Reuters, BARCELONA, June 28 – IBM (IBM.N) announced on Monday that it will provide telecom operators Verizon (VZ.N) and Telefonica (TEF.MC) new services spanning from 5G over a cloud platform to artificial intelligence. Big IT companies like Microsoft (MSFT.O) and Amazon (AMZN.O) are competing for a piece of the 5G revenue pie by providing telecom carriers with next-generation software tools. IBM will provide telecom operators cloud services to administer their networks and assist them in marketing products tailored to their clients, using technology acquired via the acquisition of software firm Red Hat. The tie-ups, which expanded IBM’s existing ties with the two companies, were not disclosed in financial terms. A cloud platform performs network activities using software rather than physical equipment, allowing telecom operators to create 5G networks faster, save money, and sell customized services. “It’s a disruptive time in this specific market segment,” Darell Jordan-Smith, vice president of Redhat, told Reuters. “Telcos are attempting to position themselves as the destination for services like augmented reality, machine learning, and AI.” On the AI front, IBM and Telefonica of Spain have developed a virtual assistant that, according to the companies, can eliminate friction points like long wait times by automating the handling of commonly asked queries and invoicing activities. “We see 5G as an existential moment for telco operators,” said Steve Canepa, IBM’s general manager for communications business. “Architecturally, they’re aiming to get greater control over their platforms and envision their network as a digital world rather than a structured physical model.” Supantha Mukherjee and Clara-Laeila Laudette contributed reporting from Barcelona. The Thomson Reuters Trust Principles are our standards. Continue reading
