European Telcos Debate Role in AI: Plumber or Strategic Partner?
At the FutureNet World conference, European telecom leaders from BT, CityFibre, and Orange debated their role in the AI ecosystem. Executives expressed uncertainty about whether they are simply 'plumbers' reacting to unpredictable traffic demands from hyperscalers, or if they can become 'partners' by providing trusted, high-capacity, and flexible connectivity for new applications like sovereign AI. The discussion highlighted changing network demands, such as symmetrical traffic and the need for software-like, on-demand bandwidth for training AI models.
Key Takeaways
- AI is creating new traffic patterns described by BT's CTO as having a “different kind of fingerprint on the network,” requiring a shift from asymmetrical to symmetrical flows.
- CityFibre has responded to new demands by launching an 8.5 Gb/s symmetrical wholesale service, arguing telcos beat hyperscalers on network redundancy.
- A consensus is forming around connectivity-as-a-service; Orange and Neos Networks execs called for making bandwidth consumable like software, with flexible scaling for AI training.
- Telcos see an opportunity in serving sovereign AI initiatives, arguing they are "trusted" partners who can provide secure infrastructure and power capacity from retired legacy networks.
- A dissenting view from IT firm Cyient noted that enterprises primarily partner with hyperscalers for AI, though telcos' "trust" factor is a key advantage with regulated industries.
Why It Matters
Generative AI is upending traditional, asymmetrical network traffic models, forcing a strategic crossroads for telcos. The core question from the FutureNet conference is whether they will be relegated to 'plumbing' for hyperscalers or can move up the stack. Firms like Orange and CityFibre are betting on value-add services like on-demand bandwidth and trusted infrastructure to become strategic partners. However, as Cyient's executive pointed out, the perception battle with enterprises is uphill. Watch for telco product launches that specifically package "connectivity-as-software" and how enterprise customers respond versus direct-from-hyperscaler solutions.
Read full article at sdxcentral.com
Enjoy our coverage?
Add StreamingMeme as a preferred source on Google to see more of our streaming news at the top of your Search results.
Add as preferred source