DBT Bureau
Pune, 24 Feb 2025
A new global study from the IBM Institute for Business Value, with support from GSMA Intelligence found that telecommunication and communication service providers (CSPs) who are embracing cloud computing and Artificial Intelligence in their networks experience significant benefits, including enhanced performance, scalability, cost savings and monetization opportunities.
The global study*, “Rewiring the Telecom Mindset: How CSPs are Gaining Network Advantage with Cloud and AI,” reveals insights from 750 global network executives —from leading providers including Bharti Airtel, Deutsche Telekom, Telstra, Verizon, and Vodafone—on the importance of adopting cloud and AI-driven approach to stay ahead in the rapidly evolving telecommunications landscape and deliver enhanced network performance.
Key findings include:
- 79% of telco executives surveyed prioritize network performance above all else, with network modernization as their second priority.
- 62% of those identified as pioneering technology innovators leverage traditional AI for network planning , compared to the 40% adoption rate of their peers, and 54% integrate generative AI into network planning, double that of their peers highlighting how cloud readiness can drive agility and unlock on-demand resources for advanced AI-driven capabilities.
- 55% of respondents say they’ve suffered a network security breach in the last 12 months. Despite this, only 42% of executives consider network security a top challenge over the next three years.
- Over the next three years, surveyed executives expect to increase network investments in cloud implementation by almost 20%, traditional AI by 16%, and generative AI by almost 19%.
The study also emphasizes the need for CSPs to look beyond technology adoption and transform their culture to capture network monetization prospects and stay competitive. This includes embracing bold, calculated risks, fostering collaboration, learning from failure, and instilling a proactive approach to innovation.
“Telecommunications companies that adopt a cloud and AI-driven approach will be better equipped to navigate the complexities of the modern network landscape and capitalize on emerging opportunities,” said Rahul Kumar, Senior Partner & Vice President, Global Industry Leader for Telco & Media Industry, IBM. “By rewiring their mindset and embracing a culture of innovation, CSPs can unlock significant benefits and stay ahead of the curve.”
“The study’s findings underscore the critical role that cloud and AI will play in shaping the future of telecommunications,” said Peter Jarich, Head of GSMA Intelligence. “As the industry continues to evolve, it’s clear that CSPs must prioritize network modernization, enhancing security, and innovation to remain competitive and drive growth.”
