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24 Dec 2024

AI and Automation in Telecom Networking: Reducing Costs & Downtime

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Sharon Duchin
AI and Automation in Telecom Networking_ Reducing Costs & Downtime
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Step into any Network Operations Center (NOC) today and you’ll see a striking evolution in progress. While NOC analysts still monitor network health across multiple screens, their role has fundamentally shifted. Instead of mainly reacting to alerts and manually troubleshooting issues, they’re increasingly partnering with AI systems to proactively manage network performance. These analysts now spend more time defining automation rules, training machine learning models, and making strategic decisions about network optimization—tasks that require combining human expertise with artificial intelligence.

Traditional monitoring tools and basic automation scripts are giving way to sophisticated AI systems that can analyze millions of data points in real-time, predict potential issues hours or days in advance, and automatically optimize network performance. It’s not just about replacing manual tasks—it’s about enabling NOC teams to manage the unprecedented scale and complexity of modern networks that support everything from cloud services to 5G applications.

The shift from reactive to proactive network management represents nothing less than a revolution in how telecom networks operate and deliver value to customers while dramatically reducing operational costs.

Why Teridion?

Network downtime or latency issues can significantly hamper workflows and decrease overall productivity. Moreover, revenue generation can be directly impacted as businesses reliant on online sales or subscription-based models experience reduced transactions or churn due to these connectivity issues.

AI in Networking: The End of Traditional Network Management?

The explosive growth in network traffic—driven by cloud computing, video streaming, IoT devices, and 5G applications—has pushed traditional network management approaches to their limits. Telecom carriers now process more data in an hour than they did in a day just a few years ago, while customers expect better performance and reliability than ever before. This exponential increase in network complexity means carriers can no longer rely solely on traditional monitoring tools and manual interventions to maintain service quality.

These escalating demands create significant operational challenges. Network downtime, which can cost carriers millions in lost revenue and damaged customer relationships, becomes more likely as systems grow more complex. Operating costs continue to rise as carriers maintain and upgrade infrastructure across increasingly distributed networks. And inefficiencies that might have been manageable in simpler networks now create significant performance bottlenecks that impact service quality. These challenges are compounded by a shortage of skilled network professionals and the need to continually roll out new services while maintaining existing ones.

Use Cases for AI in Networking

The applications of AI in modern telecom networks are remarkably diverse, touching everything from security to performance optimization. Here are some key areas where AI is making a significant impact:

Cybersecurity: AI systems act like vigilant security guards, continuously monitoring network traffic for suspicious patterns that might indicate a cyber attack. Unlike traditional security systems that rely on known threat signatures, AI can identify novel attack patterns and adapt defenses in real-time.

Intelligent Routing and Performance Optimization: AI algorithms analyze traffic patterns across the entire network, making instantaneous routing decisions to prevent congestion and ensure optimal performance. Unlike traditional routing systems that follow fixed rules, AI-powered routing dynamically adapts to network conditions, considering factors like current latency, available bandwidth, and application requirements to find the optimal path for each data packet. This intelligence extends throughout the network, optimizing not just the last mile but the crucial mid-mile segments where multiple traffic streams converge. The system can even predict traffic spikes based on historical patterns and preemptively adjust network resources to handle increased demand.

Network Data Analytics: AI transforms vast amounts of network telemetry data into actionable insights. By processing and analyzing data from network devices, protocols, and user sessions, AI can identify performance bottlenecks, detect anomalies, and uncover usage patterns that might be invisible to human operators. This deep analytical capability enables proactive network maintenance, helps diagnose complex issues spanning multiple network layers, and provides valuable insights for network evolution planning.

Capacity Planning and Scaling: AI helps carriers make more informed decisions about network expansion by analyzing long-term usage trends and predicting future capacity needs. This prevents both over-provisioning (which wastes resources) and under-provisioning (which degrades service quality). The AI systems can also assist in determining optimal scaling strategies, whether that means horizontal expansion across geographic regions or vertical scaling through upgraded infrastructure, ensuring that network growth aligns with actual demand patterns and business objectives.

Cutting Costs with AI and Automation

The financial benefits of AI and automation in telecom networks are substantial and multifaceted. At the operational level, automation dramatically reduces the need for manual intervention in routine tasks, allowing carriers to operate more efficiently with their existing teams. Rather than eliminating jobs, this shift enables technical staff to focus on more strategic activities while automated systems handle routine operations.

Infrastructure costs also see significant reductions through AI-driven optimization. By making better use of existing networks, carriers can often delay or reduce costly expansion projects. More accurate capacity planning prevents the common problem of overprovisioning, where networks are built to handle theoretical peak loads that rarely materialize. Perhaps most significantly, the prevention of network failures and reduction in outage duration directly impacts the bottom line by minimizing service credits and penalty payments to customers.

