Telecom companies must embrace technologies to enhance operational efficiency – PwC China’s Wilson Chow

He discussed the key strategies telecom companies must adopt to navigate changing consumer behaviour and technological advancements.

The telecom industry is evolving rapidly, driven by market shifts and technology. As consumer demands evolve and competition intensifies, companies must embrace digital innovation, reinvent business models, and enhance operational efficiency to stay ahead.

Offering valuable insights is Wilson Chow, Global TMT Industry Leader & China AI Leader at PwC China. Based in Shenzhen, he leads PwC’s global TMT industry practice and its operations in Chinese Mainland and Hong Kong. With over 30 years of experience in public accounting, he has been instrumental in helping businesses navigate digital transformation, leveraging emerging technologies to drive growth and innovation.

Chow has extensive expertise in assurance and advisory services, supporting start-ups and global tech companies in capital market transactions, assurance engagements, systems and controls advisory, and deal-related services. He also plays a key role in PwC’s global network, delivering integrated solutions across assurance, taxation, and advisory.

As a judge at the Asian Telecom Awards 2025, Chow discusses how telecom companies must reinvent their business models and embrace innovation to stay ahead amidst rising data consumption, the growth of AI and mixed reality, and evolving connectivity needs.

How has consumer behaviour shifted in recent years, and what implications does this have for telecom companies in terms of service offerings and customer engagement?

According to the findings of the PwC Global Telecom Outlook 2023-2027 (“the Telecom Outlook”), our firm has the following findings relating to changing consumer behaviours and their impact on the telecom industry in terms of service offerings and customer engagement:

Rising data demand, especially on video contents: With all things going digital and with increasing demand for consumer consumption of high-speed/good-quality digital services and contents, we expect that the global data consumption is projected to nearly triple from 3.4 million petabytes (PB) in 2022 to 9.7 million PB by 2027, primarily driven by video contents. By 2027, approximately 79% of data consumption will be attributed to digitised video content, significantly outpacing other categories.

Emergence of gaming and mixed and extended reality (VR): Data consumption from gaming is set to grow at a 21% CAGR, while VR data consumption is expected to grow at around 43%, driven by rapid developments of various mixed/extended reality initiatives and availability of more advanced designed gadgets such as VR goggles and even AR/VR glasses.

Cellular data growth: The continuous shift of consumption of contents via mobile devices will lead to cellular data usage to grow rapidly, with a 27% CAGR between 2022 and 2027, especially in regions like Asia, where mobile connectivity is continuously improving and being crucial to cope with the fast pace of economic developments. As a result, we are seeing increased competition and evolving consumer expectations, which lead to a decrease in data prices, affecting revenue growth derived from telecom companies from their internet access services.

Focus on IOT and private networks and increasing device connectivity: Telecom companies are shifting towards IoT solutions and private 5G networks as new revenue streams, catering to the growth and demand from both consumer and business markets. The number of IoT devices is also expected to rise from 16.4 billion in 2022 to 25.1 billion in 2027, indicating a growing interconnected ecosystem.

Because of the above consumer behaviours and preference shifts, telecom companies have to adopt consumer-centric strategies that they need to adapt their strategies to focus more on consumer preferences, leveraging advanced technologies to enhance service offerings. They also need to adopt business model reinvention to reform/transform their existing operating models and service offerings, as well as to tap on new business streams or explore business collaborations with other corporations not in the telecom space.

In an increasingly competitive market, what strategies should companies in the TMT industry adopt to enhance customer engagement and loyalty?

In the Telecom Outlook, we have highlighted seven urgent innovation priorities for telecom CEOs in order to enhance customer engagement and loyalty. Most of them are also applicable to other TMT companies seeking business model reinvention and transformation:

Reinvent the telecom business model: They need to rethink the vertically integrated carrier model and try to adopt separate, distinct business layers to enhance focus and efficiency.  These can be achieved both by organic means of expansion of businesses or by inorganic alliances and partnerships formed with other corporations.

Strengthen competitive fortitude: CEOs are required to develop pricing power and address rising costs through innovative service offerings. Focus has to put on improving customer experience, for example, deployment of advanced technology like generative AI in customer services, to reduce the churn.

Embrace the cloud: The more urgent need for making the transition to cloud-based operations for improved scalability and innovation. CEOs should also assess technology options for a coherent cloud strategy.

Build a (Gen)AI-driven carrier: Companies should leverage generative AI for operational improvements and taking competitive advantage. However, they are also required to establish proper governance and compliance policies and hold the companies for responsible use of AI technologies.

Orchestrate workforce renewal: Companies, during their business model reinvention and transformation journeys, should address talent challenges and prepare for workforce transitions.  Senior management should also develop training programmes to equip employees with future skills.

Build resilience to risk and regulatory changes: Management must proactively manage cyber risks and engage with regulatory frameworks, and companies should also prepare for the complexities that would arise from expanding into new markets, such as financing needs, compliance of specific business rules and regulations, as well as change management.

Build the sustainable carrier: Companies are required to integrate sustainability into business strategy and operations. They also need to focus on reducing Scope 3 emissions and enhance ESG reporting, which are rising expectations from regulators, investors, business partners/customers, and employees.

What critical factors should companies looking to expand into new markets consider to ensure successful entry and growth?

The key and critical success factors that companies have to consider when they expand into new markets include the following:

Adequacy of market entry and business due diligence: Companies have to commission a dedicated taskforce and they may commission external consultants to conduct market entry studies and business due diligence in order to fully understand the local market needs, related risks, competition, and the regulatory environment.

