What’s Hot (and Not) For Telecoms In 2017?

January 9, 2017, Category: News

We take a look at what are predicted to be the top trends of 2017, and what may disappoint in the coming year…

The hot

NFV & SDN

2017 is predicted to be the breakthrough year for Network Functions Virtualisation (NFV) activities. There are strong incentives for operators to implement the technology, with new services such as VoLTE benefiting from virtualised network functions.

This year will be driven by services such VoLTE, Carrier Cloud, Wi-Fi calling, service chaining, resource sharing and network slicing. NFV will be pushed forward by the natural evolution of existing infrastructure, rather than acting as a replacement strategy for operators.

With the availability of multi-vendor solutions integrating into operators existing networks and with operators announcing new plans for NFV implementations, 2017 seems to be the year that NFV will finally take off.

This optimism is supported by new research conducted by Technology Business Research (TBR), who suggest that the majority of tier 1 telecom providers are expecting their organisations to adopt NFV and SDN technologies over the next 2 years.

TBR also expects global enterprise Software Defined Networking (SDN) revenue to grow at a 72% CAGR through to 2020, complementing legacy deployments while disrupting sales and innovations strategies. SDN is likely to make up around 40% of global enterprise network infrastructure revenue (around $12.7bn) by 2020.

High demand for virtualised video delivery

By 2020, 75% of the world’s mobile data traffic will be video. This increasing demand for mobile video is likely to lead network operators to invest in virtualised video delivery and traffic management solutions. In order to meet demand, network operators will turn to the virtualisation and orchestration of key video delivery components such as content management systems and content delivery networks.

Virtualisation has clear benefits, it enables network operators to scale capacity on-demand, reduce stranded CapEx and allows the delivery of multi-screen, OTT and 4k video services cost-effectively. The benefits of virtualised video management and delivery can lead to reductions in OpEx of around 59% when compared to the standard physical approaches.

... and the not so hot

5G still far away

Despite the levels of hype around 5G technologies, research company Northstream predict that commercial deployments of fully standardised, standalone mobile 5G tech will not materialise until 2019-20.

Mass deployments of 5G are predicted to be at least 6 years away, until that point, operators are likely to invest further in the advancement of LTE standards, rather than investing heavily in 5G before it has been fully standardised.

The view that the 5G revolution still has a number of obstacles to overcome is shared by Strand Consult. They claim that 5G will find it difficult to create economic growth, despite the claims from mobile operators. While 5G will not be a total loss, it will probably not live up to the expectations of many in terms of financial gains.

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Adapted from original article at http://bit.ly/2hYo0k0

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