Harnessing AI in Telcos: Data, Opportunities, and the Future

At the Telecoms Europe virtual event, How AI is Transforming Telecoms (27 Nov 2024), Daniel Dobos, Research Director at Swisscom, presented an engaging talk titled "Have telcos got the right data in the right places to harness AI?" As Research Director, Daniel manages Swisscom’s collaborations with universities, applied sciences institutions, and research organizations. Alongside employees from various Swisscom business units, his team develops solutions leveraging cutting-edge research and technology for the benefit of customers. His prior experience includes leading AI research projects at CERN and the United Nations.

In his presentation, Daniel addressed a critical question: Do telcos have the right data infrastructure to harness AI effectively? This topic is especially pertinent as AI—especially generative AI—rapidly reshapes the telecommunications industry. He explored this question through the lenses of academic research, public sector regulation, and private sector application.

The Tsunami of AI: Opportunities and Risks

Daniel began by comparing the AI revolution to The Great Wave off Kanagawa, the iconic Japanese woodblock print. He emphasized AI's transformative potential, particularly large language models (LLMs), and urged telcos to adapt swiftly to this evolving landscape. He posed a thought-provoking question: "Are we the last generation to ask whether telcos have the right data to harness AI?" Daniel warned that telcos failing to adapt risk irrelevance or obsolescence.

Swisscom's AI Journey: From Research to Application

Daniel recounted Swisscom’s AI journey, beginning in 2016 with a partnership with EPFL to establish a digital lab focused on applied AI research for telcos. This collaboration leverages Swisscom’s extensive data resources and partnerships with leading institutions like EPFL and EDAP. Key AI techniques—natural language processing, automated speech recognition, and distributed machine learning—are deployed to enhance customer experience, network operations, and workforce management.

Real-World Applications: Optimizing Networks and Customer Care

Daniel shared three practical examples of Swisscom's AI implementation:

1. Network Optimization: AI-driven analysis of network data to optimize mobile antenna deployment, improving both coverage and energy efficiency.
2. Event Sequence Detection: Identifying patterns in massive data streams to predict network issues, optimize maintenance, and bolster cybersecurity.
3. Generative AI for Customer Care: Deploying LLM-based chatbots to automate customer interactions, enhancing self-service capabilities and boosting customer satisfaction.

Knowledge Graphs: Decoding Complex Infrastructures

Daniel highlighted the role of knowledge graphs in visualizing Swisscom’s intricate infrastructure. These graphs map out infrastructure components and their relationships, enabling better human comprehension of network structures and anomalies. This approach enhances maintenance efficiency and risk detection.

Current Research: Pushing AI Boundaries

He also shared insights into Swisscom’s ongoing research in areas like infrastructure optimization, energy savings, and secure data analytics. A key innovation is the use of synthetic data, which enables collaboration between researchers and telcos without compromising privacy. Other projects include graph anomaly detection and advanced energy-saving strategies.

Key Takeaways: Data is the Key to AI Success

Daniel concluded by emphasizing that while Swisscom is well-positioned to leverage AI, many telcos are not. He underscored the importance of making data accessible and ready for AI algorithms. He urged telcos to prepare their data now, as the window of opportunity is narrowing. Comparing the current AI landscape to "teenage love," he advised experimenting with different AI models without committing prematurely. By ensuring data readiness, telcos can fully capitalize on AI’s transformative potential.

The video of his talk is embedded below:

Note: This blog post was created with assistance from ScreenApp for generating the video summary.

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Venezuela’s Mobile Revolution: Growth, Innovation, and the Road to 5G

Venezuela, despite facing economic and political challenges in recent years, has a dynamic telecommunications market. Mobile operators play a pivotal role in keeping citizens connected, providing essential services amid an increasingly digital world.

Data from GSMA Intelligence shows that there were 21.37 million cellular mobile connections in Venezuela at the start of 2024.

However, note that many people around the world make use of more than one mobile connection – for example, they might have one connection for personal use, and another one for work – so it’s not unusual for mobile connection figures to significantly exceed figures for total population.

GSMA Intelligence’s numbers indicate that mobile connections in Venezuela were equivalent to 73.4 percent of the total population in January 2024.

