Building intelligence: How telcos can take advantage of autonomous networks

Despite investments in 5G and fiber improving networks, the increasing volume of devices and data means that these networks are more complex than ever. This is where autonomous networks can drive tangible value for telcos, enabling improved customer service and more sustainable networks.

Investment in autonomous networks is on the rise

The Capgemini Research Institute found that telcos are expected to invest $87 million on average in autonomous networks over the next five years.

Today, according to the latest research by the Capgemini Research Institute in collaboration with TM Forum, the majority (84%) of telcos have either a level-1 or level-2 autonomous network. We know from our research that this is increasing, with 61% of telcos aiming for at least level-3 autonomy over the next five years. Currently, Europe leads the way in network maturity, with 51% of telcos at level-2 autonomy, while, North America has the greatest proportion at level-3, at 14%. Despite the eagerness by telcos for greater network autonomy, most use cases are still at proof-of-concept stage. Our research shows that adaptive/dynamic network policies for changing conditions are the most popular use case at proof-of-concept stage (46%), followed by slice optimization and SLA assurance in RAN/ORAN (40%).

Subverting the challenges

Despite the potential for innovation, considerable barriers to adopting autonomous networks remain. Chief among these is cultural issues, with 51% of telcos citing that employees don’t have the right mindset to undertake such a shift. Although this is less surprising when you consider just 17% of telcos have a well-defined autonomous networks strategy, and fewer than 20% have appointed a dedicated leader.

However, the barriers to adoption go beyond cultural issues. Our survey found that 48% of telcos flagged technology integration as a noteworthy issue. Additionally, 33% and 25% flagged that technological maturity and lack of skills among the workforce are barriers to adoption.

Gen AI and sustainability benefits front of mind

All industries alike are assessing their operations to understand how they can best integrate generative AI, and telecoms is no different. According to our research, three in five telcos are exploring generative AI for autonomous networks, and 10% have implemented gen AI for networks at partial scale. For telcos, generative AI strikes that crucial balance of cost reducer and efficiency driver. We know from our research that the most popular use cases include complex event processing, and dynamic bandwidth and path selection. On a more granular level, generative AI can assist telcos with translation, fraud resolution and model training.

However, those that are moving fast on autonomous networks are also realizing cost and sustainability benefits. In just the past two years, telcos have on average achieved a 20% improvement in operational efficiency, and an 18% reduction in OPEX through autonomous networks. Additionally, from the $87 million investment, telcos can expect to save $150 million - $300 million in OPEX costs.

Today, it’s crucial that telcos have sustainability built into their core. Energy accounts for 30-40% of telco OPEX, with the Radio Access Network (RAN) accounting for 80% of network energy consumption. Those who transition to a higher-level autonomous network can expect a reduction of somewhere between 7.5%-15% in their network’s carbon emission. As generative AI grows in prominence, we’re going to see these results improve much quicker.

Accelerating the transition

With just 17% of telcos having a comprehensive autonomous networks strategy in place, it will be those who have the strategy laid out that will realize the benefits sooner. So, I wanted to take a moment to explain what this strategy should consist of:

• Strategy & roadmap: Telcos should establish the business case early on to secure the necessary finance and build a strategy across the global and local level.
• People: Telcos should bridge the skills gap in areas such as AI and upskill the current workforce by reorganizing systems, processes, and tools to achieve a more efficient operating model.
• Technology: To ensure smooth integration, telcos should ensure an end-to-end view of their data landscape, leverage the cloud for virtualization, and invest time in robust data governance and data management frameworks.
• Pace of transformation: Beginner telcos should consider which network domains to prioritize, whereas those midway through their journey should focus on scaling.
• Innovation: Telcos should experiment with emerging tech such as generative AI, metaverse and digital twins to ensure enhanced network efficiency.

The operating model of networks is undergoing a generational shift, from one managed by human operators, to an autonomous one centered around AI and data. While this shift requires significant investment, telcos should welcome it, because through autonomous networks, they can reduce costs, increase efficiency, and contribute to a more sustainable future.