Transforming the digital economy: Insights from Alex Xu, President of Huawei’s Carrier Business for the Middle East and Central Asia

Q1: Thank you for taking the time for this interview. Fiber broadband (FBB) has become critical infrastructure for driving the digital economy globally. Could you share with us the overall trend of fiber broadband development, especially in the Middle East and Central Asia region?

A. The development of fiber broadband is experiencing strong growth globally, and particularly in the Middle East and Central Asia. Fiber broadband offers high speed, large bandwidth, and low latency, enabling applications such as high-definition video, online gaming, remote work, and online education. These capabilities provide a strong foundation for the digital economy.

In the Middle East, countries like Qatar and the UAE have set new standards by offering speeds of 1Gbps/500Mbps as the baseline for home broadband and introducing 10Gbps packages. This has significantly boosted their global rankings in speed tests. In Central Asia, countries like Azerbaijan and Kazakhstan are making significant progress, bringing their broadband speeds into the 100Mbps era. This rapid growth of high-speed broadband will greatly accelerate the digital economy across the region.

Q. What role do you think industrial policies play in promoting the development of fiber broadband?

A. Industrial policies are critical in fostering the growth of fiber broadband. Many governments have introduced favorable policies to encourage operators to invest in fiber optic networks. For example, in the Middle East, Saudi Arabia launched its 10Gbps Society whitepaper, the UAE introduced the 10G Nation ambition, and Bahrain published the NTP6, which sets clear goals for entering the post-Giga era. In Central Asia, Azerbaijan is set to complete nationwide fiber coverage by the end of this year, while Kazakhstan introduced a national strategy during the recent SAMENA 10Giga event.

These policies typically include tax incentives, financial subsidies, and simplified approval processes, which help operators expand their networks and drive the region’s economic growth. By promoting the healthy and orderly development of the fiber industry, governments are positioning themselves to benefit from the digital transformation that fiber broadband enables.

Q. Let’s talk about operators and services. How do you think operators should provide better services to meet consumer needs and achieve revenue growth?**

A. That’s a great question. In today’s competitive market, operators need to differentiate themselves by offering unique value to consumers. There are several key ways they can achieve this, such as higher speeds; fiber broadband can deliver virtually unlimited speeds compared to other technologies. With the increasing demand for high-definition video, VR/AR, and other bandwidth-intensive applications, operators can cater to consumers’ needs by continually enhancing upstream and downstream speeds and offering higher-speed packages.

Also, better experience; beyond speed, user experience is crucial. Operators can improve this by providing solutions like FTTR (fiber to the room) for seamless connectivity in every room, guaranteeing low-latency services for delay-sensitive applications like online gaming and video conferencing, and ensuring higher upstream rates for users who need to upload high-definition videos or live streams. Lastly,, new services; by leveraging higher speeds and guaranteed experiences, operators can offer bundled services.

By diversifying their services and catering to both individual and business customers, operators can generate additional revenue streams and improve overall profitability.