Network Transformation: Strategic Bets for Telco Success

In today's rapidly evolving telecommunications landscape, operators face critical decisions about which technological disruptions to invest in. During a compelling session at Network X 2024, Michaël Trabbia, Executive Vice President and CEO at Orange Wholesale, shared valuable insights from Orange's network transformation journey. His presentation highlighted how softwarisation, telco cloud implementation, and AI integration are revolutionizing network capabilities while delivering significant cost savings and enhanced flexibility.

The Strategic Decision-Making Process

Making technology investment decisions in telecommunications requires balancing multiple factors. As Trabbia explained during the session, beyond financial considerations, successful technology adoption depends on:

Customer demand validation - Ensuring customers are ready to pay for new services
Ecosystem readiness - Confirming a robust supporting ecosystem exists
Internal capabilities assessment - Evaluating your organization's ability to implement and leverage new technologies
Maturity assessment - Understanding if the timing is right for adoption

Leaders must navigate between the fear of missing out on transformative technologies and the risk of wasting billions on premature investments.

Softwarisation: Transforming Network Infrastructure4

Network softwarisation represents one of Orange's primary strategic bets. This approach involves:

Converting traditional network functions into cloud-native services
Implementing disaggregated network components
Developing software-defined networking capabilities

Orange has already established 50 telco cloud Points of Presence (POPs) globally, with a target of 75. These deployments support critical services including:

Security function services
Voice services
Disaggregated switches and routers

The results have been impressive, with Trabbia reporting up to 20% TCO savings just within their own footprint, representing approximately one-tenth of Orange's total operations.

Building a Telco Cloud Foundation

Orange's telco cloud strategy demonstrates a pragmatic approach to technology adoption. The company is pursuing dual paths:

Make approach - Participating in the Silver initiative alongside other telcos and vendors
Buy approach - Leveraging Red Hat solutions for telco cloud implementation

This balanced strategy allows Orange to assess scale opportunities while maintaining flexibility. The telco cloud foundation enables:

Rapid service deployment
Enhanced network flexibility
Support for cloud-native network functions

Disaggregation Success Stories

Orange has achieved remarkable results through network disaggregation:

Router development - A dedicated team of 10 engineers has developed routers based on the SONIC open source ecosystem
Core Network as a Service - Building a cloud-native core network solution for tier 2 and tier 3 telcos that don't want to invest in their own 5G core infrastructure

These initiatives demonstrate how strategic technology bets can deliver both cost savings and new business opportunities.

AI Integration: Current Applications and Future Potential

While generative AI receives significant attention, Orange is already leveraging AI for practical network applications:

Network maintenance optimization - Reducing network alarm tickets by 70%
Anti-fraud solutions - Protecting against fraudulent activities across international calls and messaging

During his Network X 2024 presentation, Trabbia acknowledged that AI's impact on networks will evolve in two key dimensions:

How AI can further support network operations
How AI will transform customer demands on networks

Cloud Strategy: Balancing Independence and Focus

Orange's cloud approach balances the desire for vendor independence with operational focus:

Leveraging GCP for many services
Using Microsoft Teams and Azure for communication services
Developing sovereign cloud solutions through Blue, a joint venture with Capgemini

This strategy addresses both technical requirements and regulatory constraints, particularly for services classified as vital to national interests.

Conclusion: The Path Forward

Network transformation requires making strategic bets based on customer needs, ecosystem readiness, and organizational capabilities. Trabbia's insights at Network X 2024 demonstrate that softwarisation, telco cloud implementation, and AI integration can deliver significant benefits when approached strategically.

As Trabbia noted during the session: "Your customer, our customer, they want to be able to order a connectivity route between Paris and Sydney in one minute." Achieving this level of agility requires a flexible, software-defined network foundation.

Take Action Now

Is your organisation making the right strategic bets on network transformation? Evaluate your current infrastructure against the criteria outlined by Trabbia and identify opportunities to implement softwarisation, telco cloud, and AI solutions that align with your business objectives. The telecommunications landscape continues to evolve rapidly—those who make informed strategic bets today will be positioned for success tomorrow.

Human Insight, Summarised by AI