What's Happening?
China Telecom is advancing its strategy of 'cloudification, digital transformation, and AI for good,' as announced by Liu Guiqing, the company's president, during a keynote speech at the Mobile World Congress 2026 in Barcelona. The company is transitioning
from a traditional telecommunications operator to a technology-oriented enterprise, focusing on artificial intelligence, cloud infrastructure, and computing power services. China Telecom's cloud platform, eSurfing Cloud, has become the world's largest carrier cloud service provider and China's largest hybrid cloud service provider. The company has also collaborated with China Unicom to deploy and operate the world's largest shared 5G SA network, significantly reducing infrastructure costs and carbon emissions. AI has been integrated into internal operations, improving efficiency in network management and software development.
Why It's Important?
The strategic shift by China Telecom highlights the growing importance of AI and cloud technologies in the telecommunications industry. By reducing infrastructure costs and improving operational efficiency, the company sets a precedent for other telecom operators globally. The deployment of AI-driven systems has reduced on-site repair visits by 35% and increased R&D efficiency by 20%, showcasing the tangible benefits of AI integration. This transformation could influence U.S. telecom companies to adopt similar strategies, potentially leading to increased competitiveness and innovation in the sector. The collaboration with China Unicom also demonstrates the potential for shared infrastructure models to optimize resources and reduce environmental impact.
What's Next?
China Telecom plans to continue expanding its AI capabilities and cloud-network integration. Liu Guiqing outlined five proposals for the industry, including aligning 6G standard development with AI evolution and improving AI security governance. The company aims to coordinate computing power and energy resources while expanding global cooperation on AI models and applications. These initiatives could lead to further advancements in AI technology and its applications in telecommunications, potentially influencing global standards and practices.
