AI + Industry: A New Growth Paradigm for Asia-Pacific Carriers' B2B Business

Asia Pacific's digital economy is entering a new phase of accelerated growth and maturity. According to the latest industry research and data projections, by 2026, the total number of micro, small, and medium-sized enterprises (MSMEs) in Asia Pacific is expected to reach hundreds of millions, accounting for over 97% of all businesses, with the digital economy's gross merchandise volume (GMV) poised to surpass US$363 billion, maintaining an annual growth rate of over 15%. This signals that enterprise digitalization is transitioning from tool-based adoption to systematic operations and intelligence-driven models, driving ICT to evolve into Data + ICT (DICT) and AI + ICT (AICT).

As traditional connectivity services hit their growth ceiling, carriers in Asia Pacific must deliver more value to enterprise customers without price increases. At a pivotal moment, they are transitioning from telecommunications companies (telcos) to technology companies (techcos), with the competitive focus shifting from network coverage to integrated cloud, network, security, data, and intelligence capabilities.

Macro landscape: Three stages shaping Asia Pacific's B2B market

SMEs in Asia Pacific are in the midst of three stages of digital and intelligent transformation.

The first stage: democratizing digitalization. Countries like Indonesia, the Philippines, Vietnam, and Bangladesh are in this stage. In these markets, the basic digitalization penetration rate ranges from 40% to 60%, with enterprise demand focusing on electronic payments, e-commerce platforms, and essential network access. The core principle is "connect first, go live first, trade first". Lightweight DICT and standardized connectivity are key for carriers to enter local SME markets.

The second stage: deepening digitalization. This stage is seen in urban areas of Thailand, Malaysia, and Vietnam. Here, digitalization penetration rates have risen to 65% to 75%, and enterprises are shifting focus from single-point tools to systematic operations. ERP, CRM, Cloud POS, inventory management, and online marketing are rapidly growing. Carrier growth now depends on vertical industry solutions, cloud-network integration, and helping businesses move to the cloud.

The third stage: mature digitalization, exemplified by Singapore, a highly developed market. Here, basic digitalization penetration is nearly 100%, while that of advanced digital and intelligent transformation has reached about 60%. AI and data are deeply integrated into enterprise operations, enabling intelligent decision-making, automated operations, cross-border collaboration, security, compliance, and global services. This stage represents the maturity benchmark for carriers' AICT capabilities in Asia Pacific.

This three-stage structure shows that Asia Pacific is a diverse market where inclusive digitalization, systematic upgrades, and intelligent transformation coexist. As the benefits of urbanization slow and connection growth decelerates, carriers' real opportunities lie in building differentiated B2B portfolios and services for countries at different stages of development.

Reshaping industries: From ICT to DICT, scenario-based demand drives growth

As national development stages shape the macro differences of Asia Pacific's B2B markets, industry scenarios determine where carriers can capture growth. Across the region, sectors like restaurants, retail, convenience stores, hotels, tourism, tech, and manufacturing, despite their differences, all see their digital evolution follow the same path: connectivity, then systems, then intelligence.

In the initial ICT phase, enterprises focused on moving their services online and providing basic access. Restaurants and retail used electronic payments and basic POS systems to process transactions online. Chain stores used networking and video security for basic management. Hotels and tourism used online travel agency (OTA) platforms to attract online traffic. Manufacturing SMEs relied on cloud connections, enterprise private lines, and campus networks to run their operations. The core goal was to get enterprises online, transacting, and connected.

Entering the DICT phase, enterprises shifted their focus from single-point tools to systematic operations. Restaurants and retail deployed cloud POS, food delivery platforms, and inventory systems. Chain stores enhanced collaboration through SD-WAN, data platforms, and supply chain systems. The hotel and tourism sectors expanded to property management systems (PMSs), smart rooms, and IoT integration. Manufacturing SMEs accelerated the deployment of multi-cloud interconnection, enterprise resource planning (ERP), manufacturing execution systems (MESs), and data compliance capabilities. At this stage, cloud-network synergy, platform integration, and industry-specific digital solutions became key drivers of carrier growth.

