Partner content: The integration of Deep Network Intelligence (DNI) has emerged as a critical strategy for achieving sustainable growth, operational efficiency and superior security
As communications service providers (CSPs) face mounting challenges in a rapidly evolving landscape, the integration of Deep Network Intelligence (DNI) has emerged as a critical strategy for achieving sustainable growth, operational efficiency, and superior security. This article examines how CSPs can leverage DNI to navigate issues of stalled revenue growth, intensified cybersecurity threats, and increasingly complex Quality of Experience (QoE) demands.
Stalled Revenue Growth Amid Increasing Demand
Global mobile data traffic has surged, growing at a compound annual growth rate (CAGR) of 28% between 2019 and 2023, with projections to continue upward, albeit at a slightly slower pace. However, CSPs have only seen a marginal increase in service revenue, hovering around a 1% CAGR over the same period. This disparity presents a critical issue: CSPs are investing heavily in 5G and other network improvements but have struggled to monetize them.
Consumers have shown reluctance to pay a premium for 5G, as many perceive 4G as sufficient. Additionally, flat-rate, unlimited data plans have commoditized connectivity, eroding traditional revenue streams. Faced with these market realities, CSPs must explore new revenue models, such as offering premium services tailored to applications that require high levels of QoE, such as gaming, streaming, and virtual reality.
QoE: A Complex Balancing Act
Delivering a high and consistent QoE is paramount in today’s network environment, which is strained by the growth of connected devices and the popularity of bandwidth-intensive applications. As IoT devices proliferate, CSPs are under pressure to allocate network resources efficiently, ensuring QoE for critical or latency-sensitive applications without degrading performance for other users.
The rise in encrypted traffic (for example, HTTPS and QUIC protocols) presents a significant challenge, limiting visibility into network flows and complicating efforts to manage QoE effectively. This issue is expected to escalate with the adoption of Encrypted Client Hello (ECH) and post-quantum cryptography (PQC), potentially leaving CSPs with even less insight into traffic patterns.
Escalating Cybersecurity Threats
In addition to the revenue and QoE challenges facing CSPs, the disaggregation and cloudification of network functions have broadened CSPs’ attack surfaces, making them prime targets for cyberattacks, including Distributed Denial of Service (DDoS) attacks. These attacks not only disrupt service but also damage CSPs’ reputations and can result in hefty regulatory fines. With cybercriminals increasingly employing artificial intelligence to automate and scale their attacks, CSPs need sophisticated tools to detect and mitigate these evolving threats.
How Deep Network Intelligence Can Help
Deep Network Intelligence is a next-generation approach to network traffic analysis and management, designed to address the limitations of traditional Deep Packet Inspection (DPI) in an era of widespread encryption. At its core, DNI builds upon DPI’s foundation, using advanced Artificial Intelligence (AI) and Machine Learning (ML) techniques to extract actionable insights from network traffic without relying on access to decrypted data.
DNI offers CSPs a holistic approach to tackle the challenges they face. By leveraging granular network insights, CSPs can optimize resource allocation, enhance security, and monetize new services, driving sustainable growth and profitability. Here’s a breakdown of the critical benefits DNI brings to the table.
Actionable Traffic Visibility
With the right DNI solutions, CSPs can achieve comprehensive traffic visibility even in an environment dominated by encrypted data flows. This allows for more granular network insights, enabling CSPs to understand application-specific traffic patterns and their impact on network performance. Enhanced visibility also empowers CSPs to deliver personalized QoE, catering to the unique needs of various user segments.
For instance, enterprise customers often prioritize high-quality, low-latency video conferencing, while residential customers might require low latency for gaming but can tolerate minor interruptions in streaming. With subscriber-aware network management, CSPs can adjust network resources dynamically, ensuring optimal QoE for each customer type.
Granular, App-Aware Control for Optimized Traffic Management
Traditional traffic management approaches, which treat all data equally, are ill-suited to today’s dynamic network environment. Using DNI, CSPs can implement app-aware traffic management, prioritizing latency-sensitive applications over bandwidth-hungry but less sensitive ones. By recognizing and adapting to real-time traffic conditions, CSPs can avoid congestion and ensure optimal QoE, particularly during peak usage times.