The number of mobile connections in Venezuela increased by 1.5 million (+7.7 percent) between the start of 2023 and the start of 2024.

Mobile telecommunications in Venezuela are regulated by CONATEL (Comisión Nacional de Telecomunicaciones), which oversees the licensing and operation of mobile operators. The market is characterized by a mix of state-owned and private entities. There are three main mobile operators; Digitel, Movilnet and Movistar.

Digitel begun shutting down its 2G network in May 2021, with the local unit of Movistar commencing the process on 1st July 2022. This leaves state-backed Movilnet as the sole 2G provider.

CONATEL plans to phase out 2G connectivity by the end of 2025 and replace it with 4G. The government also hopes to deploy around 2,100 new 4G cell sites by 2025 to achieve 90% population coverage.

Movistar is part of the Telefónica Group and has a market share of nearly 54% of the country's mobile market, it is the leader in Venezuela's mobile market, with a customer base exceeding 7 million. Notably, 84% of its users are 4G customers, and the company accounts for over 50% of the country’s mobile internet traffic. Additionally, it has expanded into providing home fixed internet services through its Movistar Agile Solution (SAM) product. The operator's mobile network utilizes GSM/GPRS/EDGE, 3G+ UMTS (HSDPA/HSUPA), and LTE technologies. 

Recently Movistar Venezuela has undertaken more than 1,300 initiatives to enhance its LTE network coverage across the country, according to José Luis Rodríguez Zarco, the company’s president.

During a press conference, Rodríguez Zarco shared that the operator is actively modernizing and expanding over 500 stations in Caracas and the eastern region, while extending its 4G network to 32 new areas to improve coverage and capacity. He also stated they are focused on expanding coverage, modernizing their platforms, recovering affected stations and preparing for new technologies such as voice over LTE and 5G.

Movilnet a subsidiary of Compania Anonima Nacional Telefonos de Venezuela (CANTV), has a nearly 40% market share in Venezuela's mobile telecommunications industry.

Earlier this year, Movilnet has carried out a series of initiatives to strengthen its presence and quality of service in the eastern region of Venezuela. As part of its strategy to expand and improve 4GMAX coverage, the company has carried out network enhancements in Nueva Esparta, Monagas and Sucre, benefiting some 74,000 customers in the area.

Movilnet has also begun pilot testing of 5G technology in the Capital District and La Guaira and more than 130 million dollars have been invested so far this year, so there is an increase in new technologies to benefit their customers nationwide.

Digitel is the smallest of the three operators with approximately 15% market share and 3 million mobile subscribers. Digitel's network originally only covered Venezuela's central region, but the company expanded its reach through a series of mergers and network expansion programs. In 2013, Digitel became the first operator in Venezuela to offer 4G/LTE capabilities in major cities.

Digitel received the Ookla Speedtest Award 2023, after consolidating itself as the fastest mobile network in Venezuela.

Digitel reported that on June 7 2024, it carried out the first tests of 5G technology in the 3.5 GHz band, in the states of Nueva Esparta and Barinas. Specifically, this is the Fixed Wireless Access or FWA service, boosting the connectivity and browsing experience of users who participate in the demo. 

Digitel's deployment of its 5G network in Nueva Esparta and Barinas includes the adaptation of the existing infrastructure, specifically 20 radio base stations, to offer speeds up to 10 times higher, with almost non-existent latency. This means a faster and more stable browsing experience for users, through a fixed service.

The mobile sector in Venezuela is poised for transformation as operators navigate economic and political challenges while meeting growing consumer demands. With strategic investments, partnerships, and regulatory reforms, the industry could play a vital role in driving digital inclusion and economic recovery.

Deutsche Telekom’s Open RAN (ORAN) Plans

Open RAN (O-RAN/ORAN) took centre stage at Deutsche Telekom AG’s Capital Markets Day 2024 (#DTCMD24), with multiple mentions highlighting its growing significance in the telecom industry. Claudia Nemat, Member of the Management Board responsible for Technology and Innovation, underscored its role in co-creating with partners and kick-starting transformative initiatives like Open RAN and network APIs.

