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Home - China Telecom outlines AI-driven transformation strategy
5GAI InfrastructureCarriers

China Telecom outlines AI-driven transformation strategy

by Juan Pedro Tomás March 10, 2026
written by Juan Pedro Tomás March 10, 2026 Share
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The head of China Telecom said in a keynote speech at MWC 2026 that the carrier is advancing its strategy of “cloudification, digital transformation and AI for good”

In sum – what to know:

AI-driven transformation – China Telecom is expanding its strategy of “cloudification, Digital Transformation and AI for Good” as it shifts from a traditional operator toward a technology-oriented enterprise.

5G network sharing – A joint 5G deployment with China Unicom has created the world’s largest shared 5G SA network, cutting billions in costs and reducing carbon emissions.

AI cloud architecture – The company is building an intelligent cloud ecosystem based on computing power, data platforms and large AI models through its Xirang infrastructure.

Liu Guiqing, president of China Telecom, said the operator is accelerating its transition from a traditional telecom provider into a technology-oriented company built around artificial intelligence, cloud infrastructure, and computing power services.

Speaking at Mobile World Congress 2026 in Barcelona last week, Liu described how the Chinese carrier is expanding its AI capabilities while strengthening cloud-network integration and computing infrastructure.

Liu said the company is advancing its strategy of “cloudification, digital transformation and AI for good.” According to the executive, technological innovation remains central to China Telecom’s corporate strategy as it evolves from a traditional telecommunications operator into a broader technology enterprise.

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,” Liu said, adding that the platform is now entering a new phase of intelligent cloud development.

During his keynote speech, Liu also highlighted the company’s collaboration with China Unicom to jointly deploy and operate 5G infrastructure. The two operators have built what he described as “the world’s first and largest 5G SA co-built and shared network.”

Through this model, the companies have shared more than 1.54 million 5G base stations and more than 2 million 4G base stations, according to Liu. The arrangement has reduced infrastructure investment by $56.5 billion, he added.

At the infrastructure level, China Telecom has built computing resources covering general computing, intelligent computing, supercomputing, and quantum computing, while integrating multiple network layers including optical networks, mobile networks, satellite networks and computing-power internet, the executive added.

The operator has also expanded its data center infrastructure, with a rack capacity exceeding 590,000 racksm Liu said.

China Telecom is also building data and AI model services designed to support enterprise applications. The company has developed a data intelligence middle platform that aggregates proprietary, open-source and third-party datasets, including 10 trillion tokens of telecommunications data and more than 350 TB of industry data covering 14 sectors, he added.

China Telecom has already deployed AI across internal operations, including network management and software development. The company said AI-based systems have reduced the number of on-site repair visits by field technicians by 35%, while AI-generated code now accounts for 40% of software development, improving R&D efficiency by 20%.

Looking ahead, Liu said telecom operators must adapt their strategies to the growing influence of AI technologies. He outlined five proposals for the industry, including aligning 6G standard development with AI evolution, strengthening cloud-network integration, improving AI security governance, coordinating computing power and energy resources, and expanding global cooperation on AI models and applications.

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Juan Pedro Tomás

Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.

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