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As we approach TM Forum’s annual Innovate Asia event in Bangkok we look at how telcos in the region are shifting their focus away from infrastructure build and towards securing profitability and service monetization.
Dean Ramsay, TM Forum
APAC operators sharpen their focus on profitability
After half a decade of record network investment and 5G build, many of Asia’s telecom operators have entered a new phase of spending less, sweating asset investments, and sharpening their focus on profitability through IT efficiencies and cash cow services.
Total operator revenue growth across APAC was flat year-on-year in 2024 (incomplete data for 2025 is also looking similar), but capital spending fell by just over six percent. That pushed capex intensity down from 17.8% to 16.7% of revenue, signaling that the region’s 5G infrastructure rollouts are maturing, and operators are shifting their focus from coverage to cash flow and profitability.
At the same time, EBITDA margins eased slightly, from 28.1% to 27.4%, suggesting that while top-line growth is slowing, increased operational efficiencies and digital service diversification are helping to maintain profitability.
The end of the 5G infra spending spree
From China to Australia, telcos have broadly passed the peak of the 5G network build programs. Equipment orders are slowing, new sites are fewer, and spectrum spending has normalized. Inevitably, the focus now is shifting up the operating stack to monetizing assets through services like fixed wireless access (FWA), enterprise ICT, and driving AI-enabled operational efficiencies in autonomous networks. A renewed focus on IT investment can be seen across a range of large OSS/BSS deals in the region, and we are seeing more Asian telcos engaging with TM Forum’s ODA assets as they build modernized, automated service operations layers.
China’s big three telcos China Mobile, China Telecom and China Unicom still account for more than half of regional operator revenue, but growth is now being driven by digital services rather than connectivity. China Mobile, for example, reported an 11% year-on-year rise in cloud revenue in the first half of 2025 as part of its ‘cloud to intelligence’ strategy, offsetting slower consumer business growth. Both China Telecom and China Unicom are also expanding rapidly in enterprise 5G and integrated ICT solutions.
India’s twin-track story: margin repair and FWA scale-up
If China is steadying, India is surging ahead. Our data puts Bharti Airtel and Reliance Jio among Asia’s strongest performers by both margin and growth. Airtel’s EBITDA margin hit around 55%, the highest in the region, helped by focus on differentiated premium services and continued tariff repair (gradual correction of mobile service pricing after years of hyper-competition in India).
Jio remains one of the world’s biggest capital spenders but is beginning to reap the rewards. Its Jio AirFiber fixed-wireless service is connecting more than a million homes per month, and 5G now carries over half of Jio’s total traffic.
At the other end of the scale sits BSNL, India’s state-run operator, with the region’s highest capex intensity. This is driven by its government-backed effort to build an entirely indigenous 4G/5G stack using TCS, Tejas Networks and C-DOT technology. This is a long-term social project that prioritizes sovereignty and rural coverage over short-term profitability.
Thailand’s quiet efficiency revolution
Our Innovate Asia event in Thailand is hosted in what is becoming one of Asia’s most efficient mobile markets. AIS continues to deliver EBITDA margins above 50%, reflecting disciplined investment and strong revenue quality. True Corp, the newly merged True–DTAC entity, has sharply reduced annual capex to around THB 28–30 billion while unlocking cost synergies that are expected to return the business to profit and restore dividends in the near term.
Philippines are driving for better margins
In the Philippines, operators are moving from expansion to consolidation. Globe Telecom and PLDT have both cut capex aggressively and are now enjoying the results.
For example, Globe created positive free cash flow earlier than forecast, while PLDT has guided its capex intensity into the low-30% range and is focused on deleveraging. Both operators show that in a mature mobile market, capital discipline and service diversification can deliver more sustainable shareholder value than chasing coverage growth.
Innovation from adversity
Not every high spender is in trouble. Rakuten Mobile in Japan remains one of the region’s most interesting new-telco stories. Its Open RAN-based network required huge upfront investment (reflected in one of Asia’s highest capex intensities) but the company is now slowly narrowing losses and benefiting from cross-business synergies in fintech and e-commerce and its many retail lines of business.
Similarly, Thaicom, Thailand’s satellite operator, shows high capex due to ongoing fleet modernization, a calculated bet to stay relevant in an increasingly competitive broadband and mobility backhaul market.
The bigger picture
Overall, capex intensity fell from 17.8% to 16.7%, while EBITDA margin eased to 27.4%. The data suggests operators are spending less, earning slightly less, but running leaner businesses overall.
Asia’s telecom industry remains the most diverse in the world, from hyper-competitive India to mature markets like Japan, South Korea and Australia. But across these markets, one clear trend is emerging: a pivot from expansion to efficiency by:
Data sources: MTN Consulting & TM Forum 2025
