Unleashing New Growth in the AI Era
First-moving carriers are transforming to providers of connectivity, compute, and application services to capture new growth in home and enterprise markets.
The industry has been gradually warming up to the idea of F5G-A – not just for its growth potential, but also the new value it brings to consumers. And in the past year, this next-gen fixed network technology has gained significant traction, entering the fast lane in countries around the world.
In the optical access domain, all-optical 10 Gbps networks are already undergoing large-scale commercial deployment. Over 70 carriers worldwide have launched 10 Gbps packages, and there are now more than 50 million FTTR users globally. In China alone, carriers across 29 provinces and cities have launched 10 Gbps service packages, and they plan to expand coverage to more than 10,000 communities, campuses, and factories.
As for optical transmission, over 240 400G networks have been deployed around the world. Of note, China's three major carriers are fast-tracking the rollout of 400G technology, expanding it from national backbone networks to provincial backbone networks to provide ultra-high-speed connectivity for provincial computing centers. Meanwhile, nearly 40 provincial and municipal carriers in the country are exploring the construction of metro networks with one-millisecond latency to ensure instant access to high-quality computing power on the cloud.
Figure: Cloud-intelligence-network-device synergy: Driving AI adoption in homes and enterprises
Meanwhile, AI adoption is also gaining speed
AI is poised to become a core driver of the global digital economy, and many countries have made AI development a national priority. More than 60 countries recognize AI as vital to their national competitiveness. As for the direct impact on consumers, advances in AI models like DeepSeek are unlocking incredible new value, changing the way we live and work.
In homes, AI has increasingly become an integral part of daily life. Roughly one in four household appliances now come equipped with AI capabilities, and that number is expected to reach around 80% by 2030.
As more and more homes go smart, a growing number of enterprises are exploring intelligent transformation, too. In manufacturing, AI adoption has gone beyond auxiliary production and is now being deeply integrated with core production systems. By 2030, roughly 50% of white-collar jobs are expected to be supported by AI agents, reaching more than 70% in sectors like finance and healthcare.
When networks meet AI – Opportunities and challenges
Combined, trends in optical and AI development open the doors to new growth opportunities for carriers – especially in the home and enterprise markets. By transforming from providers of connectivity to integrated providers of connectivity, compute, and application services, carriers can gradually expand into smart services for both home and enterprises alike.
To ensure success in these markets, however, the industry needs to work together to address a number of challenges with applications, devices, and networks.
Right now, there's a lack of killer applications for smart homes and enterprises. What's more, coordinating different applications across scenarios is difficult, which has led to a fragmented user experience and a lack of diverse data sets for continuous AI model training.
Smart devices can't talk to each other. We interact with different types of smart devices in different ways, whether it's at home or in the office. And each device uses disparate communication protocols and data formats. Coordinating and managing experience across such a wide range of smart devices is a considerable challenge.
Demand for AI services is raising the bar for networks. Services like AI video generation, AI fitness, and AI precision manufacturing will require 10x higher bandwidth and 10x lower latency. Providing deterministic assurance for a wide range of demanding SLAs will be an uphill battle for existing networks.
Bringing AI to homes and enterprises – A whole-of-industry approach
For carriers to truly bring AI into homes and enterprises, and offer the best possible user experience, fixed networks need to more effectively support synergy between cloud, intelligence, network, and devices.
On the cloud front, carriers can first work with device vendors and ecosystem partners on home applications that stimulate frequent use and drive customer loyalty. This will enrich the ecosystem. Then, by providing a unified cloud OS, carriers can bridge gaps between different device OSs. This will enable seamless content flow between screens of all sizes and deliver a consistent user experience across all daily scenarios and devices. Right now, China's three major carriers are expanding their cloud home services, making use of their advanced cloud infrastructure to provide users with a new and exciting range of smart applications.
Home AI agents can help drive the transition from connected homes to truly smart homes. These agents serve as a unified portal, supporting engagement via text, voice, and video, while providing access to a variety of useful applications in domains like entertainment, health, and education. For example, China Unicom has launched a smart home robot called Tone. This robot is emotionally aware, supports natural interaction, and integrates 12 commonly used smart applications, such as cloud storage and educational tools, for a coherent and cohesive AI experience.
As for networks, high bandwidth is essential for a superior experience. Moving forward, homes and enterprises will need to go beyond one-gigabit networks. By integrating high-bandwidth, low-latency (1 ms) metro networks with intelligent sensing technology, carriers can provide users with a truly deterministic experience. This includes low-latency connections for consumer-grade, interactive computing services, as well as highly reliable connections for enterprise-grade, collaborative computing services. Carriers like China Mobile Shanghai are leading the way in the construction of 1 ms latency metro networks, allowing users to instantly access the computing services they need. With a single click, they can enjoy a seamless experience for services like cloud rendering and cloud PCs.
Devices should also evolve from traditional home gateways into smart home hubs. With a unified ecosystem like HarmonyOS, the industry can better support seamless cross-device collaboration and a more cohesive user experience. For small and medium-sized enterprises (SMEs), carriers can provide all-in-one ICT services through smart products that integrate common functionality like cashiering, security, livestreaming, and compute. An offering like this can greatly expedite the digital and intelligent transformation of SMEs.
Transformation holds the key; the time to act is now. In-depth synergy between cloud, intelligence, network, and devices will take coordinated effort across the entire industry. Together, we can meet growing demand for a super AI experience in homes and enterprises by building a rich cloud application ecosystem, a more unified device ecosystem, and end-to-end high-quality networks. Huawei is ready and willing to work closely with industry partners to drive innovation, advance the F5G-A all-optical industry, and speed up the adoption of AI in homes and enterprises alike. Together, we can drive incredible new growth.
