To be clear, residential ISPs already do provide edge-compute hosting... for corporations.

When Netflix and others put CDNs "at the edge", they aren't doing that by building their own DC inside your city; nor by renting space in a random colo facility. Rather, they partner with each of the local regional ISPs, to put their CDN inside the ISP's "edge hosting DC" — a facility that almost all ISPs own (if not necessarily manage) at least one of in every city, precisely for the purpose of enabling such agreements.

So, unlike most Over-The-Top data services (which ISPs have long since lost the competency for), this one is something ISPs are actively doing. They're just not selling it B2C; their edge data-centers are currently a pure B2B play for them. But ISPs do know how to sell things B2C — so this would just be a question of them feeling enabled by product re-packaging to give this product line over to their B2C sales and marketing departments as something to charge their customers for.

"Re-packaging" this B2B colo into something they can sell to customers, would in turn just require the mobile OS vendors to step up and write code to make doing so an ops question rather than an R&D question — just as they did for visual voicemail, wi-fi calling, eSIM deployment, and so on. Essentially, Apple and Google would just need to provide their own server racks to ISPs, which host workload hypervisors for offload of workloads from "their" devices — in such a way that offload wouldn't be something customers would be paying Apple or Google a subscription fee for, but rather, as with Visual Voicemail, something where usage records from this system could feed into the ISP's usage-accounting systems, to be reduced into billing items by arbitrary ISP data-plan business rules.

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And hopefully — but I'm not holding my breath — this would be done using open protocols and with FOSS-replicable software, such that eventually the ISPs could stop relying on Apple and Google to provide this only for specific devices, and instead could ask for their 3GPP hardware-integration vendor of choice to provide this as part of their 6/7/8G head-end system, in such a way that any device leased an IP by said head-end could make use of it.

What would such a standard look like?

Well, we're talking about a vendor-neutral, architecture-neutral abstract machine runtime, tuned to host persistent, network-mobile, IO-bound, highly-concurrent workloads "cheaply" on a highly-multitenant basis.

And Ericsson, one of the largest 3GPP equipment providers, created a runtime a few decades back that coincidentally fits that set of constraints quite closely — so closely, in fact, that they'd likely just vaguely wave at it and say "here, standardize this." (After giving its architecture a few security tweaks to achieve multitenant safety guarantees, that is.)

Just imagine: every mobile app on your iPhone, embedding its own little BEAM-bytecode relup package; one built by XCode, compiled from a combination of project source files written in a "network dialect" of Swift, plus Erlang library dependencies. And then pushed, on app launch, to a secure-multitentant Erlang VM sandbox, run by your ISP in its edge colo. Wouldn't that be just wild? ;)