Intelligent Financial News APP learned that some global technology giants such as Microsoft (MSFT.US), Google (GOOGL.US), Intel (INTC.US), and Sony (SONY.US) are supporting a new type of telecommunications network, believing that this network will help reduce the overall power consumption of artificial intelligence applications that require large amounts of data and accelerate the transition to the next generation of 6G mobile internet.

These giants are supporting a little-known initiative, the IOWN Global Forum, a global organization made up of cloud industry giants, telecommunications companies, and chip manufacturers. The initiative aims to fully deploy the "All-Photon" network, or APN, by 2030.

What is a photon network?

The IOWN Global Forum is a global organization dedicated to setting technical standards for all-photon networks. In short, a photon network is a network that transmits data using light rather than electrical pulses. This approach is expected to significantly reduce the energy consumption of global data transmission.

Dozens of large technology companies have signed on as supporters, including Microsoft and Google, the two largest behind-the-scenes pushers of public cloud platforms. Telecommunications companies such as NTT, Ericsson and Nokia are also core members of the group. Chip manufacturers also play an important role, with Intel and SK hynix among the association's members.

Power usage is a big issue in the technology industry. The rapid proliferation of e-commerce, online streaming, and workplace productivity tools, especially during the pandemic, has forced businesses to reassess their network infrastructure and explore new methods of data transmission.

Objective: Relieve telecommunications network pressure

Photon networks aim to relieve current telecommunications network pressure, and is expected to intensify in the coming years with the continued growth of digital applications and artificial intelligence (especially generative artificial intelligence) demand.

Katsuhiko Kawazoe, chairman of the IOWN Global Forum, told CNBC by email: "Mobile traffic is increasing day by day, so it is essential to use radio spectrum and power efficiently."

Kawazoe added that IOWN technology allows operators to optimize the use of spectrum and power in mobile networks in real time based on specific situations.

For example, large cities may require more wireless devices during working hours than at night. Residential areas also require more devices to provide services when residents return home at night.

Gonsalo Camarillo, head of the Ericsson implementation department and chairman of the IOWN Global Forum marketing guidance committee, explained that IOWN technology will "allow us to shut down power in certain situations on the network."

Reducing the impact of AI on climate

Large language models, such as the model behind OpenAI's ChatGPT, require a lot of data training and powerful GPUs, but this comes at a huge climate cost.

Masahisa Kawashima, chief technology officer of NTT's IOWN and chairman of the IOWN Global Forum's technical working group, said photon networks can make small data centers more powerful.

"Data centers are getting bigger and bigger, and ultra-large-scale data centers are a challenge for carbon reduction in society," Kawashima said.

"Many data centers are too concentrated in a small area, resulting in high energy demands in that area. However, with IOWN APN, users can deploy data centers over a wide range."

Kawashima said that each data center on the network will be similar to an "ultra-large-scale" data center, even medium-sized data centers are no exception. AI model developers can use shared GPU infrastructure in smaller areas to develop AI models.

"Artificial intelligence has become the center of competition in many industries such as automobiles and pharmaceuticals. Many companies are interested in operating their own GPU infrastructure," Kawashima said.

In which areas will IOWN technology be used?

The IOWN Global Forum is exploring several use cases for photonic networks with its partners. One application is the use of IOWN technology in the backend infrastructure of banks.

Kawashima said that banks can operate two independent data centers at different locations and replicate data between the two locations, which will also help their infrastructure to be "resilient". Banks and other financial service companies need to send data back and forth quickly to ensure the consistency of their services and ensure smooth processing of transactions, whether it's deposits, withdrawals, or telegraphic transfers.

Mitsubishi UFJ Financial Group is one of the major institutions using IOWN technology for financial infrastructure. Another use case is broadcasting and media streaming. Modern streaming platforms like Netflix and Amazon Prime use a lot of data to facilitate cloud-based transmission of movies and TV shows.

The goal of IOWN is to reduce the power consumption of this process, while improving the network's data transmission capacity and reducing latency.

Sony is collaborating with NTT to develop a wide-area remote production platform for broadcast stations, newsrooms, and event halls. Katsutoshi Itoh, Director of Connected Technology at Sony's R&D Center, said in an interview, "Distributed computing is indeed possible and will soon become more eco-friendly and energy-efficient."

Helping with the transition to 6G.

In addition, it is worth mentioning that IOWN technology is expected to drive the transition to 6G (the next generation of mobile networks after 5G).

NTT's Kawashima said that photonic network technology can reduce the cost of deploying 6G antennas for telecom operators. Photonic network technology can also enable telecom operators to share wireless transmission towers, achieving more efficient network optimization.

"To deploy antennas, we need fiber optic cables to connect the antennas to the wireless data center," Kawashima explained. "Therefore, if we use IOWN APN to connect the antennas to the base station, we may be able to reduce the cost of antenna deployment."

Kawashima added: "APN will allow mobile network operators to share wireless towers. This is because many operators are concerned about the huge investment in antenna deployment for 5G and 6G."

However, IOWN technology is still in the early stages of development, and it will take several years for photonic networks to have a real impact on various industries. The current goal of the IOWN Global Forum is to achieve its main goals by 2030. Its current goal is to achieve commercial application of the technology in the real world this year.