Major Trends in Telecom industry that will be buzzing in the ongoing & next decade(2021–2040)

10 min readSep 7, 2023

“Trends” are essentially the hot areas that are playing/will play a big role in the respective industry/segment in a given time frame and will be prioritized with investments being made in those areas by the respective industry associated organizations during the period.

“What are the areas that are/will be trending/buzzing/talking points of the Telecom industry between 2021–2040??? ”

Major Telco industry Trends expected between 2021–2040

The image above showcases the expected trending areas for the Telco industry & their current maturity level in 2023(when article is being written).

2 main maturity phases have been shown in the diagram - R&D/Evaluation phase & Adoption/Mature phase. To better understand the diagram the 2 maturity phases have been explained below:

R&D/Evaluation phase — Technology/functionality/product/process is essentially very new undergoing R&D or being evaluated by operators through RFPs/POCs/MVPs & maybe even could be undergoing early adoption by select Telcos.
Adoption/Mature phase: Telecom organizations have either actively started adopting / implementing the trend or Solution has been in the industry for few years and deployed by many service providers globally and is being actively implemented by telcos who are pending to implement or as part of expansion/modernization plans.

Ten Trends :

10 major trends for 2021–2040 which have been identified are:

Cloud Computing — private/public/hybrid/multi-cloud/distributed
Latest Generation of Mobile Networks — 5G, 6G
Open Radio Access Network (ORAN)
OSS-BSS Digital Transformation
Management and Network Orchestration (MANO) & Automation — VIM, VNFM, NFVO, E2E Orchestration
Network Optimization/Assurance — Fault & Performance Management
Artificial Intelligence(AI)/Machine Learning(ML) — Regular & Generative
Quantum Networks/Computing
Talent Transformation
Sustainability

1. Cloud Computing

With the introduction of virtualization in 2016–17 time frame & subsequently containerization, Telco industry has been moving from existing legacy based setup to a cloud based IT setup from end of last decade. Staring with 5G technology, cloud infrastructure has become a requirement at ETSI Standards level as well and cloud setup has essentially become a foundational requirement from this decade.

In addition to NFV Framework for hosting Network functions, cloud hyperscalers have proved useful for telcos for hosting various enterprise applications workloads & applications for telco use cases like SDWAN, Edge, IoT, etc.

Majority of the Telcos globally have adopted Cloud computing for some percentage of their overall setup/workloads/requirements till date. However, migration to cloud is a journey which will take time and will be a key area of focus for a long time.

The key areas that Telcos will be looking at from cloud computing perspective include:

Migrating existing legacy Network Elements, Network functions or even entire data center to cloud
Implementing/Adopting new cloud setups or new cloud models for new technologies(e.g. 5G/6G), new use cases, applications, etc.
In case of change in cloud/application requirements or due to new options of cloud platform which are more ideal to requirements, migrating from one cloud platform to a new cloud platform.

2. Latest Generation of Mobile Networks 5G, 6G

The latest Generation of mobile network at any given time is always the trend all telcos globally are working towards eg 3G, 4G, VoLTE ,etc and is something that is not going to change.

Currently, global operators are deploying 5G for public i.e. mobile broadband use case and will continue to do so. However, 5G is meant more for enterprise use cases like Private 5G, Software Defined WAN(SDWAN), Edge, Internet of Things than mobile broadband. These enterprise use cases currently are more in POC/MVP stage with few deployments globally and will be some main areas that operators will be working on in this time frame.

In addition to 5G, work has started on 6G by the network vendors with R&D & standards definition expected this decade. 6G Deployments should subsequently start next decade in parallel with 5G associated activities.

3. Open Radio Access Networks (ORAN)

One of the desires of Telco’s from introduction of NFV & SDN was to obtain independence form vendor lock in and having flexibility to mix and match network vendors components that make up a network function/network service by using Open standards . On the RAN end to meet this desire O-RAN — Open Radio Access Network technology was created.

This technology is relatively very new and undergoing trials in most markets. Few select operators globally have started deploying ORAN too — most famous example for it is Rakuten in Japan.

Being new technology, the technology requirements are being worked on in phases and 1 of the requirements — RT/Non RT RAN Intelligent Controller (RIC) is still in early stages with R&D and development ongoing for it.

Needless to say this technology has a long way to go.

