Toys that build networks: The dark NOC revolution

As telcos embrace Dark NOCs, autonomous networks powered by Al and automation promise smarter operations, efficiency, and enhanced security, shifting industry dynamics.

- BY PRATIMA HARIGUNANI

What is common between a telco CXO, CIO, and a five-year-old child in a Toy Story movie? Nothing on the surface. Except for the scene where they happily hum as they leave that room full of their toys and casually switch off the lights. The moment the door closes, a new hidden land of action, productive noise and adventure comes alive. Suddenly, toys are talking and running a world of their own. Suddenly, one can hear NOC, NetOps, and other infrastructure stuff whirring, dancing, singing and humming with intelligence, automation and software.

Well, not so suddenly.

The days of playing in the grass are over. It has got greener, way greener, on the other side. The latest PwC Global Telecom Outlook 2024-2028 shows that the sector's total service revenue across fixed and mobile rose 4.3% in 2023 to USD 1.14 trillion. As we look ahead, global industry revenues will rise at a Compound Annual Growth Rate (CAGR) of only 2.9% through 2028, with total revenues edging up to USD1.3 trillion. Also note how fixed communications services have become commoditised or are getting there in 34% of countries.

Yes, a dismal state. And not hard to understand why for anyone who has been watching the industry's downhill ride as it battles commoditisation, competition from new and ruthless creatures like Hyperscalers, falling ARPUs with a parallel pressure on sprucing up infrastructure, and a lot, a lot of customer disillusionment.

THE NEW ERA FOR TELCO INFRASTRUCTURE

The PwC outlook also predicts that by 2028, the sector will generate an additional USD 200 billion in incremental revenue. This will happen while revenue from fixed broadband and mobile subscriptions grows at projected CAGRs of 3.8% and 4.3% between 2023 and 2028. However, fixed voice subscriptions will decrease by 1.8%.