Boosting Telecom Efficiency and Cutting Costs with Network Automation

The telecommunications sector faces both exciting opportunities and significant challenges. With the ongoing need to build, maintain, and upgrade digital communication infrastructures, Communication Service Providers (CSPs) are under pressure to make strategic decisions that will shape the future of connectivity.

Technologies like 5G, the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), and automation are not just buzzwords—they are the building blocks of innovation, each enhancing and enabling the other.

The Push for Network Automation

As CSPs navigate increasing operational costs, driven by a global energy crisis and rising inflation, there is a renewed focus on operational efficiency. Network automation has emerged as a critical strategy in this context, offering the potential to streamline operations, reduce costs, and generate new revenue streams.

Recent survey findings by Telecoms.com, in collaboration with Resolve, highlight the industry's top tech trends for the year ahead, emphasizing network automation's growing importance.

Key Investment Areas: 5G and Network Automation

Telecom industry leaders have identified two primary investment areas: expanding 5G networks and automating network operations. The survey revealed that 47% of respondents view 5G as the top priority, while 34% are focusing on automating network operations. This dual focus makes sense, as the roll-out of 5G technology requires a more automated and efficient network to handle the increased demand and complexity.

Vodafone Group's experience illustrates the benefits of automation. The company has reportedly saved over €500 million in capital and operational expenses in three years simply by digitizing and automating its network operations, using AI and ML to enhance decision-making and reduce manual workloads.

Trends Shaping the Future of Telecom

In addition to network automation, the survey identified several other key trends that will shape the telecom industry in near future:

• Service Diversification and Value-Added Services (VAS): With 50% of respondents highlighting these as critical trends, telcos are exploring new monetization models, such as network slicing and private networks, to offer more customized and value-added services.
• Cloud Transformation: The shift towards cloud-native architectures continues, with 42% of respondents focusing on accelerating cloud transformations, particularly for deploying 5G core networks in private cloud environments.
• Increased Deployment of AI/ML: AI and ML are expected to play an increasingly significant role in optimizing network operations, enhancing customer experiences, and improving overall efficiency.

Overcoming Challenges to Innovation

Despite the enthusiasm for network automation and other advancements, telecoms face several barriers. Key challenges include a lack of business agility, high operational costs, and delays in bringing new services to market.

Addressing these obstacles will require a more integrated approach to automation, moving away from siloed tools and towards comprehensive automation platforms that can unify and streamline operations.

The Journey Towards Network Automation

Most telecom companies are already on the journey to network automation. About 20% of respondents have fully implemented network automation, while 30% are on the verge of doing so. However, challenges remain, such as interoperability issues between multiple endpoints and securing funding for strategic IT projects.

Overcoming these hurdles will be crucial for CSPs looking to fully realize network automation's benefits.

Taking a Holistic Approach to Automation

To maximize the benefits of network automation, CSPs should adopt a holistic approach rather than focusing on isolated use cases. A network automation platform can help integrate automation seamlessly into broader operations, providing a foundation for expanding automation across all aspects of network management.

Key areas to focus on for the highest ROI include:

• Provisioning and Configuration: Automating these processes from Day 0 to Day n can keep operations running smoothly.
• Incident Response with Auto-Remediation: Automatically addressing IT incidents can close the loop on resolution and prevent costly downtime.
• Proactive Network Testing: Automated testing can help avoid unexpected outages and maintain high service quality.

Conclusion

As the telecom industry evolves, network automation will play a vital role in driving efficiency, reducing costs, and enabling new revenue streams. By investing in the right technologies and adopting a comprehensive approach to automation, CSPs can position themselves for success in the digital future.

Download the full report for free to learn more about how network automation can transform telecom operations.