Enabling a range of new communications service provider business models

 Telecom service providers are undergoing a massive transformation of their business and their networks. On the network side, there are several market dynamics driving new investments in network technologies, while telecom business priorities continue to focus on monetizing the network investments to drive revenue growth. Perhaps most important for telecom service providers is a greater emphasis on providing superior customer experience, which is largely based on the performance and reliability of the network.

Increasingly, customer experience is seen as a lever for reducing churn and providing a key source of competitive differentiation. In fact, service providers must focus on improving the quality-of-service level agreements (SLAs) within their environments, as this is the number two reason why customers switch providers. According to a recent IDC study, 25% of customers would consider switching providers to get better service quality.

How telecom service providers address these business and network issues through their digital transformation initiatives will determine how competitive they remain in the market.

Transforming communications networks

Digital transformation strategies for telecom service providers involve a complex and broad array of objectives, belgium telegram data all driven by the need to support changing network dynamics. Enterprise use of cloud computing as a core of their IT environment, the proliferation of connected devices and sensor-based networks in edge locations, and high-speed wireless connections for data and high-bandwidth streaming video traffic are driving steady increases in traffic traversing the network. In addition, while AI is in its early stage of enterprise adoption, the technology is already in use by over half of enterprises, with another 32% planning to use within the next 24 months. This rapid adoption of AI will have a significant impact on the volume of AI-based traffic traversing networks going forward.

Network provider challenges

While the network investments made by telecom service providers are key to their future competitiveness, they also create technical and business challenges that must be addressed. Reducing capital expenditure and network operational expenses are strategic priorities for telecom service providers. However, investments in new network infrastructure over the past few years have made it difficult to achieve these objectives. For communications service providers continuing to build out their networks, AI is viewed as critical to help streamline operations and reduce network operating costs over time.

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