Innovators Circle
Navigating growth and challenges in the APAC telco sector
October 27, 2026
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Varnika Goel
In the first half of 2026, Asia-Pacific telecom operators are witnessing a transformative shift in their enterprise business segments. Traditional connectivity services are being complemented, and in some cases overshadowed, by non-connectivity offerings such as cloud solutions, managed services, and IT integration. This evolution is driven by the escalating demand for artificial intelligence (AI) infrastructure and digital services.
A notable trend is the strategic utilization of telco-owned land and power assets to attract hyperscalers, positioning these operators as pivotal players in the AI ecosystem. However, capturing substantial value from AI infrastructure remains a challenge, as significant margins are often claimed by chip manufacturers and AI model providers. Additionally, state-driven investments, particularly in markets like China, are influencing the competitive landscape, prompting telcos to reassess their enterprise strategies.
Operators are now faced with critical decisions: to build proprietary solutions, form strategic partnerships, or risk stagnation in the rapidly evolving enterprise sector. The interplay between traditional connectivity, digital services, and AI-driven opportunities necessitates a comprehensive approach to remain competitive.
What steps can APAC telcos take to grow their business beyond traditional services and embrace new opportunities in AI and digital solutions?
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