Huawei Outlines Opportunities for Driving Growth for Carriers at MWC Shanghai 2025 - Middle East Business News and Information
Eric Xu, Huawei's Deputy Chairman and Rotating Chairman, says carriers face new challenges in an increasingly mature market
Shanghai, China, June, 2025, During MWC Shanghai 2025, Eric Xu, Huawei's Deputy Chairman and Rotating Chairman, outlined four strategic pathways for driving growth in the telecommunications industry as carriers face new challenges in an increasingly mature market.
In a keynote address to industry leaders, Xu acknowledged that while the telecoms sector has experienced rapid growth over the past four decades, it now faces a period of stable development, where 'basic consumer needs are already met in major markets, and revenue growth is stagnating.'
Four Pathways to Sustainable Growth:
1. Meeting Evolving User Demands with High Growth Potential
Xu highlighted emerging high-value user segments that present significant opportunities for carriers. Professional delivery riders, for example, have grown from 30 million globally in 2020 to 70 million in 2024, with projections reaching 160 million by 2030.
'Food delivery riders' minutes of usage is four times that of an average user, and their data usage is twice as high, resulting in ARPU that's 1.6 times higher,' Xu noted.
Similarly, the livestreaming profession has expanded from 10 million practitioners in 2022 to an estimated 50 million in 2024, with projections reaching 130 million by 2030. These users consume five times more data than the average user, generating four times the average revenue per user (ARPU). He also highlighted that live streamers and esports gamers are a new, fast-growing segment of high-value users for carriers.
'If we look at the global market, it's clear that these demands promise high growth potential, and carriers who've met these needs are growing fast. Carriers who haven't ramped up for these needs yet might find it more challenging to achieve new growth,' added Xu.
2. Boosting HD Video Through Ecosystem Collaboration
Despite video comprising roughly 50% of mobile traffic, Xu identified a significant gap in high-definition video consumption. In tier-1 Chinese cities, 1080p and higher-definition video accounts for only 22% of total mobile video traffic.
'A 1080p video generates five times more traffic than its 360p counterpart,' Xu explained, emphasizing the revenue potential for carriers who can successfully coordinate with content providers (OTT), device manufacturers, and network equipment vendors to address pricing and technical barriers.
3. Accelerating 5G Vehicle Connectivity
Addressing the slow adoption of 5G-connected vehicles, projected to represent only 30% of cars sold in China by 2025, Xu called for industry-wide collaboration to address cost barriers, particularly those related to intellectual property rights and T-Box pricing.
He proposed a dual-connectivity approach, separating connections for vehicle cockpits (using B2C models) and T-Box connectivity (using B2B models) while maintaining that autonomous vehicles must be capable of independent operation without network dependency.
4. Expanding FTTR to Small and Medium Businesses
Building on the success of Fiber to the Room (FTTR) in premium residential markets, Xu outlined opportunities to extend this technology to micro and small businesses. With over 500 million such businesses worldwide, FTTR solutions can address common challenges, including poor Wi-Fi coverage, unreliable connections for critical applications, and limited device connectivity.
'With FTTR, carriers can bring fiber broadband to micro and small businesses too,' Xu said, noting that China currently has an estimated 75 million FTTR users compared to 500,000 in other countries.
Tailored Approaches for Different Markets
Xu concluded by emphasizing the need for customized growth strategies: 'Every carrier is different. Their markets are different, their business environments are different—and so is their competitive landscape. So, the pathways to growth are different too.'
'Huawei is always ready and willing to work together, helping carriers explore opportunities unique to them and carve out the right pathways to long-term, sustainable growth,' he concluded.
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Huawei Outlines Opportunities for Driving Growth for Carriers at MWC Shanghai 2025 - Middle East Business News and Information
Eric Xu, Huawei's Deputy Chairman and Rotating Chairman, says carriers face new challenges in an increasingly mature market Shanghai, China, June, 2025, During MWC Shanghai 2025, Eric Xu, Huawei's Deputy Chairman and Rotating Chairman, outlined four strategic pathways for driving growth in the telecommunications industry as carriers face new challenges in an increasingly mature market. In a keynote address to industry leaders, Xu acknowledged that while the telecoms sector has experienced rapid growth over the past four decades, it now faces a period of stable development, where 'basic consumer needs are already met in major markets, and revenue growth is stagnating.' Four Pathways to Sustainable Growth: 1. Meeting Evolving User Demands with High Growth Potential Xu highlighted emerging high-value user segments that present significant opportunities for carriers. Professional delivery riders, for example, have grown from 30 million globally in 2020 to 70 million in 2024, with projections reaching 160 million by 2030. 'Food delivery riders' minutes of usage is four times that of an average user, and their data usage is twice as high, resulting in ARPU that's 1.6 times higher,' Xu noted. Similarly, the livestreaming profession has expanded from 10 million practitioners in 2022 to an estimated 50 million in 2024, with projections reaching 130 million by 2030. These users consume five times more data than the average user, generating four times the average revenue per user (ARPU). He also highlighted that live streamers and esports gamers are a new, fast-growing segment of high-value users for carriers. 'If we look at the global market, it's clear that these demands promise high growth potential, and carriers who've met these needs are growing fast. Carriers who haven't ramped up for these needs yet might find it more challenging to achieve new growth,' added Xu. 2. Boosting HD Video Through Ecosystem Collaboration Despite video comprising roughly 50% of mobile traffic, Xu identified a significant gap in high-definition video consumption. In tier-1 Chinese cities, 1080p and higher-definition video accounts for only 22% of total mobile video traffic. 'A 1080p video generates five times more traffic than its 360p counterpart,' Xu explained, emphasizing the revenue potential for carriers who can successfully coordinate with content providers (OTT), device manufacturers, and network equipment vendors to address pricing and technical barriers. 3. Accelerating 5G Vehicle Connectivity Addressing the slow adoption of 5G-connected vehicles, projected to represent only 30% of cars sold in China by 2025, Xu called for industry-wide collaboration to address cost barriers, particularly those related to intellectual property rights and T-Box pricing. He proposed a dual-connectivity approach, separating connections for vehicle cockpits (using B2C models) and T-Box connectivity (using B2B models) while maintaining that autonomous vehicles must be capable of independent operation without network dependency. 4. Expanding FTTR to Small and Medium Businesses Building on the success of Fiber to the Room (FTTR) in premium residential markets, Xu outlined opportunities to extend this technology to micro and small businesses. With over 500 million such businesses worldwide, FTTR solutions can address common challenges, including poor Wi-Fi coverage, unreliable connections for critical applications, and limited device connectivity. 'With FTTR, carriers can bring fiber broadband to micro and small businesses too,' Xu said, noting that China currently has an estimated 75 million FTTR users compared to 500,000 in other countries. Tailored Approaches for Different Markets Xu concluded by emphasizing the need for customized growth strategies: 'Every carrier is different. Their markets are different, their business environments are different—and so is their competitive landscape. So, the pathways to growth are different too.' 'Huawei is always ready and willing to work together, helping carriers explore opportunities unique to them and carve out the right pathways to long-term, sustainable growth,' he concluded.
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