalies before they cause outages, identify security threats instantly, and enable proactive network management. They also help optimize operations and reduce costs, improving return on infrastructure investments.

From a policy standpoint, supporting AI-driven observability would reduce service disruptions, boost infrastructure ROI, and strengthen telecom resiliency.

How policymakers can close the visibility gap

To ensure telecom investments translate into better network performance and financial sustainability, governments and industry regulators should consider policies that emphasize observability. One critical step is mandating real-time network health monitoring. Establishing industry-wide standards would require providers to implement observability tools capable of real-time performance tracking. A unified reporting system could also be introduced, enabling regulators to quickly identify and respond to systemic service disruptions or emerging security vulnerabilities.

Equally important is incentivizing AI-powered network optimization. Policymakers could offer tax incentives or grants to encourage telecom providers to adopt AI-driven observability tools that enhance efficiency and reduce operating costs. Public-private partnerships could play a key role, helping to develop and deploy AI-based solutions that strengthen network resilience on a national scale.

Finally, strengthening cybersecurity and compliance must be a priority. Telecom providers should demonstrate proactive security strategies, such as real-time anomaly detection, to minimize risks. To ensure accountability, regulators could implement auditable observability frameworks to verify compliance—especially where network infrastructure is shared among entities.

The high stakes of inaction

Without proactive policy changes, telecom providers risk entering a cycle of diminishing returns—where increasing investments fail to translate into improved service, security, or profitability. The broader implications of this shortfall are equally troubling. Consumers and businesses may experience more frequent and severe outages, eroding trust in digital infrastructure. National security risks could escalate as threat actors exploit gaps in network visibility, taking advantage of vulnerabilities in increasingly complex and shared infrastructure. 

At the same time, the digital divide may widen, as operational inefficiencies hinder the cost-effective expansion of services to underserved communities. Infrastructure growth without observability is like building highways without traffic sensors—it leaves providers and regulators blind to problems until it’s too late.

The future of telecom policy: A call to action

The telecom industry is at a crossroads. The next wave of infrastructure investment must be accompanied by a deeper commitment to real-time observability and AI-powered monitoring. For policymakers, the challenge is no longer whether to invest, but how to ensure those investments pay off—with smarter, more resilient networks that serve both economic and public interests.

By embedding observability into telecom policy, governments can help transform billions in CapEx into tangible value—enhancing service reliability, securing national infrastructure, and future-proofing one of the world’s most vital industries.

Jeff Collins, CEO of WanAware, has more than 25 years of experience driving profitable growth by transforming brands, companies, and cultures. He is passionate about leading disruption through insight-driven strategies that activate brands and companies, attract customers, inspire stakeholders, and create community. In 2020, Jeff began developing WanAware after recognizing the need for effective IT Observability solutions due to the limitations of outdated legacy tools and antiquated models. He also holds leadership positions at 21Packets (Chairman) and Lightstream (Chief Strategy Officer). Jeff serves on the boards of multiple technology companies, contributing his expertise in cybersecurity, AI, networking, and data transformation. This Expert Opinion is exclusive to Broadband Breakfast.

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