Driving network monetization capabilities to create growth

At Digital Transformation World 2022, I had the pleasure to partake in a panel joined by Erlend Prestgard, CEO and Co-Founder, wgtwo and Peter Leukert, CIO, Deutsche Telekom AG. I was able to showcase how at AWS, we intend to combine a layered view on how the transformation from Telco to TechCo and a cloud native approach enables CSPs to monetize the assets they invest in, e.g. ICT, network, services to monetize for growth.

Peter Leukart of Deutsche Telekom provided exciting examples on how their transformation towards cloud enables new agile and software driven approach to create platforms for growth and what it requires in terms of culture change, talent build, and skillsets to drive adoption.

Erlend Prestgard of wgtwo gave an insight view on how an API driven approach to build new network capabilities for mobile cores enables both simplification in the network, but also new monetization opportunities and quick and seamless roll-out of services.

AWS will flank with how cloud technology can enable monetization both in core and edge through specific use cases, how AWS supports CSPs in the necessary journey to TechCo and how the developer eco-system sparks innovation that CSPs leverage for their end customers.

Together, with the panel, we addressed a few questions:

As a cloud provider, how do you enable both ends of this journey from the AWS side?
Step 1: use cloud to improve operations; Step 2: stop switching workloads and start switching business models
Observation: cloud benefits both start-ups and large-scale complex CSPs;
Why? Because of the core benefits of cloud; agility, flexibility, “software”, pay-as-you-go, seamless operations, common API are applicable to all.

Innovation is realised by the likes of Deutsche Telekom and wgtwo – and they wield it to accomplish the objectives for their specific journey. AWS has the task to support them, in all the four areas we enable telco’s and CSPs: cloudifying networks, simplifying operations, re-imagining customer experience and unlocking growth.

The common ground between start-ups and complex operators can be found in the sequence of applying cloud: first, using it to improve operations, but second, stop purely switching workloads and start switching business models.

The collaboration between AWS, Deutsche Telekom and wgtwo breeds innovation through a three way learning relationship. For AWS it is important to take those learnings to the other operators across the globe, to see what we can replicate and how we can best support each specific cloud journey, but scale this for all CSPs.

What are the necessary steps to enable the cloud journey to drive growth in your business?
Culture change, cloud skills, attracting and retaining talent, obsession about data, agile and flexible development, and also re-thinking products and services.

Let’s take obsession on data: We see CSPs accelerate their projects and strengthen their focus on becoming data driven organizations, use date in new ways to make decisions and to re-create customer experiences based on that data. For CSPs who seek to go “data first”, you need to liberate the data, turn from silos to data lakes and use it for operations.

One example is Cox Communications in the US. They leverage AI/ML to drive customer experience improvements. They do it through measuring true customer experience with an AI enabled Operating Model. Their aim is to become proactive and preventative in their operations based on an AI platform on AWS. So, they build a scalable technology platform for massive data sets that allows for intelligent automation.

Re-thinking products and services: Telecom operators and CSPs have many, fruitful and trusted customer relationships that they can build on. Their aim currently is to innovate on top and use your customer relationships to create new, transformative services that can well go beyond connectivity and use cloud to change how services are consumed digitally, build on the cloud.

As an example, headquartered in Nairobi, Kenya, Safaricom is the largest mobile network operator in the country. Safaricom provides mobile voice, messaging, data and financial services to nearly 40 million customers in Africa. One of the examples is its investment into the Agriculture sector transformation through DigiFarm, a free service offering smallholder farmers access to quality farm inputs. This includes discounted prices, input loans, learning content on farming as well as access to market.

With AWS, Safaricom launched the DigiFarm eMarketplace built on cloud. DigiFarm is transforming the agricultural sector to enable small holder farmers become wealthier resulting in sustained food security.

What are use cases that are successful and attractive to end customers in B2C and B2B?

In the cloud era, the customer dictates the pace of innovation, they look at the CSP to be a trusted and experienced partner in that process. Telecom operators also can use their capabilities to bring connectivity and cloud together to re-invent communications in different segments.

One example is Telenor who innovate together with AWS to cater for special needs on mobile private networks. Telenor innovated a network on wheels for drone-based search and rescue together with AWS for the Norwegian defence material agency. It is also used by the and the Norwegian Public Service broadcaster Norsk Rikskringkasting (NRK) for critical communication and remote production use cases.

Internationally, Telenor’s Thailand brand dtac, launched a 5G private network proof-of-concept for Thai enterprises based on edge computing and the AWS Snow Family. This solution helps customers process real-time, artificial intelligence (AI)-based video analytics and other applications in remote locations. Specifically for 5G, monetization of these capabilities is a lot more about industry and segment specific use cases that deliver immediate value for the end customers. From a cloud perspective, operators have to be ready to experiment to identify those use cases. We call this, trial fast & fail fast or scale fast.

While core industry segments, such as manufacturing, logistics and health get most attention in b2b, in a business to consumer model, we have successful use cases from Orange, Rogers and Vodafone, for instance in sports.

With Orange we are co-innovating in the Velodrome stadium in France where Orange has a special lab to trial specific use cases for this segment. Rogers Communications in Canada leveraged their newly established 5G spectrum capabilities for exciting new consumer use cases that will power immersive 5G experiences. As part of this, Rogers has already created a hockey Augmented Reality Immersive in-venue fan experience on AWS Outpost. https://www.youtube.com/watch?v=WWoGelcfINc

And Vodafone in Germany recently showcased immersive applications on mobile phones with the German Football League DFL for life information on soccer games in the stadium.

The key learning to take from this is to work backwards from the customer need and see what works and how AWS and the CSP can make it a reality for the end customer.

How does the way telco services are consumed change and what is the impact of this?

One of the key challenges for CSPs and telco operators is that they have to re-invent themselves to fully leverage the opportunities presented by the cloud. Essentially becoming a software driven business, which involves huge efforts in organizational transformation and in creating new business models for connectivity and new customer experiences.

A major change on how telco services are consumed is the way customers integrate them into their own internal solutions – much more through APIs, new commercial models and through digital marketplaces. We are exploring this with wgtwo, but also with the other network equipment providers, on the network – from the BSS/OSS to the core to the RAN and beyond to IoT.

At DTW, we showcased a catalyst on marketplace phase 5 in the exhibition hall showing how AWS is collaborating with technology partners and CSPs to consume telco services in new ways.

We do this in close partnership and there is a lot of value that operators can bring to the table. A very good example from Peter was that of T-Systems International, who are creating new security solutions for their customers. Security and privacy are the reasons that T-Systems is using AWS and offering a fully managed turnkey data protection service. This new service better meets security and privacy criteria for customers, enabling them to control how their data is used, who has access to it, and how it is encrypted. The company will also offer local European-based technical support in a secure cloud environment from a team located within EU borders. This collaboration is an example of innovation happening across the industry that’s helping telecoms get the most value from their data.

To watch a recording, please click here.