However, as service systems become more integrated, certain challenges become more pronounced: underutilized data, experience-driven decision-making, and slowing efficiency gains. Consequently, the industry is moving into the AICT phase. AICT is not simply ICT plus DICT. It uses AI to redefine connectivity, cloud, data, and applications, turning AI from a support tool into a core capability that drives decision-making, optimizes processes, and enhances operations. This shift will help enterprises evolve from system improvement to intelligent growth.

Thus, the focus of competition in the Asia-Pacific B2B market is shifting from standalone ICT services to integrated capabilities that unify cloud, network, data, and intelligence. Connectivity is no longer the end but the entry point to system and intelligent services. Systems are no longer the final stop — they are being redefined by intelligence.

Paradigm shift: AI + Industry as the new logic for B2B growth

In the ICT era, enterprises purchased connectivity to access the world. In the DICT era, they built system capabilities for efficient operations. In the AICT era, they gain intelligent capabilities for specific business scenarios, focused on optimizing decision-making and driving growth. This shift signifies enterprise demand is now centered on business outcomes. Networks, cloud, data, and applications are no longer separate but are integrated into a unified capability embedded in enterprise operations.

For carriers, this means the rules of competition are changing. The race is no longer about who has faster networks, but who understands industry scenarios better; not about selling one-time products, but continuously participating in operations; not about providing capabilities, but helping customers achieve business results.

To systematically identify opportunities in Asia Pacific's B2B market, Huawei developed an AI + Industry nine-grid model (as shown in Table 1). Analyzing technological evolution and industry maturity reveals that Asia Pacific's B2B market is not simply about technological upgrades. Instead, three growth logics coexist across countries and industries: Inventory optimization in mature industries, collaboration at scale in growing industries, and capability leaps in emerging industries.

Table 1: AI + Industry nine-grid model

For mature industries like restaurants, retail, and hotels, carriers focus on helping businesses improve efficiency and profitability in areas such as store operations, membership management, inventory management, and energy consumption control — using data and AI, building on existing connectivity and systems.

In growing industries such as chain retail and regional services, businesses are moving from isolated digitalization toward multi-region, multi-store collaboration. This transformation demands carriers to replace single-purpose tools with integrated systems that support cross-store management, supply chain coordination, unified membership programs, and seamless data integration.

For emerging industries like tech startups and new manufacturing SMEs — which are born cloud-native and global — their priorities are high-performance connectivity, multi-cloud collaboration, data compliance, AI deployment, and computing networks. This requires carriers to provide stronger cloud-network synergy, cross-border connectivity, and ecosystem integration.

Carrier transformation in Asia Pacific: From selling connections to selling services, unlocking a second growth curve

The AI + Industry nine-grid model further shows that carriers' B2B opportunities depend on matching the right growth logic to the right market. By examining demand changes through three growth logics, carriers can identify key market entry paths.

First, optimizing existing operations in mature industries. Carriers can offer packages of connectivity, cloud services, lightweight SaaS, and data analytics for mature industries such as restaurants, retail, and hotels. They can launch basic SME digitalization packages, smart store packages, and smart hotel operations packages that integrate broadband, 5G FWA, cloud Wi-Fi, Cloud POS, digital payment, video security, membership operations, and energy management to help enterprises cut costs, improve efficiency, and acquire more customers.

Second, enabling collaboration at scale. For sectors like chain retail and regional services, carriers can build integrated solutions that combine cloud, network, applications, and data. These solutions integrate SD-WAN, cloud services, store security, supply chain systems, unified membership platforms, and data dashboards, to centrally manage multiple stores, enable cross-regional coordination, and improve supply chain efficiency. Such platform-based services, once deployed, will generate revenue through ongoing operations.

Third, powering capability leaps. For tech startups, manufacturing SMEs, and globalizing businesses, carriers can develop high-value solutions that combine multi-cloud interconnection, computing networks, AI capabilities, and cross-border connectivity. Such solutions focus on enterprise private lines, international connections, multi-cloud interconnection, data security, AI deployment, industrial IoT, and computing power scheduling. By working with cloud providers, AI platforms, and ecosystem partners, carriers can build future-ready intelligent foundations.

In this way, carriers are evolving from network providers to scenario-driven capability operators. The second growth curve for Asia-Pacific carriers is not about selling more connectivity — it is about turning connectivity into services, embedding those services into scenarios, and building sustainable operational capabilities. Those who are first to make the leap from network capabilities to integrated digital and intelligent capabilities will secure a core position in the B2B value chain.

