Large-scale telco cloud deployments are expected to reach global critical mass after 2020, coinciding with the broader rollout of 5G, according to a new report from ABI Research.
The report, titled “Telco Cloud Framework and Deployment Roadmaps,” maintains that the new generation of networks will likely necessitate an updated core architecture to enable advanced capabilities such as network slicing and specialized services for different industry verticals. In contrast, early 5G rollouts—where an immediate replacement of the telco core may not be required—are expected to emphasize enhanced mobile broadband.
Dimitris Mavrakis, research director at ABI Research, noted that while several open source projects contribute valuable inputs to the evolution of telco networks, competition between those projects, as well as misunderstandings and occasional misuse by industry participants, complicate progress.
Major telecom operators—including AT&T, Deutsche Telekom, Telefónica, and Verizon—are increasingly planning their networks as shared, platform-based environments rather than aggregations of separate hardware appliances. This shift means network resources will be virtualized, distributed, and managed by software, producing far more agile infrastructures. Such agility enables operators to pursue “Untelco” strategies that offer tailored network capabilities to different business verticals.
Complementary industry research signals similar timing for 5G adoption. A GSMA report forecasts widespread commercial 5G deployments at the start of the next decade and projects that by 2025 5G will cover roughly one-third of the global population. Network equipment vendors and operators are already progressing with trials and spectrum tests: for example, Ericsson and SoftBank have advanced their 5G testing to the 28 GHz band following successful trials in the 4.5 GHz and 15 GHz bands in Tokyo.
Overall, the transition to telco cloud and 5G represents a fundamental architectural change. Virtualization and software-defined control of network functions will provide the flexibility operators need to support diverse services, improve operational efficiency, and monetize network capabilities across multiple industries. Early deployments will focus on enhancing mobile broadband, but as core network evolution accelerates, operators will be able to deliver more sophisticated, vertical-specific services—making telco cloud a critical enabler of the 5G era.