Telcos are Reinventing Themselves: Why AI-as-a-Service is the Next Big Revenue Driver

The telecommunications industry is undergoing a massive paradigm shift. For decades, telcos have been the backbone of connectivity, selling us data packets and voice minutes. But as the world enters the era of artificial intelligence, these giants are no longer content with just providing the pipes. According to Huawei Technologies Co., Ltd., operators are now beginning to sell AI computing power in a way that feels very familiar: as a usage-based service.

This shift isn't just a minor tweak to their business model; it’s a strategic pivot to capture the surging demand from enterprises. By merging raw computing power with high-speed connectivity, telcos are positioning themselves as the essential infrastructure for the AI revolution.

B2B: The New Engine of Global Growth

During the Mobile World Congress (MWC) Shanghai in June, Wang Yongde, President of Huawei Carrier XtoB Domain, shared some eye-opening insights. He noted that the Business-to-Business (B2B) sector has officially become the primary growth engine for global operators. In fact, more than 70% of operators worldwide are seeing their B2B revenue grow faster than their total overall revenue.

Interestingly, this growth isn't just coming from massive conglomerates. Over half of the B2B revenue growth is now driven by small and medium-sized enterprises (SMEs). Furthermore, services that go beyond basic connectivity—such as cloud, security, and now AI—are growing at an impressive annual rate of 14%. Currently, more than 65% of telcos, including giants like China’s big three, Deutsche Telekom AG, and Orange S.A., have already launched formal AI strategies.

From Subscriptions to "Token-as-a-Service"

Wang describes this new era as "Token-as-a-Service." Instead of charging a flat monthly subscription fee for AI tools, operators are charging customers based on their actual consumption of AI computing power—much like how we pay for mobile data or electricity.

This model makes AI accessible to businesses of all sizes. Telcos are now packaging enterprise broadband, managed Wi-Fi, CCTV systems, and AI applications into standardized bundles. For example, in Yunnan, China, a telco developed a specialized package for pharmacy chains that integrates video storage, remote maintenance, and centralized equipment management. This model is expected to scale to 3,000 stores nationwide and eventually expand to over 100,000 convenience stores and restaurants.

Revolutionizing Healthcare and Education

One of the most impactful applications of this AI-Telco synergy is in the healthcare sector. Huawei and its partners have developed AI-assisted diagnostic platforms that combine low-latency networks with heavy-duty computing resources. This allows for remote consultations with a response time of under 200 milliseconds—fast enough for real-time medical decision-making.

In Guangdong, an AI-assisted ultrasound system has proven to be a game-changer. It has improved the accuracy of thyroid nodule detection to over 95% in primary hospitals. More importantly, it reduced deployment costs by 60% while increasing the average revenue per user (ARPU) for the telco by 15 times.

The education sector is seeing similar results. In Guangzhou, an AI-based classroom pilot program generated over $600 in monthly revenue per classroom. The success of this pilot has led to plans for expansion across 15,000 schools in the province, proving that the demand for AI in the public sector is both high and scalable.

The 2030 Horizon: Robots and Connected Cars

Looking ahead, the opportunities for telcos will only multiply. Wang predicts that by 2030, the world will see more than 3 billion embodied intelligent robots and over 500 million connected vehicles. Both of these technologies rely heavily on three things: ultra-low latency communication, massive computing power, and robust cloud infrastructure.

To support this transformation, Huawei is investing heavily in network infrastructure, storage, and cybersecurity. They are also collaborating with over 20 telecommunications consulting firms across 170 countries to help operators build out their enterprise AI services. As the B2B landscape evolves, the goal is clear: to move away from being just a utility and toward becoming a vital partner in the intelligent digital economy through token-based business transformation.