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China Telecom to Target New AI, Satellite Devices in 2025

China Telecom has outlined its strategic priorities for 2025, focusing on the development of AI, satellite technology, and enhanced 5G calling capabilities. At a recent conference, executives from the state-owned telecommunications operator discussed their aspirations for handset development partnerships with local manufacturers, emphasizing the importance of these technologies in their overall business strategy.

Key Priorities for 2025

1. AI Integration

China Telecom aims to enhance its product offerings through artificial intelligence. The company plans to collaborate with original equipment manufacturers (OEMs) to develop devices that integrate AI capabilities with cloud services. Vice President Li Jun highlighted that devices serve as an extension of the cloud network, acting as carriers of services and user interfaces. The operator intends to lead both domestic and international projects focused on cloud-based AI mobile phones. In addition to smartphones, the company is looking to introduce a range of AI-powered products, including door locks, speakers, glasses, and watches.

2. Satellite Technology

Satellite communication is another critical area of focus for China Telecom. The company is working on developing devices that support direct-to-cell calling, which would allow users to make calls via satellite without the need for traditional cellular networks. Furthermore, China Telecom aims to leverage Beidou satellite technology and 5G location capabilities to create low-cost positioning solutions.

3. Enhanced 5G Calling

China Telecom is also prioritizing advancements in 5G enhanced calling, utilizing new IMS DC (data channel) capabilities. This technology aims to unlock new use cases, such as screen sharing and interactive gaming during voice calls. To support these innovations, the operator plans to develop its own open-source IMS DC SDK, which will facilitate the integration of AI, payment systems, extended reality (XR), and other functionalities.

Deputy Marketing Chief Shao Yantao emphasized the importance of collaboration across the industry ecosystem to achieve these ambitious goals. China Telecom intends to work closely with partners on various initiatives, including Voice over Wi-Fi (VoWiFi) and 3CC carrier aggregation for 5G-Advanced devices. This collaborative approach is essential for driving innovation and ensuring the successful implementation of new technologies.

While the sales of smartphones and other hardware represent a relatively small portion of China Telecom's overall business, they still generated significant revenue, amounting to 21.8 billion Chinese yuan (approximately US$3.0 billion) in the first half of the year. This underscores the importance of device development in the company's broader strategy.

As China Telecom sets its sights on 2025, the focus on AI, satellite technology, and enhanced 5G calling reflects the company's commitment to innovation and leadership in the telecommunications sector. By fostering partnerships with local manufacturers and emphasizing collaboration across the industry, China Telecom aims to position itself at the forefront of technological advancements, ultimately enhancing the user experience and expanding its service offerings.

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