NTT DATA are with CPSs in the evolution of the Telecom Network
NTT DATA, one of the leading System Integrators, has always been dedicated to expanding the possibility of Communication Service Provider (CSP) with our innovative ideas and cutting-edge technologies. Series of 7 blog posts will explain how NTT DATA can open the future of CSP by combining network and its enablers to monetize and improve efficiency of 5G telecom network and beyond.
This is Part 1 of 7 blog post series written by NTT DATA Global Telecom Leaders and Experts around the world.
NTT DATA's Foresight exhibited at TM Forum DTW24
Digital Transformation World (DTW) is a renowned global exhibition event hosted by TM Forum, which is an association with a focus on the telecom industry. NTT DATA hosted an exclusive Roundtable Session and exhibited 4 Catalyst Projects to showcase NTT DATA's innovative capability and foresight as "Open Telecom Network" to telecom community members attending this TM Forum DTW event entitled "DTW24 - Ignite" in Copenhagen in June.
The Roundtable Session titled "What Are the Key Technical Enablers for a More Intelligent and Monetizable Network of the Future?", not only featured NTT DATA speakers but also invited guest speakers from Telefónica, BT Group, Redhat, Telecom Infra Project, and TM Forum for a lively discussion on 2 case studies and 2 fireside chats. Case studies focused on real-life experiences and outcomes of CSPs who implemented Performance Management and AIOps, while fireside chats focused on monetization leveraging Enablers: Open RAN and Open Gateway.
To follow the theme of "Leading the Way to an AI-Native Telco" for DTW24, two of our Catalyst Projects focused on leveraging Generative AI to enhance CSP's business. "AI-powered Sustainable Smart Farming" showcased how Generative AI platform built by CSP can be provided to agricultural firms for more efficient industrialization of farming. This Generative AI platform combines data collected from IoT Sensors and the experience of seasoned farmers to analyze the best timing to water, fertilize, and harvest their crops for best quality.
In a series of blog posts, NTT DATA Leaders and Experts will explain about NTT DATA's "Open Telecom Network" initiative and technologies that support this initiative.
NTT DATA's Foresight on Telecom Network
NTT DATA's Telecom Industry, like other industries, has been providing services to IT space of telecom operators. In other words, our services for telecom operators include consulting, implementation, and operation services for business support systems such as CRM, contract management, rate calculation, service assurance, etc.
On the other hand, the vast amount of CAPEX and OPEX of telecom operators has always been invested in their telecom NW, not in IT. Roughly speaking, 80% of their investment is in telecom NW, and only 20% in IT. However, until now, the NW space has been dominated by vertically integrated solutions from network element providers (NEPs), leaving no room for IT service providers such as NTT DATA in this NW ecosystem. This vendor lock-in situation prevailed in telecom NW up to 4G. However, vendor lock-in is not convenient for telecom operators, and they themselves have been searching for a way out of this situation for a long time. One of them is the introduction of Open Architecture.
Open Architecture for Telecom Network
When the interfaces between network elements are defined as vendor-specific (and that is exactly the situation until now), the telecom network to be built must be unified under a particular vendor's solution. On the other hand, if the interfaces were standardized, it would be possible to mix solutions from different vendors in the telecom network, giving telecom operators more choice and freedom in network procurement. It opens up the possibility of procuring optimal solutions, such as partial quality and performance improvement through partial procurement or procurement of more energy-efficient equipment. This is the biggest benefit of introducing Open Architecture to telecom NWs.
Telecom operators will apply this idea to each of the components of their telecom NWs. For example, network equipment, which has traditionally been provided by NEPs as integrated HW and SW, is now undergoing an initiative to open up this as well: Disaggregation. This separation of HW will also benefit telecom operators, as they will be able to use general-purpose HW instead of dedicated HW by NEPs. In parallel with Disaggregation, Cloudification, which replaces the infrastructure part of the telecom network with Cloud, is also in progress. Open RAN is the application of Open Architecture to the radio section of the telecom network, or radio access network (RAN).
Just as the network generation is being updated from 4G to 5G, these technology trends are being realized on a global scale in the telecom industry. Initiatives discussed by industry groups such as TM Forum, Telecom Infra Project, and ORAN alliance, are being commercially implemented.
