Thrive with Digital
Striding Towards the Intelligent World

To bring our vision for the intelligent world to life, the ICT industry needs to continuously explore new ways to improve and innovate. Two pillars underpin our vision of accelerating the intelligent world: "ICT for Intelligence" and "Intelligence for ICT".

• "ICT for Intelligence" is about constantly innovating and evolving in different ICT domains to improve key capabilities.
• "Intelligence for ICT" is about how the ICT industry will become more intelligent and achieve architectural innovations to deal with complex O&M, deliver a positive user experience in a wider range of applications, and enable green development.

Based on these two pillars, this articles looks at our development approaches to eight key ICT areas: wireless networks, cloud core networks, all-optical networks, data communication, autonomous driving networks, computing, data storage, and cloud computing.

Wireless Networks: Striding towards 5.5G and Intelligent IoE

5G has greatly improved mobile user experiences. In the 4G era, SD videos were mainstream, but in today's 5G world, 60% of videos are already HD. Many new types of mobile interactions, such as short videos, live-streaming e-commerce, and virtual concerts with tens of millions of viewers, are emerging and gaining in popularity. Cost per bit has dropped sharply and new consumer behaviors have formed. These new behaviors have driven a surge in mobile traffic, redefined standards for user experiences, and changed the rules of the game.

As services like XR and new calling mature, we predict that by 2025 average mobile data traffic per user per month (DOU) will increase from 15 GB to 100 GB, while data rates will increase from 1 Gbit/s to 10 Gbit/s.

To prepare for these changes, the mobile industry should focus on four key areas.

First, we must free up more spectrum across different bands for 5G to build a universal mobile broadband network.

Second, we need to begin deploying millimeter wave and 6 GHz around 2024 or 2025 to support these spikes in data traffic.

Third, we must introduce AI into wireless networks to make them more autonomous and intelligent.

Finally, we need to define and shape the development of 5.5G.

Our goals are to improve the basic performance of 5G wireless network tenfold, achieve AI native and 10-Gbit/s mobile experiences, and support 100 billion IoT connections.

Developments in spectrum resources are paramount. Currently, there are only a few hundred MHz available for most operators, including new mid-band TDD spectrum and existing FDD spectrum. This can reliably support X Gbit/s and 15 GB DOU. However, from 2025 onwards, telecom operators will each need at least 1 GHz of spectrum to deliver a 10-Gbit/s experience and support over 100 GB DOU. Making the most of the sub-100 GHz section of the spectrum is the key to achieving this.

That is why we have proposed IntelligentRAN. It has two parts: Intelligent base stations and the intelligent management platform iMaster MAE. With this new architecture, we can create digital twins of wireless networks through data reconstruction, use layered AI engines to support diversified AI application scenarios, and enable layered autonomy for network elements and the management platform through multi-target management and intelligent decision-making.

The idea behind this is to build AI-native wireless networks with zero-wait provisioning, optimal experience and energy efficiency, zero faults, and continuous learning and evolution.

The goal of IntelligentRAN is to achieve autonomy in the wireless network domain.

The industry recognizes 5.5G as the way forward. But, to take it to the next level, we must jointly develop standards and clarify the development direction of key technologies such as ultra-large bandwidth, uplink spectrum reconstruction, passive IoT, green air interface, and AI native.

Cloud Core Networks: Creating Better Business Value with Full Service Enabling

VoLTE and VoNR have emerged as the basis of 5G voice networks due to the high-quality voice experiences they deliver and the reduced use of spectrum for 2G and 3G. Operators have also started developing video calling services, which we expect to take off in the near future and achieve a penetration rate of more than 15% by 2025.

To support a richer user experience, core networks must undergo three changes. First, they need to support full-service enablement. Second, they should adopt AI to make core networks autonomous and intelligent. Third, the industry must come together and define and shape the development of 5.5G core networks.

To build core networks that feature full-service enablement, we need to continuously improve new calling, video, and multi-access edge computing (MEC) capabilities.

For new calling, we need to introduce data channels and technologies like real-time rendering to deliver intelligent and interactive call experiences. The future of video is volumetric and social, which requires frame scheduling and converged video and communication technologies. We also need to improve MEC reliability and private WAN capabilities, and extend industry private networks from limited scenarios at certain sites to all scenarios anywhere.

The rapid development of core networks will put pressure on architecture, so introducing AI will be essential to help meet these demands.

Therefore, we have proposed IntelligentCore. It consists of two parts: intelligent core network elements and iMaster MAE-CN. Based on this new architecture, we can create digital twins of core networks, and analyze and operate live networks through simulation. AI-native core networks will enable zero-touch network configuration and zero network interruptions, with a better, lossless user experience. Ultimately, IntelligentCore will achieve autonomy in the core network domain.

As an essential facet of mobile 5.5G networks, core networks must continue to evolve. Huawei has proposed its vision for 5.5G core, which has six major components: trustworthiness, automation, cloudification, MEC to Everywhere, new calling, and new video. Combined, these will support full-service enablement.

To support the development of 5.5G core, we must clarify the development direction of key technologies such as data channel, frame scheduling, all-scenario MEC, and AI native.

Empowering Digital Transformation with Premium All-Optical Networks

Multiple factors are driving the explosive growth of all-optical networks globally. We predict that:

• Global FTTH penetration will increase from 28% in 2020 to 40% in 2025.
• During the same period, gigabit FTTH penetration will soar from 1% to 26%, and FTTR penetration will reach 8%.
• Leading markets will start shifting from gigabit FTTH to 10-gigabit FTTH in 2025.

To prepare for these changes, the all-optical network industry needs to take four actions. First, accelerate FTTH deployment and increase FTTR penetration. Second, start commercial 50G PON and Wi-Fi 7 deployment around 2024 or 2025. Third, apply AI to optical access and transport networks to make them autonomous and intelligent. Finally, jointly define and shape the development of Fixed 5.5G.

To deliver a ubiquitous 10-gigabit experience, we can consider several measures from the perspective of network evolution:

• Move from FTTH to FTTR and from Wi-Fi 6 to Wi-Fi 7 for homes.
• Evolve OLTs from GPON and 10G PON to 50G PON.
• Upgrade metro and backbone networks to increase transmission from 100G or 200G per lambda to 400G or 800G per lambda, which will support higher access bandwidths and larger user bases. We also need to widely deploy optical cross-connect (OXC) to further reduce transmission latency, enable one-hop connection, and improve user experience.

To introduce AI into all-optical access networks, we have proposed IntelligentFAN, which has two parts: intelligent network elements, including FTTR, ODN, and OLT, and iMaster NCE-FAN. Based on this new architecture, we can create digital twins of all-optical access networks through digital modeling; support the application scenarios of all-optical access networks through layered AI engines; and enable layered autonomy for network elements and the management platform through intelligent decision-making.

