The telecommunications sector is undergoing a significant transformation, driven by the urgent need for more adaptable and scalable network infrastructures. As highlighted in the recent Analysys Mason Open Network Index (ONI) survey, the adoption of open, cloud-native architectures is essential for network operators aiming to reduce operational costs, enhance market competitiveness, and foster innovation. The ONI, co-developed by Analysys Mason and Dell Technologies, benchmarks the transformation strategies of 50 Tier 1 telecom operators globally, allowing them to gauge their alignment with open networking principles and their technical maturity in implementing these frameworks.
The State of Open Network Architecture
According to the ONI’s findings, there is a steady ascendancy in the progress of Communications Service Providers (CSPs) toward adopting open networks. Notably, 74% of surveyed CSPs have articulated plans for open network architecture, while 62% have concrete operational plans in place. This improvement is indicative of a closing gap between aspirations and actual execution. The drive towards open networks has been further catalyzed by the increasing adoption of cloud-based networks and horizontal platforms, with CSPs expressing growing confidence in the performance reliability of these technologies.
This year, businesses in the telecommunications sector are witnessing a decisive shift from experimentation to practical implementation. Investments in open networking initiatives have surged, with significant increases in various areas: the deployment of cloud-based 5G standalone (SA) core systems experienced a remarkable 41% hike, while Open RAN-related initiatives rose by 30%. Moreover, edge use cases such as Fixed Wireless Access and Massive Machine Type Communications have seen an astonishing 100% growth. Alongside these deployments, the integration of automation, artificial intelligence (AI), and orchestration technologies is proving crucial in alleviating the manual workload while accelerating deployment processes.
Regional Dynamics and Challenges
Leading regions in this transformation are primarily North America, developed Asia-Pacific, and Western Europe. However, the pathway to a fully realized open network is not without its challenges. Data reveals that fewer than 50% of CSPs have successfully deployed 5G SA core systems, while less than 25% have embraced Open RAN. Obstacles such as Capital Expenditure (CapEx) and Operational Expenditure (OpEx) pressures, limited vendor ecosystems, skillset shortages, and security issues continue to hinder progress in scaling open network implementations.
Interestingly, while top CSPs have demonstrated a leadership role in network transformation, they are now experiencing a deceleration in this momentum due to unexpected complexities and cost challenges associated with scaling their open network strategies and cloud operational models. This situation requires many leading CSPs to revisit and refine their strategies, which, in turn, opens the door for follower CSPs to catch up in terms of deployment plans. However, follower CSPs may soon encounter similar hurdles, further emphasizing the intricacies involved in implementing open network transformations.
Key Traits of Advanced CSPs
Advanced CSPs that are effectively navigating the open network transformation tend to share several key characteristics:
- Strong support from executive leadership for open network initiatives
- Clear alignment between open network architecture and operational roadmaps
- Utilization of horizontal cloud architectures unified through automation
- Integration of AI to optimize automation and operational efficiency
- Collaboration with neutral IT and system integration (SI) partners for strategic planning
- Active participation in open networking initiatives to shape industry roadmaps
- Investments in skills development related to cloud computing and AI technologies
This combination of strategic adaptability, collaboration, and investment in human capital is vital for CSPs to overcome barriers, unlocking the full potential of open networks.
The Open Telecom Transformation Program
This year, the Open Telecom Transformation Program was introduced to empower CSPs, simplifying and accelerating their transformation processes and addressing challenges identified in the ONI survey. By focusing on essential technological needs and the necessary operational, organizational, and cultural shifts, the program presents a comprehensive approach to mitigating industry challenges.
The program offers tools, best practices, and reference architectures that streamline operations, mitigate risks, and accelerate time-to-value. Furthermore, CSPs implementing DevOps methodologies and Continuous Integration/Continuous Deployment (CI/CD) pipelines have reported faster integration and fewer operational setbacks. A crucial element of this program is the focus on aligning business operations and IT, with success stories serving as practical guides for early adopters.
Moreover, Dell Technologies emphasizes skills development through targeted training initiatives, equipping teams with the expertise needed to manage open network technologies effectively. By fostering partnerships across vendors, CSPs, and industry bodies, the program aims to promote interoperability and sustained innovation.
Act Now for Future Telecom Advancements
In conclusion, transformation in telecommunications isn’t merely optional; it is imperative for building the intelligent, software-defined networks of the future. The ONI continues to guide the industry from isolated innovations toward scalable deployments that yield tangible business value. While the journey of telecom transformation is undoubtedly intricate and multifaceted, the Open Telecom Transformation Program provides a tangible roadmap for making it both achievable and sustainable. By collaborating with Dell, CSPs can enhance efficiencies, align their transformation objectives, and tap into new revenue streams.
CSPs are encouraged to initiate their transformation journeys today, stepping forward to lead the movement toward open networks. Discover more about the Open Telecom Transformation Program and start redefining your network to meet the demands of the evolving landscape.