Indian Telecom Firms See AI as Major Revenue Driver, 67% Expect Growth in 3-5 Years: Ciena Survey

AI could become a new revenue engine for Indian telecom companies: Survey

Indian telecom providers see artificial intelligence as a major revenue growth driver. They will offer premium connectivity and advanced network automation services. Connecting AI data centers and computing clusters presents a significant opportunity. Edge AI and physical AI applications will also generate substantial enterprise revenue. Indian telecom and network service providers are increasingly looking at artificial intelligence not just as a technology upgrade, but as a new source of revenue, according to a recent survey by network technology company Ciena. As many as 67% of Indian service providers surveyed strongly believe AI-driven network services will become a major driver of revenue growth over the next three to five years. Another 27% somewhat agree with the view. The survey, conducted by Censuswide for Ciena among 1,200 telecom providers, wholesale fibre operators and regional service providers across 12 markets, included 100 respondents from India. But what exactly will telecom companies sell to make money from AI? Also Read: India's AI data-centre push could drive 5% of global chip demand by 2030 Connecting the AI infrastructure A big opportunity is expected to come from simply connecting the growing number of AI data centres and computing clusters. As companies build AI infrastructure across multiple locations, they will need high-speed networks to move huge amounts of data between data centres, clouds and enterprises. Ciena's survey found that 98% of Indian respondents expect multi-operator fibre network (MOFN) services to generate revenue by connecting distributed AI computing clusters over the next three years. Nearly half, or 48%, expect this to be a significant source of revenue. This means telecom and network providers could increasingly make money by providing the underlying connectivity that AI systems need to function. Selling premium AI connectivity AI workloads also require networks that are faster and more reliable than traditional enterprise traffic. That creates another potential revenue stream: charging businesses for premium connectivity with guaranteed performance. Some 93% of Indian respondents said next-generation optical technology will be critical to making AI connectivity services profitable and competitive. Meanwhile, 88% said optical network upgrades are urgently needed to provide the low-latency and reliable connections enterprises will expect from premium AI services. Network automation is another piece of the puzzle, with 94% calling it important or critical to capturing AI-related opportunities. In simple terms, telecom operators will need to build smarter, higher-capacity networks first and then sell that performance to businesses as a premium service. AI at the edge could open another market As AI moves closer to factories, warehouses, hospitals and other workplaces, telecom companies could provide the connectivity and computing needed to run AI applications closer to where the data is generated. This includes services such as edge computing, private wireless networks, local AI processing and GPU-as-a-Service. Ciena said 88% of Indian respondents expect these services to generate at least 10% of their total enterprise revenue over the next three years. About 35% expect them to contribute more than 20%. Physical AI is another emerging opportunity. This includes applications such as industrial robots, machine-vision systems and remotely controlled equipment. Also Read: The next export story: A $50 billion prize India can't afford to miss Around 93% of respondents see moderate or high revenue potential from physical AI for private networks and edge computing. Further, 59% expect physical AI to contribute more than 15% of their total AI enterprise revenue within five years. Moving data between clouds AI also means companies will be moving increasingly large amounts of data between different cloud platforms. That creates opportunities for telecom providers to sell cloud connectivity and bandwidth as services. According to the survey, 58% of Indian respondents expect to generate revenue from managing multi-cloud connectivity, while another 58% see consumption-based bandwidth services as a potential revenue stream. The basic business model is therefore shifting from simply selling a network connection to selling different layers of connectivity, computing and performance depending on what an enterprise's AI workload requires. "After going through one of the fastest 5G roll outs globally, Indian service providers are now shifting focus to AI infrastructure builds and AI monetization," Gautam Billa, vice president, solutions engineering and chief technology officer, Asia Pacific, India and Japan, Ciena, said. The survey suggests India's telecom industry sees AI as more than a traffic generator. The bigger opportunity could be charging enterprises for the infrastructure, connectivity, computing and performance needed to run AI applications.