AI-native all-optical access networks will deliver ubiquitous gigabit or even 10-gigabit experiences, and enable precise operations and elastic planning. The goal is to achieve the access network domain autonomy and bring digital technology to homes and industries.

To introduce AI to all-optical transport networks, we have proposed IntelligentOTN. This also has two parts: network elements, including OXC and OTN, and iMaster NCE-T. AI-native all-optical transport networks will deliver ultra-broadband, low-latency, and highly-reliable transmission, SLA-guaranteed services, and unattended network O&M. Ultimately, these features will achieve transport autonomy.

Huawei proposed Fixed 5.5G to boost the development of fixed networks. We are continuing to improve the existing capabilities of F5G and have added three new capabilities that will bring about three new changes alongside changes to the AI-native feature and ubiquitous 10-gigabit experience. These include:

• Industry-grade real-time resilient connectivity that cuts latency to microseconds and increases availability to six nines, which will better enable industrial digital transformation.
• Replacing electrical components with optical components and upgrading to an all-optical network architecture will increase energy efficiency tenfold and enable green, sustainable development.
• Transitioning from optical communication to optical sensing will bring the environmental monitoring error margin down to one meter, leading to scenarios and applications that go beyond connectivity.

Connecting Ubiquitous Computing Power and Intelligent Living

XR collaboration and more cloud applications will lead enterprises into the 10-gigabit era. Looking ahead to 2025, we will build 10-gigabit enterprises.

Evolution in three areas is required to achieve this:

First, campus wireless access must evolve to Wi-Fi 7. We expect Wi-Fi 7 APs to hit the market in 2023 and see large-scale commercial deployment in 2025. These APs will support up to 320 MHz channel bandwidth, 12x12 MIMO, and 4K QAM, as well as a peak data rate of over 10 Gbit/s. This will help provide full-wireless coverage from offices to production facilities. The port rate of campus access switches will increase from 10 GE to 50 GE, while the port rate of aggregation and core switches will jump from 100 GE to 400 GE.

Second, in terms of WAN, the backbone port rate will increase to 800 GE, network capacity will increase, and the IPv6 Enhanced protocol will continue to evolve. This will enable SRv6 and APN6 to deliver more capabilities like network programmability and application awareness. It will also support multi-factor path computation across hundreds of thousands of network elements and millions of paths.

Third, data center networks will evolve to 800 GE and become lossless networks with zero packet loss. Data plane convergence and dynamic congestion control algorithms will continuously reduce end-to-end latency and unleash computing power.

From the network architecture perspective, the rapid development of WANs is creating new requirements on network architecture such as ensuring an optimal service experience across all scenarios and maximally utilizing networks. To meet these requirements, we are introducing AI into WANs and have proposed IntelligentWAN, which has two parts: intelligent routers and iMaster NCE-IP.

As campus networks continue to develop rapidly, we will need to ensure an optimal service experience across all campus scenarios and better connect things on campus. To achieve this, we have proposed IntelligentCampusNetwork, which comprises two parts: network elements, which includes campus Wi-Fi APs and switches, and iMaster NCE-Campus. AI-native campus networks will offer zero-wait, zero-fault, and zero-touch capabilities, and achieve autonomy in the campus network domain.

The rapid evolution of data center networks has created new requirements for ensuring lossless connections; meeting performance requirements across various scenarios, such as general-purpose computing, high-performance computing, and AI computing; and building lights-out data centers. To introduce AI into data center networks, we have proposed IntelligentFabric, which consists of data center switches and iMaster NCE-Fabric. AI-native data center networks will offer zero errors, zero wait times, and zero interruptions, and achieve autonomy in the data center network domain.

To evolve data communications, Huawei has unveiled its vision for Net5.5G, covering six areas: Green Ultra-Broadband, Massive Heterogeneous IoT, High Resilience & Low-latency Networking, IPv6 Enhanced, Multi-domain Network AI, and Ubiquitous Network Security.

• Green, ultra-broadband networks provide mobile users, homes, and office campuses with 10-gigabit access.
• IPv6 Enhanced, Multi-domain Network AI, and Ubiquitous Network Security provide enterprises with elastic, agile, secure, and easy-to-access multi-cloud networking.
• High-Resilience & Low-latency Networking interconnects millions of compute nodes, accelerates centralized industrial control, and makes flexible manufacturing a reality.
• Massive heterogeneous networking enables ubiquitous IoT connections in industrial facilities and campuses.

Autonomous Driving Networks: Building Self-fulfilling, Self-healing, and Self-optimizing Autonomous Networks

Architecture transformation that systematically introduces AI and enhances network autonomy is becoming a must, with standards for different levels of autonomous networks following the same structure as standards for autonomous vehicles. Communication networks are moving from L2 – partial autonomy, and L3 – conditional autonomy, to L4 – high autonomy.

We have developed a series of intelligent solutions that cover multiple fields like networks, computing, and storage. For example, IntelligentServiceEngine helps operators implement closed-loop management, from service goals to network domain goals. The key components of the solution include a domain knowledge engine, business intelligence engine, hyper-automation engine, domain app development engine, and digital twins. These will enable a superior user experience, support efficient O&M, and enable business success.

With AI and digital twins for the network and environment, IntelligentServiceEngine can intelligently assess real-time experiences for different situations, tasks, times, and locations. This can help create a new experience-driven model that enables continuous optimization.

The solution can connect data breakpoints and help create a model that supports real-time, accurate business-network linkage and forecasts, enabling intelligent business operations that can make sense of the present and predict the future.

For simple O&M events, the virtual employee supports zero-touch O&M. For complex events, we can implement event analysis and decision-making based on domain knowledge and machine intelligence, and then develop a professional scenario-based O&M system where different roles, sites, and tasks can be coordinated.

Building a Flourishing Computing Industry in the Digital Era

The rapid growth of the digital economy has driven an exponential increase in data. We estimate that the amount of new data generated in 2030 will exceed 1,000 zettabytes, 23 times the amount generated in 2020.

Unstructured data, such as text, images, audio, and video, is expected to account for over 80% of the data in 2030. Processing such massive amounts of diverse data requires diversified computing power. We estimate that by 2030, total general-purpose computing power will increase tenfold to reach 3.3 ZFLOPS, while AI computing power will increase by a factor of 500 to hit 105 ZFLOPS.

In response, the computing industry must change and pursue architecture innovations to overcome bottlenecks with CPU-centric architectures. This will allow the industry to meet requirements for massive and diverse data processing and adapt to the era of diversified computing.

Moving forward, we will need to redefine computing architectures to realize DC as a Computer and increase effective computing power by a factor of 10. How?

First, we need to evolve from the current CPU-centric heterogeneous architecture to a decentralized, peer-to-peer computing architecture that supports diversified computing power. This decentralized approach can break down both I/O and memory walls, greatly improving bandwidth and reducing computing latency. Ultimately, this will significantly boost system performance.