Business and corporate structures: Companies are required to assess and formulate a proposed business and corporate structure for entering a new business or market.  Critical decisions to be made include whether the companies achieve the expansion via its own organic growth/expansion or through inorganic means such as forming alliances and partnerships with local incumbents for better market penetration and resource sharing; or though merger and acquisitions of companies and start-ups to provide the required technology, knowhow and market information.

Cultural adaptation: When companies expand into new territories or regions, it is also crucial for them to adapt their products and marketing strategies to align with local cultural preferences and even religious concerns.

Regulatory compliance: Companies are required to conduct legal and regulatory due diligence to ensure compliance with local laws and regulations and specific industry rules applicable to the new businesses. Given the escalating geopolitics amongst big territories and countries and the threat of decoupling, companies also need to pay specific attention to the impact on the design of products and services, access to technology, taxation implications, as well as the supply chain.

Capital and financing: Companies need to formulate a proper financing plan to fund the new market entry and new business model launch. They also need to assess the financial impact on the companies’ overall financial position and cash flows of their existing operations.

Workforce: Companies are required to have a thorough human capital plan formulated to assess the workforce requirements for the new businesses and decide if the existing workforce of current operations could be upskilled for redeployment to the new businesses. Proper training and upskilling and plans for facilitating the integration of new employees with the existing ones are also required.

With the rise of data privacy concerns, what strategies should companies utilise to ensure securing customer data effectively?

In order to cope with the rise of data privacy concerns, it is always crucial for companies to have proper plans and safeguards in place. For example, companies are required to set up proper internal business rules and regulations by making reference to the prevailing data privacy rules in formulating and conducting their business and operations. There should be regular updates made to reflect the changes in the regulations and block any loopholes identified. Periodic audit and compliance checks should also be carried out by either internal or external audit experts to ensure the policies are operating effectively and comply with the latest governance requirements.  

Proper training on data privacy best practices and awareness programmes should also be provided to operational personnel of companies in order to ensure that they all understand the rules and implications and the importance of factoring those rules and restrictions in the design and offering of the respective services and products to customers.

Transparency with customers is equally important. Companies should clearly communicate data usage policies and obtain explicit consent from the consumers/customers. In addition, companies may also make voluntary disclosures of their compliance against respective data privacy rules to give confidence to the users.

Looking ahead, what new groundbreaking technological innovations do you predict will emerge within the telecom industry, and how might they redefine the sector?

Looking into the future, the continuous rollout and evolution of 5G technology will significantly impact the telecom industry, providing faster speeds, lower latency, and greater connectivity. This will enable new applications such as augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT) on a massive scale. The early developments towards 6G, expected around 2030, could also further revolutionise communication with even greater capabilities.

In order to cope with the wider use of cloud computing and growing AI applications, especially in the generative AI space, users are expected to have a stronger demand for processing data closer to where it is generated. As a result, there is a call for the adoption of edge computing, which will reduce latency and increase efficiency. This is particularly important for applications requiring real-time processing, such as autonomous vehicles and smart cities.

The telecom companies/operators should also embrace the emerging technologies to enhance their operational efficiency. AI will play a crucial role in network management, customer service, and predictive maintenance. Machine learning algorithms can also optimise network performance, detect anomalies, and automate routine tasks, leading to enhanced service quality and reduced operational costs.

In response to a call for a greener telecommunications network. Sustainability technologies driving innovations in reducing the carbon footprint of telecom operations will become increasingly important. This includes energy-efficient networks and the use of renewable energy sources.

I must also touch on satellite Wi-Fi. Wi-Fi access via satellite is an emerging technology that has the potential to significantly expand internet connectivity, particularly in remote and underserved areas. Companies like SpaceX's Starlink, Amazon's Project Kuiper, and OneWeb are deploying constellations of Low Earth Orbit (“LEO’) satellites. These satellites orbit closer to the Earth than traditional geostationary satellites, reducing latency and improving internet speeds, making them more suitable for applications requiring real-time data transmission. Satellite Wi-Fi is ideal for providing connectivity on moving platforms such as ships, aeroplanes, and trains, where terrestrial infrastructure cannot reach. This can enhance passenger experiences and operational efficiencies in the transportation sector, which will pose a challenge to the Wi-Fi access offered by traditional telecom companies through optical fibres.
These innovations will not only redefine the telecom sector but also transform how businesses operate and individuals interact with technology. The convergence of these technologies will create new business models, enhance customer experiences, and drive substantial economic growth.

As a judge for the Asian Telecom Awards 2025, what criteria do you consider most important when evaluating the nominees?

First of all, I have to express my heartfelt appreciation towards all innovative ideas and creative solutions offered by all nominees and contestants. I am also so pleased to see that telecom companies and other start-ups in Asia are taking such a bold step in reshaping the telecom industries through their dedicated efforts exerted. I have also learnt a lot myself by reviewing and judging the solutions and services offerings submitted by the nominees.

I adopt the following criteria in evaluating the nominees and their submissions:

Innovation and Creativity: The originality and ingenuity in the proposed solutions or services offered.

Impact on the Industry: The extent to which the nominee's work has positively influenced and reshaped the telecom sector, and their potential to drive ongoing innovations.

Scalability and Sustainability: The ability to scale solutions sustainably without compromising quality or environmental considerations.

Customer Focus: The degree and relevance to which the nominee prioritises customer needs and enhances user experience.