Telcos seen gaining as AI turns physical, Maybank says

Maybank says enterprise networks could unlock new revenue beyond consumer connectivity.

The next phase of artificial intelligence (AI) could create new revenue opportunities for telecommunications operators as demand shifts from software and data centres to physical-world applications, according to a report by Maybank.

In its latest ASEAN Telecom report, Maybank said Physical AI, including autonomous vehicles, robotics, digital twins, and industrial systems, will require low-latency, high-reliability networks, increasing demand for services such as edge computing, network orchestration, cybersecurity, and service-level agreements.

The report's base case projects that Physical AI could account for around 32% of the mobile traffic forecast by Ericsson across developed markets and China by 2031.

Maybank estimated that even if this traffic were priced at half the rate of traditional consumer mobile services, it could contribute about 16% of total mobile revenue by 2031.

Maybank also said terrestrial telecom networks are better positioned than satellite systems to support Physical AI because most demand is expected to come from urban environments.

It added that 6G capital expenditure could be about 8% to 10% lower than the 5G rollout.

The report identified Singtel, China Mobile, China Telecom, and China Unicom as the primary beneficiaries of Physical AI, citing stronger enterprise AI adoption and earlier deployment of robotics, autonomous systems, and edge AI.

For emerging ASEAN markets, Maybank said Starlink poses limited competitive risk, 5G-driven fixed wireless access growth remains intact, and 6G investment risk remains manageable.