Second, we must upgrade the hardware system from a server-based to a cluster-based system. We continuously innovate in cluster computing architectures, and leverage the technical expertise we have built up in the ICT field to integrate computing, storage, networks, and energy. This will turn a data center cluster into a set of hardware, maximizing computing power density and minimizing power consumption.

Third, at the foundational software layer, we will see a shift from siloed architecture that supports single computing power to convergent architecture that supports diversified computing. This means reshaping foundational software like acceleration libraries and compilers for different processing units to improve application development efficiency and performance.

Data Storage: Building a Data-Centric and Trustworthy Storage Foundation for Diverse Applications

Storage has always been a strong foundation for high-value data. There are three clear changes in the storage field:

First, unstructured data is starting to see wide adoption in enterprises, with 56% of enterprises using AI for at least one business function and numerous scenarios based on unstructured data. Second, data applications are becoming more diverse. As well as traditional database applications, new technologies and applications like virtualization, containers, big data, and AI, are emerging. On average, an enterprise has over 100 applications. Third, multi-cloud strategy is the new norm for enterprises, with 89% of enterprises that migrate to cloud now using a multi-cloud strategy.

As we enter an era of diversified data storage, we must redefine storage architectures and improve storage performance. This will allow us to address the rapidly growing amount of unstructured data and meet enterprise requirements for diverse applications and multiple clouds. We also need to use AI to enable autonomous and intelligent data storage.

Storage architecture innovations mainly focus on reshaping hardware and software architectures through a data-centric approach and various data application acceleration engines. These combined can improve storage performance by a factor of 10.

Currently, data flows across two buses: the DDR memory bus and the system PCIe bus. A global data bus with high throughput allows us to integrate these two buses, greatly improving data flow efficiency.

In the past, data was indexed and cached at each layer, from application and computing to network and storage. In the future, control and data plane separation will slash data access latency between applications and the storage pool.

For all applications, including service logic and data processing, we can place processing power near the storage system based on application features. This will enable near-data processing and accelerate applications.

As data storage rapidly grows, enterprises want to provide a consistent experience both on and off the cloud and enable real-time data processing and automatic management. To meet these requirements, we propose the IntelligentStorage solution, which embeds AI into data storage to enable autonomous and intelligent data storage.

With IntelligentStorage, we can support autonomous decision-making in scenarios like the layout, scheduling, and reduction of different types of data within storage devices, and intelligently allocate CPU and memory resources to overcome local resource bottlenecks. The solution also enables automatic root cause analysis for unknown faults across all scenarios and data flow and application deployment in a multi-cloud environment.

Cloud Computing: Building the Cloud Foundation for an Intelligent World with Everything-as-a-Service

Cloud-native is now the preferred choice for enterprises to migrate to cloud because it can bring new value. By 2025, Gartner estimates that over 95% of new digital projects will run on cloud-native platforms, so it is fair to say that cloud-native platforms are the way to deepen digitalization.

Moving forward, the cloud industry will drive ongoing evolution to cloud-native platforms to create greater value. For data and security, we will harmonize AI development and data governance to unlock more value from data, and use Cloud Security Brain to enable efficient and secure enterprise operations. Security is the foundation for enterprises to go digital.

97% of organizations are now investing in big data and AI, and the value of data is increasingly clear. How can we unlock more value from data? We believe that harmonizing AI development and data governance is the key.

There are three steps to this:

One, we need to unify data storage, reduce redundant storage, and cut invalid data transfers.

Two, we must unify metadata. This requires five unified capabilities: engine metadata, permission controls, data indexes, data directories, and transaction mechanisms. This will make data globally visible, allowing every piece of data to flow freely and be rapidly shared across multiple engines.

Three, we need to create a unified development environment, where different roles can play to their strengths and obtain what they need. For example, data engineers can use tools they are familiar with to invoke AI capabilities, enabling collaboration between big data development and AI development.

Through these innovations, we hope to further improve data development efficiency, cut data storage costs, and unlock more value from data.

Cloud-native is essential for deepening digitalization, while security is the foundation of cloud. Today, industry-leading enterprises spend over 10% of their IT investment on security. Security covers both system building and operations, meaning that security operations and defenses are equally important.

Huawei Cloud has built seven layers of defense for platform security. Through DevSecOps, we have embedded security into the development and operations of all services and, with DevSecOPs, developed over 220 secure and trustworthy cloud services. We provide customers with a wide range of security services, including over 20 in-house security services and more than 400 security ecosystem products. With these services and products, we want to help customers build comprehensive security protection systems.

Almost all businesses invest in building security systems. However, these systems can still be compromised during business operations because they lack the right operations capabilities, experts, or configurations, or they fail to effectively monitor, detect, and handle such threats.

In response to this, Huawei Cloud has launched Cloud Security Brain based on the security capabilities Huawei has built up over 30 years alongside Huawei Cloud's operation experience. We provide these capabilities and expertise as services, so customers can build their own security systems from over 300 threat detection models and more than 100 security response scripts that automatically handle threats. Customers can respond to 70% of threats within 2 minutes and to 99% of threats within 5 minutes.

Generally, fewer than 10 events need to be manually handled each day.

Cyber security and privacy protection are, and will always be, Huawei's top priorities. Security, stability, and high quality are the lifeblood of Huawei Cloud. As a cloud service provider, we are committed to building a secure, reliable, and trustworthy cloud platform, so that customers can migrate to the cloud free from worry.

A bright, intelligent world lies ahead. Let's work together to advance the industry towards the intelligent world.

Technology creates value, and innovation is the main engine of future development. 5G has already become a key part of the infrastructure needed to support digital transformation and the healthy development of the wider digital economy. Since its commercial rollout three years ago, 5G has grown faster than any previous generation of mobile technology. By the end of 2022, more than 240 carriers around the world had launched commercial 5G services and deployed more than three million 5G sites to serve one billion 5G users.

5G is advancing twice as fast as 4G, and already boasts a mature industry ecosystem. It is already bringing about change, but this is merely the beginning. As we inch closer to the intelligent world, new changes, scenarios, and needs will continue to emerge, raising higher requirements on network infrastructure. 5G is now able to deliver Gbit/s-level experiences and support tens of billions of connections, making it an important pillar for sustainable development and the global digital economy. 5.5G will deliver 10-fold higher network capabilities, enabling 10 Gbit/s experiences, 100 billion connections, and native intelligence for a broad diversity of services. This makes 5.5G an important milestone on the path to an intelligent world (as shown in Figure 1).

