The telecommunications industry is undergoing a radical shift, pushed by emerging technologies such as artificial intelligence (AI), data analytics, and automation. The recent SATNAC 2024 panel discussion, “Redefining Telecommunications: Telcos of the Future,” hosted by Sello Mmakau, Group Chief Digital Officer of Telkom SA, brought together global experts to explore how these innovations are reshaping the telco landscape.
The panellists, including Prof. Thomas Magedanz from Technische Universität Berlin, Dr. Adrian Tiplady of the National Research Foundation (NRF), Naeem Seedat from Telkom SA, and Manav Daby, Specialist in Data & AI at Google, shared their insights on the role of AI and the broader implications for the future of telecommunications.
Telco to Techno
The panel kicked off with Mmakau addressing Prof. Thomas Magedanz about the shift from traditional telcos to a new operating model termed “Techno”, which is relatively new buzzword that has emerged to describe the transformation of traditional telecommunications companies (telcos) into more technology-focused and innovative businesses.
Magedanz emphasised the role of AI in this transition, framing it as a key enabler in network automation.
“We’ve seen that automation in networks has been a long-standing trend,” Magedanz noted. “AI, particularly in the context of 6G research, is poised to facilitate self-optimizing networks that can enhance energy efficiency and performance.”
While the professor was optimistic about AI’s ability to transform telecommunications infrastructure, he also pointed out the growing dominance of enterprises in controlling data, which AI relies on.
“In the future, enterprises will own 90% of the data,” he stated, highlighting a shift in control from telcos to business domains such as smart health, smart energy, and smart factories.
The fundamental takeaway from Magedanz’s perspective is that connectivity is becoming a commodity, and the future telcos – now evolving into tech companies – must find new roles in facilitating enterprise-driven AI applications.
AI as a value chain: Telcos must choose their role
Naeem Seedat, Telkom’s Executive for Group IT, expanded on Magedanz’s comments by outlining a strategic approach to AI adoption within the industry.
He posed the question of whether AI should be treated as a vertical – an independent pillar of innovation – or whether it should be embedded across all products and services.
“I believe that AI should be viewed as a value chain,” Seedat explained, rather than just a tool or application. “It is a globally integrated system that includes hardware, software, talent, and intellectual property from multiple actors.”
Seedat’s argument is that businesses need to assess their relationship with AI in one of three ways: as consumers, contributors, or producers.
Most businesses are consumers, indirectly leveraging AI via third-party services. Contributors, on the other hand, add value by mastering APIs and tools that enhance their offerings. Producers are the few entities that control the foundational infrastructure for AI, such as cloud platforms or data models.
“Your business strategy for AI depends on where you see yourself in this value chain. If you are primarily a consumer, then a policy for responsible use and governance is essential. But if you want to be a producer, investing in a dedicated AI strategy is non-negotiable,” Seedat concluded.
The role of generative AI in transforming networks
Manav Daby from Google took a deep dive into how generative AI could impact network infrastructure and operations. Drawing a distinction between predictive AI, which has been used for years, and the newer generative AI, Daby warned that telcos must be prepared for the disruptive potential of the latter.
“Generative AI’s ability to process large volumes of data and communicate results in a human-understandable way is a game-changer,” Daby said.
He pointed out that in South Africa’s context, where network infrastructure often consists of heterogeneous equipment from various vendors, AI could greatly enhance network planning and maintenance.
For example, generative AI could assist engineers in creating configuration files for troubleshooting or even reconstructing parts of the network.
Daby also noted that productivity gains of 20% to 40% have been observed in sectors where code assistants powered by AI are already in use.
Furthermore, Daby highlighted how generative AI could lower technical barriers, making it easier for developers and businesses to interact with telecom infrastructure.
“Imagine an AI that doesn’t just give you the SDK but writes the code for you,” he said. “That’s the future we’re heading towards.”
AI in democratizing access to services
Expanding on the potential for AI to democratizs access, Mmakau posed a crucial question to Dr. Adrian Tiplady about shared value and co-creation in the telco sector. How can telcos move beyond profitability and contribute to societal development through public-private partnerships?
“Telcos need to rethink their role in value creation,” Tiplady said, stressing the importance of shared value as a business strategy.
He explained that shared value is about linking profit to purpose, not just focusing on shareholder returns but considering broader stakeholder interests, including customers, employees, and the communities in which telcos operate.
“Society today expects more than just connectivity; they expect telcos to be drivers of social and environmental change,” Tiplady noted. “This means moving from a shareholder-centric model to a stakeholder model, where telcos co-create value with their users and community partners.”
He pointed to companies like Unilever as examples of how shared value can be implemented successfully, particularly in public-private partnerships aimed at improving socio-economic conditions.
The Telco of the future: A Techno?
The overarching theme of the panel discussion was clear: the traditional telco model is becoming obsolete.
As Prof. Magedanz noted, “Connectivity is becoming a commodity,” and telcos must innovate to stay relevant. Whether through AI-driven automation, network optimisation, or creating shared value with communities, the future telcos will look more like technos – focused on enabling enterprise and consumer-driven applications.
Mmakau’s final words summed up the discussion: “We’re seeing contrasting views, but the common ground is that AI is reshaping how we think about telecommunications. The telco of the future is not just about providing connectivity – it’s about creating an ecosystem where AI and data empower everyone, from businesses to individuals.”
As telcos continue their transformation into technos, they must embrace AI not just as a tool but as a fundamental value chain that will shape their future.
From automating networks to co-creating value with customers, the telco of tomorrow will be defined by its ability to leverage AI and data in meaningful, innovative ways.
This panel discussion highlighted the challenges and opportunities ahead, but one thing is clear: the telco of the future will be much more than a provider of connectivity, it will be a technology leader that helps shape the digital economy.
