ETRI estimates AI in telecom networks would cut carriers' total costs by about 7%, with network costs down about 18% (report)

What happened

In a paper published in the October issue of 'Electronics and Telecommunications Trends,' the Electronics and Telecommunications Research Institute (ETRI) estimated that adopting AI networks would reduce telecom operators' total cost of ownership (TCO) by 7.1%. The result comes from assuming network build-out and operating costs make up about 40% of an operator's total costs, and calculating a scenario in which AI-based automation and equipment virtualization cut network costs by 17.75%. Virtualization of the radio access network (RAN) and mobile core equipment accounted for the largest share of the savings.

Why it matters

It is a Korean estimate of the return on telecom operators' AI network investments. However, because it is a calculation based on assumptions, actual savings may vary depending on each operator's circumstances.

Sources

• Press "AI 네트워크 전환으로 통신사 전체 비용 7% 줄인다" ZDNet Korea