Gigabit to 10 gigabit: 10x better connectivity experience for users

5G is changing how people watch video, allowing them to enjoy a superior experience. HD and interactive videos have become popular services among users. The number of panoramic videos and videos that support skipping and variable-speed playback is increasing rapidly. With 5G, the proportion of HD mobile videos increased to 60%, from 4G's 40%. Better user experience leads to a tangible increase in DoU and stimulates tariff plan upgrades, benefiting both users and carriers (as shown in Figure 2). In countries and regions that have seen rapid 5G development, such as China, South Korea, and Kuwait, carriers have invested heavily in 5G and maximized its value by offering outstanding experiences. As a result, carrier revenue and profits in these countries have grown significantly faster than the global average.

Innovative services such as XR have also become a driving force behind 5GtoC development. The large-scale deployment of XR services requires synergies between 5G networks, cloud, and devices. The ultra-large broadband and low latency delivered by 5G networks are essential for the real-time rendering and 3D reconstruction commonly used in XR services. In the future, applications like XR Pro and metaverse will significantly blur the lines between the virtual world and real world, creating a digital mirror of the real world. Users will be able to explore the real world through simulated experiences powered by advanced computing and haptic feedback technologies. These kinds of real-time immersive interactive applications require 10 Gbit/s mobile networks and millisecond-level transmission latency.

Ultra-large bandwidth spectrum is essential for upgrading from 5G's gigabit networks to 5.5G's 10 gigabit networks. To guarantee spectrum resources for 5.5G, we need to make the most of sub-100 GHz spectrum and open up more high-frequency and large-bandwidth spectrum, such as 6 GHz and millimeter wave. We also need to change how the sub-6 GHz spectrum is used to achieve ultra-large bandwidth. Extremely large aperture array (ELAA) technologies can help address coverage issues in high bands and allow them to achieve coverage as large as C-band, making 10 Gbit/s possible anytime, anywhere.

5G2B applications: Deployment in core production activities will unleash the potential of 100 billion IoT connections

After three years of 5G2B development, 5G is being applied at scale in multiple industries, including mining, ports, and healthcare. Underground coal mines (as shown in Figure 3) are now seeing more than 100 HD cameras, a large number of sensors, and workers deployed and connected using 5G networks, enabling workers to complete 60% of underground work safely from an office above ground. One fully-connected 5G factory (as shown in Figure 4) has used 5G in 15 production processes to connect more than 2,500 units of production equipment, significantly improving the factory's production efficiency.

Chinese carriers are already making 5GtoB a new engine for revenue growth. In 2022, 5GtoB enabled carriers to generate more than US$20 billion in DICT revenue, making it the fastest growing service domain for carriers. 5GtoB is also expected to see its revenue exceed US$30 billion while contributing hundreds of billions in DICT revenue by 2025.

5.5G will be able to meet the increasing needs of industry digitalization. As 5G moves beyond just assisting production to becoming an integral part of key production activities, networks will need to provide new capabilities such as high-speed uplink transmission and high-precision positioning. In particular, as services such as machine vision and remote control require high uplink rates to upload multi-channel UHD videos in real time, high-speed uplink transmission has become a must-have for 5G2B industry applications.

The industry is already exploring new methods of improving 5G uplink capabilities. Uplink and downlink decoupling technologies, for example, reconstruct spectrum usage models, allowing for the multi-band convergence of uplink and downlink spectrum on different bands. This enables existing FDD spectrum and uplink-only spectrum to be fully used to provide Gbit/s-level uplink rates.

Many industries have extensively explored IoT, but have so far failed to achieve economies of scale due to fragmentation in existing connectivity technologies. Nevertheless, the economies of scale being seen in the mobile industry can help three 5G-centered IoT technologies deliver business success: Reduced Capability (RedCap), Narrowband IoT (NB-IoT), and passive IoT. NB-IoT is currently the mainstream low-power wide-area (LPWA) network technology, and is rapidly gaining momentum. RedCap is also ready for commercial use, is cheaper and consumes less power than eMBB, and has the potential to create billions of medium- and high-speed connections. Passive IoT combines cellular communications and passive tagging, enabling long-distance coverage with low-cost terminals. It is expected to facilitate the connection of tens of billions of passive IoT devices. Wireless networks will boast integrated communication and sensing. The use of mmWave can increase sensing accuracy and thus facilitate new applications, such as speed and distance measurements and imaging.

Intelligence is key to addressing growing network complexity

Any carrier seeking to tap into the new markets and business models created by 5G and 5.5G and pursue digital and intelligent transformation will need to integrate intelligence into wireless network services, experience, O&M, and green development. Many carriers outside of China have proposed intelligent transformation strategies to build intelligent capabilities for simplified O&M, superior performance, and an ultimate experience. One Chinese carrier has proposed an autonomous network strategy, aiming to achieve network-wide L4 autonomous driving networks by 2025.

The expected exponential increase in network complexity will also drive networks to become intelligent. A natively intelligent architecture (see Figure 5) enables mobile networks to support real-time sensing, modeling and prediction, and multidimensional decision-making. With these intelligent capabilities, mobile networks will be intelligently optimized with resources that can be configured on demand for optimal user experience and capacity. O&M will also be intelligently simplified by automated site planning, deployment, and troubleshooting. Significant energy savings can then also be intelligently achieved while maximizing network performance.

Green ICT: Addressing a hundred-fold increase in traffic with only a slight increase in energy consumption

Industries today are focusing on achieving green and sustainable development. The mobile industry is no exception. With the introduction of technologies such as Massive MIMO, 5G has greatly reduced power consumption per bit and is able to transmit ten times more data than 4G for each watt consumed.

Network traffic will continue growing rapidly, with DoU projected to reach 600 GB by 2030. This has prompted the mobile industry to develop innovative technologies for high-performance, energy-efficient networks that can address a hundred-fold increase in traffic with only a slight increase in energy consumption.

Huawei has proposed an architecture for improving network efficiency across three different layers: equipment, sites, and networks (see Figure 6). Our innovation in system architecture, materials, and heat dissipation technology has led to increased equipment integration. At the site level, in addition to single site simplification, we now support intelligent coordination between whole-site facilities. And at the overall network level, we are using AI to perform dynamic, real-time optimization, laying a technical foundation for green 5G networks.

At the 2020 Global Mobile Broadband Forum (MBBF), Huawei launched its 5.5G industry vision, and defined three new scenarios that build on the original three 5G scenarios of eMBB, mMTC, and URLLC. These three new scenarios are Uplink Centric Broadband Communication (UCBC), Real-Time Broadband Communication (RTBC), and Harmonized Communication and Sensing (HCS).

They will enable evolution from IoE to intelligent IoE.

After two years of concerted efforts across the industry, 5.5G has seen huge progress and three things have become clear. First, the standardization of 5.5G is already underway and right on track. Second, the industry has made breakthroughs in key technologies for 5.5G, and ultra-large bandwidth and ELAA can now deliver a 10-Gbit/s experience. Third, the industry has a clear vision for the IoT landscape. The three types of IoT technologies supported by 5.5G ⁠— NB-IoT, RedCap, and passive IoT ⁠— are developing rapidly and will support numerous IoT connections.