In her presentation, she highlighted both the opportunities and challenges presented by Open RAN. While it offers greater choice and flexibility, it also introduces significant complexity—someone must "stitch it all together." To navigate this complexity successfully, Deutsche Telekom is focusing on robust procurement at the subcomponent level, alongside developing strong software engineering, testing, and integration capabilities.

Deutsche Telekom’s transition from SRAN (Single-vendor RAN) to ORAN is not a new strategy, but Claudia shared an important update: the company is also developing its own RAN management system. This system aims to control costs, improve user experience, and mitigate risks associated with reliance on Chinese vendors. The approach involves replacing external configuration management systems with an in-house solution—a shift supported by a public agreement.

Deutsche Telekom reaffirmed its commitment to Open RAN, setting an ambitious goal to fully develop its conflict management capabilities by 2027. This long-term strategy positions the company as a leader in balancing innovation with operational resilience.

At Fyuz 2024 in Dublin, Petr Lédl, Chief Architect of DT O-RAN and Vice President of Network Trials at Deutsche Telekom talked about the progress in its three core areas of Open RAN – open fronthaul, an independent management framework, and the adoption of cloud RAN for hardware/software disaggregation. Deutsche Telekom is building on its in-house service management and orchestration (SMO) platform to develop a common management system that can cope with traditional RAN as well as Open RAN elements, says Lédl.

The video of his talk is embedded below: 

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Namibia's Digital Transformation Journey Continues Unabated

Namibia, with its vast landscapes and scattered population, presents unique challenges for mobile operators. As of 2024, the mobile sector in Namibia has continued to grow steadily, with increasing investment in infrastructure, wider network coverage, and improved service offerings.

According to GSMA Intelligence, Namibia had 2.91 million mobile connections at the beginning of 2024. However, it's important to note that many people globally use multiple mobile connections—one for personal use and another for work, for instance—so it's common for the number of connections to surpass the total population. GSMA Intelligence data shows that, as of January 2024, mobile connections in Namibia equalled 110.8% of the population. This represents a decrease of 18,000 connections (or -0.6%) from the start of 2023 to the start of 2024.

The major players in Namibia's mobile telecommunications sector are Mobile Telecommunications Limited (MTC) and Telecom Namibia, with other operators like Paratus offering specialized services. MTC’s market share in subscriber terms was 82% at the end of 2023 and Telecom Namibia at 17%. Paratus does not yet have a significant number of wireless subscribers, only 0.3%.

Mobile network coverage continues to increase across the country, with the regulator having urged the MNOs to focus investment in rural areas and thus support the government’s broadband coverage targets. The government in late 2023 lifted its moratorium against 5G deployments and the regulator followed by completing an auction of 5G-suitable spectrum in the 700MHz range. MTC began trialling 5G at the end of the year, while the regulator launched a campaign to educate the public about the benefits of 5G while dispelling the misinformation about the technology which had stalled its adoption earlier.

MTC is the first mobile phone provider with the most customers in Namibia and a pretty good coverage. It's the recommended network for travellers.  

MTC has retained its dominant position in Namibia's mobile telecom market, holding an estimated 84% market share, covering 98% of the population, and serving a customer base of 2.17 million, according to managing director Licky Erastus. The company has also aggressively expanded into the internet and fixed-line broadband market, achieving a 115% increase in revenue growth.

MTC's network now consists of 1,014 active sites, with 70% of these sites 4G-enabled, handling 50% of the company’s mobile data traffic.

Erastus noted that MTC initiatives continue to ensure that rural Namibians have access to the same mobile broadband experience as those in urban areas. In 2023, MTC upgraded 97 rural sites, 67 of which were equipped with refarmed spectrum to support 4G/LTE technology.

MTC and Huawei Technologies have held the country's first 5G technology demonstration in Windhoek after the government lifted a moratorium on 5G and allocated spectrum to telecom providers.

Minister of ICT, Emma Theofelus, hailed the event as a milestone for Namibia, emphasizing the importance of adopting advanced technology for national development. "This trial marks Namibia's commitment to leveraging technology for progress," she said, highlighting 5G's role in enabling e-governance, e-commerce, and e-health through faster connectivity. Huawei has previously partnered with MTC to bring 3G, 4G, and 4.5G technologies to Namibia.

