A week in telecoms: Amdocs, Apple, eSIMs, and the edge

Welcome to the Inform weekly news round-up, where we look at a selection of recent news and how it impacts CSPs in their digital transformation journeys.

Apple unveils a mixed reality headset

It was hard to escape the news about latest Apple announcements this week. As was widely anticipated, the iPhone maker unveiled a mixed reality headset called the Apple Vision Pro that is due to be launched in the US in early 2024 for $3,499.

Apple describes it as a “spatial computer” that “blends digital content with the physical world, while allowing users to stay present and connected to others.” The device also features a new operating system called visionOS, which Apple hailed as the “world's first spatial operating system.”

In terms of the device’s significance for CSPs, KeyBanc’s view is that it does not look set to replace the iPhone anytime soon, given its battery life and network limitations.

Paolo Pescatore, analyst at PP Foresight, highlighted that Vision Pro will be launched as more operators launch 5G standalone (SA) and other new network features that will help to enhance the mixed reality experience. He thinks the device will be important for telcos “in their quest to bundle more devices, services and subscriptions and drive higher volumes and revenue.”

Amdocs launches a generative AI framework for telcos

Amdocs unveiled a generative AI framework called amAIz to help telcos interested in using ChatGPT or related models in their commercial operations.

According to the vendor, amAIz combines carrier-grade architecture and open source technology with large language models (LLM) to create a platform for telcos, “enabling them to benefit from the immense potential of generative AI” and deploy generative AI use cases from CX to network provisioning.

amAIz aims to address specific telco challenges such as security, data privacy, scalability and “the complexity of data governance, as well as the intentional focus on a telco-specific taxonomy.” At the same time, it is expected to improve a telco’s ability to “explore, assist, generate, and recommend activities across the entire customer and operations lifecycle, and deliver increased efficiencies and productivity.”

Anthony Goonetilleke, group president of technology and head of strategy at Amdocs, said generative AI technology “presents a tremendous opportunity for service providers to re-invent both the way they engage with customers, as well as driving efficiencies.”

NTT and Omdia explore enterprise views of edge computing

NTT Ltd, the enterprise services unit of Japanese CSP NTT Group, published the Edge Advantage report based on an industry survey of 621 current enterprise investors in edge solutions conducted in conjunction with research firm Omdia.

According to the report, 80% of respondents say their edge investment is delivering on its promise, while 88% cite 5G as an important enabler, and those combining private 5G and edge report the highest benefits. Around 94% are working with partners to make edge a success, but want a single edge partner that could help them with all their evolving needs.

According to TelecomTV, the report nevertheless indicates that while many enterprises are already enjoying benefits from early deployments of edge computing, they are concerned about associated technology trends and future application support issues that could scupper their plans. 

eSIM adoption hits inflection point

Counterpoint Research argues that eSIM adoption has passed the inflection point and is now entering a high-growth phase, driven by the rising adoption of eSIM in smartphones, connected vehicles and cellular IoT applications.

In a new report, the research firm said the next phase of growth will be driven by greater awareness of eSIM among mobile network operators (MNOs) and device manufacturers, “facilitated by the flexibility, cost efficiency, security, cost savings and above all, the key role eSIM is playing in the digital transformation of MNOs.”

eSIMs are a means of providing hassle-free onboarding and connectivity, specifically in the 5G era. According to Counterpoint, over six billion xSIM-capable devices will be cumulatively shipped over the next five years, covering all form factors including hardware-based eSIM (eUICC), iSIM (iUICC), nuSIM and Soft SIM.

Counterpoint Senior Analyst Ankit Malhotr observed that smartphones “have been key in driving primary eSIM awareness among consumers and MNOs and will continue to be the dominant eSIM-capable device category.”

Malhotr also noted that cellular connectivity in smartwatches is growing steadily, “which is also helping increase the penetration of eSIM-supported smartwatches. The adoption of entitlement servers by MNOs worldwide is a testament to the growing number of smartwatches and other companion devices powered by eSIM. Other cellular-capable consumer devices such as laptops and tablets will also see rapid eSIM adoption in the coming years.”

Deutsche Telekom and Ericsson flag network slicing milestone

Deutsche Telekom (DT) and Ericsson highlighted what they described as a world-first implementation of a solution to manage network slices for enterprise cloud-based applications.

Network slicing is regarded as a critical technique to help CSPs monetise 5G networks as it allows them to tailor services for individual customers and create new revenue streams. Indeed, Daniel Leimbach, Head of Customer Unit Western Europe at Ericsson, claims that network slicing “holds the key to creating sustainable business cases.”

In their proof of concept, DT and Ericsson said they successfully instantiated a secure network slice that automatically connects to private cloud services. In essence, the solution aims to ensure that employees have the required network performance to support cloud-based workplace applications.

According to Kaniz Mahdi, SVP Technology Architecture & Innovation at DT, the demonstration “highlights the potential of advanced 5G network slicing capabilities to enable unique and flexible services for enterprises, customized to specific needs.”

The proof-of-concept was implemented on a 5G standalone (SA) testbed in a DT lab with the enterprise smartphones connecting to a predefined set of private cloud applications.