At the 8th China International Import Expo, LM Ericsson showcased its latest advancements in AI-powered networks, differentiated connectivity, and energy-efficient network solutions. Senior executives engaged in discussions, analyzing the telecom industry's challenge of increasing usage without corresponding revenue growth and proposing "differentiated connectivity" as the solution.
**The 5G Monetization Challenge** "While 5G technology offers robust capabilities, operators continue to rely on 4G-era business models centered on selling data packages, leading to homogenized services," said Wu Lidong, Vice President of LM Ericsson Northeast Asia.
This observation reflects the global stagnation in ARPU (Average Revenue Per User), even in China, where major telecom operators report flat ARPU growth despite mature infrastructure.
Wang Haobo, CTO of LM Ericsson China, explained the root cause: "For over a decade, the industry has stuck to volume-based billing—whether for voice minutes or data traffic—resulting in commoditized competition and stagnant ARPU."
To address this, LM Ericsson advocates "differentiated connectivity," shifting from selling connections to selling tailored services that leverage 5G capabilities for specific use cases. Wu likened the approach to express lanes for emergency vehicles: "Prioritized connectivity for critical applications justifies premium pricing, which is the essence of differentiation."
Globally, over 80 differentiated connectivity applications are already deployed across B2C, B2B, and B2B2C models. Wang noted China’s vast user base and innovation ecosystem as fertile ground for such solutions, citing AI glasses (e.g., Rokid, Xiaomi) that demand ultra-low latency, driving network upgrades.
However, scaling these services nationwide remains challenging due to complex network configurations and geographic diversity. While pilot projects succeed in individual cities, broader adoption requires phased implementation.
**AI-Network Synergy** Amid monetization hurdles, AI presents significant opportunities. "AI isn’t optional—it’s imperative," Wang stressed, outlining LM Ericsson’s dual focus: "Networks for AI" (optimizing networks for AI workloads) and "AI for Networks" (using AI to manage network complexity).
For instance, embodied AI devices require high uplink bandwidth to transmit sensor data for backend processing, noted Wang Zhong, Technical Director of Industry Solutions. Meanwhile, Wu shared that AI-driven autonomous networks (e.g., collaborations with Malaysia’s DNB and Denmark’s TDC) achieve Level 4 in TM Forum’s maturity model, predicting 95% of faults in advance, improving spectrum efficiency by 15%, and reducing energy consumption by 14%.
On 6G, executives confirmed a 2030 timeline. Wu emphasized that differentiated connectivity is vital not just for 5G but also for 6G. Wang added that 6G’s core will evolve from standalone 5G (SA), urging operators to transition from NSA (non-standalone) to SA to unlock 5G-Advanced potential and lay the groundwork for 6G.
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