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COVID-19 has brought new opportunities into sharp focus for cable and telecom companies. As we work, learn and play remotely, reliable connectivity makes digital life not just possible but better.

Cable & satellite

Digital innovation to power growth

RVT works with the top providers, helping cable and satellite companies accelerate digital innovation and growth. We apply our industry expertise and precision insights to deliver seamless, personalized omnichannel experiences that create preference and drive growth. Our extensive capabilities in direct-to-consumer services enhance efficiency and optimize revenue potential.

Integrated communications providers

Transform to meet demand

The pressure to meet demand for network services has never been greater. Intelligent, software-driven networks are the key to operating more cost effectively while powering new revenue models for growth. We help carriers transform into multi-service providers through management consulting, digital integration and personalized business services.

Wireless

Create definitive experiences

Consumers expect access to high-speed connectivity anytime. As 5G rolls out, it’s driving the advent of broadband everywhere and creating demand for new forms of services—in the home and on the go. Our teams partner with wireless carriers to deliver on consumer expectations in digital technology planning, networks and testing as well as improved billing and order fulfillment.

Where AI makes a difference for the telecoms industry

Wavy pattern of connected dots in yellow and blue in network formation

October 28, 2024

  • Where AI makes a difference for the telecoms industry.
  • Chatbots and marketing were just the beginning. Gen AI is making telco networks more secure, efficient and powerful.

 

  • Visit our Communications, Media & Technology webpage.
  • This article originally appeared in RCR Wireless News in May 2024.

Generative AI is a breathtaking feat of technology that could substantially impact society and the economy. Its rate of adoption by business will determine the extent of that impact, and how quickly people adapt to working in new ways.

The role of artificial intelligence is growing steadily in the telecommunications industry. The sector is using AI to improve customer experiences, automate processes, increase productivity and refine network operations. Of these, enhancing customer experiences is the most significant opportunity, with AI as a critical driver for improving revenues and cost savings.

However, a considerable challenge to adopting and implementing AI is the need for more skilled labor. Hybrid hosting for AI is preferred, but cloud hosting is growing. A strategic approach to choosing the platform for running AI workloads is becoming increasingly important. Partnerships are critical for the adoption of AI solutions in the industry, and co-development with partners has been identified as the preferred approach to developing AI solutions.

AI investments are growing, with a focus on infrastructure and models, but they still need to be higher. There has been a steady increase in AI investments, with a rise in respondents reporting investments of over $1 million. Every technology experiences growing pains, and generative AI is no exception. Misdirected investments in 2023 left the corporate landscape littered with projects that failed to deliver tangible value. In the telco sector, efforts often focused on chatbots, code pilots, customer care and sales and marketing content. But by applying AI to network infrastructure, telcos can find the high-impact ROI they’re looking for across the network lifecycle.

Below, we look at AI’s potential for building autonomous self-healing networks, and identify six areas of AI intervention that show the most significant promise.

Network optimization — Artificial intelligence has the potential to revolutionize the telecommunications industry by providing real-time analysis of network performance and optimizing network parameters. AI’s simulation-based approach allows communication service providers (CSPs) to evaluate and compare different network configurations, providing valuable insights into creating self-organizing networks optimized for maximum efficiency and performance. With AI’s help, CSPs can continually fine-tune their networks to ensure that they are continuously operating at their best and delivering the best possible experience to their customers.

Network verification — With gen AI, network verification models can be employed at the helm of network monitoring to ensure optimal network performance. Rather than simply detecting patterns that suggest network failure, AI can also monitor the behavior of a functioning network and find ways to improve it. The technique known as traffic engineering allows AI to analyze and predict network traffic patterns to optimize data routing and minimize congestion. Similarly, network verification aims to establish a self-healing network that consistently stays online, and functions as intended. By adopting these strategies, AI-powered network monitoring can effectively manage network behavior and lead to a more resilient and reliable network.

Energy efficient networks — Commitment to net zero will be a topic of top significance in many corporate boardrooms. 5G uses less energy per bit of data than 4G, but the massive increase in data volume means 5G’s energy footprint is significantly larger. As a result, telecommunication companies face social, regulatory, brand and cost pressures to optimize energy consumption. Intelligent energy management systems use advanced AI algorithms to monitor and optimize the energy consumption of network infrastructure. These systems dynamically adjust power usage based on demand, ensuring energy is used efficiently and effectively. By analyzing real-time data and making intelligent decisions, these systems can help reduce energy waste and lower costs for businesses and organizations. With

Like the cloud before it, NaaS is changing how enterprises buy network services, unlocking value for enterprises and CSPs alike.

