Asia-Pacific’s telecommunications industry is undergoing a profound transformation, evolving far beyond traditional voice and messaging services to meet the demands of an increasingly digital world. As customer expectations soar and technology advances, telcos are turning to cloud computing and AI to modernise their operations, customer experiences, and business models.
The region presents unique opportunities and challenges for telcos. With mobile-first populations in countries like Indonesia and India, alongside mature digital markets such as Singapore, Australia, Korea, and Japan, the region’s diversity drives innovation. Research from GSMA finds that 65% of operators have adopted an AI strategy, and 41% are in early-stage deployment, often running pilots or exploring where AI can provide tangible benefits.
Today’s consumers demand seamless streaming, gaming, and communication experiences, placing increasing pressure on network infrastructure. Meeting these expectations at scale has resulted in a growing need for AI deployment across telco operations — from customer service and content delivery to network optimisation behind the scenes. The region’s telcos are responding by launching digital-native brands and app-first experiences, reflecting a broader trend where telcos are evolving into technology companies (the oft-cited ‘tech-cos’). Recent research from Gartner supports this shift, with 84% of telecommunications executives surveyed prioritising revenue growth, and 80% focusing on customer experience enhancement when making strategic investments.
Three pillars of transformation
The telecommunications industry’s shift toward a technology-driven model is grounded in three fundamental pillars. These are reshaping how telcos operate, innovate, and deliver value to their customers.
- Reimagining customer experiences
The industry is applying AI to transform customer interactions and network operations. Advanced analytics and machine learning enable personalised services, while AI-powered automation streamlines the management of complex network infrastructure. According to McKinsey’s Global Telecommunications Study, this AI-driven transformation is delivering measurable results: customer service response times have improved by up to 70% with the use of chatbots, while network issue diagnosis has been reduced from hours to seconds. Personalisation algorithms are also helping operators address service issues proactively, reducing customer dissatisfaction. - Data and skills
A well-defined data strategy is essential for telcos navigating digital transformation and evolving industry demands. Breaking down data silos and making information more accessible — while ensuring strong security and governance — is a crucial first step. This creates a foundation for applying AI and machine learning to extract insights and drive customer-centric innovation. A robust data infrastructure, paired with skilled practitioners, is vital for unlocking deeper value from customer relationships. - Enhanced efficiency through modern infrastructure
Cloud-based networks are emerging as scalable, cost-effective solutions for network modernisation. Major operators across the region are adopting cloud infrastructure to support 5G evolution, with a focus on resilience, performance, and sustainability. The use of machine learning and AI, from core to edge, is enabling more intelligent infrastructure with autonomous capabilities and optimised performance.
Looking ahead: the tech-co evolution
The convergence of 5G, AI, and cloud computing is creating new possibilities for telecommunications providers. According to IDC’s Asia-Pacific Digital Transformation Survey, telcos are poised to play central roles in the region’s digital ecosystem — from enabling smart cities and supporting industrial automation to delivering immersive consumer experiences. Realising this potential requires both advanced technology and skilled talent, with industry leaders investing in upskilling initiatives and collaborative innovation efforts.
The path forward involves several key considerations:
- Cultural transformation: Success requires organisational change beyond technology adoption. Telcos must foster innovation-friendly cultures that support experimentation and continuous learning.
- Sustainability: Balancing technological progress with environmental responsibility remains essential, with many operators implementing energy-efficient solutions in their networks.
- Local relevance: Solutions must be tailored to the diverse characteristics of the Asia-Pacific region, accounting for regulatory environments, cultural nuances, and varying levels of market maturity.
The transformation of telcos into tech-cos is more than a technological shift: It represents a fundamental redefinition of the industry’s role in the digital economy. As this evolution continues, success will depend on the ability to harness AI and cloud technologies while maintaining a strong focus on customer needs and operational excellence.
