Telcos Embrace AI, Cloud, and Security for Network Modernization

In the rapidly evolving telecommunications landscape, network modernization is a critical priority for service providers. A new global study from the IBM Institute for Business Value, in collaboration with GSMA Intelligence, highlights the importance of adopting cloud computing and artificial intelligence (AI) to stay ahead of the curve. The study, "Rewiring the Telecom Mindset: How CSPs are Gaining Network Advantage with Cloud and AI," reveals insights from 750 global network executives, including leading providers such as Bharti Airtel, Deutsche Telekom, Telstra, Verizon, and Vodafone.



Key findings from the study underscore the critical role of cloud and AI in shaping the future of telecommunications:

1. Network Performance and Modernization: 79% of telco executives surveyed prioritize network performance above all else, with network modernization as their second priority. This focus on enhancing network performance and scalability is a strategic move to meet the growing demands of customers and maintain a competitive edge.
2. AI Adoption: 62% of pioneering technology innovators leverage traditional AI for network planning, compared to the 40% adoption rate of their peers. Additionally, 54% integrate generative AI into network planning, double that of their peers. This highlights how cloud readiness can drive agility and unlock on-demand resources for advanced AI-driven capabilities.
3. Security Concerns: Despite 55% of respondents reporting a network security breach in the last 12 months, only 42% consider network security a top challenge over the next three years. This suggests that telcos may need to reevaluate their security measures and prioritize investments in this area.
4. Investment Trends: Over the next three years, surveyed executives expect to increase network investments in cloud implementation by almost 20%, traditional AI by 16%, and generative AI by almost 19%. This indicates a strong commitment to embracing these technologies to drive network modernization and innovation.



The study also emphasizes the need for communication service providers (CSPs) to look beyond technology adoption and transform their culture to capture network monetization prospects and stay competitive. This includes embracing bold, calculated risks, fostering collaboration, learning from failure, and instilling a proactive approach to innovation.

As the telecommunications industry continues to evolve, it is clear that CSPs must prioritize network modernization, enhancing security, and innovation to remain competitive and drive growth. By embracing cloud computing and AI, telcos can unlock significant benefits, including enhanced network performance, scalability, cost savings, and monetization opportunities.

In conclusion, the IBM study highlights the critical role of cloud and AI in network modernization, with telcos investing in these technologies to stay ahead of the curve. As the industry continues to evolve, embracing a culture of innovation and prioritizing security will be essential for telcos to capture network monetization prospects and maintain a competitive edge.