President and CEO at Volt Active Data, Inc.
Before the arrival of the “Gs”—2G in 1991, 3G in 2001 and 4G in 2009—telecommunications companies (telcos) were primarily in the business of connecting callers over long distances. These earlier generations marked significant milestones, enabling roaming voice calls, text messaging, video calls and basic data services.
With 5G—the fifth generation of wireless technology—the connectivity landscape has undergone a profound change. Telcos have been elevated from mere providers of communications networks to multifaceted technology enablers.
That’s because, unlike previous generations, 5G isn’t only about faster internet speeds. Instead, it promises ultra-low latency, ubiquitous connectivity and network-slicing capabilities. As a result, we’re entering a new era of telecommunications. Telco providers have become catalysts for technological innovation and digital transformation.
With all of this in mind, let’s examine the five key technologies that telco providers are using to maximize the 5G moment.
1. Artificial Intelligence And Machine Learning
Artificial intelligence (AI) and machine learning (ML) have revolutionized various aspects of telco operations, from network optimization and customer service to security and revenue assurance. Using AI and ML, telcos can proactively optimize their networks, predict customer behavior to capitalize on in-the-moment upselling and cross-selling opportunities and offer round-the-clock support with AI-powered chatbots—all in a cost-effective manner.
What’s more, AI and ML can also help detect and prevent fraudulent activity by automatically detecting patterns, learning from them and preventing fraud before it happens. At the same time, the technologies can dynamically allocate network resources, meeting the needs of different applications during peak usage periods.
Additionally, 5G networks benefit from AI-powered network slicing, which enables telcos to create AI-guided virtualized networks for specific applications, industries or customers, allowing them to provide tailored services while allocating their resources efficiently. Beyond this, the technologies can also help telcos identify revenue leakage, optimize pricing strategies and ensure accurate billing.
2. Edge Computing
As 5G networks continue rolling out and telco providers minimize latency as much as they can, more and more workloads will be managed at the edge.
Unlike traditional cloud computing workloads that centralize data processing in remote data centers, edge computing brings compute power closer to the data source, reducing latency and enhancing overall network efficiency.
As a result, edge enables telcos to meet the demanding requirements of emerging technologies, including 5G, IoT and IIoT. By processing data locally at the edge, telcos can deliver the real-time responses needed for critical applications, like autonomous vehicles or smart traffic lights, where milliseconds of delay can make all the difference in the world.
Further, edge allows telcos to offer low-latency services, which enables them to capitalize on new opportunities—including augmented reality, virtual reality and gaming—made possible by increased responsiveness.
Edge data processing also means discarding a lot of unnecessary data before it goes to a centralized data center, which translates into a sustainability advantage via lower transmission costs.
3. APIs
Application programming interfaces (APIs) are also key in accelerating the evolution of telecommunications by enabling innovation, interoperability and service expansion.
APIs facilitate seamless integration between different telco systems and platforms, enabling telcos to quickly adapt to new technologies and services. In the era of 5G, IoT and edge—where many devices need to communicate effectively with each other—this interoperability is mission-critical.
Further, APIs enable telcos to begin offering a wide range of value-added services. By exposing their network capabilities to third-party developers via APIs, telcos can encourage the creation of innovative applications and services. Not only does this enhance the customer experience, but it also helps telcos unlock new revenue streams.
4. Computer Vision
Computer vision—a subset of AI that enables computers to make sense of images and videos—is transforming telco by bringing visual intelligence to the front lines of network management, customer experiences and service offerings.
Telcos are using cameras and visual sensors for real-time monitoring of critical network infrastructure pieces such as cell towers and data centers. Since computer vision algorithms can detect anomalies, outages and damage, telcos can respond to issues faster, reducing downtime while improving overall network reliability.
Computer vision can also help telcos enhance the customer experience by upgrading their portfolios and allowing them (the telcos) to expand into new revenue-generating opportunities such as augmented reality (AR) and the metaverse.
Computer vision also enables telcos to support capabilities like threat detection, access control and facility surveillance, in addition to private networks for manufacturing campuses, for example.
5. Network Functions Virtualization
Network functions virtualization (NFV) is an approach to network architecture where core networking services, like routers and firewalls, are abstracted away with virtual machines. By embracing NFV, telcos can transform the way network services are designed and managed.
By decoupling network functions from hardware and transitioning them into software-based solutions, telcos can rapidly introduce new services. This also allows for the dynamic allocation of resources and the ability to adapt to changing traffic patterns in real time to ensure optimal performance.
When telcos prioritize NFV, they build the foundation for network automation and orchestration. This enables them to automate routine tasks, like network provisioning and configuration management. It also keeps costs down while minimizing human errors, making the network that much more reliable—and customers that much happier.
How To Capitalize On The New Era Of Telco
The emergence of 5G—alongside AI and ML, edge computing, APIs, computer vision and NFV—has propelled the telco industry into a new era of innovation.
Together, these technologies empower telecommunications providers to adapt swiftly to emerging trends, create value-added services and meet the evolving demands of our digitally connected world.
To maximize this opportunity, telcos need to architect their infrastructure and applications in a way that’s optimized for speed. In a world where milliseconds matter, telcos must ensure their applications and services move as quickly as possible.
Otherwise, they’ll lose to competitors that are capable of moving that much faster.
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