The Distillery MWC Special: 5 Predictions on What to Watch

February 2026

Telecoms & Connectivity

Juniper Research

Analyst House

Nos vemos en Barcelona?

Grab your finest gilet — Mobile World Congress Barcelona is back for another year, from Monday 2nd to Thursday 5th March.

Before you head to the Fira, we’ve canvassed our expert telco analysts and pulled together five predictions on what's going to shape this year’s show, alongside some suggested light reading for the plane ride.

In the meantime, it may be worth learning the Spanish for "Can we get a photo for LinkedIn?" and “Let’s arrange a call for next week, yeah?”

In this issue:

• Sovereign AI moves up the operator agenda.
• Satellite shifts from experimentation to commercial execution.
• Edge and on-device AI demonstrations centre on real-time, latency-sensitive use cases.
• Physical AI pushes networks towards robotics-ready performance.
• Agentic OS architectures emerge as the next smartphone differentiator.

MWC PREDICTION #1

Operators to Position Themselves as Sovereign AI Leaders

Telcos are uniquely placed to benefit from the rise of sovereign AI. They operate national infrastructure, manage regulated data environments, and increasingly control edge compute assets. The question is whether they can convert those structural advantages into credible AI leadership, rather than simply transporting someone else’s models.

🟣 Expect announcements around domestic data centres optimised for GPU workloads, alongside efforts to assemble vertically integrated AI stacks spanning compute, orchestration, hosting, and security.

🟣 Messaging will move up the stack. Operators will position themselves not just as connectivity providers, but as full-stack AI enablers. That includes running inference at the edge, hosting enterprise AI workloads, and offering governance-aligned environments for regulated sectors.

🟣 Without credible sovereign AI capabilities, operators risk being reduced to connectivity layers in an AI economy dominated by hyperscalers. We expect Tier 1 operators to announce tangible investment plans this year, rather than exploratory pilots.

MWC PREDICTION #2

New Operator-Satellite Partnerships Will Be Announced

Satellite network operators have moved from fringe presence to central players at MWC, and this year will be no different. Speakers from Starlink/SpaceX will outline how Low Earth Orbit (LEO) constellations integrate with terrestrial networks, while SES and Azercosmos are set to showcase direct-to-device (D2D) and multi-orbit capabilities.

For operators, the focus is now on the commercial reality of non-terrestrial networks (NTNs). That is, can NTNs move beyond trials and roadmaps to become a meaningful, monetisable part of operators’ connectivity portfolios?

🟣 Commercial partnerships will take centre stage. Announcements are likely to move beyond trials and proofs of concept, and instead towards signed deals and commercial rollouts.

🟣 D2D will dominate the conversation. Early commercial services will centre on consumer smartphones and IoT devices; positioning satellite as a complement to terrestrial coverage rather than a replacement.

🟣 As satellite services cross borders by default, questions around data jurisdiction and regulatory oversight will become harder to ignore, particularly for operators operating in tightly regulated markets.

MWC PREDICTION #3

On-device/Edge AI Takes Centre Stage for Low Latency Use Cases

AI is being increasingly positioned as core to network development, from performance optimisation to cost efficiency. The real differentiator now is where the compute sits. For latency-sensitive use cases, AI must move closer to the edge — and in some cases, onto the device itself.

This shift will not be driven by operators alone. Device manufacturers will play a central role in how on-device AI is deployed and commercialised.

🟣 Device manufacturers will be the most vocal proponents of on-device AI at MWC, showcasing dedicated chipsets built to handle AI workloads in real time.

🟣 Early demonstrations will centre on specialised hardware configurations combining GPUs and NPUs (Neural Processing Units) to optimise performance, before gradually filtering into mainstream consumer devices.

🟣 Local processing will be a core focus. On-device AI depends on local data to deliver low latency and stronger privacy controls, and vendors will need to demonstrate how their architectures achieve both.

MWC PREDICTION #4

Operators to Demo 5G Advanced Solutions for the Physical AI Era

Following its high-profile showing at CES, physical AI is set to dominate MWC, with operators and private network vendors positioning their networks not merely as data carriers, but as foundational infrastructure for physical AI systems.

🟣 5G Advanced private networks will be presented as purpose-built platforms for robotics, enabling real-time sensor exchange, multi-robot coordination, and the uplink performance required for embodied intelligence.

🟣 Network slicing and edge computing strategies will also feature prominently, with operators outlining how they can deliver predictable, low-latency connectivity across environments such as factories, warehouses, and logistics hubs.

🟣 High-precision positioning will be another focal point. Advances towards sub-centimetre localisation will be framed as critical to navigation, coordination, and spatial awareness in physical AI deployments.

MWC PREDICTION #5

Smart Device Makers to Showcase Agentic OS Capabilities

After a year of rapid progress in AI agents, attention is turning to how these systems are embedded at the operating system level.

Vendors are moving beyond standalone assistants towards agentic architectures capable of autonomously completing multi-step tasks across a device. HONOR’s launch of MagicOS 10 — positioned as a self-evolving agentic AI OS — signals the direction of travel, and other manufacturers are likely to follow.

🟣 Expect new smartphone models built around agentic operating system architectures to debut at MWC, complete with systems designed to support AI agents that coordinate actions across apps and services.

🟣 Demonstrations will highlight agents capable of interpreting user requests, navigating interfaces, opening apps, tapping buttons, and comparing prices — effectively replicating human interaction with the device.

🟣 Manufacturers will frame agentic OS features as the next major differentiator in the smartphone market; positioning autonomous task completion as a step beyond traditional voice assistants.

WHITEPAPERS

Your MWC 2026 Reading List

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Human + AI: Drivers of Customer Experience AI Agents in 2026

How Operators Can Unlock the $8 billion Network API Opportunity

Preparing for Q-Day: Post-quantum Security Shift

eSIM-only Devices: The Impact on Operators, Consumers, and IoT

Beam Me Up: The Direct to Satellite Revolution

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