Deutsche Telekom and Google Cloud Partnering on Network Transformation

BONN, Germany and SUNNYVALE, Calif — Deutsche Telekom and Google Cloud are expanding their partnership.

The companies’ partnership will define a “joint roadmap for the telecommunications industry,” by bringing the “power of the cloud” closer to mobile and connected devices at the edge of Deutsche Telekom’s network, according to Google Cloud this month.

Google Cloud believes telecom providers are reimagining their network infrastructures with cloud companies to develop new network deployment models. 

Telecom companies are better positioned to deliver elastic, high-capacity, high-bandwidth, and low-latency connectivity and services to customers by creating more secure, reliable, and scalable cloud-native networks, according to Google Cloud.

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Initial partnership focus

Core network services: Deutsche Telekom and Google Cloud will jointly pilot several network services, such as 5G Standalone in Austria, as well as remote packet gateway functions, using Google Cloud and Google Distributed Cloud Edge, a fully managed product that brings cloud infrastructure and services closer to where data is generated and consumed.

Network analytics: Deutsche Telekom will gain a deeper understanding of its networks to help with accurate planning, optimized operations, and better customer experience (CX) management. Deutsche Telekom will pilot several use cases regarding anomaly detection, performance counter, and trace data in a first step in using data-driven operations and automated workflows with open, Kubernetes-based solutions by Google Cloud.

Customer experience analytics: Deutsche Telekom will trial Google Cloud’s data analytics, machine learning (ML), and artificial intelligence (AI) solutions in a joint proof of concept to improve actionable insights and better understanding of customer needs and optimize offerings.

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Past partners

Deutsche Telekom has been working with Google for “many years.” 

For instance, Deutsche Telekom’s T-Systems partnered with Google Cloud in 2021 to build and deliver sovereign cloud services to the German public sector, enterprises, and health care firms. The first joint solution is available to T-Systems customers.

“Cloud-native solutions”

“Communication service providers are increasingly looking for cloud-native solutions to advance the deployment of network functions and drive automation, elasticity, and scalability,” said Thomas Kurian, CEO, Google Cloud. 

“We believe our partnership with Deutsche Telekom will deliver significantly improved experiences for end users that will ultimately raise the standard for the telecommunications industry.”

Deutsche Telekom is implementing its Leading Digital Telco strategy by investing in modern network infrastructure and establishing cloud-based service platforms, said Claudia Nemat, a board member of Deutsche Telekom. 

“We are excited to expand our partnership with Google Cloud by conducting trials in key areas that will allow us to more rapidly innovate and launch new services and customer experiences,” Nemat said.

Deutsche Telekom’s network

Deutsche Telekom is present in over 50 countries, with around 248 million mobile customers and a network that includes 26 million fixed-network lines and 22 million broadband lines.

Deutsche Telekom reported 2021 total revenue 108.8 billion euros, a 7.7% year-over-year increase. 

Google Cloud active in the telecom market

Google Cloud established several other partnerships with leading telecom companies around the world in the last year: with Montreal-based Bell Canada on the deployment of Google Distributed Cloud Edge for core network functions; with Helsinki-based Elisa to “accelerate” its cloud transformation and joint innovations; with Dallas-based AT&T for an expanded collaboration on 5G and edge computing for “next-generation” business outcomes; with Kista, Stockland-based Ericsson on 5G and edge cloud solutions for telcos and enterprises; with Navi Mumbai, India-based Jio on 5G for better connectivity for Indian consumers.

Growth of the telecom market

The global telecom market was valued at an estimated $1.7 trillion in 2021, and it is predicted to reach $2.4 trillion in 2028, at a 5.4% compound annual growth rate (CAGR), according to Grand View Research.

The market’s growth is being driven partly by spending on 5G infrastructures and demand for managed services, Internet of Things-connected devices, videos, and gaming, Grand View Research reports.

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