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85% of CSPs See Potential in Monetizing AI Traffic Across Networks, According to Ciena Study

85% of CSPs See Potential in Monetizing AI Traffic Across Networks, According to Ciena Study Image Credit: Ciena

A global study has been commissioned by Ciena to shed light on service providers’ growing optimism toward Artificial Intelligence (AI). More than half of telecom and IT engineers surveyed believe the use of AI will improve network operational efficiency by 40% or more. In addition, an overwhelming 85% of respondents express confidence in CSPs’ ability to monetize AI traffic across networks.

The research was conducted by Ciena in collaboration with Censuswide, surveying more than 1,500 telecom and IT engineers and managers at CSPs in 17 countries across the globe.

A key theme from the study is the opinion that AI will enhance network performance. To achieve this, participants believe new solutions across fiber network infrastructure and operations will be required. According to the study, the most popular strategies believed to improve performance include upgrading networks with new traffic and network analysis software (selected by 49% of respondents), along with upgrades in switches and routers (43%), and investment in 800G technology (40%), underscoring the multi-faceted approach operators are adopting to bolster network capabilities. 

Respondents see multiple avenues to generate revenue from AI. Specifically, 40% believe it will be from opening their networks to third-party integrations; 37% believe revenue will come from security and privacy services; the same number (37%) believe it will come from new product offerings; 35% believe it will be from the creation of tailored subscription packages; and 34% believe revenue will be from differentiation on quality of service for connectivity.

According to the study, 67%5 of CSPs also anticipate AI to be a force for job creation and identified key areas of expertise necessary for developing and launching AI services, including cybersecurity (31%), followed by machine learning (30%), and programming/coding (30%).

Jürgen Hatheier, International Chief Technology Officer, Ciena

Understanding emerging technologies like AI is an essential step toward staying competitive in today’s constantly changing digital landscape. The survey highlights the optimistic long-term outlook of CSPs regarding AI’s ability to enhance the network as well as the need for strategic planning and investments in infrastructure and expertise to fully realize the benefits.

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Author

Andrea Y. Lavannya is the Senior Editor and Vertical Analyst - Telco and Techco, at The Fast Mode. Andrea covers global telecom markets, operator revenue strategies and emerging business areas, and heads thought leadership development in areas relating to CSPs, MNOs, MVNOs, MVNEs and cable.

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