Telecoms startups surge on private 5G, Open RAN and network API tailwinds

A sector in flux, but with durable demand

Telecoms startups are finding fresh momentum in 2024–2025 as enterprises re-architect connectivity and operators seek more software-driven, modular networks. The macro backdrop remains mixed, but demand-side catalysts are hard to ignore: billions still lack reliable internet access and industry buyers want more programmable, secure, and cost-efficient infrastructure. The number of unconnected people stood at roughly 2.6 billion in 2023, according to ITU facts and figures, underscoring a long runway for access technologies and last-mile innovation.

On the technology curve, 5G is moving from consumer-centric rollouts to enterprise-grade use cases. Global subscriber and traffic growth are set to compound as 5G coverage and device penetration rise; by decade’s end, more than half of global mobile connections are expected to be 5G, GSMA’s Mobile Economy research shows. That shift is opening doors for startups across radio access virtualization, private networks, network observability, and managed services that deliver measurable ROI in factories, ports, and campuses.

Policy is amplifying the signal. In the United States, the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program is moving from planning to deployment, creating procurement channels for fiber altnets, fixed wireless providers, and neutral-host models, according to the NTIA’s program hub. Similar stimulus in Europe and parts of Asia is helping smaller challengers compete for rural builds and enterprise connectivity projects. For more on related Telecoms developments.

Where the money and momentum are: private networks and Open RAN

The most visible traction is in private LTE/5G, where industrial buyers want deterministic coverage, low latency, and secure segmentation not feasible with legacy Wi‑Fi alone. Global deployments have shifted from pilots to production in logistics, mining, and advanced manufacturing. As of 2023, industry reports tracked well over a thousand private mobile network projects across scores of countries, with momentum continuing into 2024, data from analysts at GSA indicates. Startups such as Celona, Betacom, and Federated Wireless have carved out roles in turnkey delivery, spectrum brokerage, and lifecycle management, often partnering with established vendors for radios and cores.

Open RAN is a parallel wedge for new entrants. By decoupling hardware and software and embracing standardized interfaces, operators can mix vendors and accelerate feature velocity. That change benefits software-centric challengers—from RAN intelligent controllers to cloud-native baseband suppliers—competing on cost, performance, and programmability. While greenfield networks grabbed early headlines, brownfield replacements and rural infill are now driving a more pragmatic wave of procurements that invite startup participation alongside incumbents.

Beyond the radio, network automation and assurance are becoming startup hunting grounds. AI-powered observability, slice orchestration, and zero-touch operations (ZTO) are increasingly budgeted line items as operators aim to lower opex and monetize quality-of-service tiers. Here, startups win by proving time-to-value with domain-specific models and integrations that plug into existing OSS/BSS stacks.

Software-first telco: APIs, cloud, and go-to-market

The industry’s pivot to an API economy is changing how startups sell into carriers. GSMA’s Open Gateway initiative has rallied dozens of operators to expose standardized network capabilities—such as device location, quality-on-demand, or SIM-based identity—through developer-friendly APIs, according to GSMA Open Gateway. That framework reduces fragmentation and gives B2B and B2D startups a clearer route to market, especially in fraud prevention, fintech authentication, and immersive media where network signals add trust and latency guarantees.

Cloud alignment is now table stakes. Hyperscalers’ telco edge offerings and marketplaces enable smaller vendors to co-sell managed services with consumption-based pricing, rather than pursuing multi-year capex-heavy deals. The winning playbook pairs cloud-native delivery with carrier co-innovation: land with a narrow use case (for example, private 5G for automated guided vehicles), expand into observability and security, and then unlock cross-border scale via standardized APIs and roaming agreements. These insights align with latest Telecoms innovations.

Risks, runways, and the 24-month outlook

Sales cycles remain the primary execution risk. Even as operators modernize, procurement governance, lab certifications, and security requirements can push deals past four quarters. Startups must structure financing to endure elongated pilots and staggered rollouts, and design products to interoperate with legacy cores and multi-vendor radio estates. Hardware supply constraints have eased, but CTOs are still prioritizing energy efficiency, RAN densification, and automation over speculative bets.

Still, the medium-term outlook is constructive. With 5G accounting for a growing share of connections by 2030 and enterprise traffic shifting onto managed private networks, the addressable market for software control planes, neutral host, and verticalized connectivity is expanding, according to Mobile Economy projections. In the next 12–24 months, expect more operator-startup JV constructs, outcome-based SLAs in private 5G, and selective Open RAN swap-outs where total cost of ownership and roadmap flexibility are decisive. For founders, the formula is clear: quantify ROI in months, prove resilience in multi-vendor environments, and partner where it accelerates credibility—and cash flow.