Autonomous networks (AN) powered by AI and closed-loop automation are crucial for telcos managing growing network complexity. Forbes highlights STL Partners’ research, which estimates an $800M annual benefit for CSPs reaching higher autonomy levels. Beyond cost savings, AN unlocks API-driven revenue, enabling CSPs to become innovation platforms in a $30-35B market by 2030.
Press Release Category: External
MWC25 roundup: Telecom vs tech and growth vs costs
MWC25 reaffirmed that Mobile World Congress is now a tech show, not a telecom one. STL Partners noted telcos are shifting focus from innovation to cost-cutting but also learning to operate more efficiently. AI dominated discussions, with “agentic AI” in the spotlight. Meanwhile, data centers, satellites, and geopolitics shaped key announcements, while 6G remained largely absent.
Could NaaS be a $100B opportunity for telcos?
A $100B NaaS opportunity awaits telcos, but success depends on redefining business models and embracing platform-based strategies. STL Partners highlights key growth areas, including secure cloud connect, network APIs, and IoT solutions. Beyond technology, telcos must transform commercial approaches to attract new customer segments and maximize net-new revenue potential.
Cox retires Cox Edge, merges it into private network business
Cox Communications has merged its Cox Edge computing unit into its Cox Private Networks business, ending the standalone Edge brand. While STL Partners reports that many companies are winding down their Edge efforts, the firm also forecasts a rise in global Edge data centers, with demand driven by AI.
Cox Edge disappears into private networks biz
Cox Communications has folded its Cox Edge service into its Cox Private Networks business, ending the standalone edge computing initiative launched in 2021. STL Partners notes that Cox is one of several companies retreating from edge computing, despite the growing potential for AI-driven demand in edge AI, projected to grow rapidly by 2030.
AT&T and Verizon are pivoting into the landlord biz for AI
AT&T and Verizon are leveraging unused real estate to support AI infrastructure. Verizon plans to sell power, space, and cooling for AI computing, while AT&T is repurposing central office facilities. STL Partners predicts telecoms will play a key role in the growth of network edge data centers, with 1,800 expected by 2028, driven by rising AI demand.
CSPs need to speak developers’ language for network APIs
Many developers don’t associate network APIs with telecoms, highlighting a disconnect telcos must address. STL Partners’ research found 55% of developers link network APIs to IT rather than telecoms. CSPs must bridge this gap by using familiar language and partnering with hyperscalers to drive adoption as APIs mature and business models evolve.
Most apps developers do not associate network APIs with telecoms
STL Partners’ survey reveals that 55% of developers associate network APIs with IT rather than telecom networks, despite growing awareness of initiatives like GSMA Open Gateway. Developers value APIs for latency insights and device status but prefer accessing them via cloud platforms. Telcos must adapt to these preferences to boost adoption.
Developers don’t think-5G when they think-APIs
STL Partners’ survey finds 55% of developers don’t associate network APIs with 5G but see potential in using them for network performance insights, latency management, and device status. To bridge the gap, telcos must align APIs with developers’ preferred channels, like cloud platforms and systems integrators.
What will Ericsson’s massive API venture Aduna release first?
Ericsson’s API venture, Aduna, led by ex-Vonage COO Anthony Bartolo, focuses on 5G network APIs, starting with fraud prevention and Quality on Demand (QoD) services. STL Partners highlights a key challenge: 55% of developers don’t associate “network APIs” with telcos, emphasizing the need to bridge this perception gap.
Telco deployments of generative AI grow 40% in three months – STL Partners
STL Partners reports a 40% rise in telco GenAI deployments over three months, with 69 operators implementing 282 projects. Many focus on AI-driven services like chatbots and multi-model LLMs to avoid vendor lock-in. STL Partners notes that while adoption is accelerating, the industry is still in its early stages, with more operators yet to reveal their AI strategies.
American Tower’s Edge bet
American Tower is expanding its edge data center footprint, leveraging existing tower sites to enhance cloud services. With assets across the U.S., the company aims to capitalize on its land and infrastructure for edge deployments. STL Partners highlights tower sites as ideal for micro data centers due to their connectivity and power.
Telcos are becoming utilities. Is that really a bad thing?
Many telcos are shifting towards becoming “techcos,” but Oracle argues that staying in the connectivity business can also offer a robust future. While telcos face pressure to evolve, automation remains crucial for both paths. STL Partners notes that telecoms can reap financial benefits through automation and service management.
Read more on Fierce Wireless
In-car payments set for popularity surge as more drivers will be able to pay for parking and even fast food with their vehicle
The in-car payment market is forecasted to reach £434 billion by 2030, with connected vehicles rising to 895 million globally. STL Partners predicts that 70% of payments will be vehicle-related, such as parking and refueling, while 25% will cover non-vehicle services like entertainment. Advances in tech are fueling growth
Leveraging APIs to unlock new revenue streams
Telcos must unlock new revenue streams, and network APIs could be key. By enabling third-party access to network capabilities, APIs can drive innovation and monetization. STL Partners highlights their role in creating network-aware applications. Collaboration and standardization efforts, like GSMA’s Open Gateway, are crucial for success, with a $34B market projected by 2030.
Is the window closing for standalone 5G?
STL Partners notes that many 5G standalone (SA) deployments have stalled due to operator uncertainty about public cloud integration and unclear use cases. David Martin from STL Partners suggests operators may defer 5G SA for technologies like 5G Advanced and 6G. Meanwhile, vRAN and open RAN hold more promising prospects.
Nokia says it signed 30 private networking deals in Q2
Nokia secured 30 private network contracts in Q2 2024, bringing its total to over 760 globally. Dell’Oro ranks Nokia as the second-largest private RAN provider after Huawei, with strong performance in ports, energy, and manufacturing. STL Partners highlights how private networks mitigate financial risks in sectors like shipping, further driving adoption.