For NTT DATA, this global trend is a tailwind. The introduction of Open Architecture means the need for integration. Recall NTT DATA's role as an integrator in the past when the computing world shifted from mainframes to open architecture. As a non-vendor, NTT DATA can be a neutral provider of IT-based solutions for the integration and operation of telecom NWs with heterogeneous network components. NTT DATA's position as a new entrant in the NW space also allows us to form a strong ecosystem of partnerships with hyperscalers such as Microsoft Azure and AWS, and solution providers such as VMware (Broadcom) and Redhat, on a mutually beneficial basis. (fig.1)
Based on this market understanding, NTT DATA has launched "Open Telecom Network" as a global initiative, and been working on the development of global assets, the accumulation of references, the establishment of capabilities, and the establishment of a global delivery system under the global COE.
NTT DATA's "Open Telecom Network"
As we work toward "Open Telecom Network," NTT DATA places great importance on being based on next-generation telecom network architectures led by industry organizations such as TM Forum to maximize the value of the open architecture. This is because it is a blueprint for how telecom operators around the world, who will be the purchasers, want to procure telecom network functionality in the future. This means that the assets and references developed based on this architecture are not a one-off tailor-made solution for a single telecom operator but can be deployed by more telecom operators around the world. Once developed, the assets and references are accumulated and become the core of the repeatable business. (Fig.2)
NTT DATA's "Open Telecom Network" offers a wide range of offerings. After this article, we will continue the series of explanatory articles as follows.
Open OSS
OSS (operation support systems, not open-source software) is a set of systems for the operation of telecom networks: IT systems that embody functions such as Performance Management, Fault Management, and Network Inventory, and their operation are in scope. NTT DATA's value-added area is to adapt to the diverse network elements that are becoming more diverse with the introduction of open architecture, and to absorb the differences between elements. In the second article of this series, we will discuss how NTT DATA's solutions can help customers achieve higher-quality, more labor-saving network operations. In the second part of this series, Dahyr Jose Vergara Suarez from NTT DATA Spain will discuss the outlook and current status of NTT DATA's Open OSS.
Telecom Cloud
Telecom Cloud is one of the goals of Disaggregation/Cloudification of telecom networks. Telecom Cloud is a trend to realize telecom network functions on private or public clouds and is an area where NTT Ltd. and NTT DATA can combine their strengths. Hyperscalers and solution providers are increasing their presence in this space. Building partnerships and ecosystems will be key elements for NTT DATA to succeed. Alejandro Javier Fernandez Diaz of NTT DATA Spain will be writing an article on this topic.
Open Gateway
For all telecom operators around the world, it is imperative to diversify their telecom network revenue streams in terms of return on investment from the huge investments they need to make in their telecom networks. Open Gateway is an initiative announced at Mobile World Congress 2023 that aims to monetize telecom networks. Its goal is to make telecom network functionality available to external parties. NTT DATA has been developing the Open Gateway functionality and is committed to being a leader in obtaining references and creating repeatable business in this trend. Luis Fernando Rubio Martínez from NTT DATA Spain will be writing an article in this issue.
AI/GenAI
The use of AI and Gen AI for telecom network operations is currently underway as a joint investment initiative between strategic customers Telefónica and NTT DATA, but the benefits that AI and Gen AI can bring to telecom operators do not stop there. For example, AI and Gen AI are expected to be an important element in supporting a variety of future offerings by telecom operators to their customers. At TM Forum's "DTW24 - Ignite!", NTT DATA presented and exhibited several Catalyst Projects that we have teamed up with telecom operators and vendors. In this series, Luis Fernando Rubio Martínez from NTT DATA Spain will introduce the exhibits and provide an outlook on the use of AI and Gen AI in telecom operators.
Open RAN
Open RAN, as mentioned earlier, is an open architecture in RAN, and DOCOMO is one of the world leaders in Open RAN, with NTT DATA participating as a system integrator in OREX, a consortium established by DOCOMO. Taiji Doi of NTT DATA Japan will write the article in this issue.
Network Monetization
Just implementing technologies will not lead to higher revenue for CSPs. Appropriate Network Monetization strategy must be designed, implemented and executed. In the final part of the series, Jesús Martín Tello from NTT DATA Spain will discuss how to design and implement Network Monetization for CSPs and achieve higher revenue.
Taro Nakao
VP, Global Telecom & Media, Global Business Enablement | NTT DATA Inc.