The telecommunications industry is undergoing a profound transformation, with AI-native and open-source technologies taking center stage. These innovations are not just enhancing operational efficiency but redefining the architecture of networks. Here’s an overview of how leading standard organizations are leveraging AI‑native and open-source tools to build the telco cloud of tomorrow. ETSI ISG NFV organized a new “Telco Cloud and AI Native” open session on October 7th, 2024, during the ETSI NFV#47 meeting in Paris, France. This event was a key opportunity for telecom operators, vendors, and other participants to exchange opinions on this important topic. It also explored the opportunities and challenges of using AI technologies in the telco cloud domain. The open session was divided into the following 3 parts, with 6 presentations from industry partners.

Part 1 Open Source: The Rise of Open Source in Telco Cloud

Jonathan Bryce from OpenInfra Foundation presented the current trends of the raise of open source in telco cloud and insights for future direction from an infrastructure point of view:

• Addressing Digital Sovereignty: With stricter data privacy laws, open-source frameworks are enabling telcos to build private and hybrid clouds. These solutions ensure compliance while giving companies control over their data governance.
• Cost-Effective Licensing Alternatives:
The migration from proprietary systems to open-source platforms such as OpenStack has gained momentum. This shift not only reduces costs but also minimizes vendor lock-in, providing telcos with greater flexibility.
• Securing Networks through Transparency:
In an era of increasing cybersecurity threats, open-source communities are pivotal. Collaborative mitigation strategies allow for faster detection and resolution of vulnerabilities, ensuring robust network security.
• AI in Data Centers:
AI is driving an unprecedented demand for scalable data centers. Projects like next generation AI supercloud are leveraging open-source AI models to meet these needs efficiently and cost-effectively.

Part 2 Analyst: AI’s Revolutionary Role in Telecommunications

Inderpreet Kaur from Omedia summarized the trends of telco cloud deployment and gave the insights to highlight AI’s role in transforming telco operations through predictive maintenance, performance optimization, and multi-layered automation:

• Predictive Maintenance and Performance Optimization
AI has become indispensable in managing the growing complexity of telco networks. Major operator companies are using GPUs to empower predictive maintenance, identifying faults before they occur, and ensuring proactive resolution. AI-driven analytics are also optimizing performance by balancing energy efficiency with customer satisfaction.
• Generative AI (GenAI): The Game-Changer
Generative AI enhances customer interactions and streamlines network operations. Asian operators are investing in large-scale GPU clusters to implement GenAI solutions that translate network intents, automate troubleshooting, and deliver personalized customer support.
• Infrastructure Investments
Cutting-edge infrastructure is essential for AI deployment. An operator providing a GPU-as-a-Service model allows for scalable AI analytics, and empowers telco networks with the flexibility to meet increasing data demands.

Part 3: Industry Leaders and Their Strategic Approaches

Deutsche Telekom: AI-Native Cloud Vision

Michal Sewera from Deutsche Telekom emphasized the importance of operational transformation and intelligent service management through AI-native technologies. By transitioning to microservices and leveraging the GitOps model, they are enhancing lifecycle management and minimizing downtime with ensuring network state transparency and traceability through Git as the single source of truth. In addition, cloud-native advantages realize embracing open, scalable architecture over traditional, fixed telco models, allowing dynamic scaling, frequent updates, and better observability. AI frameworks validate deployments, automate configurations, and ensure operational continuity.

• Development: AI-based validation frameworks detect anomalies, reducing risks.
• Rollout: AI-driven configuration management automates operational processes.
• Operations: AI-driven service assurance and predictive analytics ensure service continuity.

Addressing the "butterfly effect" with continuous service assurance and root cause automation, minimizing system downtime for distributed change management.

Telenor: Multi-Cloud and Generative AI

Pål Grønsund from Telenor presented that Telenor’s focus on multi-cloud and edge computing supported latency-sensitive applications like robotics and VR/AR. Their adoption of generative AI profiles (user, shaper, and maker) enhances both internal processes and customer experiences. Sovereign cloud solutions further ensure data compliance across regions.

• Generative AI: Telenor utilizes generative AI (GenAI) across user, shaper, and maker profiles to enhance operational efficiency and customer experience.
• Sovereign Cloud: Emphasizing data security and compliance, Telenor offers flexible sovereign cloud solutions tailored to different regulatory requirements.
• Multi-Cloud and Edge AI: Deploying edge clouds to support latency-sensitive applications like VR/AR and robotics, Telenor’s multi-cloud strategy optimizes resources across public, private, and edge environments.
• Cloud-Native Transformation: Adopting a cloud-native approach with everything-as-a-service, DevSecOps, and centralized orchestration to enhance agility, scalability, and resilience.

Telefónica: GitOps and Open-Source Synergy

Gerardo García de Blas from Telefonica addressed that Telefónica was transforming telco cloud operations by integrating GitOps and AI, focusing on efficiency and adaptability for enhanced automation and intelligent monitoring:

• GitOps Framework: Utilizing Kubernetes and GitOps, Telefónica ensures that systems are consistently aligned with desired states, enhancing scalability and adaptability.
• AI Integration: AI enhances already robust systems by improving decision-making and efficiency through intelligent automation and anomaly detection.
• Open-Source Tools: Telefónica leverages open-source tools like Kubernetes, Flux, and ETSI Open-Source MANO (OSM) for rapid and accessible innovation.

Huawei: Cloud-Native Architectures

Ruizhi He from Huawei shared that Huawei’s Telco Cloud-Native solutions aimed to revolutionize the telecom industry by enhancing network performance, reliability, and agility through cloud-native architectures. Key developments include the following items to realize intelligent O&M by leveraging digital twins and AI for fault diagnosis, proactive network monitoring, and unified O&M portals by providing comprehensive network management tools:

• Cloud-native architectures: Adopting principles tailored for telco needs, focusing on enhanced fault tolerance, high service reliability (99.999% in SLA), and multi-vendor integration.
• Carrier-grade enhancements: Ensuring dynamic failure management, always-on architecture, and optimized resource allocation to boost network stability and performance.
• Dual-engine convergence: Combining VM-based VNFs and container-based CNFs for resource efficiency, flexible scaling and seamless upgrades.

Key takeaways for future network evolution

The convergence of AI-native and open-source technologies is revolutionizing telecommunications. From predictive maintenance to secure cloud infrastructure, these innovations are enabling telcos to:

• Improve operational efficiency.
• Enhance service reliability and scalability.
• Ensure data compliance and sovereignty.
• Accelerate AI adoption through scalable infrastructure.

As the industry continues to evolve, embracing these technologies will be critical for telcos to remain competitive in a rapidly changing landscape. The future of telecommunications presents new opportunities for AI-native and open source.  The ETSI ISG NFV community continues to commit to driving telco network evolution through the use of advanced virtualization, cloud-native and AI technologies.