CSPs' network transformation journey spans more than a decade, and participants must overcome a series of challenging hurdles along the way.

The good news is that CSPs can now start to see the finish line. Networks are constantly evolving, so network transformation is in a sense never-ending. However, the transformation goals set by leading CSPs more than a decade ago are finally taking shape.

CSPs are using cloud-native software practices to increase the level of automation in their networks, make progress in transforming their networks into platforms, and adopt open application programming interface (API) initiatives. They also build relationships with ICPs and other players needed to serve the industry through their networks. CSPs also focus on working with customers to solve problems rather than traditional technology-driven approaches.

CSPs don't yet know if network transformation will change their business, but they are creating networks that will lead to new market opportunities.

When it comes to AI (Artificial Intelligence), it is often mentioned that it has great potential for humanity and its risks. To put it milder, CSPs are also grappling with the benefits and risks of AI. CSPs are already using AI to improve their business and employee productivity, but it's too early to tell.

The t above shows the traditional telecom industry and the emerging AI market. The challenge for CSPs is when and how to enter the AI market.

Some CSPs, many of them in Asia, are basing their future strategies on AI. Instead of waiting, they want to take advantage of what could be an important opportunity. That's the challenge for CSPs: wait too long and lose another opportunity for growth. AI will still drive traffic growth, but CSPs have been hard at work in network transformation and can't settle for another growth opportunity, and all they end up offering is connectivity.

CSPs are also looking at how AI traffic will affect their networks: how much traffic it will generate and how they will benefit, and it's all a work in progress.

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