Post COVID Telco AI Blueprint for the UK
By Afnan Khan with Ajay Lotan Thakur
Introduction
In the eerie silence of deserted streets and amidst the anxious hum of masked conversations, the world found itself gripped by the rapid proliferation of COVID-19. Soon labelled a global pandemic due to the havoc wreaked by soaring death tolls, it brought unprecedented disruption and accelerated the inevitable rise of the digital age. The era of digital transformation has swiftly transitioned, spawning a multitude of businesses catering to every human need. Today, our dependence on digital technology remains steadfast, with remote work becoming the norm and IT services spending increasing from $1.071 trillion in 2020 to $1.585 trillion. [1]
The chart below, sourced from Oliver Wyman Forum Analysis,[2] vividly illustrates our increasing dependence on technology. It presents findings from a survey conducted in the latter half of 2020 across eight countries – US, UK, France, Germany, Italy, Spain, Singapore, and China. The survey reveals that 60% of respondents favoured increased use of video conferencing, while online grocery shopping and telehealth services each garnered 59% approval, and E-learning showed a strong preference at 56%. This data underscores how swiftly digital solutions integrated into our daily lives during the pandemic.
Accelerating Telecom Growth in Britain
Europe was among the hardest-hit regions by the pandemic, with death tolls exceeding 2.1 million. [3] This crisis accelerated the adoption of digital technologies, prompting businesses to invest in smarter, more sustainable operations to increase their longevity and stay relevant in the market.
In the United Kingdom, despite the government’s injection of £21.3 billion into the economy to support small businesses, the emphasis on digital transformation has been paramount. [4] The push towards digital solutions, including enhanced internet connectivity and robust data centres, underscores the long-term strategic shift towards a more resilient and technologically advanced business landscape.
Statistically, the UK telecom industry has experienced significant growth, driven by increased demand and advancements in network equipment. The shift towards digital dependency, accelerated by the COVID-19 pandemic and the rise of remote work, is expected to be long-term. This trend has also led to a surge in 5G and data centre deals.
According to Proximo, a leading Project and Infrastructure Finance Journal, projects worth $30.967 billion have closed in Europe between 2020 and 2023, highlighting the critical role of data centres in boosting the telecommunications sector. Of this, the UK accounted for $14.133 billion across seven deals, comprising both refinancing and new financing deals, representing 45.6% of Europe’s total contribution. Notably, one of the recent financing deals to close was for Ark Data Centres, based in London, with the term loan reported to be in the region of £170 million for five years, aimed at supporting a significant data project in the UK – thus establishing the country as one of the market leaders in Europe. [5]
Telecom Landscape in the UK’s New Normal
Imagine having the ability to pinpoint precisely when hardware needs replacement, akin to pre-emptively replacing floorboards. Vodafone’s United Performance Management (UPM) facilitates real-time monitoring and proactive identification of anomalies. [6] Predictive maintenance can reduce unplanned downtime by 30-50%, lower maintenance costs by 10-40%, and extend asset lifespan by 20-40%. [7][8]
Virtual Assistants
The integration of virtual assistants has not only streamlined operations but has also emerged as one of the most sought-after roles, as reported by Forbes. [9] In the telecom industry, where customer service reigns supreme, consider the live example of broadband giant BT/EE. Their adoption of remote customer support in the post-COVID world has propelled them to the forefront as the leading data provider in the UK. Mirroring European trends, the demand for virtual assistant roles has surged by 20%, [10] spurred on by initiatives such as digital nomad visas in Spain and Portugal. This trend not only reflects the changing landscape of customer service but also signals significant injections into the economy.
Traffic congestion
In the hustle and bustle of post-pandemic London, navigating the city’s streets amidst fluctuating traffic patterns and network demands presents a unique challenge. Telecom companies are stepping up to the plate, leveraging cutting-edge AI and ML technologies to tackle these issues head-on. By predicting traffic patterns and dynamically managing network loads, they’re ensuring that Londoners experience optimal connectivity and responsiveness, even during peak hours when congestion is at its peak. Imagine this: congestion hotspots are pinpointed in real-time, and network resources are strategically directed to these areas, reducing disruptions. This means that residents and commuters alike enjoy a smoother, more reliable connection, whether they’re streaming, working remotely, or simply staying connected on the go.
One shining example is Vodafone, which has implemented AI-driven traffic prediction models specifically tailored to London’s intricate traffic patterns. The result? A remarkable 25% reduction in network congestion during peak hours, as reported by TechRadar. [11] This underscores the significance of bespoke solutions in addressing London’s unique challenges post-pandemic, solidifying network performance and reliability for the city’s diverse population and thriving businesses.
Another notable case is BT/EE, which has also deployed AI-driven traffic prediction models in London. This initiative led to a significant 30% reduction in network congestion during peak hours. [12] Such tailored AI solutions not only enhance operational efficiency but also demonstrate the telecom industry’s commitment to leveraging technology to improve urban infrastructure.
Dynamic Spectrum
In the dynamic realm of post-COVID technology, telecom pioneers are revolutionising spectrum management with dynamic spectrum allocation. Imagine a digital symphony where frequencies dance to the beat of demand, seamlessly adapting to surges in digital traffic. This innovative approach ensures uninterrupted connectivity, even in the busiest digital arenas. According to recent studies, dynamic spectrum allocation has shown to increase spectrum efficiency by up to 40%, supporting seamless connectivity for the data-hungry masses. [13] Telecom wizards are thus reshaping the digital landscape, delivering turbo-charged connectivity.
References
- https://www.statista.com/statistics/203291/global-it-services-spending-forecast/
- https://www.oliverwyman.com/our-expertise/perspectives/health/2021/mar/why-4-technologies-that-boomed-during-covid-19-will-keep-people-.html
- https://www.worldometers.info/coronavirus/
- https://www.gov.uk/government/news/new-data-shows-small-businesses-received-213-billion-in-covid-19-local-authority-business-support-grants#:~:text=Press%20release-,New%20data%20shows%20small%20businesses%20received%20%C2%A321.3%20billion%20in,and%20arts%2C%20entertainment%20and%20recreation.
- Proximo Intelligence Data: www.proximoinfra.com
- Vodafone Press Release, 2022.
- “McKinsey & Company. “Predictive maintenance: The rise of self-maintaining assets.”
- Deloitte. “Predictive maintenance: Taking proactivity to the next level.”
- Forbes. “Why Virtual Assistants Are Becoming Essential for Businesses.”
- Statista. “Growth in Demand for Virtual Assistants in Europe.”
- TechRadar. “Vodafone’s AI traffic prediction cuts network congestion by 25% in London.”
- The Guardian. “BT/EE’s AI traffic prediction cuts network congestion by 30% in London.”
Afnan Khan is a Machine Learning Engineer specialising in Marketing Analytics, currently working as a Marketing Analyst at the Exile Group in London. He is involved in various projects, research, and roles related to Machine Learning, Data Science, and AI.
Ajay Lotan Thakur is a Senior IEEE Member, IEEE Techblog Editorial Board Member, BCS Fellow, TST Member of ONF’s Open-Source Aether (Private 5G) Project, Cloud Software Architect at Intel Canada.