DTT Section 2: What’s the Status of Network Transformation?

TM Forum, the industry association driving digital transformation through collaboration, released the results from its third bi-annual Digital Transformation Tracker (DTT). Carried out from June to August 2018, the global survey of more than 200 communications service providers (CSPs) and their technology suppliers tracks the progress of the telecoms industry’s digital transformation. Here’s a summary of Section 2, that discusses how CSPs are adopting software-defined networking (SDN) and cloud technology to manage virtual network functions (VNFs).

Digital Transformation Tracker (DTT) Section 1 describes where CSPs are on their path to digital transformation. Read the summary on our blog post DTT Section 1: The Respondents Speak- Where Are CSPs On Their Journeys?

The Role of 5G

The report states that almost half of CSP respondents said their companies had not established a business case for network virtualization. However, a more concrete business case is starting to emerge, with 5G and the internet of things (IoT). CSPs envision targeting verticals such as the automotive or healthcare industries with slices that are fine-tuned for specific requirements.

NFV Deployment

CSPs including AT&T, China Mobile, Deutsche Telekom, Orange, Telefónica, Telstra, Verizon, and Vodafone have announced that they are embracing NFV and SDN, and TM Forum’s latest DTT survey shows that nearly a third of CSP respondents said they are deploying NFV in the core, up from just 22% six months ago. Also, fewer respondents stated they have no timetable for virtualization. Among respondents whose companies are not deploying NFV, one in five said they would start implementing VNFs within the next year.

Digital Transformation

According to TM Forum, some CSPs are focusing on virtualizing specific applications, without undertaking more extensive transformation programs. Other respondents are taking an approach that focuses more on improving customer centricity, particularly for enterprise customers, while others see network transformation as part of a more significant digital or business transformation. The research shows that 44% of CSP respondents view network transformation as part of the overall digital transformation.

To access the full report, refer to TM Forum web page.

 If you would like to read a summary of each section of the report, go to:

  • Overview
  • Section 1
  • Section 3 (coming soon)
  • Section 4 (coming soon)
  • Section 5 (coming soon)

Digital Transformation Tracker (DTT) Section 1 describes where CSPs are on their path to digital transformation. Read the summary on our blog post DTT Section 1: The Respondents Speak- Where Are CSPs On Their Journeys?

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