At the new stage for 5.5G, the industry needs to prepare well in five areas: standards, spectrum, products, ecosystems, and applications. First, we need to continue setting standards and promoting key technological research. Second, we need to prepare more spectrum. For example, we should fully utilize sub-100 GHz resources to build ultra-large bandwidth. Third, we need to prepare for 5.5G with mature networks, devices, and chips. Both our networks and devices need to be upgraded to deliver a 10 Gbit/s experience. Fourth, the industry needs to coordinate to plan and prepare for different scenarios for a thriving 5.5G ecosystem. Fifth, all players across the industry need to collaboratively explore how to pave the way for more diverse applications to emerge.

An industry-wide consensus has been reached on the vision, standards, and technologies that will underpin 5.5G. Moving forward, we will need to continuously strengthen technological innovation and collaborate with ecosystem partners to pave the way for the commercialization of 5.5G.

So, the wind is rising and it is time to set sail. Huawei is passionate about working with global carriers and industry partners to create a 5.5G that has significant business value. I have no doubt that it will soon serve as a benchmark we can use to move towards an intelligent world.

As 5G is developed on a bigger scale and rolled out to more users, its commercialization is becoming a focal point of the industry. New services and applications are increasing pressure on networks and driving the evolution of standards, technologies, applications, and ecosystems. The industry is poised for the 5.5G era.

The key to ensuring future business success is developing and supporting a comprehensive set of services which can be applied to a wider range of domains and offer a differentiated user experience. Core network construction and evolution are paramount to achieving this.

Some of the most impressive features of 5.5G Core are New Call, mobile edge computing (MEC) to X, and New Video. New Call upgrades audio/video calls to immersive intelligent experiences. MEC to X extends industry-specific private networks from a single application in an individual domain to a range of applications across all domains. New Video transforms videos from entertainment on a single screen to multi-screen social networking that transcends reality.

By leveraging these capabilities to bring services to more consumer-, business-, and household-facing scenarios, the core network will place the industry in a strong position to build new businesses and thrive in the intelligent world.

The 5G market is maturing

After two years of early deployment and large-scale rollout, the 5G market has entered a more mature stage of creating tangible value for consumers and industries.

In the consumer market, where user experience has improved significantly in recent years, 5G users spend 1.5 times more time viewing short videos and the proportion of high-definition (HD) video traffic has increased by 20%. At the same time, 5G optimizes carriers’ businesses. Since voice over LTE (VoLTE) is mandatory for 5G voice services, the development of 5G also improves VoLTE and facilitates the retirement of carriers' earlier-generation networks, helping them optimize network efficiency. Furthermore, the commercial benefits of 5G in industry-specific markets are remarkable. In China, for example, carriers have already deployed more than 6,000 5G virtual private networks in over 40 industries.

Calling for industry transformation

As 5G is commercialized on a larger scale and industries undergo digital transformations, there is increasing pressure on network infrastructure and capabilities.

In terms of network infrastructure, virtualization technologies will move from virtual machines to containers, which will involve complex adaptation to multiple management planes and virtualization engines. The introduction of new virtualization technologies and hardware will have a huge impact on network evolution. In addition, as networks become more complex, AI technologies will be needed to upgrade operations and maintenance (O&M) from the current manual mode to the autonomous driving network (ADN).

As the list of 5G applications grows, there will be higher expectations in terms of network capabilities.

For example, metaverse applications need networks to deliver an immersive communication experience anytime and anywhere. Therefore, for media applications such as XR, new technologies need to be introduced to support frame-level scheduling, multi-stream collaborative transmission, real-time rendering and interaction, and closed-loop experience optimization. In industry-specific markets, 5G is being applied to an even more diverse range of scenarios. According to the Intelligent World 2030 report, the number of 5G virtual private networks will reach 1 million by 2030. This means that 5G needs to be able to connect to many different industries.

5G networks need to continuously evolve to keep up with these network and service demands. All parties in the industry are cooperating and innovating to this end. 3GPP has established the 5G Advanced project to review and clarify industry standards.

5.5G Core: Empowering digital transformation across industries

Huawei is driving the industry forward by proposing 5.5G Core and actively promoting industry cooperation, business innovation, and technology implementation. By working to extend the reach of 5G, Huawei can capitalize on the opportunities brought by 5G and help facilitate the digital transformation of other industries.

5.5G Core represents a step towards service enablement because it will deliver important improvements in the following three areas:

Voice services: 5.5G Core improves the quality of mobile network calls, and upgrades the call experience from simple audio and video to intelligent interaction, making voice services more than just a communication tool. Instead, they become a platform for carriers to potentially offer even more new services.

First, 5.5G Core adds a data channel based on the existing IMS audio and video channels. Having "three channels on one network" creates a more interactive user experience. Second, 5.5G Core introduces features such as AI-based media identification, rendering, and synthesis, thereby making calls smarter and expression methods more diversified. These two capabilities open up the potential for new assistive functions, such as social security services for the elderly and people with disabilities, and services that simplify business processes, such as one-stop insurance claims settlement.

Business-facing scenarios: 5.5G Core meets the requirements for multi-service private networks by improving the "connectivity + edge computing" feature to redirect industry-specific private networks from covering a single scenario in a service domain to all scenarios in all domains. 5.5G Core also builds the mobile network into a Data, Operation, Information, Communication Technology (DOICT) foundation that can empower all industries. Here are some examples of improved connectivity:

For industrial Internet of Things (IoT): 5.5G Core uses technologies such as 5G LAN and operation technology user plane function (OT-UPF) for ultra-high reliability and ultra-low latency in industrial applications.

For enterprise WAN interconnection: 5.5G Core uses mobile VPN to implement WAN mesh interconnection between enterprise private networks so that enterprise intranets can be reliably and effectively accessed anytime and from anywhere.

For multiple services in industry-specific applications: In addition to video surveillance and remote-control data access, digital voice trunking is provided to better support the daily operation of enterprises.

Enterprise services that have not been moved to the cloud rely heavily on edge computing. 5.5G Core uses private network connections and builds a converged foundation of edge computing and networking based on the telecom cloud platform. This converged foundation is very stable, offers real-time scheduling, and is designed to support all critical enterprise applications in one place, making it a one-stop platform for customers.

Video services: 5.5G Core integrates the communication and video features of mobile phones and TVs to build a platform for social interaction and entertainment based on video services. Video services will evolve from simple entertainment on a single screen to social networking across multiple screens for both individuals and families. 5.5G Core will develop XR and spatial video capabilities in the new media age. By introducing intelligent media identification and scheduling capabilities, the core network will offer a more immersive experience in cases with massive connections. In addition, technologies such as intelligent transcoding, intelligent stitching, and multi-stream synchronization will be used to deliver a multi-dimensional spatial video experience. Moreover, through 5.5G Core, we will improve multi-screen communication and video capabilities, and provide new call and social networking services. These will help improve the user video experience and increase customer loyalty to our brand.

