Orange Wholesale CEO: ‘Telecom firms must balance innovation with investment risks’

Orange Wholesale CEO: ‘Telecom firms must balance innovation with investment risks’

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Orange Wholesale CEO Michaël Trabbia has emphasised the delicate balance telecom companies must strike between embracing innovation and managing the risks of over-investment.

Speaking at the 2024 NetworkX event in Paris, Trabbia addressed the challenges that telecom operators face as they navigate the adoption of technologies such as AI, 5G and cloud-native infrastructure.

"It’s a delicate balance between the fear of missing out on big technologies and the fear of wasting money. That’s where leaders must decide”, he stated.

According to Trabbia, while financial assessments are important, they cannot be the sole drivers of decision-making.

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Telecom leaders must also consider market demand, the surrounding ecosystem and their own internal capabilities.

He added: "Beyond the figures, you need to believe in the reality of the business, the demand, the ecosystem and your own capabilities”.

Trabbia cited AI as a key example of an emerging technology already delivering value to the telecom sector. AI solutions have reduced network maintenance tickets by 70% and AI-driven anti-fraud measures are helping secure telecom networks.

However, he stressed that the full impact of AI on the network itself is still developing.

"The big question is how AI will transform the needs of the network," he stressed.

Meanwhile, Trabbia emphasised the importance of evaluating their maturity before making significant investments.

Some innovations, like cloud-native networks, are yielding concrete benefits today, while others may take time to realise their full potential, he concluded.

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