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The 2024 UK logistics digital infrastructure report

What are the digital investment priorities of UK logistics operators, and what challenges do they face in adopting a ‘digital by default’ approach? A report by dedicated internet services provider Neos Networks.

UK logistics digital infrastructure

The logistics sector is a key driver of domestic economic and employment growth, contributing £163 billion to the UK economy. The industry also connects the UK to the global market. In 2022, the UK traded over £1 trillion in goods, consisting of £414 billion in exports and £644 billion in imports.

The logistics industry is increasingly powered by technological innovation and the adoption of digital solutions. A notable advancement occurred in September 2023 when the UK government implemented the Electronic Trade Documents Act (ETDA). This law grants legal validity to digital trade documents, eliminating the need for physical paperwork in the supply chain. This change is part of a broader trend in the logistics sector, where companies must continually adapt and integrate digital infrastructure and processes to stay competitive and efficient.

But how is the industry reacting to increased digital processes in logistics operations? And are UK logistics companies forward-planning to develop the infrastructure for these digital processes?

In this report, we survey business leaders and decision makers from 89 UK logistics companies (data collected December 2023) to explore the role connectivity has to play in the present and future of UK logistics, and assess how ready the industry is for wider digital transformation.

Contents

Key findings

  • Plans for continued digital transformation in the logistics industry suggest investment in connectivity improvements is imminent: Four in five (86.5%) logistics operators plan to digitally transform their operations in the near future.
  • Digital trade document adoption indicates the need for focus on digital connectivity infrastructure: Up to 69% of the logistics industry will facilitate digital trade documents as standard in the coming years.
  • A portion of the logistics industry is at risk of becoming digitally outdated: Nearly one in five (18.5%) companies haven’t updated their connectivity systems since the turn of the decade, in three years or more. There’s a need to invest in connectivity, such as full fibre, to be successful in digital transformation goals.
  • The logistics sector is in need of a digital skill boost to facilitate growth: 62.9% of companies in the sector say their employees’ digital skills are ‘next to none’, ‘insufficient’, or ‘sufficient for current operations’.
  • The government should go further to support investment in digital technology: According to the majority of UK logistics operators (65.2%), two in three logistics companies call for more support.

Digital trade documents: soon to become the industry standard

Our findings indicate that the logistics industry is in the process of adoption, though the majority remain in the planning stage.

Findings:

  • One in three companies (27%) are currently equipped to use digital trade documents in serving their operations/clients/customers.
  • 42% of logistics companies have plans to adopt digital trade documents soon, making it a big growth area for the industry.
  • When combined, the data reveals that up to 69% of the industry are set to operate with digital trade documents in the coming years.
Pie chart: percentage of logistics companies equipped to process and collaborate with clients using digital trade documents

 

Digital trade documents explained

The Electronic Trade Documents Act removes the legal requirement for logistics companies dealing with imported or exported goods to handle commercial trade documents only on paper. These can now also be handled in electronic format.

The act is set to alleviate the administrative burden from global trade and could spearhead further digitisation of processes along the supply chain.

Kevin Shakespeare, the director of strategic projects and international development at the Institute of Export & International Trade (IOE&IT), says “the importance of the act could well be the fact that it indirectly encourages the digitisation of other documents that aren’t necessarily included as examples in the legislation. This includes e-Phyto certificates, electronic export health certificates, airway bills and CMR notes for road transport.”

What does this mean for digital connectivity?

With over two in three companies set to adopt such digital-first processes, logistics companies should be aware of the greater demand that may be put on their connectivity needs.

Historically most logistics hubs would only need a basic connection to manage its ‘on the ground’ operations. However, as the sector digitises, it requires a more modern connectivity infrastructure to deliver, store and manage data and documents across its UK infrastructure.

This connection must be resilient and available 24/7. A simple broadband solution will soon create operational limitations, and the ETDA is just a small contributor to this compared to the wider digital transformation taking place for logistics companies.

Investment in digital transformation a priority for UK logistics businesses

We surveyed leaders in the logistics industry to understand their digital investment strategies and broader transformation plans. Our focus was to identify the key investment areas the sector prioritises for growth.

Which digital investments are planned as a priority?

Digital processes account for two of the three top overall investment priorities identified by logistics companies. These include ‘upgrading to smart fleet and digital tracking technology’ (38.2%) and ‘improving internal digital communication systems’ (43.2%).

Our data found the majority of the UK logistics industry is looking at digital solutions to optimise their operations — 86.5% plan to invest in improving at least one digital technology solution over the next two years.

Bar chart: percentages showing which digital technologies logistics companies are prioritising over the next two years

Findings:

The top priority for companies is ‘Predictive vehicle maintenance’ (39.3%) — just under two in five plan to invest in a solution in the next two years. An operational fleet is a must for logistics companies. Predictive vehicle maintenance leverages real-time monitoring and data-driven decisions to determine maintenance needs ahead of issues occurring. In fact, each of the priority investment areas relies on storing, analysing and accessing large data pools to yield practical insights.