Full-service enablement: Building new business paradigms

By improving consumer-, business-, and household-facing services, 5.5G Core will help carriers build new businesses and thrive in the intelligent world. The mobile industry has not developed evenly, and it is clear that 5.5G evolution will be gradual. Based on the first phase of 5G rollout, carriers may see the best results by implementing technology and network evolution on the following four fronts:

Voice networks: Carriers need to have VoLTE audio and video infrastructure networks in place to innovate new call services in phases based on the maturity of terminals and industries. To start with, carriers can develop terminal-independent ultra-HD video and smart video services. For example, China Mobile plans to launch fun call services and smart translation services to improve user experience and increase customer satisfaction. Then, with the development of native terminals, carriers can develop more interactive calls, build platform products based on calls, and build service closed loops during interactions. This will boost the industry's value and help improve efficiency.

Business-facing services: Carriers can leverage the network scale and build layered, multi-dimensional networks to provide industry-specific private network services on demand. In WAN scenarios, carriers can leverage the advantages of dedicated public networks to deliver electric power and campus WAN. In addition, carriers can provide cost-effective shared 5G private networks for small- and medium-sized enterprises. In LAN scenarios, the on-premises network keeps the data within the campus, so carriers can use enhanced connectivity to extend the 5G private network from peripheral to core production systems. Carriers can also draw on the computing power and platform capabilities of the MEC telecom cloud foundation to integrate heterogeneous hardware and third-party software and help industry customers streamline private network construction and O&M.

Video services: Carriers can stay competitive by offering a better experience. They can popularize 4K HD and 8K VR as entry-level video experiences, and then develop 8K video and 12K VR to appeal to high-end users. At the same time, carriers can introduce new experiences such as free-view, multi-view, and 3D videos to tap into new markets. They can also add video features to their social networking capabilities to open up new opportunities in the entertainment and social spheres. 5.5G Core offers effective ways for carriers to optimize their business models.

AI capabilities: AI will become a basic capability of the core network, and will be particularly important in the following three scenarios: highly stable networks, efficient O&M, and experience optimization. For example: AI-enabled fault detection, diagnosis, isolation, recovery, prevention, and prediction will facilitate a more proactive and preventative approach to network assurance. ADN L4 automation can be implemented through intentional network provisioning, change, configuration, and smart traffic analysis. SLA assurance for high-value users can be carried out through smart UPF selection and reselection, mobile VPN path optimization, and load-based smart slice selection.

Huawei continuously invests in the innovation and development of new services. Huawei will work with industry stakeholders to grow the 5.5G business together by building on the full-service enablement platform encompassing New Call, New Video, and MEC to X.

The fixed network industry is rapidly moving from F5G to F5.5G, driven by the twin engines of new network technology developments and growing application demand. The true value of optical fiber will only be able to further shine through this process as technological innovation continues in areas like home and enterprise applications and optical fiber sensing.

Prosperous F5G

Over the past two decades, fixed networks have evolved from meeting just basic connectivity needs to allowing users to enjoy 4K ultra-HD video experiences. F5G standards have also taken shape as fixed network technology evolved to meet booming demand in the digital era. In 2020, the European Telecommunications Standards Institute (ETSI) officially launched F5G and its industry vision of "Fiber to Everywhere". They also defined three technical characteristics of F5G: enhanced fixed broadband (eFBB), full-fiber connection (FFC), and guaranteed reliable experience (GRE). This marked the beginning of the rapid development of fixed broadband networks worldwide.

Then, over the past three years, gigabit fiber broadband rapidly went mainstream as more and more online video and video call services emerged. The number of connected homes with 1 Gbit/s or higher speeds now exceeds 100 million worldwide and is expected to exceed 200 million by the end of 2023. The world's leading information service providers are also already starting to deploy Fiber-to-the-Room (FTTR) solutions to bring high-speed, low-latency, and low-jitter fiber connectivity to every corner of the home. This will meet consumers' expectations for a high-quality Wi-Fi connectivity experience. 2022 alone saw 1 million new FTTR users.

F5G's high bandwidth, low latency, stable transmission, and anti-interference features are making it possible for many industries to go intelligent and digital, facilitating the implementation and success of many new application scenarios. F5G has made its way into more than 10 industries, including transportation, energy, education, and healthcare, covering more than 40 application scenarios. More than 20,000 companies worldwide have developed all-optical Fiber-to-the-Office (FTTO) campuses and all-optical industrial Fiber-to-the-Machine (FTTM) networks, driving industry digital transformation forward.

Digitalization stimulates industry transformation

Given the global progress of informatization and digitalization, we are due for a new wave of transformation. Society is rapidly going networked, digital, and intelligent. The global Internet has continued to expand and transform from meeting consumer demand to addressing industrial requirements, and the availability of data, communications, and computing power has grown exponentially. The needs of consumers, businesses, and other organizations for digital services are also increasing at unprecedented rates.

Network infrastructure is the foundation for digital transformation as well as the foundation of the future world that we will all live in. So what requirements does the future intelligent world have for networks?

We have been pursuing a better video experience, steadily moving from standard definition and high definition to 4K and 8K, as well as real-time, interactive, and immersive experiences delivered by XR and glasses-free 3D video. Metaverse and AR/VR applications are set to change consumer habits and raise higher requirements for communications networks. Excellent broadband quality and low-latency connectivity are required to deliver superior experiences. For example, light-field, glasses-free 3D display requires about 1 Gbit/s of bandwidth and a network latency of less than 5 ms for intensive interactions. Optical reconstruction-based glasses-free 3D display has even higher requirements, requiring about 10 Gbit/s of bandwidth and a latency between 1 and 5 ms. Home networks with 1 to 10 Gbit/s bandwidth and 1 to 5 ms latency are basic requirements for satisfying glasses-free 3D experiences.

Mainstream network applications are also extending from consumer applications to vertical and industrial applications. Industrial applications are often characterized by low latency, deterministic communications, and accurate positioning, while high security and reliability are prerequisites for most vertical applications.

Let's look at power grid as an example. As renewable energy accounts for an increasing percentage of all power generated, different services must be strictly isolated, while scheduling frequency using a supervisory control and data acquisition (SCADA) system must be 10 times higher to ensure stable power supply. This in turn requires a network availability of 99.9999%, meaning an annual outage time shorter than 30 seconds.

Network technology development and application demand growth are driving each other forward. F5G evolution and enhancement will be critical if we hope to meet the requirements of different service scenarios. Multiple industry players have begun discussing the next-generation evolution of fixed networks, and ETSI already released their F5G Advanced and Beyond white paper in September 2022 and initiated F5G Advanced standardization.

