Artificial Intelligence and Innovation in Investment Strategy in the Telecommunications Industry
Keywords:
Artificial Intelligence. Innovation. Investment Strategy. Telecommunications Industry. Offensive-Defensive Strategy, AI Optimization.Abstract
Objective: This study aims to examine how artificial intelligence contributes to innovation and shapes investment strategies in the telecommunications industry.
Methodology: A mixed-methods approach was employed. In the qualitative phase, semi-structured interviews were conducted with 15 purposively selected telecommunications experts, and the data were analyzed through open, axial, and selective coding. In the quantitative phase, data collected from expert questionnaires were assessed for validity and reliability using CVR, Cronbach’s alpha, and confirmatory factor analysis. An advanced SWOT framework was applied to integrate findings and formulate strategic directions.
Findings: Inferential results indicate that artificial intelligence significantly reduces operational costs, improves network traffic prediction accuracy, shortens response times to system failures, and enhances personalized service delivery. Moreover, AI-driven innovation was found to have a significant positive effect on attracting investment and strengthening competitive advantage in telecommunications firms.
Conclusion: The findings support a dual strategic model of “AI-based innovation and optimization,” combining predominantly offensive growth-oriented strategies with essential defensive mechanisms to ensure risk management, security, and long-term sustainability in a dynamic industry environment.
Downloads
References
Bahia, K., & Castells, P. (2023). The dynamic effects of competition on investment: the case of the European mobile communications industry. Journal of Information Policy, 13, 249-309. https://doi.org/10.5325/jinfopoli.13.2023.0012
Balmer, R. E. (2020). Artificial Intelligence Applications in Telecommunications and other network industries. Telecommunications Policy. https://doi.org/10.1016/j.telpol.2020.101977
Chen, H., Li, L., & Chen, Y. (2021). Explore success factors that impact artificial intelligence adoption on telecom industry in China. Journal of Management Analytics, 8(1), 36-68. https://doi.org/10.1080/23270012.2020.1852895
Clò, S. (2020). Firm ownership, quality of government and innovation: Evidence from patenting in the telecommunication industry. Research Policy. https://doi.org/10.1016/j.respol.2020.103960
Dudnik, O. (2021). Trends, Impacts, and Prospects for Implementing Artificial Intelligence Technologies in the Energy Industry: The Implication of Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(2). https://doi.org/10.3390/joitmc7020155
Eckebrecht, F. R. (2021). Fueling investments - The effect of the Agreement on Basic Telecommunications. Telecommunications Policy. https://www.sciencedirect.com/science/article/abs/pii/S030859611830096X
Fei, K. (2012). Competition and mobile network investment in China's telecommunications industry. Telecommunications Policy. https://doi.org/10.1016/j.telpol.2012.02.003
Garrone, P. (2015). Seeking the links between competition and telecommunications investments. Telecommunications Policy. https://doi.org/10.1016/j.telpol.2015.03.002
Gómez, J. (2022). How to beat early movers: The role of competitive strategy and industry dynamism on followers' performance in the telecommunications industry. Long Range Planning. https://doi.org/10.1016/j.lrp.2022.102244
Hasan, S. A., Piri, P., & Chalaki, P. (2026). Designing an optimal decision-making model for investors: Integrating artificial intelligence and financial reporting transparency. Journal of Asset Management and Financing, 14(2), 1-24. https://doi.org/10.22108/amf.2025.143308.1934
Hosseini, F., Sepehrzadeh, H., & Kheiri, M. (2024). Presenting the "Forward Adaptation" optimization algorithm for training models used in deep learning. Karafan Quarterly Scientific Journal, 21(3), 57-83. https://www.sid.ir/paper/1664335/en
Jihwan, K. (2011). Access regulation and infrastructure investment in the mobile telecommunications industry. Telecommunications Policy. https://doi.org/10.1016/j.telpol.2011.08.004
Khaleghizadeh Dehkordi, M., Sarraf, F., & Najafi Moqaddam, A. (2025). The Role of Performance Metrics in Explaining Investment Efficiency with Emphasis on Artificial Intelligence Method. Accounting and Management Auditing Knowledge, 13(51), 151-168.
Khonina, S. N. (2024). A perspective on the artificial intelligence's transformative role in advancing diffractive optics. Iscience. https://doi.org/10.1016/j.isci.2024.110270
Lestage, R. (2013). Competition and investment in telecommunications: Does competition have the same impact on investment by private and state-owned firms? Information Economics and Policy. https://doi.org/10.1016/j.infoecopol.2013.02.001
Lundvall, B. A., & Rikap, C. (2022). China's catching-up in artificial intelligence seen as a co-evolution of corporate and national innovation systems. Research Policy. https://www.sciencedirect.com/science/article/abs/pii/S0048733321001918
Majumdar, S. K. (2007). Technology investment strategy in the presence of competitor entry: Broadband deployment in the US telecommunications industry. Technology in Society. https://doi.org/10.1016/j.techsoc.2007.08.004
Mehdipour, M. A., Chitsaz, E., & Etemadi, M. (2024). A perspective on human-AI interaction: A bibliometric analysis using co-occurrence techniques. Karafan Quarterly Scientific Journal, 21, 13-33. https://www.magiran.com/paper/2796628/a-perspective-on-human-interaction-and-artificial-intelligence-bibliometric-analysis-with-co-occurrence-technique?lang=en
Ochuba, N. A., Olutimehin, D. O., Odunaiya, O. G., & Soyombo, O. T. (2024). Sustainable business models in satellite telecommunications. Engineering Science & Technology Journal, 5(3), 1047-1059. https://doi.org/10.51594/estj.v5i3.957
Paleologos, J. M., & Polemis, M. L. (2013). What drives investment in the telecommunications sector? Some lessons from the OECD countries. Economic Modelling. https://www.sciencedirect.com/science/article/abs/pii/S026499931200394X
Ren, H. K. (2024). Harmonizing innovation and regulation: The EU Artificial Intelligence Act in the international trade context. Computer Law & Security Review. https://doi.org/10.1016/j.clsr.2024.106028
Sadrettin, Ç. (2024). Application of the full consistency method (FUCOM) - Cosine similarity framework in 5G infrastructure investment planning: An approach for telecommunication quality improvements. Heliyon. https://doi.org/10.1016/j.heliyon.2024.e30664
Shuijing, H. (2022). Quantitative Analysis of China's Artificial Intelligence Technology Patents. Procedia Computer Science. https://doi.org/10.1016/j.procs.2022.10.004
Weng, Y. (2024). Risk Analysis and Management Strategies for Entrepreneurial Investment. Frontiers in Business, Economics and Management, 15(3), 160-164. https://doi.org/10.54097/ywyd4t87
Zong, C., Chen, W., Yuan, N., & Feng, H. (2023). Mobile telecommunication companies' investment and pricing strategies for content service. Journal of Management Science and Engineering. https://www.sciencedirect.com/science/article/pii/S2096232024000313
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2026 Atena Basirat, Davood Feiz, Azimollah Zarei, Meisam Modarresi (Author)

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.