Next-Generation Service Provisioning in Networks

June 1, 2018

Rajesh Ghai, Research Director, Telecom Network Infrastructure, IDC


Carriers globally are faced with some acute challenges and they can be summarised in the form of three Cs of commoditisation, competition and complexity.

Commoditisation essentially refers to the fact that carriers globally are chronically challenged to increase the dollar per bit that they earn from their existing services. Part of that challenge accrues from the fact that they have intense competition, not just from their peers, but also from new competitors such as the hyperscalers who have come on over the top and offered more nimble value added services. While these carriers may want to emulate the hyperscalers, they are challenged by a complex legacy infrastructure.

It’s quite obvious they recognise the need to digitally transform themselves and the goals of digital transformation are essentially in terms of these four attributions of flexibility, efficiency, agility and innovation. Essentially, these are attributes that are coming from the hyperscalers. So, what does agility mean? It means the ability to react to a changing environment. Flexibility is in terms of coming out with new customer experiences, either proactively or reactively to an environment. Efficiency is in terms of continuously reducing the cost per bit in order to be competitive or in terms of the declining or the stable revenue of a bit.

Most importantly, what’s important is the ability to innovate in terms of coming out with new services which essentially, is the key message of what I’m going to say here, is that next generation service provisioning is extremely important. It’s the life blood of most service providers and that is essentially what’s going to be important as far as their ability to survive and thrive.

In terms of new service generation, we know new service provisioning, if you think about 5G; and as far as the US is concerned, 5G is only being talked about in terms of fixed wireless access, which is an incremental revenue stream, a new service for the M&Os in the US. If you think about wireline services, a lot of investment is flowing into things like SD-WAN and PCP, which are again valued added services for service providers who have historically provided only transport services.

By
Rajesh Ghai, Research Director, Telecom Network Infrastructure, IDC

(NetEvents)

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