F5.5G facilitates ubiquitous 10Gbps optical connections

In April 2022, Huawei proposed the concept of F5.5G to enhance the three existing features of F5G (eFBB, FFC, and GRE) and extend three new features: green agile optical network (GAO), real-time resilient link (RRL), and optical sensing & visualization (OSV).

F5.5G will bring four major changes to the industry. First, it will help us transition from gigabit speeds to ubiquitous 10G speeds. Second, we will change from carrier-grade connectivity to real-time and reliable industrial-grade connectivity, with microsecond-level latency and 99.9999% availability, enabling digital transformation of industries. Third, electric solutions will be replaced with an energy-efficient optical network architecture that is ten times more efficient, enabling green and sustainable development. Fourth, we will transition from optical communications to optical sensing, facilitating integrated optical fiber communications and sensing and digital operation capabilities.

Huawei is also continuing to look into forward-looking technology research and product solution innovation for F5.5G to help operators improve user experience and expand business boundaries.

FTTH to FTTR: The boom in digital home services that we have seen in recent years and the increasing amount of consumer upgrade in home broadband services is setting higher bars for user experience in terms of coverage, rate, roaming, latency, and the number of concurrent connections. More than 100 carriers around the world have deployed FTTR services, tackling the previous obstacles that prevented 100 Mbit/s room access, despite gigabit home access being already common. FTTR unlocks new growth for carriers around the world as it has increased average revenue per user (ARPU) by 30% and reduced Wi-Fi complaints by 60%.

Next-generation FTTR based on the C-WAN architecture further improves the Wi-Fi experience by boosting the effectiveness of collaboration between optical and Wi-Fi solutions through centralized management and control. With it, home users can enjoy over 1 Gbit/s rates and imperceptible roaming handover in less than 20 ms, all while concurrently connecting more than a hundred smart home devices. FTTR helps carriers transform from bandwidth-based operations to experience-based operations, while providing carriers with an optimal approach to smart home services.

10G PON to 50G PON: Many carriers are also making efforts to upgrade their FTTH broadband networks to 10G PON so that more users can enjoy a gigabit ultra-broadband experience. Some leading information service providers have started to verify next-generation high-speed PON technologies. ITU-T officially published the first version of their 50G PON standard in September 2021 as the standard for the next generation of PON technology following 10G PON. This laid the foundation for broadband's evolution from the gigabit era to the 10G era. During commercialization, 50G PON will coexist with GPON and 10PON while also facilitating smooth evolution. It will be crucial for 50G PON to be compatible with existing optical distribution networks (ODNs) to protect carriers' existing investments. With new, innovative device structures and techniques, Huawei's 50G PON optical modules can support 40 km coverage while maintaining compatibility between GPON, 10G PON, and 50G PON on a single port. This will help carriers smoothly upgrade their live networks to 50G PON without network reconstruction and quickly develop the ability to offer ubiquitous 10Gbps experience.

E2E all-optical networks: With the rapid growth of traffic generated by individuals, homes, and enterprises, agile service provisioning and network automation requirements are also increasing. This makes the establishment of E2E all-optical networks and the deployment of OTN/WDM at sites extremely important. OTN/WDM equipment has already been deployed at 85% of aggregation sites and 41% of CO sites worldwide, and is expected to eventually be deployed at all sites to support ubiquitous 10G connectivity. The need for wide-scale deployment at CO sites makes reducing network deployment costs and improving O&M efficiency a top priority for carriers. Huawei's metro Alps-WDM solution uses all-optical switching, an innovative pooling architecture, metro coherent modules, and optical label technologies to realize efficient wavelength sharing and network-wide automation. This improves network energy efficiency, reduces CAPEX during network deployment by 30%, and reduces OPEX by 90%. The WDM pooling solution enables carriers to build a simplified architecture, superior experience, and future-oriented target networks.

Facilitating enterprise digital transformation:FTTR and 50G PON were first designed to optimize home networks and improve bandwidth. However, their technical architectures are also well suited for enterprise campus networks. For small- and medium-sized enterprises (SMEs), Huawei's enterprise FTTR solution enables carriers to extend their Internet private line services to within enterprises by offering Wi-Fi networking services. In addition, 50G PON, alongside Wi-Fi 7/8, will be able to handle rapid growth in enterprise campus service traffic, as office, IT, and OT services eventually converge, and as 90% of enterprise services go cloud-based and 80% of devices are connected. This creates an urgent need to increase the access bandwidth for enterprise campuses.

In manufacturing and industrial interconnection scenarios, E2E OSU technologies, including OSU over PON, enable bandwidth-adjustable hard pipe connections, and high-density timeslot technology can reduce transmission latency to microseconds. These technologies can enable enterprises to build industrial optical networks that are reliable, secure, and constantly evolving while also delivering low latency. Industrial requirements will need these features for ultra-reliability, precision control, and ultra-long-distance coverage. Such networks can also be widely used in scenarios like factories, electric power, transportation, subways, mining, ports, and highways to facilitate industrial digital transformation.

The development of F5.5G fixed network technology will unleash the full potential of optical fibers and lead the industry to stride from 1Gbps everywhere to 10Gbps everywhere. However, collaboration across the entire industry is needed to define the evolution direction of F5G, enrich F5.5G's application scenarios, and enable a prosperous fixed-network industry that can serve as a foundation for the coming intelligent world.

As new growth opportunities emerge for government and enterprise services, leading operators are looking to upgrade their government and enterprise networks and services. To realize this, they are leveraging cloud, network, digital, intelligent, and security technologies to upgrade from private lines to digital private networks, expand network connectivity services to network management services, and use industrial digital private network services to drive new growth. At the same time, the entire industry is exploring Net5.5G innovations to drive new B2B business growth.

Digitalization is the new reality for all industries, with organizations increasingly relying on digital technologies to enable hybrid offices, enhance remote collaboration, connect devices, accelerate data analytics, and achieve higher levels of automation.

As a result, the information architecture and technical architecture of enterprises are undergoing profound changes. Key applications are increasingly deployed on the cloud or provided as cloud services. Wide Area Network (WAN) traffic continues to grow, campus networks are becoming fully wireless, and network management and security operations are increasingly complex. Against this backdrop, leading operators are transforming into digital network managed services providers (MSPs) to enable industrial digitalization and boost new growth in B2B business.

Upgrading from private lines to digital private networks

The cloudification of IT architecture has entered a new phase, with up to 85% of applications today hosted on cloud. Even mission-critical applications are increasingly deployed on cloud or provided as a service. Enterprises need to not only connect headquarters, campuses, and branch offices, but connect to multiple data centers simultaneously, so they have higher requirements on WAN data protection, security, and performance, which cannot be met using only the public Internet. The path forward for software-defined WAN (SD-WAN) is going back to private lines and private networks. Operators need to help enterprises access multiple clouds more easily and reliably by offering digital private network services bundled with managed SD-WAN services. This can enable access to multiple clouds through one private network and multiple applications through one private line.

