Telecoms startups race to monetize 5G, Open RAN and satellite-to-phone

Telecoms startups find growth in a reshaped connectivity market

In the Telecoms sector, The telecoms startup landscape is recalibrating around software-driven connectivity, neutral-host models, and satellite-to-device services as 5G deployments mature. Fixed wireless access (FWA), private networks, and communications-platform-as-a-service (CPaaS) are proving fertile ground for young companies that can deliver capital-light deployments and faster paybacks than traditional infrastructure. Global mobile traffic and device upgrades continue to underpin demand, with FWA emerging as a key growth vector in markets prioritizing cost-effective last-mile alternatives, according to the latest Ericsson Mobility Report.

Startups are finding openings where operators need agility—network automation, policy control, and security—and where enterprises want bespoke connectivity. The GSMA expects 5G to account for more than half of mobile connections by the end of the decade, with cumulative operator capex in the trillions as networks densify and edge compute scales, GSMA Mobile Economy 2024 shows. That spend is increasingly directed toward software and services, creating room for newcomers in orchestration, slicing, and network-as-a-service (NaaS) layers.

Meanwhile, macro uncertainty has nudged capital toward categories with clearer unit economics. Private 5G specialists such as Celona and Betacom are pursuing “as-a-service” deployments for factories, logistics hubs, and venues; CPaaS players including Twilio and Sinch are expanding into verified identities and omnichannel customer engagement; and FWA innovators like Pivotal Commware are pushing mmWave beamforming to densify urban coverage. The common denominator: a focus on time-to-value instead of pure bandwidth arms races.

Where the capital flows: funding, M&A and partnerships

Deal activity has been brisk around software-first assets. Hyperscalers and IT incumbents continue to consolidate core telco software: HPE’s purchase of Athonet (private 5G) and Microsoft’s earlier acquisitions of Metaswitch and Affirmed Networks reshaped the market for cloud-native cores. Operators are also partnering with startups for enterprise edge, IoT, and indoor coverage—areas that promise premium pricing and stickier contracts than consumer mobility.

Investors, wary of capex-heavy bets, have favored companies that monetize network intelligence. Deloitte’s 2024 outlook points to monetization through AI-driven operations, energy efficiency, and targeted enterprise services rather than blanket capacity upgrades, reflecting a pivot to smarter utilization of existing buildouts, Deloitte Telecommunications Industry Outlook notes. That thesis aligns with the funding tilt toward OSS/BSS modernization, observability, and policy engines that improve margins.

Partnership-driven go-to-market models are also accelerating. Neutral-host providers and private network integrators are working with real estate owners, stadiums, and municipalities to deploy indoor small cells and campus networks without saddling operators with localized capex. For startups, these arrangements compress sales cycles and shift revenue from one-off projects to managed services, an appealing profile for late-stage growth investors.

The tech stack bets: Open RAN, private 5G and satellite-to-phone

Open RAN remains a strategic battleground. While adoption has been uneven, software-centric RAN stacks create entry points for challengers in orchestration, DU/RU software, and testing. Startups and independents like Mavenir and Parallel Wireless are pushing modularity as operators weigh vendor diversification and total cost of ownership. Coupled with edge cloud and AI ops, the pitch is a more programmable radio layer that can dynamically allocate resources to enterprise slices and events.

Private 5G is moving from pilot to production in manufacturing, mining, and logistics, where deterministic latency and reliability beat Wi-Fi. Startups are bundling spectrum access, planning tools, and lifecycle management into subscription offerings that minimize onsite integration risk. The convergence of Wi-Fi 7 backbones, 5G slicing, and deterministic networking is opening new service tiers—for example, guaranteed quality-of-service for robotics, AR-assisted maintenance, and time-sensitive networking.

The most visible disruption is satellite-to-handset connectivity. With 3GPP’s Release 17 standard for Non-Terrestrial Networks (NTN) now formalized, startups like Lynk Global, AST SpaceMobile, and Sateliot—and partnerships such as Apple/Globalstar and T-Mobile/SpaceX—are racing to deliver messaging and broadband directly to ordinary smartphones, 3GPP Release 17. This unlocks coverage for remote workers, maritime and aviation use cases, and resiliency services for enterprises, creating new pricing models that blend terrestrial and space-based connectivity.

Regulation, APIs and the race to monetize networks

Regulation is increasingly supportive of experimentation. Shared and local licensing regimes—CBRS in the U.S., campus spectrum in parts of Europe—are giving startups the right to deploy industrial networks without operator gatekeeping. Streamlined rules around small cells and rights-of-way are also enabling neutral-host models in transit hubs and dense urban corridors, an important lever for indoor coverage where traditional ROI is weak.

At the same time, a new API layer is emerging as operators seek to expose network capabilities to developers. GSMA’s Open Gateway initiative has rallied dozens of carriers around standardized APIs for functions such as device location, SIM swap verification, and quality-on-demand, creating a platform for startups to build network-aware applications, GSMA Open Gateway. CPaaS vendors and telco-cloud providers are integrating these APIs to offer enterprise-grade identity, fraud prevention, and performance assurances—prime territory for B2B telecom startups.

The commercialization roadmap is clear: sell outcomes, not megabits. Startups that turn connectivity into business platforms—verified identity for fintech, resilient links for critical infrastructure, optimized QoS for live events—will have the best shot at premium margins. With 5G approaching mass-market scale and satellite-to-device standards locked in, the next phase hinges on service design, data integration, and partnerships that convert network programmability into revenue. For telecoms startups, the opportunity is no longer theoretical; it’s operational—and up for grabs.