PwC Report: AI Computing Power Resructuring Global Telecom Sector with China as Pivotal Transformation Force

Stock News
04/28

According to a report released by PwC, the global telecommunications industry is undergoing a profound structural transformation driven by the rapid advancement of artificial intelligence technology. Growth in traditional connectivity services is stagnating, while new digital infrastructure centered on AI computing power is initiating an unprecedented "super investment cycle." Within this global trend, China is transitioning from a participant to a key force in the worldwide computing power landscape, supported by clear top-level planning, a vast market scale, and the determined strategic transformation of its telecom operators. Data indicates that global telecom service revenue is projected to increase from USD 1.15 trillion in 2024 to approximately USD 1.32 trillion by 2029, representing a modest compound annual growth rate of just 2.8%. While stable, this growth is unremarkable, with mobile Average Revenue Per User facing downward pressure and fixed broadband ARPU growth remaining extremely slow. In stark contrast to the plateauing investment in telecom networks, artificial intelligence and data centers are fueling a new "super cycle" of infrastructure investment. The report states that China's pathway for computing power development aligns closely with the trends identified in the global telecom industry outlook, while also displaying distinct Chinese characteristics and a leading position. Firstly, Chinese operators are actively responding to global calls for "sovereign AI" and "resilient supply chains." Through the construction of national-level, ultra-large-scale intelligent computing clusters and the "East Data, West Computing" project, China is building self-sufficient, green, and intensive computing power infrastructure. This directly addresses the urgent global demand for data sovereignty and supply chain security. Secondly, practices within the Chinese market demonstrate the viability of the "computing power operation" business model. Against a backdrop of generally weak ARPU growth for telecom operators worldwide, Chinese operators have successfully established a second growth curve by investing in and operating computing power as a core business. The rapid growth of revenue from computing power services presents a more promising growth path for global peers—beyond merely improving connectivity ARPU and reducing costs—by directly providing the core productive element of the intelligent era. Finally, China's large-scale implementation provides an ideal testing ground for AI-native operations. The ultra-large-scale computing clusters and complex network environments compel operators to adopt more intelligent operational methods. The application of AI in computing power scheduling, network maintenance, Power Usage Effectiveness optimization, and the development of industry-specific agents is accelerating the evolution of Chinese operators towards an AI-native operational model. The report concludes that for global telecom operators, the key strategic question is no longer whether to embrace AI and computing power, but how quickly they can complete the transformation from "connectivity providers" to "computing power service providers" and build the supporting AI-native operational system. China's experience shows that while this path is challenging, the prospects are vast. Computing power is evolving from being "available" to being "effective, easy-to-use, and ubiquitous," and is poised to become the core engine driving global digital economic development for the next decade.

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