Optical Network Automation Ensures Cost Savings of 81%: Nokia

Operators deploying optical network automation for network and service lifecycle management can anticipate cost savings of up to 81 percent, says research firm Analysys Mason and Nokia.
Optical fiber investmentOptical network automation emerges as a catalyst for operators, offering the means to maximize optimization, efficiency, reliability, and scale. The technology promises Total Cost of Ownership (TCO) savings and asset monetization, thereby generating substantial revenue.

These revelations come in the wake of escalating data traffic from sources such as Augmented Reality/Virtual Reality (AR/VR), Artificial Intelligence/Machine Learning (AI/ML), and Internet of Things (IoT), coupled with the rising trend of more programmable optical networks. However, despite the evident advantages, adoption has been sluggish due to new challenges associated with increasing Operational Expenditure (OPEX).

To quantify the benefits of optical network automation across Capital Expenditure (Capex), Opex, and revenue generation opportunities, Nokia and Analysys Mason conducted interviews with global operators who have deployed network operations and service automation processes using Nokia WaveSuite.

The WaveSuite platform automates optical transport, aiming to lower costs, enhance reliability, and expedite the introduction of new services for increased revenue.

Analysys Mason’s research has revealed that the advantages of optical network automation extend across various facets of network and service lifecycle management, including:

A remarkable up to 56 percent reduction in operational costs for network lifecycle management by simplifying complex tasks, resulting in shorter times for provision, configuration, deployment, and management of optical networks.

Operational cost savings of up to 81 percent for service delivery by streamlining service order orchestration, service fulfillment, and service assurance processes.

A 26 percent Capex avoidance through resource optimization and the retirement of legacy network equipment.

An anticipated up to 10 percent increase in revenue due to improved win rates, accelerated time-to-market for services, and the ability to offer differentiated services through optical network slicing and network-as-a-service business models.

A significant reduction in the time taken for service order fulfillment, decreasing from an average of 10 days to an impressive 24 hours. This has contributed to approximately 90 percent savings in operational costs, allowing a Tier-1 North American operator to improve their win rates by 5 times.

“The technology is now moving past the early adopter phase, and network operators who don’t implement optical automation will be at a considerable disadvantage in terms of cost, ability to generate additional revenue, and time to market for new services,” Justin van der Lande, Research Director at Analysys Mason, said.

“Customers who have adopted the advanced automation capabilities of Nokia WaveSuite are reaping the benefits at every stage of the network and service lifecycle. It’s helping them plan, configure, deploy, and manage their networks using fewer resources and less time, reducing time to market,” Ravi Parmasad, Optical Network Automation Leader at Nokia, said.