- Telenor embraces AI revolution, creating dedicated unit “Skygard” alongside core telco operations.
- Investment of $225 million with Hafslund, HitecVision for Skygard’s Oslo data center equipped with AWS tech.
- Director Frank Elter emphasizes “ambidextrous” strategy for agile AI development.
- Shift from years-long telco timelines to AI’s rapid innovation cycles measured in months.
- New partnership models emphasize flexibility and tolerance for uncertain outcomes.
- Analysts cautious, noting historical challenges integrating AI talent into telco structures.
Main AI News:
In the rapidly evolving landscape of telecommunications, Telenor has boldly positioned itself at the forefront of artificial intelligence (AI) innovation. At the recent TM Forum event in Copenhagen, Telenor’s Director of Research and Innovation, Frank Elter, outlined their ambitious strategy. Central to their approach is what Elter describes as an “ambidextrous” method, allowing Telenor to sustain its mature telco business while simultaneously nurturing a dedicated AI-focused unit.
Enter Skygard, Telenor’s brainchild aimed at becoming an AI factory. By establishing Skygard as a separate legal entity, Telenor has effectively integrated a startup culture within its established framework. This move underscores Telenor’s commitment to fostering radical innovation alongside its core operations.
Investment has poured into this vision, with Telenor partnering with Hafslund and HitecVision to inject $225 million (NOK 2.4 billion) into Skygard. The establishment of Skygard’s inaugural data center in Oslo, featuring AWS’ sovereign cloud technology, marks a pivotal step towards operationalizing their AI initiatives.
Elter emphasizes the necessity of agility in adapting to AI’s rapid innovation cycles, contrasting sharply with traditional telco timelines. While telcos typically plan in years, AI and cloud computing demand a pace measured in months. This paradigm shift requires Telenor to operate more fluidly and in parallel to accelerate development.
Partnerships play a critical role in Telenor’s strategy, albeit with a new mindset. Elter stresses the evolving nature of these collaborations, highlighting the need for flexibility and a tolerance for uncertainty in outcomes—a departure from conventional contract-based expectations.
Analysts like AvidThink Founder Roy Chua recognize parallels in Telenor’s approach to previous industry endeavors. While acknowledging past challenges, Chua underscores the potential pitfalls of integrating AI talent within a telco environment. He suggests models akin to SK Telecom’s collaboration with Anthropic, where flexibility and broader market applicability could enhance outcomes.
As Telenor navigates this transformative journey, the industry watches closely. Their pioneering efforts to blend telco stability with AI-driven innovation could redefine the sector’s competitive landscape, proving that adaptability and vision are key to sustainable growth in the digital age.
Conclusion:
Telenor’s strategic pivot towards AI through Skygard signals a pivotal shift in telecommunications, blending stability with agile innovation. While promising, challenges remain in aligning traditional telco culture with the dynamic demands of AI. The success of this model could redefine industry standards, highlighting the imperative for telcos to adapt swiftly to emerging technological paradigms to maintain competitiveness.