Telecom Namibia Limited is the national telecommunications operator, established in August 1992 and wholly owned by the Government of the Republic of Namibia. Telecom Namibia is serving more than 619,000 (fixed and mobile) customers and annual revenue of more than N$ 1,4 Billion. Telecom Namibia runs the largest Digital Telecommunication Network in Namibia. The company is a leading supplier of voice, text, data and video solutions.

Telecom Namibia has entered into a five-year partnership with Huawei Technologies Namibia, aiming to enhance its mobile network capabilities and coverage nationwide. This collaboration is part of Telecom Namibia's Integrated Strategic Business Plan (ISBP) 2027, which outlines plans to invest in modernizing and expanding the TN mobile network. The initiative includes the deployment of new mobile base stations and upgrading existing ones across the country. Under the agreement, Telecom Namibia will acquire advanced mobile radio access equipment from Huawei to boost network capacity and coverage, particularly in underserved areas. This partnership will support the rollout of cutting-edge mobile technologies such as 4G, 4.5G, and 5G, providing consumers with faster, more reliable mobile broadband services.

Paratus Telecom holds licenses for 4G/LTE on band 3 (1800 MHz) in Windhoek and refarms its old WIMAX customers to 2600 TD-LTE (Band 38). It boast with the lowest prices for data in the country, but its network is limited to 4G/LTE.

Paratus is currently serving over 700 commercial and business customers across Namibia and quickly expanding into the residential and small business markets.  Additionally, Paratus is also now peering with four national and eight international interconnect operators to provide global calling plans.

The mobile telecommunications sector in Namibia is at an exciting phase, with major operators like MTC and Telecom Namibia leading the charge toward a more connected and digital future. However, significant challenges remain in terms of affordability, rural access, and staying competitive in the rapidly changing technological landscape. Despite these hurdles, the future looks bright, with a clear focus on innovation and expanding services to meet the needs of the entire population.

Namibia's journey to becoming a fully connected society will depend on sustained investment, collaboration between private and public sectors, and the continual evolution of mobile technology.

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Case Study: AIS Thailand’s Transformation to 5G-Driven Autonomous Operations

At FutureNet Asia 2024, held on 17-18 September at Marina Bay Sands, Singapore, AIS's EVP, Mr. Wasit Wattanasap, discussed the company’s 5G growth, AI integration, and contribution to Thailand’s digital economy.

He highlighted AIS’s investment in autonomous networks and intelligent IT systems to enhance operational efficiency, manage costs, and improve customer experiences. AIS aims to future-proof its infrastructure for the next generation of connectivity.

AI will play a key role in AIS’s network operations, aiming for real-time, personalised interactions and fully autonomous network processes by 2025. Already nearing "level 3.5" AI integration, AIS plans to advance towards "level 4" predictive networks that proactively address issues before they impact customers, improving both service quality and customer satisfaction.

His talk is embedded below:

Telecom Review has an interview with him here.

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Somaliland Aspires to Lead Africa in 5G Development

Somaliland is a self-governing region that declared independence from Somalia in 1991, although its sovereignty remains unrecognized by both Somalia and the international community. With a population of around 3.5 million, Somaliland operates with its own government.

In recent years, Somaliland has made significant strides in developing its telecommunications sector. Companies like Telesom and Somtel have played key roles in providing affordable mobile phone services and high-speed internet. Mobile banking services, such as Telesom’s Zaad, have transformed how people manage financial transactions. 

However, internet access in rural areas remains limited, and connection speeds in urban areas still fall short of global standards. Despite these challenges, Somaliland is one of the first low-income nations, particularly in Africa, to adopt 5G technology. This development offers a unique chance to bypass traditional broadband infrastructure, potentially delivering faster, more reliable internet services and driving technological progress.

Somtel introduced 5G in Somaliland’s capital, Hargeisa, in partnership with eDahab, the leading mobile payments provider in January 2024. The company claims to be the first operator in the region to launch a 5G network. Other African nations that have rolled out 5G include South Africa, Uganda, Kenya, and Nigeria.

Founded in 1998, Somtel is a publicly traded company registered in the British Virgin Islands. Since 2008, UAE-based MTO Dahabshiil has owned approximately 95% of Somtel's shares. The eDahab money transfer service operates through Somtel's SIM cards and Dahabshiil’s money transfer platform. Somtel has previously introduced 4G to the region, implemented VoLTE and eSIM technology, and launched Bluekom Fiber services.

