The telecom techco: The role of network cloud, automation and AI
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Telcos are pursuing a telecom techco vision to renew business models. This report explores how network cloud, automation and AI accelerate this transformation, with insights on scaling these technologies, impactful AI/automation use cases and the advantages of open source.
Description
Format: PDF file
Pages: 27 Author:Â Will Davies Publication Date: January 2025
Telcos stand at a pivotal juncture and are intent on transforming into telecom techcos. The telecom techco business model (defined in the figure below) seeks to incorporate the elements of leading technology companies’ business models that have made them successful. This includes how they leverage technology internally and for their services, how they finance investments, operate the business (people, processes and operational systems), and ensure a culture of agility and a growth mindset. Fundamentally for telcos, this has become an almost unilateral ambition due to the challenging financial situation they find themselves in, where it has become difficult to monetise networks through traditional connectivity services.
In this research, we look at how network cloud, automation and AI can accelerate the journey towards realising the telecom techco vision.
Table of contents
- Executive summary
- Background on our research
- Introduction: The relevance of autonomous cloud network platforms in the telecom techco journey
- 1. Link network modernisation to the telecom techco strategy
- The ambition to become a telecom techco is widespread across the telecom industry
- Autonomous cloud network platforms unlock opportunities for new services
- Telcos are at risk of not reaching maturity levels expected of a telecom techco
- 2. Pursue AI and automation use cases that generate value in the near term
- AI/ML is (unsurprisingly) a top priority for telco networks
- Prioritise use cases based on speed of time to value
- Unified data frameworks are a prerequisite for automation and AI maturity
- 3. Leverage open source to accelerate the journey to telecom techco
- Proprietary vendor-dependent approaches impose a maturity threshold
- Open-source tools provide solutions to key challenges
- Network-specific open-source initiatives will help technologies scale across the industry
- Conclusion: Three recommendations for accelerating the telco to techco journey
Technologies and industry terms referenced include: AI, API, automation, Business Model, Capgemini, Cloud, Deutsche Telekom, Google Cloud, Kubernetes, Machine Learning, multi-vendor, network cloud, open source, Orange, Red Hat, Strategy, techco, Telco, telco to techco, Telefonica, transformation, Verizon, Vodafone