Telecom leaders are confident they can capture the next wave of growth driven by new AI and 5G use cases, but most Communication Service Providers (CSPs) are yet to begin implementing the capabilities required to deliver it.
The gap between ambition and current status was identified in a new research study from Ericsson. The global study, based on 455 senior telecom executives, found that the majority (90 percent) are confident in their organization’s ability to unluck new revenue opportunities.
However, around 70 percent have not commenced implementation of the technologies they identify as critical to achieving that growth — with more than 80 percent saying future growth depends on scaling services rapidly and that the ability to experiment more easily would be a major advantage.
The industry is clearly aligned on where the opportunity lies:
• Private 5G and enterprise connectivity ranks as the top growth area (49 percent)
• Consumer/enterprise digital services with tailored performance (44 percent)
• Wide-area IoT connectivity (40 percent)
However, the research findings shine a light on the fact that the deployment of several key enabling technologies is lagging behind the industry’s ambitions, including:
• 66 percent have not commenced implementation of AI-driven network operations
• 61 percent have not commenced implementation of advanced 5G capabilities, including 5G standalone and network slicing
• 68 percent have not commenced adoption of SaaS-based IT platforms
These findings arise as AI-driven applications place new demands on network performance and flexibility.
“The opportunity ahead for the telecom industry to capture the next wave of growth is clear, from AI-driven services to private 5G and IoT enabled by new capabilities,” said Razvan Teslaru, Head of Strategy, Cloud Software and Services, Ericsson. “While there is no single path to capturing that opportunity, CSPs are aligned in the capabilities required to deliver it. The challenge is that adoption of those capabilities remains limited, and this execution gap will ultimately determine who translates ambition into real growth. This will require more flexible approaches, with technology partners and new ecosystems enabling operators to move faster and unlock value.”