The cost implications of network downtime are staggering for carriers, making AI’s preventive capabilities particularly valuable. Major carriers can lose anywhere from $100,000 to $1 million per hour during network outages, depending on the scale and services affected. These losses come from multiple sources: direct revenue loss from service interruption, contractual penalties for missing SLAs, emergency repair costs, and long-term customer churn due to reliability concerns. For carriers operating critical enterprise networks or supporting emergency services, the financial impact can be even more severe due to regulatory fines and liability issues. By helping prevent even a few hours of downtime per year, AI systems can easily justify their implementation costs.

Reducing Network Downtime with AI and Automation

Network downtime costs carriers more than just lost revenue—it damages customer trust and brand reputation. AI and automation work together to minimize these costly disruptions in several ways:

Predictive Maintenance: AI algorithms analyze performance metrics to identify potential failures before they occur. For instance, the system might detect that a network component is showing early signs of degradation and automatically schedule maintenance during off-peak hours.

Automated Failover: When issues do occur, automated systems can instantly redirect traffic through alternate paths, maintaining service continuity while the primary path is restored. This happens in milliseconds, often before users notice any impact.

Self-Healing Networks: Advanced AI systems can automatically diagnose and fix certain network issues without human intervention. This might include resetting problematic equipment, adjusting configuration settings, or implementing workarounds for failed components.

Future of AI in Telecom Networking

As we look ahead, the role of AI and automation in telecom networks will only grow more crucial. The expansion of 5G networks, with their complex network slicing requirements and dynamic resource allocation needs, makes AI-driven management essential rather than optional.

The emergence of 6G technology will dramatically accelerate this trend, pushing AI capabilities from being merely beneficial to absolutely fundamental for network operations. Expected to debut in the 2030s, 6G networks will operate at frequencies up to 1 terahertz and aim to deliver sub-millisecond latency with massive device density—potentially up to 10 million devices per square kilometer. This unprecedented scale and complexity will require AI systems capable of making autonomous decisions at speeds beyond human capability. 6G’s vision of “intelligent connectivity” will integrate AI directly into the network architecture, enabling features like:

  • Holographic communications requiring real-time 3D rendering and transmission
  • Robust satellite-terrestrial network integration demanding sophisticated orbital-ground coordination
  • True autonomous systems requiring ultra-reliable, virtually instantaneous network responses
  • Ambient intelligence where the network itself becomes a distributed AI platform

Carriers that embrace these technologies now position themselves to:

  • Deliver more reliable and higher-performing services
  • Operate more efficiently with lower costs
  • Adapt more quickly to changing market demands
  • Innovate more effectively with new services and capabilities

The future belongs to carriers who can harness AI and automation to deliver superior service while maintaining operational efficiency. Those who delay adoption risk falling behind as the industry continues its rapid evolution toward more intelligent, automated network operations. The transition from 5G to 6G will represent not just a generational upgrade in speed and capacity, but a fundamental shift toward networks that are inherently AI-driven at their core.

How Teridion Empowers Telecoms with AI-Driven Network Optimization

Teridion demonstrates the transformative power of AI in modern telecom networks by leveraging real-time intelligence and machine learning to optimize routing across the world’s largest global backbone network. 

Trusted by global telcos such as Deutsche Telekom and Singtel, Teridion’s intelligent routing system continuously analyzes network conditions, making thousands of routing decisions per second to optimize traffic flow. By maintaining a comprehensive view of global internet conditions, Teridion can identify and avoid network bottlenecks before they impact service quality, ensuring consistent performance even during unexpected traffic surges.

A key differentiator of Teridion’s NaaS platform is its commitment to transparency in AI operations. The platform provides full visibility into network performance and AI decision-making, eliminating common “black box” concerns. This transparency allows carriers to understand, validate, and fine-tune the AI’s routing decisions, ensuring that automated choices align with business objectives and service requirements.

Moreover, while premium network performance increasingly competes with the need for robust security, Teridion ‘Secure Connect’ (in partnership with Microsoft) eliminates this compromise by offering fully integrated in-network SASE

For telecommunications providers, Teridion translates into more efficient resource utilization, improved service quality, and the ability to rapidly adapt to evolving market demands without compromising performance, reliability, or owner economics. As the telecom industry continues to evolve, solutions like Teridion’s will play an increasingly crucial role in shaping the networks of tomorrow.

Picture of Sharon Duchin
Sharon Duchin

Head of Marketing

Sharon Duchin is the Head of Marketing at Terdion. Prior to joining Teridion she was the CMO of several startups, as well as a Business Unit Manager at Keter Plastic and a Marketing Manager at General Mills USA. Sharon Holds an MBA from Chicago Booth and a B.Sc. in Computer Science and Economics from the Hebrew University.
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