Post by : Meena Ariff

Photo: Reuters

Huawei Technologies is working to strengthen its position as a global supplier of artificial intelligence (AI) and 5G technology for network operators. This comes as the telecom industry faces challenges due to market saturation.

At the Mobile World Congress (MWC) in Shanghai, Huawei’s deputy chairman, Eric Xu Zhijun, spoke about how the telecom industry had seen 40 years of rapid growth. Still, growth is slowing down because most basic consumer needs are already met.

Xu highlighted four main ways to help the industry grow again:

• Targeting new groups of users like live-streamers and delivery workers.
• Increasing the availability of high-definition video.
• Using 5G to support smart connected vehicles.
• Expanding fiber-to-the-room to help small businesses go digital.

Xu also made it clear that the competitive landscape for telecom operators has changed, and Huawei is ready to help global network providers grow sustainably.

However, Xu did not talk about the ongoing geopolitical risks Huawei has faced since being put under U.S. sanctions in 2019, which has made it harder for the company to expand internationally. In one of the latest setbacks, the U.S. announced a project in Panama to replace Huawei's communications towers. Beijing has criticized Washington for its actions in Latin America.

At the MWC, Huawei also revealed several AI-powered telecom solutions. These solutions are part of Huawei’s efforts to speed up the global rollout of 5G-Advanced (5G-A) networks. The new 5G-A technology, also called 5.5G, promises better performance with higher data speeds, lower delays, and more reliable communication.

Huawei began commercializing this technology last year.One of the most exciting new solutions from Huawei is the AI ultra-broadband technology. This system aims to make networks faster and more efficient for homes and businesses, thanks to built-in computing power.

The company’s focus on its telecom business is getting stronger, especially with new U.S. restrictions on its AI chips. The U.S. recently issued a new rule that could treat any use of Huawei's Ascend chips as a violation of export controls.

In 2024, Huawei’s information and communication technology business, which includes its telecom and enterprise services, saw its revenue rise by 5% compared to the previous year, bringing in 369.9 billion yuan (about $51.5 billion). This is now the largest revenue stream for the company.

The MWC, held in Shanghai, runs for three days and hosts nearly 250 companies. Like Huawei, rival ZTE also showcased its AI-powered infrastructure solutions at the event. ZTE's Chief Development Officer, Cui Li, highlighted the growing demand for AI development tools and services.