Meanwhile Telesom also launched their 5G network again in January of this year. According to Telesom chairperson Abdikarim Eid  Somaliland’s 5G rollout reflects the country’s resilience and commitment to a better future. “We’ve launched ahead of 36 African countries, many of which have stronger economies than ours,” Eid stated. “Our goal is to provide subscribers with near-instantaneous download speeds that will boost local industries, including education, healthcare, transport, and agriculture.”

With download speeds reaching 1,016 megabits per second, Eid envisions Telesom’s 5G network unlocking new possibilities, driving innovations like smart farming, remote surgeries, and immersive virtual reality education. “It’s not just about speed; it’s about opening a new era of opportunities for our people and preparing for the future,” he said.

Affordability will be key to widespread 5G adoption, but Somalia, including Somaliland, is already among Africa’s top five countries with the most affordable mobile internet. According to the 2023 Worldwide Mobile Data Pricing index by UK-based Cable, Somalia has the cheapest mobile internet in East Africa, with an average of $0.50 per gigabyte (GB) and the lowest provider offering just $0.19 per GB.

Somaliland’s journey to 5G has not been easy. The country faced conflicts last year and continues to deal with militia threats, which have slowed infrastructure development, including the expansion of high-speed internet.

With extensive coastlines, Somaliland and Somalia have access to undersea fiber optic cables, but fiber internet is largely concentrated in urban areas. Eid noted, “Telesom’s fixed wireless access (FWA) using our 5G network will allow us to bring high-speed internet to areas beyond the fiber network in every city we serve.”

Despite a high internet penetration rate of 95%, Somaliland’s 5G rollout may face challenges, particularly due to the relatively high cost of 5G-enabled devices, similar to what Kenya has experienced.

While analysts estimate that 5G could add $2.2 trillion to Africa’s economy by 2034, the impact will depend on how quickly the private sector integrates the technology into business. As 5G spreads across Africa, one thing is clear: Somaliland is now a key player in the high-speed internet revolution.

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SK Telecom on 'Applying AI to Transform Customer Experience'

FutureNet Asia 2024 took place from September 17-18 at Marina Bay Sands in Singapore, marking the event's fourth edition. Earlier this year, FutureNet World celebrated its sixth year in London. The event brought together over 400 industry leaders and visionaries to explore the intersections of network automation and AI.

Eric Davis, Vice President of the AI Tech Collaboration Group at SK Telecom, oversees collaborations with global tech partners to customize large language models (LLMs) for the telecommunications domain. His teams are responsible for designing and building datasets to fine-tune LLMs, as well as benchmarking LLMs both generally and specifically for the telecommunications sector. He gave an insightful talk on how SK Telecom is 'Applying AI to Transform Customer Experience'.

His talk is embedded below:

Following this event, SK Telecom announced AI Pyramid Strategy to become a global AI company. In a press release, they announced:

SKT sets forth ‘AI Pyramid Strategy’ to accelerate innovation centered around three key areas: AI Infrastructure, AI Transformation (AIX) and AI Service.

• AI Infrastructure, which consists of data center, AI semiconductor, and multi LLM, will serve as a technology platform that forms the basis of SKT as an AI company.
• AI Transformation (AIX) of SKT’s core business areas such as mobile, broadband and enterprise, as well as new business areas like mobility and healthcare will be pursued to reach a new level of productivity and customer experience.
• In the area of AI Service, SKT announces the official launch of ‘A.’ and plans to build a globally competitive personal AI assistant service by leveraging its telco and AI assets.

It further mentioned:

SKT today announced that it has branded its AI technology as ‘A.X’ and named its large language model ‘A.X LLM’.

The company is pursuing a multi-LLM strategy, under which it takes a two-track approach to secure diverse LLM lineup as well as an overall platform that encompasses the LLMs. It is advancing its own LLM based on high-quality data accumulated over decades. Simultaneously, SKT is collaborating with a diverse range of partners, including Anthropic, OpenAI, and Konan Technology, to develop tailored LLM and related technologies specifically for the telco industry.

