28 February 2025

Chris Butler, Vice President, Vodafone MEA Account, Cloud & Network Services at Nokia

As we step into 2025, the reflections from 2024 offer invaluable insights into the challenges and opportunities that shaped the African telecom industry. The past year has been particularly strenuous for this sector, highlighting several pivotal issues that need urgent attention to ensure sustainable growth and development.

While we are already seeing growing interest in autonomous networks and analytics, the reality is that the telecom industry in Africa faced sluggish progress in adopting these technologies in 2024. Communication Service Providers (CSPs) found themselves in a difficult position, having to juggle between maintaining traditional network operations and making substantial investments in automation and intelligent analytics. The slow pace of automation deployment is impeding the provision of advanced service offerings, putting CSPs under significant pressure to pivot towards enterprise use cases and Fintech services to sustain growth.

The ongoing macroeconomic challenges, coupled with political instability across various regions, have exerted additional strain on CSPs. The devaluation of local currencies, high inflation rates, and the scarcity of hard currency have complicated financial planning and investment strategies. These factors have hindered the ability of CSPs to modernise their network infrastructure and expand their services.

Onerous regulatory requirements have also presented significant hurdles for CSPs. Navigating complex regulatory landscapes, often involving stringent compliance mandates and penalties, adds to the operational difficulties faced by telecom operators in the region.

Despite the growing demand for connectivity, the cost associated with implementing intelligent automation and security solutions remains a substantial barrier to increased adoption across the continent. Many CSPs struggle with the financial burden of deploying AI-driven network analytics and security frameworks, limiting the potential for enhanced operational efficiency and threat mitigation.

High operating costs, primarily driven by escalating energy tariffs, have further exacerbated the financial burden on CSPs. This increase in operational expenditure has made it challenging for telecom companies to maintain profitability while investing in network enhancements and new technologies.

Thriving innovation in connectivity solutions

On a more positive note, innovation in Africa continues to thrive. The continent has seen several world-first initiatives aimed at connecting underserved and poor communities. These innovative solutions have brought hope to millions, offering a glimpse into the potential of technology to bridge the digital divide.
AI and automation are emerging as essential tools for the survival and growth of traditional CSPs. The complexity of managing networks that span multiple generations, from 2G to 5G advanced, has made manual operations untenable. AI-driven automation allows networks to optimise themselves in real-time, enhancing user experience and reducing operational costs.

Most CSPs in Africa are currently at an automation level of between 1.5 and 2, indicating a slow adoption of AI technologies. Nokia’s suite of software solutions and services exemplifies how AI can be leveraged to create intelligent, self-optimising networks. These solutions not only enhance network efficiency but also contribute to energy conservation by dynamically powering down idle equipment without compromising service quality. In the future, the ability to automate network slices to guarantee capacity for enterprise use cases will be a key differentiator for CSPs.

Overcoming unique security challenges

The telecom industry faces unique security challenges that differ significantly from traditional IT networks. The complexity of telecom ecosystems requires specialised security solutions which span core, radio and transport networks, areas of the network largely overlooked by the CSP’s and traditional cybersecurity vendors. Nokia’s advanced security products, such as Identity and Access Management (IAM), Endpoint Detection and Response (EDR), and Nokia Cybersecurity Dome (NCYD), are tailored to protect telecom networks from evolving threats using Generative AI. As we enter the Quantum era, Quantum computing will have the potential to crack current encryption models. Nokia is already incorporating Quantum safe models into its product offerings to future proof networks for the future.

Nokia has also developed AI/ML-based telecom use cases to proactively safeguard networks from diverse attack vectors. The introduction of Generative AI, integrated with Nokia’s Threat Intelligence, into telecom focussed cybersecurity solutions dramatically reduces the time to identify, respond and remediate threats. Remediation is reduced from days to seconds once fully implemented and integrated across the Core, Radio and Transport networks. The repercussions of telco security breaches can be severe, leading to network failures and potentially disrupting essential services. Nokia’s telco-centric security solutions are designed to protect both operational and information technology systems, ensuring robust defence mechanisms against the sophisticated threats of the 5G and Industry 4.0 era.

A promising path forward for 2025

Cloud-native technologies are set to gain momentum in 2025, forming the foundation for the evolution towards autonomous networks. This shift is expected to enhance the scalability and flexibility of telecom networks, allowing CSPs to better manage resources and reduce costs.

Edge computing will play a pivotal role in the technological evolution of 2025. By moving workloads closer to the end-user, edge computing will alleviate congestion on core networks, reduce latency, and improve customer experiences in areas such as gaming and video streaming. Nokia’s high-capacity packet core appliances exemplify the potential of edge solutions to enhance performance and reduce power consumption.

As Africa becomes a larger target for cyber threats, CSPs will place increased focus on cybersecurity measures. The need to protect the newly connected populations will drive investments in robust security frameworks to prevent data breaches and service disruptions.

While 2024 presented numerous challenges for the African telecom industry, the advancements in AI, automation, and innovative connectivity solutions offer a promising path forward. With the right investments and strategic focus, 2025 could mark a turning point for CSPs in Africa, fostering growth and resilience in an increasingly digital world.