4. OSS-BSS Digital Transformation

Operations Support System(OSS) and Business Support System(BSS) are key systems part of Telco Networks handling functionalities/features related to Order management, Customer Relationship manager(CRM), Billing, Product Catalog, Service & Network Inventory, Service fulfillment, Service delivery & service assurance along with customer care.

These systems play a major role in the overall functioning of Telcos starting from services/products they can offer their customer to their implementation followed by management, speed of issue resolution & quality of customer service provided.

Digital OSS/BSS solutions are making the operators more agile, scalable, efficient, allows rapid innovation, ability to improve customer experience and resolve issues faster with proactive assurance solution.

Utilizing cloud computing infrastructure hosting virtual/containerized OSS/BSS applications coupled with management & network orchestrator type solutions operators are able to be more efficient- handle any changes in network requirements at any place any time or introduce new offering (if needed) on very short notice & have adequate redundancies/contingency fall back options in case of any network faults/performance issues,etc.

Like cloud computing, shifting to Digital OSS BSS for operators is a journey which is ongoing and considering the significance of the OSS BSS systems in the overall setup, this is not something that will be put on the back-burner and will continue to be a “trend” for the nearby future.

5. Management And Network Orchestration (MANO) & Automation

MANO as a separate entity was introduced as part of ETSI NFV framework to manage & orchestrate any network cloud, network functions(PNF/VNF/CNF), applications, network services and other software components running on cloud infrastructure.

The component as a concept was highly sought after as part of RFPs/RFIs of global Telcos as part of their virtualization journey to meet requirements related to Network Orchestration, Domain orchestration & End to End service orchestration due to the reusability and time saving benefits presented by orchestration packages and the agility provided to Telcos in terms of time to market new service or implementing new feature/data centers. However, migrating to virtualization/cloud from legacy setup had its own set of challenges in Telco industry and as a result the MANO offerings are taking time to reach the level of maturity Telco operators are desiring.

Orchestrators from Network Vendors and Cloud providers which have been prepared to manage vendor specific network element/functions only or cloud infra have matured to such an extent that they are being used actively in production now. However, Generic VNF Managers and Vendor agnostic End to End Network Service Orchestrators which are essentially desired by Telcos as part of long term plans are still being evaluated in multiple POCs/MVPs and getting adopted for specific use cases/scenarios where operator is developing the confidence.

Considering that cloud is the foundation of telco technologies future like 5G/6G etc and the limited maturity of MANO components — we will see a lot of emphasis on this.

In addition to MANO components, Automation is another keyword that will be ever green in IT industry and a hot topic in Telco in this time frame — serving role not only in orchestration packages to orchestrate the Network function/service but also as part of automating overall processes/journeys associated in Telco ecosystem — eg. closed loop automation based on feedback from assurance systems, Order journey automation — automation from Order Management system to MANO and sending feedback to OSS/BSS systems, DevOPS Continuous Integration/ Continuous Deployment (CI/CD) specific automation,etc.

6. Network Optimization/Assurance — Fault & Performance Management

Network Optimization & Assurance-fault management & performance management are essentially part of OSS and never ending tasks in an operators service lifetime. Assurance products need to monitor and manage faults — service down or performance related both proactively and in response to customer complaints of not only network but also the infrastructure, cloud, network elements and functions.

Coupled with Network Orchestration, leveraging automation and even leveraging Artificial Intelligence (AI), assurance solutions will be playing a prominent role to streamline operations, aiding with Network Optimizing, improve customer experience and in turn overall customer satisfaction which will help in reducing churn rate.

7. Artificial Intelligence(AI)/Machine Learning(ML) — Regular & Generative

By adopting NFV/SDN and network cloud, network elements moved from being appliance/hardware centric to application centric (using virtual functions/micro-services) which is providing Telco industry ability to leverage the enhancements made in IT industry for software application deployment & management.

One of the benefits was being able to utilize Artificial Intelligence (AI) and Machine Learning(ML) in multiple areas of the Telco ecosystem — mainly as part of the individual network functions and as part of enhancement of Telco process specially in areas like BSS for Product ordering and OSS for Service assurance & customer service for better customer experience by predicting the next best action.

These aspects are already being used in production setups with the capabilities being enhanced regularly and new areas and use cases being identified where work needs to be done.

In addition to the predictive AI, with the popularity of ChatGPT, Generative AI has become a hot topic that is being worked on and how it can be leveraged in the industry. Generative AI is not new as a technology but new to the Telco space and will take time before it matures and used actively in production deployment. Network planning & optimization, Proactive service assurance, customer Service support via chat-bots & Virtual assistants, network analytics are some use cases where Generative AI appears to be promising and will be interesting to see the advancements that finally takes place.

