The advent of 5G technology has marked a significant shift in the telecommunications industry, offering transformative improvements in service speed, latency, and network reliability. This study explores the impact of 5G on operational efficiency and service innovation in telecom companies. By examining the operational performance of three leading telecom companies that have implemented 5G networks, the research identifies key improvements in speed, cost reduction, and resource optimization. The findings highlight that 5G has enabled companies to achieve up to 100 times faster data transfer speeds compared to previous generations, drastically reducing latency and enhancing network reliability. These improvements contribute to increased customer satisfaction, faster response times, and reduced operational costs. Additionally, the integration of artificial intelligence (AI) for network management has optimized resource allocation and further enhanced the efficiency of telecom operations. The research also demonstrates how 5G has driven innovation in service offerings, such as enabling smart cities, IoT integrations, autonomous vehicles, and real-time patient monitoring in healthcare. While the deployment of 5G offers numerous benefits, the study acknowledges challenges such as high infrastructure costs, digital inequality, and regulatory hurdles. Telecom companies must invest significantly in infrastructure and navigate complex regulatory environments to fully realize the potential of 5G. The study concludes that 5G technology has the potential to reshape the telecom sector, fostering greater competitiveness, service quality, and innovation. Future research should focus on the long-term impact of 5G on customer loyalty, its expanded applications, and its role in advancing future technologies such as 6G.