Telcos’ path to digital transformation

5G, AI, IoT, Cloud, Edge Computing, virtualisation, and the need for security, privacy, and compliance are driving significant changes in the telecom sector`

The telecom sector is at a key juncture, facing significant changes and challenges due to the impact of new technologies such as Artificial Intelligence (AI) and Big Data. Startups and Over-the-Top (OTT) services have been setting new standards for customer experiences, and the pandemic has further accelerated the need for digital transformation. The world is witnessing an increasing reliance on high-speed internet connectivity for remote work, learning, and entertainment. As telcos and companies working in this dynamic sector, they must go beyond providing basic connectivity and take a leadership role in driving digitisation to meet the growing demand for digital services.

Building an ecosystem that adds value and meets the evolving needs of the customer is critical, and organisations must act fast to remain relevant and competitive in the industry.

Audi is exploring how 5G can enhance the in-car experience, providing real-time traffic updates, video streaming, and personalised services.

Indian players are responding to market challenges by putting in a concerted effort to modernise their internal digital structures. It is heartwarming to see how many of them are adopting digital processes through the use of apps or other digital touchpoints. Many large organisations are taking things to the next level by revamping their entire IT systems with a layered architecture approach. They are automating all lifecycle processes in the backend layer, using virtualisation in the middle layer to reduce human intervention, and creating a front-end layer that enables seamless service provisioning.

There are quite a few technologies that are driving significant changes in the telecom sector, from the way networks are built and operated, to the services that are offered to customers.

#1

5G

It has the potential to transform the Indian telecom industry and the broader economy in significant ways, and it will be interesting to see how this technology is leveraged in the years to come. Audi is exploring how 5G can enhance the in-car experience, providing real-time traffic updates, video streaming, and personalised services, ultimately improving the driving experience and setting itself apart in the marketplace.

#2

Artificial Intelligence

AI is disrupting the Indian telecom as chatbots with AI capabilities can provide quick responses to common queries and free up human agents for complex issues. AI is also applied in network optimisation, predictive maintenance, and fraud detection, transforming the telecom industry. Reliance Jio implemented an AI-powered virtual assistant, JioInteract, that can answer queries on balance, data usage, recharge plans, and music recommendations, as well as recognise speech in multiple languages. Jio also uses AI for network optimisation and predictive maintenance to prevent issues and improve the customer experience.

#3

Internet of Things (IoT)

With the number of IoT devices expected to grow exponentially in the coming years, the telecom industry in India is well-positioned to leverage this technology for continued growth and innovation. A forecast by International Data Corporation, IDC estimates that there will be 41.6 billion IoT devices in 2025, capable of generating 79.4 zettabytes (ZB) of data.

With the increasing popularity of cloud-based services such as SaaS, PaaS, and IaaS, telecom companies are well-positioned to offer these services.

#4

Cloud Computing

Cloud computing has opened up new business opportunities for telecom companies in India. With the increasing popularity of cloud-based services such as software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS), telecom companies are well-positioned to offer these services to their customers. One example of an Indian telco using Cloud Computing to generate better revenues is Bharti Airtel’s partnership with Amazon Web Services. Airtel is targeting the enterprise market with this partnership and is offering cloud solutions to businesses of all sizes.

#5

Edge Computing

Edge computing processes data at, or near the source, instead of a centralised data centre. In telecom, it is used for real-time apps like video streaming, AR, and VR. Telcos invest in edge computing infrastructure to improve the quality of service, reduce latency, and enhance security. It is crucial for applications like autonomous vehicles and remote surgery that require low latency and real-time data processing.

#6

Virtualisation

One example of virtualisation in the Indian telecom sector is network function virtualisation (NFV). NFV involves virtualising network functions such as routing, switching, and firewalls. This allows telecom companies to reduce hardware costs and improve network agility, making it easier to deploy new services and scale their networks.

#7

Network Security

With the increasing complexity of telecom networks, ensuring robust network security has become paramount. Technologies like advanced firewalls, intrusion detection and prevention systems, and secure network protocols are continuously evolving to safeguard against cyber threats, data breaches, and unauthorised access.

#8

Privacy and Compliance

Telecom companies are investing in privacy-enhancing technologies and compliance frameworks to meet regulatory requirements and protect user privacy. This includes implementing robust data protection measures, user consent mechanisms, and privacy-enhancing protocols.

NFV involves virtualising network functions such as routing, switching, and firewalls allowing telcos to reduce hardware costs and improve network agility.

The emergence of these technologies will require the telecom sector to broaden its capabilities and functions, leading to further advancements in customer needs and technological progress, which will eventually pave the way for the upcoming 6G era. The telecom industry’s future will depend on the current leaders who can grasp the scale of the change, respond quickly, and become the driving force of the future.

By Praveen Cherian

The author is the CEO of the Global Services Business at STL

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