Shaping new business models in the 5G-A, AI era

Mobile operators around the world have achieved steady revenue growth through traffic monetization since the commercial launch of 5G in 2019, with the industry enjoying a rapid five-year development phase.

Starting in 2024, however, a slowdown in 5G traffic growth has prompted operators to explore diversified models to create new revenue streams, with experience-based operations emerging as a new commercial direction.

Over the past couple of years, the AI ecosystem has also matured, with AI-powered terminals and applications creating fresh opportunities. Operators are now actively exploring AI-driven monetization models.

With the 3GPP Release 18 and Release 19 protocol frozen, the 5G-Advanced (5G-A) industry ecosystem has become increasingly robust. Handsets from major vendors such as Apple and Samsung now support the standard, leveraging multi-carrier aggregation to achieve single-user downlink peak rates of 5Gb/s.

Global 5G-A commercialization climbs

China has surpassed 20 million 5G-A users in just the past 18 months; the Gulf Cooperation Council (GCC) region has deployed more than 10,000 5G-A base stations; and countries such as the UAE and Kuwait have launched 5G-A brands with more than 1 million commercial users.

AI advancements are equally notable: in 2025, mainstream smartphones fully integrate AI capabilities. Arabic AI voice assistants achieved 67 per cent localization coverage, and more than 100 types of AI glasses debuted at CES 2025 in Las Vegas in January. UAE saw the launch of Ray-Ban Meta commercial glasses in May.

By next year, GCC’s AI smartphone penetration is projected to exceed 30 per cent, while shipments of AI glasses are likely to surpass 1 million units. AI applications will no doubt continue to proliferate.

Accelerating business model transformation

Operators are speeding up business model transformation to monetize user experiences. This shift is unlocking new revenue streams for operators. A survey by research group Omdia in the UAE found 68 per cent of users demand superior experiences, with 70 per cent of video users and 34 per cent of gamers willing to pay for upgrades.

Compared with 5G, 5G-A excels in spectrum bandwidth, latency optimization and deterministic experience assurance. Enabling this transformation are three major factors:

Moving from “selling data” to “selling speed”: Chinese operators introduced 5G-A mobile plans with up to 3Gb/s speeds, bundled with AI-powered features such as AI New Calling and AI cloud storage, driving premium pricing.
Value-driven service optimization: Operators in the UAE and Saudi Arabia use AI terminals and network intelligence to identify service types, leveraging 5G-A super uplink and low latency for gaming acceleration in add-on packages.
Differentiated VIP experiences: Kuwait operators use TDD’s large bandwidth to offer multi-carrier CA capabilities, priority scheduling and exclusive branding for VIP users, solidifying their premium market share.

Innovative services expand commercial frontiers

GCC operators are pioneering new businesses while refining their models, which include:

Autonomous driving: UAE launched commercial services this year, with WeRide and Uber partnering on robotaxis. Operators provide high-speed connectivity for real-time video streaming and over-the-air (OTA) updates, ensuring safe operations.
Low-altitude economy: Keeta secured a drone delivery licence in the UAE for Dubai Silicon Oasis, aiming for 30 per cent coverage by 2026. Operators enable seamless air-ground coverage via 5G-A for precise drone navigation and real-time monitoring.
Enterprise 5G-A leased line: Saudi operators introduced 5G-A leased lines with 500Mb/s downlink and 40Mb/s uplink base plans and 80Mb/s uplink add-ons, accelerating enterprise service deployment.
Live streaming: Saudi Arabia’s booming live-streaming sector (100,000+ streamers) leverages AI avatars to lower entry barriers and protect privacy. Operators boost user retention by bundling streaming apps with differentiated network privilege.

Unlock 5G-A x AI value

Operators’ business innovation drives continuous network upgrades. Huawei’s Techco1.0 defines the target network standards (5G-A, standalone and AI). This aligns commercial demands with network capabilities such as:

The world’s 1st 10Gb/s 5G-A network in the GCC: The 10Gb/s era will arrive in 2026, with Huawei advancing upper 6GHz and mmWave ecosystem readiness for GCC’s 1st commercial deployment.
Flexible standalone and non-standalone architecture: Enhanced TDD/FDD multi-band coordination maximises mid-low frequency spectrum value, building simplified networks with ultra-uplink, low latency and seamless coverage.
Advanced autonomous networks: Digital twin and AI technologies enable intelligent network operations, significantly boosting efficiency.

Jointly stepping into era of 5G-A and AI

5G-A and AI are happening: Huawei invites global industry partners to join hands, leverage technological synergy to break boundaries, co-build ecosystems to consolidate strengths and innovate to unlock value. Together, we can seize the golden opportunities of experience monetization and new innovative business.

With unified determination and momentum, we will explore the vast blue ocean of 5G-A and AI, achieving deep collaboration and mutual success. Let’s co-author a new chapter of industrial upgrade and commercial growth, jointly advancing toward a future where all things are intelligently connected in the 5G-A × AI era.