For example, DNI enables CSPs to prioritize video conferencing or online gaming during high-traffic periods while throttling data-intensive applications like video streaming, which can tolerate minor delays without significantly impacting user experience. This differentiated approach helps CSPs maintain service quality across applications with varying QoE requirements.
Supporting New Service Monetization Opportunities
In the era of flat-rate data plans, CSPs need innovative strategies to generate revenue. DNI provides the infrastructure to support these efforts through features like application-based charging and precise subscriber segmentation.
For instance, Layer 7 (application layer) analysis allows CSPs to offer premium services with tailored pricing models, such as volume-based charging for high-demand applications. Additionally, CSPs can monetize tethering, detect fraudulent traffic, and provide analytics services to enterprise clients, creating new revenue streams beyond traditional data packages.
These monetization opportunities can be further enhanced with offerings like HTTP header enrichment, which uses customer data to personalize online experiences. CSPs can offer targeted promotions, boosting revenue through upselling, loyalty incentives, and partnerships with over-the-top (OTT) service providers.
Enhanced Regulatory Compliance and Security
CSPs, as custodians of national infrastructure, must comply with various regulatory requirements regarding data security and content filtering. DNI enables CSPs to monitor and filter traffic, ensuring adherence to these regulations without compromising network performance. This is particularly relevant in markets with stringent rules around data privacy and content access, where non-compliance could result in significant fines.
Furthermore, DNI empowers CSPs to detect and respond to cybersecurity threats in real-time. Key security features of DNI solutions include:
Anti-DDoS capabilities: These include inbound and outbound volumetric attack detection, machine learning-based zero-day detection, and automatic mitigation.
Anti-botnet measures: By analyzing host behavior and integrating threat intelligence, CSPs can identify botnet communication and isolate compromised devices.
Network Firewall: CSPs can implement access controls, content filtering, and secure connections tailored to specific security policies, further reducing the risk of unauthorized access and data breaches.
Moving Forward: DNI as a Strategic Imperative for CSPs
The adoption of DNI is not just an operational improvement but a strategic imperative for CSPs aiming to thrive in a competitive and security-conscious telecom landscape. Here are some considerations for CSPs as they embark on the DNI journey:
Invest in scalable, flexible DNI solutions: As the telecom landscape evolves, CSPs need DNI solutions that can adapt to new challenges and technologies, including 5G, edge computing, and IoT. Solutions that support multi-layered architectures, such as NFV-compliant platforms, offer CSPs the agility they need to respond to emerging demands.
Focus on subscriber-centric QoE: CSPs should prioritize QoE optimization based on specific customer needs. By analyzing user patterns and preferences, CSPs can deliver personalized services that increase customer satisfaction and reduce churn.
Explore partnerships with OTT providers: Through collaborations with OTT platforms, CSPs can diversify revenue streams and create tailored service packages that cater to OTT-heavy users, such as dedicated bandwidth for streaming or gaming services.
Embrace proactive security measures: Security threats are only going to grow in scale and sophistication. DNI offers CSPs a proactive approach to threat detection and mitigation, helping safeguard their infrastructure, data, and customers.
DNI as a Path to Resilience and Growth
As CSPs continue to grapple with the twin challenges of revenue stagnation and heightened security demands, Deep Network Intelligence presents a pathway to resilience and growth. By harnessing the power of DNI, CSPs can transform their networks from mere data pipes into intelligent ecosystems that support dynamic service differentiation, robust security, and optimized user experiences.
In a world where network demands are constantly evolving, DNI enables CSPs to remain agile, competitive, and profitable. For telecommunications professionals, adopting DNI isn’t just about meeting the challenges of today; it’s about future-proofing their networks for the opportunities of tomorrow.
For more information about Deep Network Intelligence and its impact on CSP operations, read the OMDIA Analyst Report – Future-Proofing Traffic Management with Deep Network Intelligence.
The author, Nir Baron (pictured below), is Director of Product Marketing at Allot