First, in terms of strengthening its own capabilities, SKT plans to advance its LLMs into telco-specific LLMs by leveraging its abundant telecommunications-related data.

In addition, the company will continue to secure more sophisticated LLM technologies based on its supercomputer Titan, which ranked no. 47 on the Top 500 list of the world's most powerful supercomputers; high understanding of the Korean language trained with the world’s largest Korean language data; intelligence platform where multi LLMs and AI technologies customized for diverse telco use cases can be utilized; and multimodal LLM technologies that support communication via not only text but also voice, video, and so on.

SKT invested USD 100 million in Anthropic last month, and is working together with Anthropic to develop LLM customized to telcos. The company is also cooperating with Open AI, which includes co-hosting of an AI hackathon in Korea. SKT also invested KRW 22.4 billion in Konan Technology last year, and the two companies are collaborating to enter into the enterprise market with LLMs customized to corporate customers.

■ AI Transformation (AIX)

In the area of AIX, which is located in the middle layer of the AI Pyramid, SKT will innovate its existing core business areas like mobile, broadband and enterprise with AI, while at the same time expanding into new business areas such as mobility, AI healthcare, media and advertising technology. 

In the mobile business, the company stated that AI holds the power to significantly improve both profitability and customer experience. AI can not only be used to acquire/retain customers and provide better customer support via AI Contact Centers (AICC), but also be applied to the network infrastructure to enhance the efficiency in network deployment and operation. The company expects that, in the mid-to long-term, AI will help reduce 20 to 30% of costs compared to the current level.

SKT will also evolve SK Broadband’s Btv service into AI TV to deliver a new level of convenience and value. For instance, ‘AI Curation’ will identify the user and show personalized TV; and ‘AI Home’ will allow users to enjoy various media services by conversing with an AI agent.

In addition, by combining multi LLM with existing AI solutions like Vision AI, Language AI and Big Data AI, the company to expand its AICC business to financial institutions and data platform business to manufacturers. For its generative AI business, it will build customized services for public and financial institutions with strong needs for security and specialized services, while providing SaaS bundles to general corporate customers.

Furthermore, SKT will continue to pursue AI innovation and expand the overall AI ecosystem by growing its new business areas such as urban air mobility (UAM) and AI-based healthcare services like X Caliber. The company will also promote mergers and acquisitions in areas including media and advertising technology to create new business opportunities through AI transformation.

■ AI Service

SKT today announced the official launch of ‘A.’, the world’s first Korean LLM service released in the beta version in 2022. 

The company said that ‘A.’ will evolve into a personal AI assistant service by innovating customers’ communication experience and fully assisting their everyday lives via seamless connection to a wide variety of AI services. 

SKT plans to add an AI phone service, which enables new connections through communication innovation that can only be achieved by a telco. The AI phone will provide a variety of AI services and mobile experiences based on understanding and reasoning of call context.

For instance, it will recommend people to call based on call history and analyze the content exchanged during a call with AI to provide a call summary. At the same time, it connects users to necessary tasks, such as registering the schedule made during a call to the calendar or sharing addresses. More features such as real-time interpretation during calls will also be added going forward.

In terms of integrating AI into all aspects of daily life, SKT will start by offering an AI sleep management solution named ‘A. sleep’ and an AI music service this month.

‘A. sleep’ is developed by combining sleep management solution startup Asleep’s sleep solution and SKT’s AI. It evaluates sleep quality by analyzing user’s sleep patterns. No separate device is needed. It helps users start their day in the best possible condition by determining the ideal wake-up time depending on their sleep status and quality.

The AI music service will not only allow users to edit their playlist by simply talking to A., but also automatically recommend music that matches their tastes based on its generative customer prediction model.

Going forward, SKT plans to leverage its AI service-related experience and knowhow accumulated in the Korean market to develop a powerful personal AI assistant service that can attract global customers.

The company expects that its partnerships with diverse global players – including the Global Telco AI Alliance – will help accelerate its progress. SKT plans to expand its presence in the global AI service market by launching personal AI assistant services simultaneously in many countries across the world by working closely with telcos for localization and advancement of these services.

You can read the complete press release here.

Eric shared some interesting lessons that they have learned as part of rolling out their LLM powered use cases as can be seen from his slide above.

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