Visit our Communications webpage

Just as the cloud made computing resources easily available to enterprises, a similar thing is happening to networks. Network-as-a-service (NaaS) is an emerging way for businesses to acquire network services via the cloud. This negates the need for having a physical network and all the other network componentry—routers, firewalls, switches, etc.—that has traditionally made managing an enterprise wide-area network complex, costly and labor-intensive.

NaaS is even more essential with the rise in remote and hybrid work and the ever-growing complexity of networks in a multi-cloud business world. Both make it even more difficult and time-consuming to provide updates and install patches, provision new network services or locations and resolve issues, especially with no end-to-end visibility.

The fact is the traditional approach of consuming network services has just become too much for enterprises and communication services providers (CSPs) to handle. But so far, CSPs have been slow to take advantage of this new way of providing network services—and the new revenue sources NaaS offers. By waiting, they are missing out on key opportunities to serve businesses in the very ways they need today. According to one researcher, the global NaaS market is $18.7 billion today and is projected to grow to $155.17 billion by 2030, a CAGR of 35.3% during the forecast period.

To participate in the up-and-coming NaaS market, CSPs need to understand the benefits NaaS can offer them and their customers, as well as the additional revenue streams it can open for the future.

Why it’s the right time for NaaS

CSPs are facing an array of challenges in today’s market. Customer attrition, pricing pressure and disruptive market entrants have spurred a decline in wireline (vs. wireless) revenue in the past few years. Margins are also falling, thanks to high legacy network maintenance costs and operational inefficiencies. Meanwhile, customer satisfaction levels are declining due to complex and outdated buying processes, high quote-to-bill cycle times and low perceived business value of the network.

CSPs have taken a predominantly reactionary approach to these challenges. To retain and grow wireline revenue and improve margins, they’ve focused on bundled services, siloed investments in network automation, cost-cutting using artificial intelligence/machine learning (AI/ML) and cloud techniques, and new standalone network product offerings, such as SD-WAN, cloud and security, and broadband services. However, overall wireline revenue has continued to decline or remained flat for most CSPs. This puts CSPs at a critical juncture: either continue making tactical improvements or reinvent their business model by transforming themselves into a customer-centric and business outcomes-based network provider.

The power of NaaS

CSPs can achieve the latter with NaaS because it provides them with a way to offer enterprise network solutions tied to business outcomes and service-level agreements that create a win-win for both businesses and the CSP itself. With NaaS, businesses get a cloud-based, scalable, secure and flexible network on-demand. The network is available anytime and anywhere and supports spikes in network capacity and availability in real time. This makes it possible to ramp up or down based on changes in network demands. Businesses can choose to pay for network services based on a subscription-based network consumption model (e.g., pay as you go) that reduces both capital and operational expenditures and frees up cash flow. Moreover, they get a more predictable and transparent network, which reduces labor costs and frees up employees to focus on strategic work. NaaS also offers a simpler network buying experience. In addition to self-service capabilities, (e.g., self-ordering), NaaS involves a single contract, simplified SLAs, shorter lead times (same day to a few weeks), on-demand change management and centralized billing, thereby enabling a unified experience for the enterprise.

Understanding CSP benefits

However, NaaS and its business impact is still not well-understood by CSPs, OEMs, network equipment providers or cloud service providers, especially given that the NaaS model is in the early stages of evolution. As CSPs assess the viability of the opportunities NaaS provides, the first step is understanding how NaaS can not only help them reinvent their business model but also transform and thrive with their wireline business.

Benefits include:

New revenue streams with improved margins. CSPs can generate revenue not just from traditional network services but also from value-added NaaS services. Such services include access (e.g., edge router), core network (e.g., Ethernet), security (e.g., firewall), managed services (e.g., end-to-end network outsourcing), support (e.g., network support), multi-cloud (e.g., connecting multiple cloud providers) and industry-specific solutions.

Operational efficiency. With NaaS, CSPs can enable a self-service-oriented customer experience (CX), quote-to-cash automation, digital contracting, zero-touch provisioning, generative AI/ML-enabled billing and support, and modernization of operations and business support systems.

Take the first step

Serving customers by looking forward as well as back is a big promise, but the power of today’s new digital capabilities is vast and growing.

Let’s talk about how automotive digital solutions can work for your business.

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