Telco 2026: loyalty is the network that matters

Telecom does not expect a dramatic year. Deloitte describes a mature, low-growth industry with solid margins. The pressure sits elsewhere: customers see little difference between networks, and more of their digital life runs through AI (Deloitte, Feb 2026).

In brief: Telecom in 2026 is a mature, low-growth industry with a loyalty problem. Deloitte cites data showing that up to 77% of consumers feel no loyalty to their provider and annual churn runs around 22%. Rewards, service and AI will shape who customers stay with, and Ericsson ConsumerLab finds 38% of smartphone users expect to use agentic AI by 2030.

A loyalty problem

The industry was expected to generate about US$1.55 trillion in revenue in 2025, up roughly 1.7%. Deloitte cites consumer sentiment data showing that up to 77% of consumers feel no loyalty to their provider, only 47% stay with their main operator for more than five years, and annual churn runs at around 22% (Deloitte, Feb 2026).

Deloitte's TMT Predictions point to an answer that has little to do with the network: in developed markets, operator reward schemes may matter to consumers as much as, or more than, network performance (Deloitte, 17 Nov 2025).

Operators are also segmenting with flanker brands. In Canada, flankers account for 24% of revenues and 30% of subscribers at major carriers, and Deloitte expects more premium flankers, activated through social and digitally native channels (Deloitte, Feb 2026).

AI becomes everyday, then agentic

Deloitte predicts that daily use of generative AI inside search engines will be 300% more common than daily use of any standalone gen AI tool (Deloitte, 17 Nov 2025). In the UK, 63% of consumers have used a gen AI app and 10% use one daily, yet 27% of AI users do not realise the answers can be inaccurate (Deloitte UK, 17 Jun 2026).

Ericsson's ConsumerLab surveyed more than 43,000 smartphone users in 27 markets: 38% expect to be using agentic AI by 2030, letting it handle tasks such as scheduling, bookings and purchases (Ericsson ConsumerLab, Sep 2026).

Service is the new network

Deloitte expects operators to use AI agents to automate routine support so human teams can focus on complex cases, and asks whether personalisation will build trust or heighten privacy concerns. It also cites research that 86% of consumers are willing to pay more for a better experience (Deloitte, Feb 2026).

What it means for marketers

• Sell the relationship, not the spec sheet. When speed upgrades are hard to feel, rewards, service and ecosystem benefits carry the brand.
• Use sub-brands with intent. Flankers work when each has a clear audience and a clear reason to exist.
• Let AI take the routine, keep people for the moments that matter. Complex and emotional contacts decide loyalty.
• Prepare for agents as customers. Plans, prices and terms will increasingly be compared by software on the customer's behalf.

In a market where networks look alike, the experience around the network is the product people remember.

Frequently asked questions

How loyal are telecom customers to their provider?

Not very. Deloitte cites consumer sentiment data showing that up to 77% of consumers feel no loyalty to their provider, only 47% stay with their main operator for more than five years and annual churn runs at around 22%. Deloitte's TMT Predictions suggest operator reward schemes may matter as much as, or more than, network performance in developed markets.

How many people use generative AI every day in the UK?

In the UK, 63% of consumers have used a gen AI app and 10% use one daily, according to Deloitte Digital Consumer Trends, yet 27% of AI users do not realise the answers can be inaccurate. Deloitte also predicts that daily use of generative AI inside search engines will be 300% more common than daily use of any standalone gen AI tool.

How will AI agents change telecom customer service?

Deloitte expects operators to use AI agents to automate routine support so human teams can focus on complex cases, and cites research that 86% of consumers are willing to pay more for a better experience, according to Deloitte. Ericsson ConsumerLab surveyed more than 43,000 smartphone users in 27 markets and found that 38% expect to use agentic AI by 2030 for tasks such as bookings and purchases.