Disclosed are a beam forming and transmission method and a network device, for resolving the defects of limited flexibility and performance in prior art methods for improving the quality of channel estimation. The method comprises: a network side determining the configuration information of physical resource block (PRB) bundling parameters, the time domain configuration information of the configuration information of said PRB bundling parameters being configurable; the network side sending the configuration information of the PRB bundling parameters to a terminal so that after having received the configuration information of the PRB bundling parameters, the terminal uses a precoding mode corresponding to the configuration information of the PRB bundling parameters to perform channel estimation and demodulation.