Huawei Reveals Telecom Growth Strategy at MWC Shanghai
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During MWC Shanghai 2025, Huawei revealed four strategic pathways to support telecom growth amid increasing market maturity and stagnating revenue.
Eric Xu, Huawei's Deputy Chairman and Rotating Chairman, addressed industry leaders in a keynote speech. He acknowledged that while telecom has grown rapidly for decades, the sector now faces slower development as basic consumer needs are largely met in major markets.
Xu outlined four approaches to drive sustainable growth.
• He highlighted high-value user segments, such as food delivery riders and livestreamers. For example, delivery riders grew from 30 million in 2020 to 70 million in 2024, with projections reaching 160 million by 2030. These users consume more data and minutes, with ARPU 1.6 times higher than average.
• Xu reported that livestreaming professionals now number around 50 million, up from 10 million in 2022, and may reach 130 million by 2030. These users consume five times more data and produce four times more ARPU than average.
Next, Xu addressed video consumption. He noted that although video accounts for 50% of mobile traffic, high-definition video usage remains low. In top-tier Chinese cities, only 22% of mobile video traffic is 1080p or higher. He called for ecosystem collaboration with content providers, device makers, and equipment vendors to overcome pricing and technical barriers.
Xu also discussed 5G-connected vehicles. He noted that only 30% of new cars sold in China by 2025 are expected to support 5G. He urged industry players to work together to reduce costs, especially those related to IP rights and T-Box components.
He proposed a dual-connectivity model B2C for cockpit functions and B2B for T-Box systems. He emphasized that autonomous vehicles must operate independently without network reliance.
Lastly, Xu revealed potential in expanding Fiber to the Room (FTTR) to small and micro businesses. He said over 500 million such businesses worldwide face challenges like poor Wi-Fi and limited connectivity. FTTR, already used by 75 million in China, could meet these needs. In contrast, only 500,000 FTTR users exist globally outside China.
Xu concluded by emphasizing tailored strategies: each carrier must identify its own path based on unique market and competitive conditions. He stated that Huawei is ready to support carriers in building long-term, sustainable growth strategies.
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