Telco Edge: A Contested US$54 Billion Opportunity for Telecom Players

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25 Jun 2019

Mobile Service Providers (MSPs) are centralizing telecoms infrastructure in their private clouds and at the same time, trying to understand how they can deploy edge computing across their networks. The impending commercialization of ‘telco edge’ constitutes a ‘white space’ opportunity that will usher in significant growth for both the supply and demand side in telecoms, finds global tech market advisory firm ABI Research. There are a handful of new emerging applications, including self-driving caps, Augmented and Virtual Reality, and Artificial Intelligence (AI) that require distributed processing capabilities that only edge computing can offer.

 

Multiple strands, however, need to be addressed before edge computing becomes mainstream. There are various layers of edge deployment types, but not a “one-size-fits-all” commercial model. This not only renders the management of edge products a challenge but also presents a commercial opportunity for edge deployments and 5G rollouts. There are some promising market engagements from MobiledgeX and ori.co, two new and disruptive entrants that aim to monetize 5G networks and associated edge deployments in telecoms. Meanwhile, MSPs like AT&T and Telefónica are advancing in their journey to unlock the power of edge computing to deliver new services over 5G networks.

 

“In a business setting, nothing big starts big from the onset and tomorrow’s growth is not easy to spot for commercial entities lacking a clear understanding of the opportunity at stake,” said Don Alusha, Senior Analyst at ABI Research. “On one hand, the increasingly growing market for telco edge solutions and services is no doubt tomorrow’s opportunity, but it is one that is currently very complex in terms of technologies and competing stakeholders. MSPs, on the other hand, are in limbo - they understand the edge holds great potential, but they don’t yet know how to make money out of it. They need a “hero” edge application to kick start this market.”

 

One key concept that applies to both vendors and MSPs is the ability to understand and prioritize how to build edge infrastructures that align with the ultimate business goal. ABI Research’s forecast indicates that the penetration of edge servers in telco infrastructure stands to create a US$54 billion opportunity by 2024. The value to various telecom vendors and software solution providers will vary in line with their ability to help MSPs capitalize on the revenue potential of key use cases such as video caching, geo-specific, and personalized services.

 

“In the long run, telco edge deployments will become the de facto platforms to deliver services close to end users and enterprise facilities. 5G and edge are partner technologies, and in the long term, neither can become truly profitable without the other. It’s just that operators must identify both the enterprise vertical to prioritize and the ideal position of their edge servers. If they don’t do this immediately, Amazon, Google, and Facebook will target the very same enterprise verticals MSPs are trying to address. This will seriously devalue 5G and the future of mobile service providers in general,” Alusha concluded.

 

These findings are from ABI Research’s Telco Edge: Enabling Technologies and Commercial Analysis technology analysis report. This report is part of the company’s Telco Digitization research service, which includes research, data, and Executive Foresights. Based on extensive primary interviews, Technology Analysis reports present in-depth analysis on key market trends and factors for a specific technology.

 

 

 

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research’s global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors. 
 

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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