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Building New Network Value

Introduction

The recent Network X 2026 event held in Vienna brought significant insights into the evolving landscape of network architecture and its alignment with the rapid advancements in artificial intelligence (AI). Hosted by the World Broadband Association (WBBA), the congress featured a keynote address by Bob Chen, President of Huawei's Optical Business Product Line. Chen’s speech, titled “Building Network Value for New Growth in the AI Era”, focused on the critical need to adapt our approach to network construction to fully harness the potential of AI.

The Drive for New Growth

Evolution of Network Services

Over the past three decades, the telecommunications sector has witnessed dramatic transformations, progressing from voice calls to broadband internet and now to AI-driven applications. Bob Chen noted that the pace of AI development is unprecedented, with large AI models approaching 10 trillion parameters and token usage skyrocketing nearly 50 times in the last year. This surge has fundamentally altered the nature and frequency of data connections, compelling the industry to rethink strategies for enhancing network value.

Key Principles for Network Transformation

Chen emphasized three fundamental principles under the acronym R: Rebuild, Reshape, and Redefine. These principles outline a roadmap for reimagining network architecture, revising business models, and redefining network management.

1. Rebuild Network Architecture

Historically, network architectures were often segmented by administrative divisions, separating national and provincial networks. In contrast, the AI era demands a shift towards AI Data Center (AIDC) orientations. With the growing number of AI data centers, the structure of networks needs to adapt to efficiently support AI workloads. For example, the traffic generated in China's Zhongwei region has transformed from contributing a meager 0.1% to now accounting for over 10% of the country’s total traffic, positioning it as a major hub for intelligent computing.

2. Reshape Business Models

The integration of AI is accelerating changes in business models across sectors. Chen illustrated how a Chinese company utilizes AI-assisted rendering to shorten production cycles, requiring latency under 2 milliseconds. This transition calls for a new approach to service packages, moving from simple bandwidth sales to offering a mix of bandwidth, latency, and reliability bundled with cloud computing services. This proactive adaptation enriches the overall service proposition for both enterprises and consumers.

3. Redefine Network Management

The shift towards AI necessitates a comprehensive overhaul of how networks are maintained and serviced. Traditional networks rely heavily on manual interventions and predefined processes. In contrast, Chen described a future where AI-driven analytics optimize network operations, enhancing performance and efficiency through automatic adjustments. For instance, AI can autonomously identify and rectify issues with Wi-Fi performance, improving speeds in interference-prone environments by around 20%.

Conclusion

As we stand on the brink of a new AI era, Bob Chen's call to action is clear: it is imperative for the telecommunications industry to embrace these three R principles—Rebuild, Reshape, and Redefine—to create ultra-broadband networks that deliver exceptional value. The future of network connectivity relies not just on faster speeds but on smarter, more resilient systems capable of adapting to the ever-changing digital landscape.

This dialogue at Network X 2026 underscores a pivotal moment for the telecommunications industry, suggesting a collaborative effort entering the era of new growth through innovative AI applications and intelligent network management strategies.