This year has been a year of firsts. 2024 marked the first year of both commercial 5.5G deployment and on-device AI applications, and the rapid evolution of AI is continuing to reshape services, data, and decision-making. Productivity has begun a profound transformation and enterprises are becoming more efficient, more innovative, and more competitive. This has accelerated upgrade in all industries and brought us even closer to a truly digital and intelligent world.
The demand for intelligent ICT products and solutions, from individuals, families, and enterprises, are giving rise to more application scenarios for ubiquitous intelligent services. This means huge opportunities for the ICT industry.
Content interaction for individuals will transform, driving a spike in network traffic. This will be underpinned by generative AI and full-modal technologies which enable more efficient and higher-quality interactions, as well as the emergence of human-model interactions.
The boundaries of the Internet of Everything will also expand, from humans to digital humans, vehicles to smart vehicles, and enterprise production assistance to core parts of production. These expanded connectivity boundaries will change the way we live and work.
For individual users, AI is creating more and more advanced multi-dimensional experiences. As ways of interaction change, network traffic models and business logic are also changing. The features and capabilities of 5.5G make it ideal to drive experience monetization. AI is built into more devices, like mobile phones, wearables, and vehicle cockpits. AI mobile phones can autonomously orchestrate apps and generate user interfaces in real time to facilitate one-stop services. AI assistants will be able to quickly and accurately respond to instructions and serve users anytime, anywhere. However, this means networks must deliver more on all fronts. Diversified performance requirements in bandwidth, latency, and deterministic experience will drive network evolution and reshape business models. The telecom industry can already provide differentiated, scenario-based services and experiences for different user groups. More monetization factors beyond just network traffic have also emerged, like rates, computing power, and VIP assurance. These are pushing traffic-based carrier monetization to become more experience-based. Carriers can also leverage their huge user bases and continued AI innovation to create more services and value for users, and achieve a new round of business growth.
For families, communication service scenarios are evolving from home security to smart homes, as demand for more and more diverse experiences arises. Home assistants and agents powered by home computing devices that serve as small home AI brains, alongside cloud-based big AI brains, will offer real-time intelligent decision-making for smart home devices and services. They will also support personalized settings based on the habits and needs of individual family members, making homes more comfortable and convenient. To meet these more diversified needs, carriers can provide integrated packages leveraging home networks that are evolving from gigabit speeds to 10-gigabit speeds. On top of basic data and bandwidth packages, carriers can provide privileges and premium services that comprehensively enhance user experience. Accelerated commercial adoption of 10-gigabit packages is expected to occur in 2025 to offer consumers more intelligent, convenient, and personalized smart home services, lifting home broadband to a new level.
Finally, for enterprises, service operations are moving past digitalization and on to intelligent transformation, driving the adoption of converged cloud, AI, and security services on top of basic private-line and private-network services. Carriers can invest in multiple areas here, including cloud, edge, and devices, to achieve growth through industry intelligent transformation and inference. They can provide combinations of standardized offerings and AI to small- and medium-sized enterprises to help them implement simplified, service-oriented, and standardized edge AI inference services. These, alongside inclusive AI capabilities from smart devices, can meet the needs of numerous industries. In addition, AI will continue evolving and empowering more industries. In manufacturing, education, healthcare, and more, the integration of connectivity, networking, and AI technologies is fostering new products, services, and business models. Examples of these include the low-altitude economy and passive IoT. The application of AI in diversified scenarios is set to enhance both production capacity and production quality.
We will need intelligent computing target networks to support all of these experience and industry upgrades. We will move away from centralized computing power deployment and towards distributed deployment models, and cloud-edge-device computing power collaboration will become a trend. This means we need differentiated networks for accessing computing power and connecting resources within and between intelligent computing centers. We will need to build a unified, collaborative, and efficient intelligent computing target network to create "a nationwide computer" that delivers efficiently integrated and flexibly scaled computing, transport, and storage resources. This will facilitate new service models such as computing power leasing and industry-specific model incubation. It will also improve end-to-end AI application experience, and create new industry opportunities. Telecom foundation models and smaller models are pushing network automation towards level-4 autonomy, which will significantly improve network O&M efficiency and energy efficiency.
Over the next decade, we will continue to embrace AI and move even faster towards an intelligent world. 5.5G will have an essential role to play. Huawei looks forward to working with all industry partners to explore better ways to build networks and achieve business success, provide more abundant digital experiences, and help industries go intelligent.