Carrier practices in Asia Pacific: Transformation samples from smart factories to smart stores

To better understand how these trends are playing out in practice, we need to look at carrier-led transformations across both large enterprises and SMEs in Asia Pacific.

First, in the large enterprise space, the Midea Thailand factory is a powerful example. As Midea Group's anchor for digital and intelligent transformation outside China, this smart factory in Chon Buri, Thailand, spans 208,000 square meters and produces 4 million air conditioners annually, making it Southeast Asia's largest air conditioner production base. In 2024, its 5G smart factory in Thailand became central to Midea's digital and intelligent transformation. Following world-class "lighthouse" factory standards, Midea partnered with AIS Thailand, China Unicom Global, Huawei, and local partners to build the first fully-connected 5G smart manufacturing factory outside China.

The Midea factory in Thailand connects production lines through a 5G private network, and integrates technologies like edge computing, AI, big data, and cloud platforms. This enables high flexibility and robust quality control. Take the factory's 5G + AI visual quality inspection system as an example. Laser sensors identify part shapes and locations, issuing immediate warnings for defective parts. This has reduced the rework rate by 75%, addressing previous issues of time consumption and inaccuracy under manual checks. It also significantly enhances product quality tracking, helping the company achieve real cost savings and efficiency gains. The fully connected 5G factory does more than support Thailand's Industry 4.0 strategy. It signals a shift for Asia Pacific's industrial digitalization — moving from fragmented pilots to end-to-end value creation — and sets a new benchmark for regional digital and intelligent transformation.

The success of this project is particularly revealing. Midea's digital and intelligent transformation is a complex, systemic effort — involving intelligent analysis, early warnings, management, prediction, and decision-making. It goes far beyond what a single technology can deliver.

Unlike traditional carriers that only provide broadband connections, the carrier in the Midea project explored a new cooperation model. Acting as the general technology integrator, the carrier worked deeply with partners to deliver an integrated "5G + industrial Internet" solution that unifies devices, edges, clouds, and networks. This solution seamlessly integrates OT and ICT, supporting the implementation of 15 application scenarios across the factory, and strengthening intelligent production and digital O&M. This innovative model marks the shift of carriers' B2B services from providing connectivity to delivering digital and intelligent transformation services, making them digital partners embedded in the core of enterprise production.

In the SME space, carriers in Asia Pacific are also exploring new horizons for digital and intelligent transformation. In Malaysia, a carrier partnered with Huawei to conduct field surveys on small stores, including restaurants, cafes, and tailor shops, identifying key operational pain points: First, outdated ICT equipment causes network lag, service disruptions, and payment failures. Second, small store owners want to use AI to improve customer satisfaction, manage foot traffic, and raise operational efficiency. Third, they face high technical barriers, difficult maintenance, and fragmented application vendors that make purchasing complex. This digital anxiety has become a major bottleneck for local economic transformation.

To address these pain points, on May 25, 2026, a carrier collaborated with Huawei and multiple partners to use ULTRA 5G network advantages to offer one-stop standardized ICT services for the MSME market, built on ULTRA 5G FWA Biz connectivity and integrating third-party smart financial devices, AI CCTV, and other services. This not only resolved network lag but also brought AI services, helping traditional Malaysian small stores leap from the "copper line era" to the "ULTRA 5G + AI era" in one step.

This collaboration between carriers, Huawei, and partners — co-developing standardized offerings, co-marketing, and co-delivering deployment and maintenance — not only supports carriers' digital transformation but also helps them upgrade their traditional strengths from "connectivity services" to "one-stop ICT services" and shift from selling bandwidth to selling services. This turns new ICT technologies like fiber, 5G, and AI into accessible, replicable productivity.

Looking ahead, the vision of AI reshaping carriers' B2B business models in Asia Pacific is becoming reality. This is more than a business transformation — it is a paradigm shift from providing connectivity to running intelligent services. Networks remain the foundation, but what will truly decide the ceiling of growth is the service capabilities, industry expertise, and intelligent operations built on top of them. That is the second growth curve for Asia-Pacific carriers' B2B business.

Huawei will continue to deepen its roots in Asia Pacific, delivering high-performance ICT technology while actively joining carriers on their transformation journey and together exploring new B2B frontiers.