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Top 3 telecom trends for 2017

2016 has been an important and transformational year for the networking industry, but how will it look moving into 2017?

Consumer-driven data consumption, fuelled by live video streaming and the rise of augmented reality apps like Pokémon GO, has soared and put unprecedented pressures on networks.

It has also been the year of stronger encryption practices as users, organisations and law makers alike became increasingly concerned about privacy and the safety of their data and infrastructure.

The landscape has changed shape as telcos pushed into the OTT space and increased their user access capabilities as well as high-profile merger activity in the sector making headline news.

The industry has made great strides in 5G development, commercialising SDN & NFV initiatives and in latching onto the DevOps movement as service providers begin to future-proof their networks for the years ahead.

In 2017 expect to see some of these trends continue to gain momentum while fresh ones emerge and steer this industry in new directions. Specifically, here are three trends that will shape the next 12 months.

OTT and value-added services – AI exclusive

2017 is set to be another pivotal year for over-the-top (OTT) service growth, fuelled by streaming video and public demand for more non-linear media consumption.

However, with any boost in OTT adoption and consumption, further financial and infrastructure pressure will be placed on network operators.

READ MORE10 Ways AI Will Rule The World In 2017: Ericsson

With the advent of 5G on the horizon, 2017 is likely to see further efforts from telcos and other service providers to partner with and become primary OTT solution providers in their own right in order to bolster revenues, offset downward price pressures on last-mile connectivity and build customer loyalty.

Particularly across existing and emerging triple and quad-play providers, the addition of operator-led OTT services is set to both expand the market, and divert some of the global OTT spend (predicated to be worth $62 billion by 2020) back towards the underlying networks.

5G

The race for 5G is on and will continue apace in 2017.

With many telcos around the world having already developed 5G architecture and initiating their field tests this year, 2017 will potentially see the very first wave of commercial offerings being launched amongst widespread trials of the technology.

Across the industry, expect to see 1GB access move to 10GB and 10GB aggregation to 100GB in order to cope with 4G growth and to lay the groundwork for new 5G-bearing core networks.

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There will also be increased interest in 5G research and development emerging from other industries outside the traditional telco market, including in energy, agribusiness and transportation, who all see the vast potential 5G technology presents to revolutionise the way they can deliver their goods and services.

Fuelled by consumer and business demand, carriers and governments alike are pushing the deployment forward with the ambitious goal of rolling out 5G networks more widely by 2020.

Security

It felt like not a week went by in 2016 when there wasn’t news of a data breach or a network being compromised.

This has made network operators and telcos realise that they need to protect more than just the data being transferred over their systems.

As networks become increasingly software-defined their infrastructure is as vulnerable to attacks as the bits and bytes sent through the network.

For this reason, the second half of 2016 saw more and more network operators and telcos role out business-wide encryption.

In 2017, holistic network security will become more important than ever and expect to see encryption transition from a niche play to a more pervasive technology.

READ MORESecurity revenues to reach USD 101.6 billion in 2020: Study

New EU legislation such as GDPR will be a significant driver behind broader adoption of encryption across networks.

Also, 2017 represents the last chance for network operators as well as their customers to plan, budget and deploy GDPR readiness solutions to ensure compliance once the legislation comes into force in early 2018.

In 2017, the data demand landscape will continue to change and with it, the underlying network infrastructure, both from a physical and virtual perspective.

Service providers will continue to realign and consolidate their offerings to maximise revenue and ensure their networks are ready to accommodate future technological advancements.

 

Sourced by Joe Marsella, chief technology officer, EMEA, at Ciena

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