A10 Networks has published research, titled Global communication service providers: Market growth fuels security investments – exploring how communication service providers (CSPs) worldwide are evolving as they expand services and infrastructure in response to changing customer demand and technology evolution.
The study, conducted by independent research organisation Opinion Matters among 2,750 senior CSP IT professionals across 11 regions, found near-universal expectations of robust network traffic growth, with 66% believing it will soar by 50-100% in the coming 2-3 years.
This is prompting a range of activities including network security investment, expanding infrastructure to meet the needs of underserved communities, and diversifying into new markets and services.
The study also explored how CSPs are affected by key market trends such as customer cloud adoption and the IPv6 transition. While most have seen positive benefits around cloud, the move from IPv4 to IPv6 is progressing less smoothly.
Commenting on the research findings, Anthony Webb, vice president of A10 International, said: “Despite economic uncertainty, digital connectivity is so central to resilience and recovery that CSPs expect the strong growth seen in recent years to continue.
“This is creating both the urgency and the confidence among CSPs to undertake major infrastructure and technology investment projects. As they do so, our research shows they are growing more sophisticated in how they approach network security, but challenges remain with the IPv6 transition.”
A key area of investment for CSPs centres on expanding their networks to reach unserved or underserved communities. Providing secure, reliable connectivity to hard-to-reach or previously uneconomically viable areas is crucial to reducing inequality.
Therefore it is a positive that 69% of respondents are expanding their networks to unserved/underserved communities. Among these, half are expecting to achieve an uplift of more than 10% on their current subscriber base and 19% are expanding for an uplift of more than 50%.
Additionally, 31% of respondents – the majority of whom were from larger CSPs – said they are planning to build additional data centers and expand to provide additional capacity for other service providers.
As CSPs plan these expansion projects, there are signs that they are taking a more wide-ranging approach to security. When A10 Networks ran a similar study in 2021, security investment was heavily focused on firewall upgrades. Now, although firewall and appliance upgrades are still important, CSPs are also focused on broader components of network security defense.
DDoS detection and monitoring is a priority for 27%, while 26% are investing in ransomware and malware protection services. The same percentage are looking to automate security policies and to simplify and integrate disparate point solutions.
Anthony Webb added: “As CSPs prepare for growth, elevating their approach to security and compliance is becoming increasingly critical to delivering a high-quality service to customers while simultaneously ensuring resource efficiency.
“We are seeing growing interest in solutions that enable providers to scale legacy systems quickly without compromising security. These include AI, machine learning, and automation solutions that lift the management burden and deliver full control over the network. For growing providers, this offers peace of mind as threat levels increase in proportion to network size.
“It also provides the visibility and assurance needed to meet regulatory requirements, which our research found to be the second-most common driver for investment in network security.”
For more insight including analysis of variations between individual countries and regions surveyed, download the full report here: [https://a10networks.com/resources/reports/global-communication-service-providers-market-growth-fuels-security-investments/]