Telecoms in 2024: Rising Demand for Automation, Smart Contracts, and Cyber Insurance
- Business automation will be essential for the viability of companies in the telecom space
- Automation enables efficiency gains, improved customer experiences, and agility
- Network-as-a-Service (NaaS) combines connectivity, application assurance, security, and cloud services
- Standardized APIs will be key to seamless automation across the supply chain
- Smart contracts will become more evident within telecoms, requiring coordination and standardization
- 2024 will see increased understanding and development of workflows for smart contract use
- Cyber insurance will be in rising demand, but assessing risk will require innovation
The telecom industry is well-versed in developing and adopting standards to maximize interoperability. This enables delivery of high-value, complex, and on-demand digital services to enterprise customers. However, the industry is also facing disruption from first-generation generative AI, which will increase demand for on-demand connectivity, compute, and storage. As a result, business automation will become essential to the viability of companies in the telecom space. In 2024, automation will reach a tipping point, driven by enterprise demand for cloud-like services.
Business automation offers numerous benefits, including efficiency gains, improved customer experiences, and the ability to adapt to a rapidly evolving digital landscape. Network-as-a-Service (NaaS) is a prime example of how automation facilitates the delivery of dynamic and scalable services, catering to the ever-changing needs of businesses. Standardized APIs will play a key role in seamless automation across the supply chain, and operators who adopt standards-based automation will gain a competitive advantage. By embracing automation, service providers can deliver tailored services faster and improve customer loyalty.
Smart contracts will also play a significant role in the telecom industry in 2024. Using automated code running in blockchains, smart contracts streamline business partnerships. However, the use of smart contracts requires coordination and approval from multiple departments within counterparties. To streamline this process, there will be a growing demand for off-the-shelf, open standard smart contracts that can be used as is or with minimal adjustment. Standardizing smart contracts will involve reaching consensus on business requirements, use cases, interfaces, security audits, and more.
Cyber insurance will become increasingly important in the telecom industry, similar to the shipping industry’s reliance on maritime insurance. The telecom industry is responsible for “shipping” trillions of packets of mission-critical digital data, and many companies would like to pass the risk of damage from cyberattacks to a third-party insurer. However, assessing risk for cyber insurance is challenging due to the lack of historical data. Innovations in zero trust and other emerging technologies will be necessary to mitigate and measure risk from cyberattacks to the global economy’s digital supply chains.
In conclusion, automation, smart contracts, and cyber insurance will shape the telecom industry in 2024. Business automation will be essential for companies to stay competitive and deliver services tailored to customer needs. Standardizing smart contracts will streamline business partnerships, while cyber insurance will become increasingly important to mitigate the risk of cyberattacks. Overall, these emerging challenges present opportunities for innovation and new business growth in the telecom industry.