According to Gartner, global enterprises will increase spending on multi-cloud networks at a CAGR of about 24% between 2021 and 2026 to purchase agile, reliable, and high-speed cloud access services.

In China, a major operator used its industrial digital private network services to significantly improve customer satisfaction and achieve a year-on-year increase of 25% in revenue from the healthcare sector in 2022. Powered by new technologies like end-to-end network slicing, the operator's private networks enabled a range of digital healthcare services like connected hospitals, health insurance settlements, and online offices, while delivering security isolation and guaranteed performance. In Europe, an operator decided to upgrade its traditional private line offerings and launched the 'Digital private network + Managed SD-WAN' suite. The solution comes with a variety of value-added services for supermarket chains, including DIY Portal, E2E encryption, QoS enhancement, and multi-cloud access. This allowed the operator to increase its average revenue per user (ARPU) by 14%, and more importantly, the contract renewal rate of traditional private line customers.

Traditional multiprotocol label switching (MPLS) VPNs cannot meet the requirements of the cloud era. Instead, digital private networks enabled by new technologies such as SRv6, slicing, and network digital maps will better support industrial digitalization. By providing enterprises with premium private network services featuring multi-cloud and multi-application access, operators are better positioned to realize new growth from sweeping industrial digitalization.

Expansion from WAN connectivity to managed LAN/WLAN

Campus networks are increasingly wireless thanks to constant developments in wireless technologies like Wi-Fi 6. Ubiquitous gigabit Wi-Fi access in high-density office areas and service centers delivers not just productivity gains, but higher customer satisfaction. Devices that were not connected to wired networks can now be connected through Wi-Fi, bringing enterprises a step closer to digitalization. As connected devices gradually outnumber traditional office devices, we are also seeing narrowband IoT applications give way to ultra-broadband IoT applications. For example, next-generation Wi-Fi 7 technology can enable 30 Gbit/s bandwidth delivered by APs and up to over 10 Gbit/s speeds for connected devices, allowing for dense deployments of ultra-broadband IoT devices such as automatic optic inspection (AOI) machines. This new development has strategic value for the real economy, especially in the intelligent manufacturing sector.

Ubiquitous wireless networks and real-time applications are also making Wi-Fi network planning, deployment, O&M, and optimization increasingly complex, creating new challenges for enterprise IT teams. The good news is that operators can help, using their established expertise in the wireless domain. Next-generation digital network MSPs are adopting the AIOps-as-a-Service model to provide managed services, allowing users to easily manage their networks on their phones. To enable plug-and-play functionality, all they need to do is scan a QR code attached to network equipment through a mobile app. Maintenance personnel can remotely check network quality and adjust network configurations, allowing them to perform predictive maintenance to improve network reliability. These types of digital network services not only help operators improve customer satisfaction, but also enable new growth in industrial digital private network services. Unlike traditional managed services, the data analysis-based AIOps-as-a-Service model no longer needs on-premise expert services. This greatly reduces labor costs and helps achieve economies of scale. Gartner forecasts that enterprises worldwide will spend more than US$28 billion annually on managed LAN/WLAN services by 2026, which presents enormous growth opportunities for operators.

An operator in Asia, for example, doubled its ARPU with one-stop 'Private network + SD-WAN + Wi-Fi' services for gas stations.

Extension from WAN connectivity to network security service

In the past, small- and medium-sized enterprises (SMEs) and other smaller organizations did not prioritize network security due to the limited uptake of digital technology. In today's increasingly digitalized world, network security has become an imperative. The problem is that SMEs and other smaller organizations generally lack network security expertise and cannot afford on-premise expert services.

How can we solve this problem?

Some operators offer the 'Digital private network + Cloud-based security service' bundle, allowing organizations to subscribe to cloud-based network security services on demand and deploy lightweight security gateways. The cloud platforms can automatically analyze security incidents based on logs reported by security gateways, deploy protection policies, perform real-time detection, and block potential threats in a closed loop. This new service model provides strong safeguards to SMEs and other smaller organizations. It will further drive industrial digitalization and bring operators new growth opportunities in managed security services. One Chinese operator achieved a 20% ARPU increase and a significant revenue boost through its 'Digital private network + Cloud-based security service' suite. This portfolio features device-cloud synergy and allows enterprises to detect and protect against security threats in real time, significantly lowering the threshold for implementing security safeguards. According to Gartner, the global managed security service market grew by 8.3% at US$12.7 billion in 2020, creating a huge market opportunity.

Net5.5G industry outlook

Amid fast-paced industrial digitalization, leading operators are looking to achieve new growth from industrial digital private network services by comprehensively upgrading and expanding their enterprise network and service portfolios. The ICT industry is also researching and innovating nonstop to explore new technologies to underpin the upgrade to Net5.5G.

In the recent white paper The research on the trends of Data Communication Network for 2030, Omdia expounds the industry vision for Net5.5G, outlining six areas where network capability can be improved. These are green ultra-broadband (GUB), multi-domain network AI (MNA), ubiquitous trusted networks (UTN), IPv6 Enhanced, high resilience and low-latency (HRL), and heterogeneous massive IoT (HMI).

The global industry is also promoting the development of standards and business practices. The IETF has already released SRv6-TE specifications and is working on multiple Ipv6 Enhanced specifications like BIER 6 and APN 6. Network equipment vendors have launched 800GE routers and Wi-Fi 7 APs, boosting network bandwidth throughput and making 10 Gbit/s ubiquitous. Major operators are transforming towards digital network MSPs to unlock new growth opportunities. In its fourth white paper on autonomous networks (AN), TM Forum describes 19 typical AN use cases, shedding light on how operators can grow B2B revenue.

As a leading provider of ICT products and solutions, Huawei continues to research cutting-edge technologies and develop innovative products and solutions. The company boasts a diverse data communication product portfolio and network management platforms powered by AI and machine learning. In the WAN domain, Huawei's full-service converged routers support 400GE/800GE metro and backbone ultra-broadband capabilities, and use new technologies such as network digital map, SRv6, and slicing to help operators provide premium private lines featuring minute-level service provisioning and superior user experience. In the wired and wireless LAN domain, Huawei has launched a simplified campus network solution featuring a central switch + remote unit architecture, third-generation smart Wi-Fi antennas, the industry's first L3 autonomous driving network for campuses, and a flexible cloud management platform model that supports flexible deployment options. All of this has made Huawei a leader in the 2022 Gartner® Magic Quadrant™.

Moving forward, Huawei will continue investing heavily in R&D, tackle technical bottlenecks, and conduct joint innovations to help operators navigate the era of industrial digitalization by transforming towards digital network MSPs, providing industrial digital private network services, and driving new growth.