The Reinvention of Telecommunications and the New Rules in the Game of Innovation

    Many operators are looking beyond traditional connectivity businesses to reinvent themselves as B2B technology service providers or are investing in new technologies, such as the cloud, to optimize costs and improve their services

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    We are on the brink of a long-anticipated change in the way we define the modern business. The ways in which 5G, cloud, AI, real-time communications and the IoT are coming together have put communications service providers in an incredibly unique role in leveraging new revenue streams and business models.

    In this context, many operators are looking beyond traditional connectivity businesses to reinvent themselves, placing more and more focus on their role as B2B technology service providers. This change is redefining the telecommunications industry as we know it, and one of its biggest drivers is the advent of 5G, which introduces software-defined networks that can support a much broader range of business applications than previous generations of telecommunications grid technology.

    “5G offers opportunities for operators to expand their core connectivity business (for example, to connected cars or smart factories), but it is also a springboard to develop new services in adjacent areas such as cloud computing, cybersecurity and intelligence. artificial”, explains ÁngelAlija, SVP of Telecommunications for Oracle Latin America. “This opens up a number of new opportunities for them in the broader market for technology services that accompany business digitization”, he adds.

    The telecom experience in Latin America

    In recent years, many of the world’s largest telecom operators have moved into the managed cloud services market, which IDC projects will grow at around 16% per year to a market of US$178.8 billion by 2026. Such is the case. Claro Colombia or Teléfonos de México (TELMEX), which recently announced agreements with Oracle to jointly offer Oracle Cloud Infrastructure (OCI) services in their countries; Additionally, and as part of that same alliance, TELMEX’s data center, Triara, will become the host partner for the second Oracle Cloud region in Mexico and Claro will host the first Oracle cloud region in Colombia.

    Both regions are part of Oracle’s public cloud global expansion plan, which aims to reach 41 locations in 22 countries by the end of 2023. On the other hand, engaging in the enterprise market requires operators to leverage data at scale to identify new sources of growth to change the economics of their business. And that depends, to a large extent, on cloud technologies, which operators are rapidly adopting.

    Along these lines, AT&T Mexico announced in the framework of the last Mobile World Congress that it is transferring its critical business and IT processes to Oracle Cloud Infrastructure (OCI) to continue expanding the benefits of mobile internet for more than 21 million subscribers and business customers. in industries such as education, health and banking throughout the country. For its part, Vivo, the commercial brand of Telefónica Brasil, is migrating the data from its data center dedicated to the development, approval and pre-production of new products and services to the Oracle cloud, which will allow it to reduce OPEX (operating expenses) by between 18% and approximately 25%, eliminating the maintenance of physical assets, such as equipment and buildings.

    In the same way Entel, the telecommunications company with operations in Chile and Peru with more than 20 million customers, set the goal of migrating its IT data centers with strong help from Oracle Cloud for Telcos. They moved most of their enterprise and OSS/BSS applications, including Oracle and third-party applications, to OCI’s public cloud regions in Chile and Brazil, saving 50% compared to their own data centers and dramatically improving the availability and stability of customer service. Their most critical databases, on the other hand, were migrated to ExadataCloud@Customer, improving performance by more than 150%.

    “The cloud”: Main ally of telecommunications

    Taking into account the particular challenges and needs of the telecommunications industry, the Oracle Telcos organization for Latin America was created more than a year ago –a structure specially designed to accompany operators in this reinvention process. With this, Oracle seeks to strengthen its position as a strategic partner for its clients, with the most complete range of solutions in the industry that covers their end-to-end business needs like no other provider can. And, in addition, it offers a secure and robust integration between all its solutions.

    An industry-specific offering, Oracle Cloud for Telcos is a complete set of cloud solutions based on Oracle Cloud Infrastructure (OCI) that enable Telcos to build new applications or modernize existing workloads with more than 80 services. in the cloud, including data management, developer services, analytics and artificial intelligence.

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