AI and 5G Hots up Mobile World Congress

At first glance, one could be led to believe that the recently concluded Mobile World Congress (MWC) at Barcelona was all about gadgets and gizmos and how they could change our future. However, upon closer inspection, the key question that got asked often was how would mobile technology fit better into human lives in the future. 

Here’s how. Deutsche Telekom demoed an “app-less smartphone” where a startup called Brain.ai displayed what was essentially a blank page that responded to questions and requests to build an interface just for you. What’s more, the UI changes upon further interaction such as adding a video module if one asks for a video search. 

This example and several others that comes later on in this post, was indicative of the obvious – telecom companies are trying to figure out how best to get users into the 5G networks and what best could artificial intelligence (AI) do to nudge them further. Dan Hays, a PwC partner, told a media briefing that attention wasn’t on adoption of 5G as much as on its monetization. 

Private telecom networks are still work in progress

Of course, the ubiquitous private 5G networks came up for discussion and continues to be an enticing use-case for operators, but the challenge that speakers discussed revolved around these networks still not having a defined value proposition. In other words, the answer to the question on why must enterprises spend millions of dollars on a private network isn’t clear. 

Nothing new here, given that Verizon CEO Hans Vestberg had clarified in last year’s earnings call that in spite of heightened interest, the company was unlikely to see non-trivial contributions from private networking deals in 2024. He expects to see more traction in 2025 from their recent deals on large-scale private network deployments. 

What can AI and 5G do to generate more revenues?

Market research notes that the market for private networks could soar to $9 billion over the next five years as more use cases are developed for industry verticals. The PwC official noted that enterprises such as large manufacturing facilities or major ports that have a combination of indoor and outdoor capabilities would be ideal for private networks. 

Which brings us to the AI-led opportunities that the telecom industry could witness. In a recent report, Nvidia had suggested that more than 90% of respondents said their companies were either assessing, piloting or implementing AI solutions. Visitors to the MWC were equally gung-ho about what AI, more specifically GenAI could do for them. 

The obvious requirements of improving the lives of network equipment to help in smoother customer interactions to better manage operations were all discussed. However, there were a few who wanted to know what comes beyond all these obvious instances where GenAI could make a difference to their balance sheets. 

For example, there were telecom operators who sought innovative solutions for field technicians who work on networks to resolve issues so that a second site visit is struck off the process. Industry observers note that more such innovative use-cases need to be raised by the industry for the AI specialists to come with solutions. 

GenAI needs to go beyond customer service

“For now, most GenAI specialists are only working on the known challenges, which ironically are the same across service industries,” says an industry expert we spoke to recently. Allison Johnson, a reviewer of repute with The Verge says nails it… The concept that wins out might be a mashup of things I saw at this year’s show — wearables with lasers, AI-driven assistants, phones with fluid interfaces, and screens that flex. For now, we’ve seen some fun tech at this year’s show, and I think we forget that gadgets can just be fun.” 

On its part, the mobile telephony business isn’t sitting idle. The week also saw the formation of the AI-RAN Alliance – a group that aims to lead the way on the use of AI in the radio access network (RAN) to enhance performance, lower operating costs and bring in great efficiencies while also encouraging the formation of new business models. 

The founding members of this alliance reads like a virtual who’s who in the tech world starting with AWS, Arm, Microsoft and Samsung to Ericsson, Nokia, Nvidia, T-Mobile and the likes of SoftBank, all set to loosen its purse strings for the right innovation. The obvious goal is to instill the user interest for AI use-cases across RANs. 

Hopefully, this alliance would be able to shift the focus away from the GenAI hype surrounding the telecom industry now. The hottest use-cases around generative AI are customer care and field operations, both of which are cost intensive and resource intensive with a propensity for higher staff turnover. Hence, the hype is only to be expected as companies seek to veer their businesses away from the immediate challenges.