Across the Middle East and North Africa (MENA) region, telecom operators face a pivotal moment. Their traditional role of providing voice, data, and internet connectivity, while still essential, no longer fully meets the needs of rapidly developing digital societies. Increasingly, governments, businesses, and citizens expect telecom providers to evolve into something more: architects of a new form of infrastructure that supports entire digital economies.
Several strong forces are propelling this shift. The need for sophisticated digital public services such as e-government portals, digital health records, remote learning platforms, and national digital identity systems is rapidly increasing. These services depend on secure, scalable, and in most cases, locally hosted infrastructure. At the same time, cloud computing is revolutionizing enterprise IT and public services, while the expansion of edge computing is moving processing closer to end-users, enabling real-time applications such as autonomous transportation and smart manufacturing.
MENA’s cloud services market exemplifies this momentum. IDC projects that public cloud expenditure in the region will surpass USD 9 billion by 2027, demonstrating that digital transformation is no longer just an aspiration; it is actively underway. The number of Internet of Things (IoT) connections in the region is predicted to exceed 1.1 billion by 2025, placing additional pressure on network infrastructure and data management systems.
Compounding these developments is the rising importance of data sovereignty. As countries implement laws to localize sensitive data, especially in the finance, healthcare, and government sectors, telecom operators are encouraged to adopt a more strategic role. In Saudi Arabia, the Cloud Computing Regulatory Framework mandates specific compliance regarding data residency and protection. The UAE’s Federal Personal Data Protection Law similarly elevates standards for organizations handling personal data of citizens. In both cases, telecom operators, with their physical infrastructure, regulatory expertise, and trusted market position, are well placed to respond.
This evolving landscape prompts us to reassess the very foundation of digital infrastructure. Instead of viewing telecom as a standalone industry, it is more effective to see it as a fundamental layer within a multi-tiered digital stack. At the base of this stack are physical infrastructure components, including towers, fiber optic cables, submarine systems, and data centers. Connectivity also encompasses 4G and 5G mobile networks, fiber-to-the-premises (FTTP) services, and emerging satellite technologies. Above connectivity lies the increasingly essential layer of cloud and edge computing, where data is stored, processed, and analyzed in real-time. Beyond this is a platform of services, including digital identity, cybersecurity, content delivery frameworks, and data exchange protocols, which support applications and public services. At the top of the stack is the digital ecosystem itself, a diverse network of services, start-ups, enterprises, and institutions that rely on robust digital foundations to operate, innovate, and grow.
Several telecom operators in the region are already adopting this broader role. e&, for example, has repositioned itself as a technology investment group, expanding into fintech, enterprise services, and AI solutions. In 2022, the group’s digital services revenue increased by over 45 per cent, highlighting the commercial potential of this shift. In Saudi Arabia, STC has launched Center3 to consolidate its data center and international cable infrastructure and is pursuing a strategy to establish the Kingdom as a digital hub connecting Asia, Africa, and Europe. Telecom Egypt, similarly, is leveraging its geographical advantage and investing in hyperscale data centers and connectivity corridors to transform Egypt into a regional digital gateway.
Yet, as telcos venture further up the digital stack, they face new challenges. Traditional and outdated regulatory models, mainly focused on licensing, spectrum, and interconnection, are no longer sufficient. Emerging business models that incorporate platform services, AI tools, and edge-hosted content necessitate new forms of oversight, technical standards, and governance frameworks. Policymakers must develop in tandem with industry, creating agile and forward-looking frameworks that safeguard the public interest while fostering innovation.
For telecom operators themselves, transformation must start with investment. Upgrading existing infrastructure to support cloud, edge, and high-performance applications is no longer optional. Strategic partnerships, particularly with hyperscalers and cloud service providers, can provide rapid access to new capabilities; however, they must be carefully managed to maintain local control over critical infrastructure. Equally important is developing in-house capabilities. As telcos of the future evolve into technology companies, investing in talent, ranging from cloud architects to cybersecurity experts, will become increasingly essential.
Governments, on the other hand, have a role to play in accelerating this evolution. By incentivizing the deployment of sovereign cloud infrastructure, supporting public-private partnerships, and embedding telecom operators into national digital transformation strategies, policymakers can unlock significant value for their economies. Regulation must be clear, consistent, and focused on outcomes, encouraging competition while also enabling long-term and sustainable infrastructure investment.
This shift from being solely a connectivity provider to becoming a digital infrastructure orchestrator is not just a commercial opportunity for operators; it is a national necessity. In an era where economic resilience, innovation, and competitiveness increasingly depend on digital infrastructure, it must be regarded as a strategic asset. Telecom operators, with their extensive networks, physical assets, and operational expertise, are uniquely positioned to lead this change. In this moment of transformation, connectivity alone is no longer sufficient. The future of telecom lies in its ability to serve as the foundation for digital resilience, innovation, and national competitiveness.
At Salience Consulting, we envision the future of telecom as one that requires confidently embracing this new role with clarity and purpose. We collaborate with operators, regulators, and international financing bodies across the MENA region to develop strategies, policies, and investment plans that align with this vision, aiming to build resilient, future-proof digital infrastructure. Infrastructure extends beyond technology; it’s about creating the foundation for upcoming digital growth. These changes are not just technical; they are strategic shifts. Making the right choices will determine who leads, who falls behind, and who gets left out.
That’s where Salience Consulting comes in!
Whether assisting a regulator in crafting modern policies, helping a telecom operator develop its strategic roadmap, or advising a development bank on the feasibility of a hyperscale project, we leverage our technical expertise, policy insights, commercial acumen, and regional and international experience to bridge the gap between vision and impact. As telecom operators prepare to take the lead in this evolving landscape, Salience Consulting is poised to guide, support, and accelerate that transition, offering actionable strategies, integrated policy approaches, and a dedicated focus on creating long-term value for all stakeholders.
If your organization is looking to turn digital ambition into digital infrastructure, we’re here to help make it a reality.
Author
Ammar Hamadien
Principal Consultant
and Head of Strategic Partnerships