Why are Telco Cloud Deployments Stalling?

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By Dimitris Mavrakis | 1Q 2018 | IN-5066


No News is Bad News


Telcos have been surprisingly quiet about their telco cloud deployments lately, after a flurry of announcements a few years back (e.g., AT&T aiming to virtualize 80% of its network elements by 2020 and Telefónica aiming to virtualize 75% of its network elements by 2020). There have been a few announcements stating cautious optimism about recent developments, but these are nowhere near the optimistic tone of earlier announcements. This is for a reason: AT&T has found out that when virtualization reaches a critical mass, it becomes progressively more difficult, expensive, and complicated to proceed, especially when factoring in OSS transformation, interoperability between physical and virtual network components, multi-vendor support, and many more issues. Other telcos around the world are experiencing the same issues, albeit at a smaller scale compared to the most aggressive leaders in virtualization of AT&T, China Mobile, NTT DOCOMO, and Telefónica.

A consistent problem has been the business case, although NFV and virtualization claim grand benefits th…

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