Norway's biggest telecom group, Telenor, is warning that the rise of AI-powered shopping agents could upend how mobile customers choose their plans. The company's CEO, Benedicte Schilbred Fasmer, told Reuters that these digital assistants will be “to a large degree price driven,” potentially turning plan selection into a near-instant ranking exercise based almost entirely on cost.
That prospect poses a direct challenge to Telenor's “more-for-more” strategy, which has been built around convincing customers to pay higher monthly fees in exchange for bundled perks such as enhanced security features and better network coverage. If an AI agent simply compares prices and picks the cheapest option, those extras could become invisible to the decision-making process.
What is Telenor's “more-for-more” strategy?
Telenor, like many telecom operators across Europe, has been trying to move away from competing purely on price. The idea is to package add-ons into pricier subscription tiers, so that customers who want extra security tools, faster speeds, or more reliable coverage pay a premium. This approach helps protect profit margins in a market where basic mobile plans have become increasingly commoditised.
But the strategy depends on customers being able to see and value those extras. A human shopper might weigh the benefits of a bundled security suite or a promise of better coverage in rural areas. An AI agent, however, is likely to be programmed to optimise for the most obvious metric: the monthly price.
Fasmer's comments highlight a growing concern across industries that AI agents, which are being developed by tech giants and startups alike, could fundamentally change how consumers compare products and services. These agents can scan dozens of options in seconds, rank them by price, and make a purchase or subscription decision without human input.
Why this matters for telecom operators
For any operator that relies on selling extras, the rise of price-focused AI agents is a potential threat. If an algorithm treats security tools or network quality as just another line item, it may not give them the weight they deserve. A customer who would have paid extra for peace of mind might end up with the cheapest plan, simply because the AI didn't factor in the value of those add-ons.
This is not just a theoretical concern. AI shopping agents are already being tested by major retailers and tech platforms, and they are expected to become more common in the coming years. Telecom plans, with their complex pricing structures and numerous add-ons, are a prime target for these tools.
The challenge is not unique to Telenor. Other telecom operators that have adopted similar bundling strategies will likely face the same issue. The industry as a whole may need to rethink how it presents its offerings to AI agents, perhaps by ensuring that the value of extras is clearly communicated in a way that algorithms can understand.
What it means for investors
For investors, the key takeaway is that Telenor's growth strategy could face headwinds if AI agents become the primary way people shop for mobile plans. If the company is forced to compete on price alone, its average revenue per user could come under pressure, and its ability to grow profits could be limited.
That said, it's still early days. AI shopping agents are not yet ubiquitous, and it's unclear how quickly they will be adopted by mainstream consumers. Telenor's management is clearly aware of the risk, which is the first step in addressing it.
Investors should watch how Telenor and other telecom operators adapt their pricing and marketing strategies in response to this emerging trend. Companies that find ways to make their value proposition clear to AI agents, or that develop their own AI tools to help customers choose plans, could be better positioned than those that simply wait to see what happens.
In the broader context, this story is part of a larger theme: the impact of artificial intelligence on consumer markets. As AI agents become more sophisticated, they could reshape competition in many industries, not just telecom. For investors, understanding these dynamics will be crucial in assessing the long-term prospects of companies that rely on differentiated offerings.
Telenor's warning is a reminder that even well-established business models can be disrupted by new technology. The question is not whether AI agents will change how we shop, but how quickly and how deeply.
