Global Telecoms Shift Capex to AI as 5G Revenue Growth Stalls
DigiTimes analysis reveals that despite 2.96 billion 5G subscribers in 2025, operators are reallocating capital towards AI infrastructure and exploring token-based billing models to drive new revenue.
5G Revenue Growth Stalls Despite User Uptake
Global telecom operators are increasingly directing capital expenditure (capex) towards artificial intelligence (AI) infrastructure, driven by a slowdown in revenue growth from 5G services. Analysis by DigiTimes indicates that while the global 5G mobile market expanded in 2025, higher user penetration did not yield proportional revenue increases for carriers.
Mobile data traffic growth also continued to decelerate. As of 2025, worldwide commercial 5G networks totalled 381, serving 2.96 billion subscribers, representing year-on-year growth of 10.7% and 29.8% respectively. However, global 5G user penetration remained modest at approximately 33%.
Telecoms Pivot to AI Infrastructure
This trend suggests traditional business models, reliant on generational communication upgrades, are encountering limitations. Consequently, AI is emerging as a primary avenue for telecom companies to secure new growth. DigiTimes observes that carriers are evolving beyond mere network connectivity providers, aiming to become key infrastructure participants in the "AI Factory".
This includes delivering scale-across data centre interconnect (DCI) services and establishing national AI ecosystems to support sovereign AI initiatives.
New Billing Models and Capex Shift
Operationally, telecom operators have begun to experiment with new billing approaches, extending their existing data-centric models to include tokens. This marks the emergence of an "AI-driven telco" business model. Investment in 5G infrastructure saw further deceleration in 2025, with India noted as one of the few markets experiencing high growth in this area.
The shift in capital allocation is evident, with telecom capex now increasingly prioritising AI infrastructure over traditional 5G expansion.
For Asian telecom operators, this global pivot signals a critical re-evaluation of investment priorities and strategic partnerships. Companies like those in China, whose capex trends are already reflecting this shift towards AI infrastructure, will likely intensify their focus on developing AI-driven services and data centre capabilities.
Investors should monitor Asian carriers' financial reports for increased allocations to AI research and development, as well as new ventures into DCI and sovereign AI projects. The success of token-based billing experiments will also offer insights into future revenue models across the region, potentially unlocking new monetisation avenues beyond traditional connectivity.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.