By Doug Woolley, Vice President Sales Southern Africa and Director Dell Technologies South Africa
The telecom industry stands at a critical juncture as it navigates the convergence of emerging technology against a fast-changing business landscape and ever-evolving consumer expectations. AI is revolutionising the telecom industry, and Dell Technologies is at the forefront – helping to drive revenue growth by simplifying, modernising and automating Communications Service Providers’ (CSPs) business operations.
In collaboration with leading telecom partners, Dell works to enable human-like, context-specific, expert personalised customer interactions 24/7 across all digital channels. This approach enhances customers’ experiences and reinforces the value they receive from their CSPs. In near real time, AI chat agents can help customers make changes to their plans, add new family members, shop for new devices, add roaming packages while travelling and more.
In South Africa, 56% of companies have adopted AI in at least one function in their organisation, and 96% intend to use AI simulations such as digital twins. Telco cloud networks, therefore, stand to experience a paradigm shift with the integration of AI, redefining how they operate and deliver services. The broader African telecommunication industry is also changing rapidly, with the market worth about $63.17 billion in 2024 and expected to exceed $82.34 billion by 2029, growing at a rate of 5.44% each year.
Let’s delve into the essential role AI can play in telecom networks and the tangible benefits being realised in telco cloud networks.
- Â Driving network performance, efficiency and reliability
AI-driven algorithms analyse vast amounts of data in real time, allowing telecom operators to identify bottlenecks, reduce latency and enhance overall network reliability. AI algorithms can also adapt to network demands, allocating resources efficiently and adjusting configurations in real time. This allows for more agile and responsive networks capable of meeting the demands of today’s data-intensive applications. AI’s predictive capabilities are also a game-changer for telecom networks. By leveraging machine learning algorithms, operators can predict potential equipment failures before they occur. A report by Ericsson indicates that AI-powered predictive maintenance in networks can reduce critical incidents by up to 35%, significantly improving service reliability. This not only minimises downtime but also contributes to cost savings through optimised maintenance schedules.
- AI for 5G and 5G for AI
AI is intrinsically embedded in many of 5G’s signal processing tasks, traffic prediction algorithms and self-optimisation routines. With the use of AI, 5G networks can predict traffic patterns and electronically focus their antenna arrays accordingly, assuring that network resources will be used effectively. It can also intelligently power off elements of the network equipment to save energy. Advanced scheduling mechanisms and noise cancellation processing tasks are also 5G processes that rely on AI. By combining big data, IoT and AI, disruptive technology advancements start to revolutionise traditional industry verticals.
At Dell Technologies, we see the combination of 5G, AI and data connectivity at the edge as a transformative platform to enable new possibilities for enterprises, governments and society in general. AI will allow machines and systems to function with intelligence levels like that of humans. 5G will connect sensors and devices at speed while AI simultaneously analyses and learns from data, enabling real-time feedback loops.
- AI enables intelligent network security
According to the 2023 Dell Technologies Global Data Protection Index, 54% of South African organisations suffered a cyberattack or incident that prevented access to data last year. With the expanded threat landscape, telecom networks are not immune to these emerging cyber challenges. However, AI is proving to be a formidable ally in facing cyber threats, and telco cloud networks can benefit from AI-driven threat detection, which can identify and neutralise potential security breaches in real time, ensuring the integrity of sensitive data.
- Analyses data to deliver personalised customer experiences
AI’s impact extends beyond the infrastructure, enhancing the customer experience. Telecom operators can leverage AI to analyse customer behaviour, preferences and usage patterns. This data enables the delivery of personalised services and targeted promotions. In a survey by Analysys Mason, about 20% of CSP respondents said they are investing in new services based on data insights derived from AI.
- Enhances cost savings and revenue generation
AI implementation in telco cloud networks is not just about efficiency; it’s a strategic move for cost savings and revenue generation. A study by McKinsey suggests that AI deployments can reduce energy costs by at least 15% for telecom operators. Additionally, AI-driven analytics can uncover new revenue streams by identifying market trends, predicting customer needs and supporting the development of targeted services.
Embracing the AI Revolution in Telecom Networks
The integration of AI into telco cloud networks is not a luxury but a necessity in today’s hyper-connected world. As telecom operators embrace the AI revolution, they position themselves at the forefront of innovation, ready to meet the challenges and opportunities of the digital era. The journey towards AI-powered telco networks is not just about upgrading infrastructure; it’s about unlocking the full potential of connectivity for a smarter and more efficient future.
In South Africa, the first priority is to accelerate customers’ journey to AI. To do so, we are offering our customers a free test environment where we will work with you to build a proof of concept around your specific AI requirements.
To find out more about Dell’s GenAI Acceleration Workshops, contact Linda Matshiqi at l.matshiqi@dellteam.com. Join us at the Dell Technologies Forum taking place on 7 November 2024 at the Kyalami International Convention Centre. Click here to register.
To learn more about Dell’s AI-ready portfolio, visit our Dell AI Central page.
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