Europe risks falling behind in global AI development if it does not accelerate the modernization of its telecom infrastructure.
That’s what Ericsson CEO Börje Ekholm said during the Mobile World Congress in Barcelona in a chat with Bloomberg. He thinks China is currently enjoying a clear lead thanks to how it’s set up its 5G networks.
China now has a nationwide standalone 5G network. Unlike the non-standalone variants that have been rolled out in many European countries, standalone 5G runs entirely on a new 5G core and is no longer dependent on existing 4G infrastructure. This enables lower latency, network slicing, and more efficient processing of large data streams. These characteristics are essential for the large-scale deployment of AI applications.
According to Ekholm, this technical foundation gives China a strategic advantage. Companies can develop and roll out new applications more quickly, based in part on compact language models that run locally or in edge environments. This shortens the step from experiment to widespread implementation. In Europe, this development is slower because the network infrastructure has been modernized to a lesser extent.
Moreover, the impact of AI is not limited to software. The emergence of new devices and AI-driven hardware is significantly increasing the pressure on telecom networks. Think of augmented reality glasses that continuously process and stream real-time information, or industrial applications in which sensors and AI models permanently exchange data. Such scenarios require stable connections with high capacity and minimal latency. Without further investment in networks, operators may struggle to cope with this load.
New infrastructure for AI-intensive applications
Against this backdrop, telecom providers are working hard on the next generation of networks. Ericsson is participating in an initiative led by Qualcomm to develop 6G technology designed from the ground up for AI-intensive workloads. Nokia is following a similar course in collaboration with Nvidia. The goal is clear: future networks must not only be faster, but also optimized for large-scale AI processing.
Ekholm explicitly links the technological lag to European policy. He has long advocated for more room for consolidation among telecom operators, so that they have sufficient scale and financial clout to invest in new infrastructure. In addition, he believes that Europe should structurally allocate more resources to technological development.
Meanwhile, an extensive ecosystem of AI developers is growing in China, ranging from established internet companies to rapidly scaling startups. The combination of advanced infrastructure, capital, and a large domestic market means that innovations can be tested and rolled out more quickly. According to Ekholm, Europe faces a fundamental choice: stick to the current pace or accelerate in order to remain relevant in the AI economy.