Artificial Intelligence Can Reshape Indian Telecom Sector

Indian telecom companies are increasingly focusing on AI-based network services to generate future revenue. Still, they say that urgent upgrades to optical fiber systems are needed to handle the demands of AI-connected systems. * Make Telecom Talk My Trusted Source Also Read: ChatGPT Ads Launched in India, Budgets Start at Rs 725 AI Can Reshape India's Telecom Industry Artificial intelligence is becoming more than just a tool in India's telecom industry. A new survey by the network technology company Ciena shows that Indian telecom companies are beginning to view AI-based network services as a way to generate revenue over the next three to five years. The survey included more than 1,200 telecom and network service companies in 12 countries. It found that 67% of companies believe that AI will become an important way to make money. Another 27% agreed to some degree. This puts India among the countries that are most excited about AI-enabled telecom services. One big opportunity is in AI data center connections. According to the survey, 98% of service providers believe that managed optical fiber network services will generate new revenue as companies adopt AI equipment, cloud computing, and high-performance computing chips. The need for strong connections is making optical fiber an essential part of future AI networks.

Ciena Research: Indian Telcos Eye AI Network Revenue & Optical Upgrades

A recent Ciena survey of service providers underscores the anticipated revenue potential of AI-driven network services, with respondents in India among the most confident of the 12 markets surveyed. According to the findings, 67% of Indian service providers strongly agree that AI-driven network services will be a primary driver of revenue growth over the next three to five years. The research was conducted by Censuswide among 1,200 telecommunications providers, wholesale fiber network operators, and regional service providers across 12 markets, including 100 respondents in India. According to the findings, India service providers identified three priorities: modernizing network infrastructure, delivering more dependable performance for enterprises, and creating new business models around edge computing, cloud connectivity and physical AI. AI services and MOFN create revenue potential: * The survey findings indicate broad confidence in AI as a catalyst for revenue growth. Alongside the 67% who strongly agree that AI-driven network services will be a primary driver of new revenue, a further 27% somewhat agree. * Data center connectivity is also expected to play a larger role. 98% of respondents expect MOFN services to contribute to revenue from connecting distributed AI compute clusters over the next three years, including 48% who see them as a significant contributor. Network enhancements are key to meet AI-driven demands: * 93% of respondents in India agree that next-generation optical technology, such as higher-capacity wavelengths and power-efficient coherent optics, is critical to making AI connectivity services more profitable and competitive. * 88% say optical network upgrades are urgently needed to deliver the reliable, low-latency performance enterprises will expect from premium AI services, including 38% who say major upgrades are needed immediately. * 94% consider advanced network automation important or absolutely critical to capturing AI-driven opportunities, pointing to the need for networks that can adapt quickly as AI traffic changes. Edge computing, physical AI and cloud connectivity open new revenue streams: * Reliable, low-latency performance is believed to be a key differentiator. 96% of respondents say guaranteed low-latency performance is very important or absolutely critical to generating revenue from enterprise edge deployments, while 37% point to stable performance and low jitter as the highest-potential area for premium services. * Physical AI ecosystems, including autonomous industrial robots, machine vision and remote-control systems, also garnered favorable response. 93% of respondents see moderate or high revenue potential from physical AI for private network and edge computing offerings, while 59% expect it to account for more than 15% of total AI enterprise revenue within five years. * As enterprises move larger datasets between cloud environments for AI processing, Indian service providers are exploring more flexible commercial models. 58% plan to generate revenue from multi-cloud connectivity management, and 58% also expect revenue from consumption-based bandwidth services. * Services hosted closer to enterprise users and devices, including GPU-as-a-Service, edge compute, localized AI inference and private wireless, are expected to become meaningful revenue drivers. In India, 88% of respondents expect these services to generate at least 10% of total enterprise revenue over the next three years, including 35% who expect them to account for more than 20%. "After going through one of the fastest 5G roll outs globally, Indian service providers are now shifting focus to AI infrastructure builds and AI monetization," said Gautam Billa, Vice President, Solutions Engineering and Chief Technology Officer, Asia Pacific, India and Japan, Ciena. "AI momentum continues to escalate, and the survey findings point to growing confidence in the revenue potential of AI-driven services."