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Fast track Network Virtualisation

A perfect Storm

Telecom Operators are gearing up investments to upgrade the core network and in IMS and VNF technologies, to ensure they are fit for purpose in an increasingly data rich world.

We interviewed over 40 heads of technology and engineering at a diverse range of telecoms service providers across the globe to see how they are using IP Multimedia Sub-systems (IMS) and Virtualised Network Functions (VNF) to drive higher revenues and become more efficient in a market being squeezed by increasing demand and falling prices.

Major capital investment in preparation for 5G roll-out is expected to take off in 2019/2020. For many telecoms companies capex spend will tail off ahead of this, giving them the perfect opportunity to refocus their investment to ensure they can take advantage of next generation network technology.

IMS Benefits

  • Companies are turning to IP Multimedia Sub-systems (IMS) to open new service opportunities and revenue streams while reducing the cost of launching new applications.
  • Adopting IMS can create savings of up to 50% per new application launched compared to a launch on vertical services.

VNF Advantages

  • Virtualised Network Functions (VNF) can increase flexibility to dynamically allocate demand to where capacity is available, reducing the need to invest in higher and higher network capacity to handle rising data traffic.

Our findings

Telecoms companies are using IMS and VNF together to reduce costs and increase revenues but operators across the globe are at different levels of transition

What is holding them back from implementing both solutions right now?

Transition to Full IP Core Networks is slow

  • Operators are making the transition but many are still maintaining a small proportion of their legacy infrastructure. 
  • 1 in 5 telecom operators have still more than 20% of their business on a legacy TDM core network however most carriers plan to increase their mix in the next 3-5 years. 

The adoption of VNF is accelerating

  • To date only a small minority of operators have begun to virtualise a significant amount of their network.
  • However a sizeable majority of operators expect to increase their levels of virtualisation in the next 3-5 years.

Wireless and large Tier 1 operations will be ahead of the curve

  • A vast majority of tier one operators expect the transition to VNF will increase over the next 3 years.
  • A sizeable majority of wireless operators expect VNF adoption to be faster among mobile operators over the next 3 years.

By 2020, Telecom networks will be completely different from today. Operators will have entered in a new infrastructure era centred on software-defined networks. This will affect the types of suppliers you engage and the staff you hire.

Contact us to find out how these trends could impact your business strategy

Contact us

David Russell

UK Telecommunications leader, PwC United Kingdom

Tel: +44 (0)7711 172195