- AI needs the network — and hopes are high it belongs to telcos in the run-up to Mobile World Congress in Barcelona
- Metcalfe's Law "on steroids" acts as somewhat of a reference point for the demand that AI will put on telco networks
- Wide area networks are turning into giant distributed data centers, and that's where Nokia sees its advantage
MOBILE WORLD CONGRESS 2026, BARCELONA — Panelists at Nokia's Mobile World Congress 2026 media event have high hopes that AI will make telcos relevant again. After all, telcos own the optics, the core IP routing and switching, the broadband networks and the data centers to solve the speed, latency and power issues that AI needs to make things work.
Without those key items, achieving ROI is going to be difficult if not impossible, according to David Heard, president of Nokia's network infrastructure business.
Metcalfe's Law "on steroids" acts as somewhat of a reference point for the demand that AI will put on the telco's network, Heard told Fierce Network on Sunday at Nokia's press and analyst event.
Simplified, Metcalfe's Law, originally applied to traditional voice services, meant: two phones can make two connections; five phones can make 10 connections; 20 phones can make 40 connections, and so on. (See illustration, right.)
Applying that law to AI means the phones represent GPUs and an increase in millions or billions of connections. "With AI, [Metcalfe's Law applies to] not just growth in traffic between data centers ... it's GPU to GPU ... it almost turns the curve into a scary rollercoaster," said Heard.
He said Nokia and its partners are expecting that the demand for GPU-to-GPU connections for AI will lead to massive demand for optical tech, including fiber, routers, switches and the like.
Wide area networks are turning into giant distributed data centers, and this is where Nokia has an advantage, he said.
"We've been in the network infrastructure business for 20 years," said Heard, who is the former CEO of Infinera, which Nokia acquired in February 2025. "We are building the breathable, extensible [network] fabric to handle that."
Nokia's interdependence on optics, core IP routing and switching, broadband and chipsets together to solve speed, latency and power issues inside and outside the data center is required, he said. "If you don’t have all those elements, it’s difficult."
Will AI 'restore respect for the telco'?
Telecom operators always take a beating — no matter what the issue. But, in the case of AI, the beating is double, especially on the ROI side. Nokia and the partners on stage during its media event day were hopeful that AI will be their saving grace.
"We started early and now we are all in," said Vikram Sinha, CEO of Indosat Ooredoo Hutchison, referring to the service provider's adoption of AI. "This is an exciting time with a lot of energy and we are seeing some great work," said Sinha. "Also, this will bring back the respect for the telco."
Read all of our coverage from Mobile World Congress 2026 in Barcelona here.