Transforming Network Value for New Growth in the Age of AI

On October 16, 2026, the World Broadband Association (WBBA) hosted the Broadband Development Congress (BDC) during the Network X 2026 event in Vienna. Bob Chen, the President of Huawei's Optical Business Product Line, delivered a keynote speech titled "Transforming Network Value for New Growth in the Age of AI." In his address, Chen emphasized the imperative of revisiting network architecture concepts to harness new growth opportunities in the AI era through his three 'R's: the reconstruction of network architecture, reshaping business models, and redefining network operations and maintenance.

Significance of Change in Network Structure

Chen expressed that all service explosions over the last three decades—ranging from voice communication to the internet and video services—were contingent upon robust networking capabilities. With the rapid advancement of AI, today's large AI models boast around 10 trillion parameters, and token consumption has surged nearly 50 times in the past year. The implications of AI on network connections have markedly evolved—changing not only their scope but also frequency and quality. He proposed that all industries must rethink how they can reshape network value in this transformative landscape.

The Core Principles: Three 'R's

1. Reconstructing Network Architecture: Traditionally, networks were structured around administrative regions, segmented into national backbones, provincial backbones, and metro networks. With the proliferation of AI, the number of AI Data Centers (AIDCs) has skyrocketed nearly tenfold. The traffic volume, once a function of population, now depends heavily on computational power. For instance, the city of Zhongwei in China, which previously contributed roughly 0.1% to the national traffic, is now one of the eight national computing centers, significantly influencing smart computing traffic.

2. Reshaping Business Models: In corporate enterprises, evolving AI capabilities mandate a shift from merely selling bandwidth to offering a combination of bandwidth, latency, and reliability alongside integrated computing network services. For residential broadband, the evolution must extend from simple broadband access to comprehensive home network solutions and ultimately to intelligent home experiences. This is a notable shift from traditional services to more integrated, value-driven offerings.

3. Redefining Network Operations and Maintenance: In the age of AI, an end-to-end intelligence that spans planning, construction, maintenance, optimization, and operations is essential. For example, many complaints regarding home networks stem from Wi-Fi issues. AI-supported Wi-Fi optimization now allows for real-time adjustments that can boost speeds in adverse conditions significantly. Additionally, the introduction of smart traffic analysis enables dynamic power adjustments for network equipment, leading to a notable reduction in energy use.

Concluding Thoughts

As Bob Chen pointed out, the landscape of telecommunications is evolving under the influence of AI, and the industry must adapt accordingly. "To thrive in the AI age, our philosophy must pivot toward reconstructing network architecture, reshaping business models, and redefining operations and maintenance," he concluded. Through the successful implementation of these three principles, we can indeed reshape broadband network value and pave the way for new growth opportunities in the AI landscape.