As we move through 2024, operators must face up to a number of significant challenges. Yet opportunities also abound. Funding for rural deployments has now been allocated, meaning proposals will need to deliver practical results. Software-defined services will be rolled out to SMBs, offering genuine opportunity for both futureproofing and cost saving. And ESG regulations have been activated in key markets, meaning operators that aren’t ready to respond proactively could find themselves missing out on a host of benefits.
#1: Rural broadband funding promises to bridge the digital divide
Funding for global rural deployment will be distributed throughout the year, with significant amounts already allocated and plenty more to play for. The United States in particular has thrown its weight behind this initiative with the Broadband Equity, Access, and Deployment (BEAD) Program, set to disburse $42.5 billion in rural connectivity deployments. The Middle Mile Grant (MMG) Program, another State-side initiative, will deliver a further $1 billion of funding specifically focused on middle mile infrastructure. Elsewhere, the European Union is determined to stay at the cutting edge. The Digital Decade Program is providing a whopping €165 billion to support its own connectivity objectives.
The winners of many of these projects have been selected, and global funding is set to roll out at the end of the year. Now, operators must ensure they can deliver!
While funding broadband rollouts in mature markets is both necessary and laudable, many operators remain intent on driving growth in developing nations. This is seen clearly by African nations releasing funding for rural deployments, such as the Kenya National Digital Master Plan. These projects aim to bridge the digital divide between urban and rural locations and ensure the benefits of digital connectivity are experienced by all citizens. Recent reports highlight that Africa’s broadband penetration remains the lowest in the world. Smart service providers will be eyeing this and other opportunities in non-traditional markets in a bid to grow both revenue and footprint.
There is ample opportunity for bold and agile service providers. Yet when taking on deployments of this size, rolling out the fibre is only the tip of the iceberg. Building your own middle-mile connection, for example, brings its own challenges but should ultimately save operators money by ensuring infrastructure needs are precisely met. It also gives them greater control over both the deployment process and the network, once it has been commissioned.
In the months ahead, building and improving rural broadband networks will be a key priority, for both governments and operators. Ultimately, this will support the delivery of equal access to connectivity globally, something that we can rightly all be proud of.
#2: The Software Defined Branch Office – an advantage for SMBs
After a long period of lab experimentation, telcos (or at least some of them) are finally getting serious about virtualized services. Virtualization at the Edge has been a long-time goal of many operators, and solutions are now emerging. The cost saving and environmental benefits of being able to run multiple services on just one device will soon be realized.
This is being taken a step further in 2024, with forward-thinking providers set to offer a true ‘all in one’ model for the software defined branch office. The one box model provides improved user experience, greater agility and scalability, reduced costs and increased security. Service Providers can supply SD-WAN-as-a-service for a full array of enterprises, dramatically lowering costs.
Typically, SMBs often lack both the resources and skills to select, install and manage complex technologies such as SD-WAN. This means there are huge opportunities for providers that can simplify the process. We predict a significant upswing in the adoption of multi-service access routers in the coming months as service providers capitalize.
By delivering integrated voice and data services together with WAN optimization, SD-WAN, and virtualization capabilities, companies can now provide ISPs with a ‘one-box’ ISDN to IP migration platform. This also has the benefit of opening the door to the integration of more sophisticated data services without requiring a new device.
#3: ESG regulations offer efficiency and cost savings
Voluntary ESG commitments are at risk of being deprioritised because of strains on the global economy. Operators and service providers, however, will need to seriously consider their ESG credentials in the months ahead. ESG is here to stay, with reporting directives such as the US International Sustainability Standards Board (ISSB) and the EU Corporate Sustainability Reporting Directives (CSRD) already coming into force. As a result of these new standards and regulations, scrutiny will extend across the entire supply chain.
Increasingly RFPs from enterprises are demanding a stronger emphasis on ESG. This means Service Providers must incorporate these commitments into their offerings and pass these requirements onto vendors as a result.
However, sustainability initiatives are not resource drains. Service Providers that begrudge the advent of such regulations are making a mistake. Hidden in the scrutiny of their supply chains are valuable opportunities to improve efficiency and save costs. Such opportunities can lead to attractive differentiation in the market and a chance to pass these savings on to customers. Providing devices with a smaller footprint and form factor while improving the power to performance ratio will benefit stakeholders at every level.
When applied correctly, they can be business enablers and the source of significant efficiency gains.
