Accelerating 5.5G deployment: Industry collaboration for the AI Era

With AI-powered applications becoming an integral part of daily life, the telecom industry is working together to accelerate 5.5G deployment and build high-quality networks capable of meeting the new performance demands of AI-driven services.

Since its commercial launch in 2019, 5G has transformed the digital landscape, driving the growth of data-intensive applications such as high-definition video streaming and live broadcasts.

Ritchie Peng, president of Huawei’s ICT strategy and business development department noted: "The commercial deployment of 5G has fuelled the growth of short video and live streaming services, driving steady revenue growth for telecom operators."

However, as AI generates vast amounts of new data and demands lower latency and higher uplink speeds, the need for 5.5G has become increasingly evident.

David Li, VP of Huawei’s wireless network product line, highlighted the dramatic shifts within the industry over the past year.

"The number of changes we have seen in just one year of 5G Advanced development is beyond imagination, " Li noted. "This rapid evolution is being driven by AI and advanced 5G network technologies."

Li emphasised that AI is not only enhancing connectivity but also redefining human-to-human and human-to-machine interactions.

"AI is extending connectivity beyond traditional networks. We now have AI-powered devices, from smartphones and wearables to autonomous vehicles and drones, fundamentally reshaping digital experiences," he explained.

He cited that China alone has more than millions of AI-enabled phones and over two million AI-powered electric vehicles, signalling a fundamental shift in mobile network requirements.

With AI at the forefront of digital transformation, operators are prioritizing network performance to ensure seamless AI integration. Li outlined several key technological advancements necessary for optimising AI-driven applications, particularly the importance of uplink coverage and reduced latency.

"The first time I got a mobile phone; voice calling was the primary concern. Then, with 4G, data and entertainment became dominant. Now, in the AI era, instant responsiveness is critical. The AI experience depends on the speed and stability of uplink connectivity."

Huawei is addressing this challenge by innovating with advanced multiple-input multiple-output (MIMO) technologies and multi-band coordination. "Massive MIMO has unleash the potential of TDD spectrum with better experience and ubiquitous coverage, now we have developed intelligent algorithms to maximise spectrum efficiency and improve uplink coverage, ensuring AI applications function optimally," Li stated.

Another challenge posed by AI integration is the exponential rise in data traffic. "In just 15 months, AI-generated content appears to have reached or even surpassed the volume of all human-produced content from the past 159 years," Li noted.

To manage this, operators must focus on obtaining and integrating large-bandwidth TDD spectrum resources, enhance their networks to handle surging AI traffic without compromising efficiency. Huawei’s latest network solutions, including synergised downlink and uplink enhancements, are designed to tackle these issues by optimising capacity and reducing energy consumption.

According to industry analysts, the monetisation potential of AI in mobile networks is significant. Tim Hatt, head of research and consulting at GSMA Intelligence, highlighted that 5.5G brings new functionalities such as faster uplinks, improved network slicing, and deterministic service guarantees.

"The challenge has always been how to leverage these advancements to generate revenue," he said.

"AI is truly here, and operators must focus on experience-based monetisation rather than just cost savings."

Operators are already exploring innovative business models, such as speed-based tariffs and application-specific data plans. Scandinavian and Thai operators have successfully introduced tiered pricing based on guaranteed speeds, while others have launched "boost" tariffs that allow users to temporarily upgrade their network performance for specific applications like gaming or live streaming.

"It’s about positioning technology capabilities into a wow factor that generates a willingness to pay," said Hatt.

Despite the promising advancements in 5.5G, challenges remain, particularly in Europe, where network rollouts are lagging.

Rafael Gonzalez, SVP EMEA at MedUX, noted that while the European Commission aims for universal 5G coverage by 2025, significant gaps persist. "Only 51% of coverage is relying on mid-band 3.5GHz, which is essential for high-quality 5G," he explained. "We need to accelerate deployment to ensure that 5.5G can truly deliver on its promises."

MedUX’s research indicates that much of Europe’s current 5G deployment still relies on dynamic spectrum sharing rather than standalone 5G, which limits network performance.

To bridge this gap, industry players must prioritise investment in high-bandwidth infrastructure and collaborate on regulatory and spectrum allocation strategies.

MWC 2025 underscored that the industry is at a pivotal moment. The integration of AI with mobile networks is no longer a futuristic concept but a present reality that requires immediate action.

Huawei and its partners are committed to accelerating 5.5G deployment and ensuring that networks can support the new demands of AI-powered applications.

"The prosperity of the mobile industry cannot be achieved overnight," said Peng. "It requires a transformation of business thinking, continuous technical innovation, and a mature end-to-end industry ecosystem."

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