The World's Biggest Smartphone Event Returns With AI, 6G, And More

During next week's Mobile World Congress in Barcelona, the world's largest mobile and communications trade show, artificial intelligence will likely take center stage.

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The Mobile World Congress is traditionally the stage for the launch of smartphones, so some hardware is likely to be on display at this year's event. However, there is an increasing trend that the show is moving beyond phones to become an even broader technology show. In recent weeks, one of the most talked-about topics in the tech industry has been artificial intelligence (AI), and the MWC is set to be no exception.

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In spite of the Covid-19 pandemic still clouding last year's edition of Mobile World Congress, organizers are still hoping for the event to return on a grand scale this year. Approximately 80,000 attendees are expected—a drop from more than 100,000 attendees prior to the outbreak of the pandemic, but with chief executives representing companies such as Lockheed Martin LMT -0.22% (ticker: LMT), Nokia NOK –2.04% (NOK), and Maersk MAERSK.A –0.06% (MAERSK.Denmark), it is still a place to do business. 

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Topics likely to draw attention include:

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AI steals the show 

Several announcements regarding artificial intelligence in recent weeks have sent the stock market into a frenzy, including those from Microsoft (MSFT) and Alphabet, the parent company of search giant Google (GOOG). At least ten panels will focus on AI at MWC, and plenty of executives will be talking about their progress in the industry.

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In order to succeed, it will be necessary to separate hype from reality. Even if we disregard the debate about whether chatbots are becoming intelligent, what might be AI's most valuable contribution to telecommunications businesses this year is to help them eke out more cost savings and efficiencies in the face of a slowdown in the global economy. 

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The attention of the market is likely to be focused on whether executives are willing to put their money where their mouth is. It was found that only 3% of 400 telecom executives surveyed said their companies spent more than $50 million on artificial intelligence in 2022, according to a recent survey conducted by chip maker Nvidia NVDA -2.47%  (NVDA). The situation might have to be changed quickly. 

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Making Money From 5G  

So far, the 5G network has disappointed compared to its predecessors, the 4G network, in terms of speed and reliability. As compared to 4G networks, which coincided with the introduction of smartphones and their video-streaming capabilities, 5G networks have yet to launch in everyday life, despite promises of connections that are 100 times faster than 4G networks. 

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AT&T (T) announced recently that it will spend $24 billion on capital expenditures this year, which is frustrating for telecom companies like Verizon VZ -0.32% (VZ). In spite of this, there is a possibility that private 5G networks for industrial and business applications could be the key.

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Mohamed Kande, a global advisory leader at PwC, explained to Trade Algo that the benefits of 3G and 4G have been really important for consumers. Is 5G going to be the killer application for enterprises in the near future? “In fact, that is what the next round of discussions is going to be about." He pointed to the possibilities of automated manufacturing, relying on wireless connections with virtually no delay in production or delivery. 

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There has been an estimate by ABI Research, a research firm specializing in business intelligence, that by 2030, manufacturing and industrial companies in the world will have more than 49 million 5G connections inside their facilities, which will generate more than $2.4 billion in revenue. The MWC is going to be a platform for companies to pitch for a piece of the action. 

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Looking Ahead to 6G 

It seems that making money from 5G is proving to be hard, but there is always the possibility of 6G coming along. The launch of commercial 6G networks isn't expected to happen for several years - estimates tend to settle around 2030 - but that doesn't mean that telecoms executives will not be thinking and talking about it during Mobile World Congress in February. 

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Ericsson (ERIC), a Swedish telecoms equipment manufacturer, says 6G technology will enable a “future ubiquitous cyber-physical continuum.” Although there is no clear definition of what that means, there is a good chance that some of today’s most talked about technologies, such as the metaverse, smart cities, and driverless cars, will be based on 6G networks in the coming years. There is likely to be a debate over who will be responsible for paying for them. 

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Leading positions are already being contested. This week, the South Korean government said that it hopes to launch a 6G service as soon as 2028, as it looks to capitalize on the technological capabilities of local companies such as Samsung Electronics to launch this service as soon as possible. There has also been talking that China intends to push for 6G development this year, despite Western sanctions still roiling the industry against Chinese telecoms equipment provider Huawei. There will be plenty of calls for the government to support 6G networks in the coming years.

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