Telecom Central Offices, Edge Cloud and Large Enterprise Challenges

In the next few years, the industrial segments will see large-scale adoption of automation and augmented intelligence to increase efficiency, lower production costs and improve productivity. In order to meet lower latency and stringent SLAs, these services will require the adoption of edge-cloud technologies.

While there are still many open topics related to standardization, security, and reliability, CSPs are in an advantageous edge-cloud position given its capillarity and physical presence closer to these services -i.e: cell towers, fiber POPs, hub locations, and central offices.

In the past 10 years, CSPs have been modernizing their infrastructure and re-architecting their networks with PSTN, IP/Optical, fixed and wireless transformation projects. More recently introducing NFV and SDN and searching for the most impactful Edge Cloud use cases.

However, critical questions should be asked by CSPs:

1. What real estate assets should one keep, and which should be released?
2. How to take that decision?
3. What are the costs and revenues impacted by such complex, but foundational changes?

On a recent consulting study done with a large emerging operator, Bell Labs found that re-architecting existing Central Offices to strategic Edge Cloud locations could lead to:

• 30% projected revenue growth in 5 years, anchored to verticals and enterprise services
• 25% EBITDA improvement
• 20% Capex Intensity improvements

As a result, this CSP is unfolding a list of strategic actions in order to improve their competitive advantage over existing operators.

What steps is your company taking to address this new enterprise challenges?

Why Edge Computing is needed? - via NTT