A recent survey has revealed that communications service providers (CSPs) are pinning high hopes on network-led transformation to boost their revenue and margin performance over the next three years.
Investing in network transformation is seen as a strategic move to extract more value from existing network investments. The report indicated that 82 per cent of CSP leaders plan to increase their network spending by 6-10 per cent in the coming three years, reflecting their strong belief in tangible results from such investments.
The survey revealed that 77 per cent of CSP executives believe their efforts in network transformation will have a significant impact on their financial performance.
According to the survey, CSPs have acknowledged the need to shift towards a software-defined, cloud-based network to achieve cost-efficiency and flexibility. An overwhelming 95 per cent of executives recognised the importance of this shift, which would enable them to offer new, customised products and services that run faster, better, and more cost-effectively.
Despite recognising the potential of network transformation, the Accenture survey also revealed that only a mere 13 per cent of the respondents are currently accelerating their investments in next-generation networks. Surprisingly, those few CSPs are displaying greater optimism regarding their future performance. They expect 1.5 times more revenue and 1.8 times higher gross margins compared to their peers over the next three years.
Cloudification emerged as a key factor in driving flexibility and scalability in network delivery. Almost all CSPs surveyed (95 per cent) considered it vital to achieve a cost-efficient and adaptable network infrastructure. Additionally, an impressive 83 per cent of respondents believed that network cloudification could be transformative for their businesses.
However, while the desire for network transformation is evident, many CSPs face challenges in executing the process holistically. The report highlighted that half of the surveyed companies have not yet implemented use cases reliant on network automation and analytics, which are considered cornerstones of modern transformation efforts. Moreover, only 6.5 per cent of respondents felt their companies possessed the necessary skills and internal culture to effectively manage advanced networks and innovative cloud-based solutions.