8. Quantum Networks/Computing

Quantum computing/networking is a technology in its infancy but evolving fast. Quantum computers are currently limited across the world and its capabilities/features are still under development and constantly evolving like computers did over the years.

However, considering the capabilities of Quantum computers, all industries are working towards identifying innovative and complex use cases which were not possible to solve using regular computers. Even in Telco industry this work is ongoing. Network encryption based on quantum algorithms, network planning & optimization are some of the initial use cases that are being considered.

Apart from enhancing existing use cases, to leverage quantum systems ability to compute faster, R&D can be considered to develop new age Network elements like RAN, Data centers which are going to be less power consuming, signal radiating and more environment friendly & sustainable.

In essence, true potential of quantum networking/quantum computing is yet to be seen and the use cases/R&D work that will be done on it are yet to be seen but the certainty is that it is the future.

9. Talent Transformation

Talent Transformation is a key process/area that the telco industry players need to adopt to ensure that the active workforce possess the skills required to perform roles & responsibilities as per the current technology and internal processes demands. As part of talent transformation the companies will have to both hire new talent and re-skill the existing workforce.

The companies will need to hire SMEs with skills in software scripting/coding & new emerging technologies in addition to domain and industry knowledge for any R&D work and initial evaluation phase as part of POCs & MVP that need support.

For the remaining work, existing workforce will need to be re-skilled in areas related to software skills, latest technologies and Artificial Intelligence/ Generative AI tools & products for being able to use as part of use cases they may be required to support or leveraging them as “Google” substitute for aiding as part of their day to day processes and enhancing productivity.

The workforce training will also need to ensure that in addition to technical know-how the resources are proficient enough to analyze the output received to be able to analyze, troubleshoot and deliver outputs/solutions/code that is factually correct, works correctly and meets industry &quality standards.

10. Sustainability

Working towards Sustainable future from perspective of environment as well as contribution towards overall world growth and development has been an area companies have been targetting as part of their Environment and Sustainability goals(ESG) for several years now. However based on how climate change concepts have been progressing, United Nations in 2015 have set forth some goals related to Sustainable development for all industries to target to meet by 2030. Further in 2020, United Nations has also given the industries a target of achieving Carbon neutrality i.e. Net-Zero by 2050.

Based on these goals defined by United Nations, telco operators have started prioritizing and working on a phase wise plan to be able to achieve the targets within the 2030/2050 timelines while factoring the challenges involved, innovations needed, any architectural changes required,etc.

Some of the avenues that have been identified by Telcos for achieving the same or have been required by UN include: 1. reducing carbon emissions associated with operation of the network 2. Using renewable source of energy where possible 3. Making high power consuming networks like 2G/3G obsolete 4. Utilizing automation, AI/ML & virtualized resources for efficient resource utilization and network performance 5. Expansion of digital ecosystem — Digital infrastructure and digital connectivity to support and enable access to digital applications and services for enabling highly connected world.

Considering the criticality of these targets, lot of work will need to be done year on year in the coming years to align with the final goals.

Based on the progress made by telcos who are members of Global System for Mobile communication Association(GSMA), status report is released each year. The latest reports released:

1. Feb 2023 — Telcos progress towards Net zero goal of 2050: https://www.gsma.com/betterfuture/wp-content/uploads/2023/02/Mobile-Net-Zero-%E2%80%93-State-of-the-Industry-on-Climate-Action-2023.pdf

2. Nov 2022 — Sustainability Development Goals Impact report: https://www.gsma.com/betterfuture/wp-content/uploads/2022/11/2022-SDG-Impact-Report.pdf

Conclusion:

In conclusion, while as part of this article we have looked at each of the trends separately they are in reality far from independent in the bigger scheme . Most of the trends mentioned above will go hand in hand to achieve the Telco network off the upcoming future.

Network supporting 5G/6G & their use cases along with ORAN deployed on Cloud setup via MANO & Automation; monitored by digital assurance solution part of modernized digital OSS/BSS stack and optimised as required using closed loop feedback; leveraging AI/ML as part of its solution and emerging technologies like Quantum with aim of achieving Sustainability goals ; supported by a team ready for this mission prepared by talent transformation activities.

Disclaimer: The post above expresses my sole viewpoint and not the opinion of any organization I work with presently or in the past.