Across Asia, telecom operators are running into the same limit. Demand for data keeps rising, but the business model that once supported voice, messaging, and mobile plans no longer delivers steady growth.
Voice and SMS have faded as core revenue sources. Data has become a utility. Even as networks carry more traffic each year, returns often fail to keep pace. In many markets, average revenue per user has stayed flat or grown only slightly. That gap has left operators with few choices for growth other than price cuts.
The pressure is driving a shift in how telecom companies position themselves. Rather than focusing only on connectivity, many are expanding into cloud services, AI, digital platforms, and enterprise technology. The move is less about re-branding and more about finding revenue that scales better than consumer plans.
Why the traditional model is under strain
For years, telecom growth came from scale. More users meant more calls, more messages, and more data plans. That link has weakened; messaging apps replaced SMS; voice calls moved online; and data became bundled and discounted.
At the same time, network costs continued to rise. Operators invested heavily in spectrum, infrastructure, and 5G rollout, but monetising those investments has proved difficult. The result is a business where traffic grows faster than revenue.
Technology has opened another route. Cloud computing, AI, analytics, and edge infrastructure are now central to how businesses run their operations. The tools sit closer to enterprise systems than consumer plans, and they offer higher margins when executed well.
In Asia-Pacific, this shift is already taking shape. Research firm Twimbit estimates that enterprise services accounted for about 23.1% of total telecom revenue in 2024, up from 22.2% a year earlier. The increase is modest, but it points to a clear direction.
Different paths for Asia telecom operators, shared pressure
In India, telecom operators are trying to reduce their dependence on consumer pricing by offering technology services to enterprises. Bharti Airtel has moved into cloud and AI-enabled platforms for businesses and other carriers. The services include infrastructure and tools created to help businesses manage data and operations in the country.
The timing aligns with India’s growing cloud market, which was valued at about USD 8.3 billion in 2023 and is expected to grow sharply over the next few years. For Indian operators, enterprise technology offers access to larger contracts and more stable spending than mobile plans.
In Southeast Asia, Singtel has taken a longer route. It has spent years building capabilities outside its core telecom business through its digital services arm, NCS Group. Today, NCS delivers cloud, cybersecurity, analytics, and IT services to governments and enterprises in the region. The work allows Singtel to compete as a technology integrator rather than only a network provider.
The Philippines offers a different example. Globe Telecom has built a large digital business around payments and financial services. GCash began as a mobile wallet and has grown into a broad consumer platform covering payments, savings, lending, and everyday services. Its parent company, Mynt, is valued at about USD 5 billion, showing that digital platforms can generate value that voice and data no longer do.
AI moves from experiment to operations
In Indonesia, Indosat Ooredoo Hutchison is using AI to address practical network problems rather than consumer features. The company applies AI to forecast demand, manage capacity, and respond to faults faster, helping keep services stable during peak periods.
The systems support Indosat’s wider effort to improve reliability while managing network complexity. The company is also working with NVIDIA and Accenture to build AI infrastructure that relies on local data, computing resources, and talent.
In South Korea, telecom operators are taking a more structural approach. SK Telecom has made AI central to its strategy, focusing on data centres and AI services for both domestic and overseas markets. It is also selling non-core assets to narrow its focus.
KT Corporation has expanded into cloud computing, AI analytics, media, and enterprise platforms that support areas like healthcare, smart cities, and manufacturing. LG U+ is working with global cloud providers to offer AI-based enterprise services designed for local use cases.
China shows what scale makes possible
China’s telecom sector illustrates how quickly this shift can happen at scale. The country’s largest operators have expanded their digital businesses in cloud, data, AI, and industry-specific platforms.
At China Mobile, revenue from digital services accounted for 29.4% of service revenue in 2023, rising more than 22% from the year before. In 2024, the company reported operating revenue of CNY 1.04 trillion, reflecting steady growth driven more by technology services than by connectivity alone.
The limits of the shift for Asia telecom operators
They also face pressure from hyperscalers that already dominate cloud and AI markets. As a result, partnerships have become common. Across Asia, telecom operators are working with cloud providers, AI firms, and startups to build services faster while limiting risk.
They also face pressure from hyperscalers that already dominate cloud and AI markets. As a result, partnerships have become common. Across Asia, telecom groups are working with cloud providers, AI firms, and startups to build services faster while limiting risk.
The partnerships allow operators to combine network reach with software capability, but they also raise questions about control and long-term margins.
What is clear is that connectivity alone no longer supports growth. Telecom networks remain essential, but their role is shifting. Operators that can turn those networks into platforms for digital services are more likely to remain relevant as Asia’s economies continue to digitise.
The boundary between telecom companies and technology firms is not disappearing overnight. But in many parts of Asia, it is already becoming harder to draw.
(Photo by Luan de Oliveira Silva)
See also: Japan reaches near-universal 5G coverage, but local gaps remain
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