Huawei's chairman Xu Zhijun emphasizes the need for new growth catalysts in the telecommunications sector at MWC Shanghai 2025.

      Credit: MWC 2025

      During the keynote session at MWC Shanghai 2025, titled The Techco Transformation: Pioneering the Next Era of Innovation, Huawei's rotating chairman Xu Zhijun delivered a speech regarding the significant growth challenges that the global telecom industry faces. Xu acknowledged that the telecom sector has reached a stage of maturity and stability, making it increasingly challenging to sustain rapid growth. “For those of us who grew up in an era of high growth, witnessing stagnation is uncomfortable. But we must now seek new avenues for growth,” he stated.

      Xu outlined four key areas he believes can stimulate growth in the telecom industry:

      1. **Identifying Emerging Demand from New User Segments**

      Xu stressed the importance of observing evolving user behaviors and catering to new customer demographics. He highlighted gig economy workers, such as food delivery drivers, couriers, and ride-hailing drivers, as a rapidly expanding segment with increasing telecommunications needs. Their numbers are projected to reach 160 million globally by 2030, constituting 5% of the world’s workforce, according to Xu's presentation. “In China, their average revenue per user (ARPU) is 1.6 times that of conventional telecom users,” he noted. “Another notable group is livestreamers, who are expected to grow to 130 million worldwide by 2030, with an ARPU that can be up to four times higher. These emerging demographics need customized network products and services from telecom providers.”

      2. **Stimulating HD Video Consumption through Ecosystem Collaboration**

      Despite video representing over 50% of mobile data traffic, high-definition video consumption, especially 1080p and above, remains limited, with only 22% of users in major Chinese cities engaging with such content, according to Xu. He pointed out various bottlenecks along the value chain, which include content supply restrictions, network limitations, and terminal device capabilities. He advocated for a collaborative approach involving telecom operators, OTT (Over-the-Top) content providers, equipment vendors, and device manufacturers to establish high-quality video as the norm. Xu argued that this initiative would enhance user experience and create considerable opportunities for data traffic growth.

      3. **Enabling 5G Connectivity for Every Vehicle**

      Xu called upon industry participants to collaborate for the large-scale implementation of 5G in connected vehicles. Although automotive companies remain hesitant due to cost implications, Xu highlighted the long-term advantages of integrating 5G within both vehicle cockpits and central systems. He supported a hybrid business model that would allow consumers to select and pay for their connectivity services independently, aligning in-car networks with the broader smartphone ecosystem. He clarified that while 5G is vital for V2X (vehicle-to-everything) communications, autonomous driving should mainly depend on onboard perception and decision-making rather than real-time network connectivity.

      4. **Using FTTR to Digitize Small Businesses**

      Xu also emphasized FTTR (fiber-to-the-room) as a crucial solution for providing high-speed broadband access to individual rooms or business premises, especially for small enterprises. He asserted that over 500 million small businesses worldwide require reliable, low-latency, full-coverage connectivity, noting that traditional solutions often involve disjointed self-assembly. FTTR allows telecom operators to deliver a comprehensive solution that meets the needs of contemporary digital commerce and services, from retail to co-working spaces, Xu stated.

      He concluded by emphasizing that while market conditions differ by country, the necessity to adapt and evolve is a universal requirement. “As a company that has grown alongside telecom operators, Huawei is dedicated to collaborating with global partners to foster sustainable growth throughout the industry,” he remarked.

      Jessie Wu is a tech reporter based in Shanghai. She covers consumer electronics, semiconductor, and the gaming industry for TechNode. You can reach her via email: [email protected].