Network Transformation Trends in 2017

By Invitation Ryan Perera

Ryan Perera

The year 2016 could easily be termed the year of mobile broadband in India. Mobile data usage has more than doubled in the last three years and is poised for more growth still, with 4G and 3G gaining momentum. Usage increased from 5.87 lakh terabytes in 2013-14 to more than 14 lakh terabytes in 2015-16, according to data by Telecom Regulatory Authority of India (TRAI).

With data consumption on the rise, it is hardly surprising that India’s service providers are exploring technologies that enable them to enhance capacity and provide better customer experiences, while also bringing down operational costs. The following trends are likely to dominate the Indian telecommunications segment in the coming year:

1. Software: In the beginning of 2016, we talked about the fact that future networks will be all about software (See Voice and Data website, January 11, 2016). That will still very much be the case in 2017. There’s no doubt that more of our customers will embrace software programmability and virtualization to better manage their networks. One key benefit from software for the end user is that network downtime issues will decrease. For example, in the past locating the point where a fiber is cut caused considerable downtime. But intelligent software and analytics are now available to help pinpoint the exact location of a cut, without needing to send a team out in the field to investigate.

Additionally, recent advancements in software will reduce the limitations of proprietary and box-centric networks to enable more flexibility and programmability. This will open up networks to greater choice for operators and help eliminate vendor “lock-in”.

2. Data Growth: Indian service providers will continue to feel pressure from end users for more high-bandwidth services like cloud computing, video, mobile applications and the internet of things (IoT). The IoT market in India is poised to reach US$15 billion by 2020 accounting for the nearly 5% of the total global market, according to a recent report on IoT by National Association of Software and Services Companies (See http://www.nasscom.in/iot-india-next-big-wave). India’s Smart City initiative is also expected to contribute to IoT growth. IoT will also help fuel smart city initiatives. Earlier this year, the Indian government released a list of 20 cities as reported by all major media houses, to be transformed into smart cities during the first phase of the initiative, through a planned investment of US$7.5 billion. Ultimately, nearly 100 cities will be transformed into smart cities throughout India.

A data–centric market driven by these fore mentioned drivers and coupled with government-led initiatives like Digital India and Smart City, will make it imperative for service providers to utilize new coherent optical technologies that allow them to automatically shift network resources and keep up with changing business scenarios. In 2017, we will begin to see more advanced networks that can not only measure and monitor network performance and usage in real-time, but also adjust automatically to ensure superior efficiency and quality.

3. Mobile Wallet Boom: The Indian government’s recent move to demonetize Rs 500 and Rs 1,000 notes from November 8, 2016 midnight has provided much-needed impetus to the mobile payment sector.

The mobile payment transaction volume is likely to witness Compounded Annual Growth Rate (CAGR) of over 90% to reach Rs153 billion by financial year 2022 against just Rs 3 billion by FY2016, according to a recent ASSOCHAM-RNCOS study (See http://www.assocham.org/newsdetail.php?id=6028). Policies such as demonetisation and Digital India can be fruitful only if 100% people of the country have smart phone, electricity and Internet access round the clock. How this will be achieved has to be worked out seriously. This means an increase in the sale of smartphones, but this has a limitation in that 100% people have to be able to afford it and have 24 hours access to electricity and Internet.

4. Security: Security threats have been increasing in magnitude over the last few years and are likely to continue in 2017. Heightened levels of security are required to safeguard sensitive data and to defend against different kinds of hacks. The redundant security tools of the past are no longer enough to secure sensitive business data.

 As Indian enterprises start to adopt newer technologies like network automation and machine-to-machine (M2M), a comprehensive approach to data protection in the face of advanced and persistent security risks is critical. Traditionally, encryption has been used to protect data on premises, but now it is emerging as a prominent technology to protect data in-transit, as well. In 2017, we expect service providers will take a holistic view and adopt a security approach that safeguards the network from end-to-end.

These are just a few of the technology trends we expect to see in 2017, but one important point is clear: today’s networks are evolving. Service providers have already started experimenting with virtualization and also making an effort to transition to programmable networks that help them to dynamically manage available resources. Growing security concerns and the emergence of trends such as IoT and smart cities are also driving network upgrades and modernization.

The author of this article Ryan Perera is India Country Manager, Ciena