At the 18th edition of the Telecom Review Leaders’ Summit, held from December 10-11 in Dubai, United Arab Emirates, Alex Xu, President of Huawei’s Carrier Business for the Middle East and Central Asia, delivered a keynote speech urging industry leaders to acknowledge the complexities of the digital landscape.
Xu presented Huawei’s Techco 1.0, a strategic initiative designed to support the transition of telecom operators to technology companies (techcos).
The Era of Intelligent Technology
Acknowledging the profound impact of intelligent technology, Xu explained that artificial intelligence (AI), computing, and communication, are redefining global industries, enhancing efficiencies, and transforming lives.
Xu noted that by 2030, AI assistants will outnumber the global population, generating 120 times more data than today.
Emphasizing the impact of AI, Xu said, “This rise in AI presents massive opportunities for telecom companies, as demand for data, connectivity, and innovative digital experiences soars.”
“To meet this demand, operators must embrace change and transform into technology-centric organizations,” he added.
Challenges in the Telecom Industry
Despite the telecom sector’s achievements in innovation and growth, the industry has struggled with the decline in revenue growth from traditional services.
Interestingly, OTT platforms, cloud services, and digital applications continue to thrive.
Xu underscored that despite the challenges, the Gulf region is leading the 5G development, with carriers attaining a 2.2% share of the gross domestic product (GDP)—higher than the global average.
This remarkable journey is being driven by the transition of telcos to techcos, which are leveraging the capabilities of 5G-Advanced, AI, and cloud computing.
The Techco 1.0 Transformation
Xu introduced Huawei’s Techco 1.0 transformation, which aims to support the sustainable growth of telecom operators.
With the global transition from telco to techco requiring an overhaul of legacy systems and operations, he noted that the Techco 1.0 roadmap focuses on different strategies.
Xu emphasized Huawei’s comprehensive strategy, which includes business servitization, service platformization, and platform intelligentization. Together, this strategy aims to reduce costs, diversify services, and position carriers favorably as they advance in the digital era.
Moreover, Xu reiterated that collaboration among operators, vendors, and regulators is essential to drive innovation and explore new enterprise models.
“With a clear vision, innovative strategies, and collaborative efforts, we can build a smarter, more connected world. Together, let us take this step forward and shape the future of the telecom industry,” Xu concluded.
