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Friday, March 20, 2026

Telefónica targets AI-era monetization with automation push, transport overhaul


At OFC, Telefónica’s CTO outlined its technique to reverse persistent income challenges 

In sum — what to know:

Modernization focus: Telefónica is eyeing a mixture of methods to modernize the community in an effort to generate new income streams

Stage 4 automation: The operator is concentrating on to attain Stage 4 community autonomy by 2030 utilizing AI and SDN to reduce errors and automate operations

Shift towards IPoDWDM: The corporate plans to maneuver 60% of its optical capability to coherent pluggable optics by 2027, anticipating to see vital price and power reductions 

Whereas community site visitors continues to develop at a gradual clip, revenues have remained largely sluggish for telcos. It’s a cussed downside that many operators are struggling to reverse in a significant means. 

Telefónica is intent on turning the issue round on its head. Talking on the keynote handle for the Community Operator Summit at OFC this week, Telefónica’s chief know-how officer, Cayetano Carbajo Martin outlined the supplier’s technique to tackle the problem. 

“We are attempting to implement the technical lever for rising our income,” Martin said. “We’re pushing our community for rising monetization.”

Telefónica is cranking up efforts in three key areas: automation, transport community improve, and a transfer towards coherent pluggables. 

The Madrid-based supplier is pursuing automation to advance from guide, error-prone environments to at least one that’s self-optimized, environment friendly, and low-cost. To that finish, the corporate launched its Autonomous Community Journey (ANJ) program, a multi-year initiative, in 2021with the aim to succeed in Stage 4 autonomy — a excessive state of autonomy as categorised by TM Discussion board — by 2030.

“Telefónica has been one of many few operators that has dedicated to succeed in Stage 4 of autonomy by 2030, and we dedicated that in entrance of our self holders and analysts,” Martin stated.

The corporate is leaning on open interfaces and disaggregation to make it occur. “We are able to do many extra issues with open interfaces than with proprietary interfaces,” he famous, including that software-defined networking (SDN) can even be a key piece of the puzzle, and an integration level for AI. 

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Telefónica targets AI-era monetization with automation push, transport overhaul 2

A key factor that’s aiding Telefónica in reaching its targets is its dedication to undertake AI. Martin outlined a number of AI-driven use circumstances which might be already in improvement, together with pure language interplay, automated root trigger evaluation (RCA), and creation of digital twins to unlock higher diploma of community autonomy. Facet by aspect the corporate can be exploring federated studying approaches to tighten knowledge privateness, an issue usually linked with scaling AI capabilities. 

“Synthetic intelligence will come to the operation of the transport community by the SDN,” Martin stated, including that will probably be simpler to use AI by a standardized interface that SDN supplies.

One other main announcement that Martin made is that as a part of the modernization effort, the corporate is concentrating on a serious transport layer improve. It’s shifting its spine to 400G and backhaul to 100G. “Such an enormous enhance in velocity is required even in these operations the place we’ve solely cell entry, and for positive the place we’ve fastened entry,” he stated.

Past that, the supplier can be migrating to coherent pluggables, which was a serious theme at OFC this 12 months, with the aim to shift 20% of its optical capability to IP over DWDM. Moreover, the corporate pledged to ramp it as much as 60% by 2027.

There was substantial momentum in direction of adoption of IPoDWDM currently with rising recognition of its greater bandwidth effectivity, scalability, and price financial savings which might be crucial for AI-driven purposes with quicker knowledge transmission necessities. 

“There are a number of boundaries, some cultural and different business for doing so, however I believe as operator, we’ve to make the most of this progress and use IP over DWM,” Martin emphasised. 

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