Other priorities include ‘Big data analytics for improved operations’ (31.5%), and ‘Upgrading smart fleet or goods digital tracking technology’ (29.2%). Overall, as over four in five (86.5%) logistics operators continue to digitally transform their operations, the demand for connectivity upgrades and services from telecommunications companies serving the industry is clear.

Challenges remain for many in successfully adopting digital processes

Many operators in the logistics industry have been found to be experiencing challenges in adopting and implementing digital processes — 82.6% of UK logistics companies have experienced technological challenges which have impacted operations over the last 12 months.

Bar chart: technology challenges logistics companies have faced in the last year

 

Findings:

  • The most common challenges have arisen from outdated systems hampering operations for 37% of operators. This figure aligns with the findings in the following section, showing two in five companies haven’t updated their connectivity systems since the turn of the decade.
  • The next highest response is a lack of sufficient digital infrastructure for operations for 34.8%. These companies may struggle with integrating advanced technologies, and ultimately difficulties in scaling operations or adapting to market changes.
  • 32.6% of companies have issues with vehicle connectivity and remote driver communication. This potentially impacts delivery times, route optimisation, and overall operational efficiency.

Results also showed wider considerations in recruitment to successfully adopt digital processes. One in four logistics companies (23.9%) stated a lack of in-house understanding of operating digital systems, potentially highlighting a shortfall of digital skills in the industry.

Connectivity capacity shortfall looms for those slow to upgrade

Investment to improve digital-first processes is a priority for over four in five (86.5%) operators in the logistics industry. This will directly impact the need for speed and capacity of connectivity across multiple business centres, as well as across national transport infrastructure.

How have companies reacted to address this so far?

Findings highlight a good portion of the UK logistics industry is ‘evolving smart’ and taking steps to facilitate digital processes through connectivity infrastructure investment.

Findings:

  • One in five companies (19.6%) in the industry have invested in connectivity infrastructure in the latter half of 2023.
  • 22.9% of logistics companies have invested in their connectivity infrastructure within the past 12 months to 2 years.
  • 15% of UK logistics operators state they are planning to invest in connectivity improvements in the near future.
Bar chart: when did logistics companies last invest in connectivity infrastructure?

However, there’s a section of UK logistics which risks falling behind the technology curve.

Nearly one in five (18.5%) companies haven’t updated their connectivity systems since the turn of the decade, in three years or more. These responses suggest an urgent need for a portion of logistics operators to invest in upgrading their digital infrastructure. Connectivity standards have developed rapidly since 2020, and those who stand still are fast falling behind competitors in the rapidly evolving logistics sector.

UK logistics face barriers to digital transformation

We have been able to identify the challenges which UK logistics operators are experiencing, as well as the digital investment appetite from the industry for future growth. But what barriers exist to hinder this transformation?

Findings:

  • The majority of UK logistics companies highlight investment costs and lack of funding as key barriers to digital process adoption. High implementation costs were cited by 43.6%, while 40.4% highlighted a lack of necessary funds for investment.
  • These were both topped by cybersecurity concerns — more than half of UK logistics companies (51.1%) cited cybersecurity as a prevalent barrier to developing their digital processes. This highlights the need for assurances from technology providers that adequate protection will be provided.
Bar chart: the most prevalent barriers logistics companies experience when adopting and implementing digital technologies

 

Despite the wider barriers which are yet to be addressed, the opportunity for telecommunication providers remains. One out of every three logistics companies points out that inadequate communication infrastructure is a big hurdle when implementing digital transformation initiatives.

Steve Parker, director general of the British International Freight Association (BIFA), says:

“The factors facilitating increased adoption of digital transformation and those hindering it are cut from the same cloth. One of the biggest challenges faced by any company looking to undergo digital transformation is the natural resistance to change that arises within any organisation: sometimes a company’s culture, which might not be supportive of change or new technologies.”

“There is certainly plenty of willingness to adopt digital solutions to various aspects of their operations. BIFA members... are gaining greater awareness of the importance of and rewards to be gained from paying enough attention to digitalisation of the front and back end systems they employ to run their businesses.”

Are lack of digital skills a barrier to logistics sector growth?

Employee talent with digital skills are crucial in adopting and operating digital processes. Does the industry believe it has the required skills to develop into digital-first ways of working?

  • The majority of the logistics sector is in need of digital skills to facilitate growth — 62.9% of companies in the sector state their employee digital skills are ‘next to none’, ‘insufficient’, or ‘sufficient for current operations’.
  • However, a little under two in five companies say they are well placed for digital growth and have either sufficient digital skills to adopt new and future technology, or good or excellent digital skills in the company.
Bar chart: digital skillsets currently in logistics companies

“There is a need for well-qualified staff with in-depth technical knowledge” according to Steve Parker, “and that can be lacking as a career in logistics may not be as appealing to the experts as some other sectors. BIFA is working on addressing that.”

“It is of critical importance if the companies in the sector are to capitalise on some of the key benefits of digitalization in logistics, which include improved efficiency and productivity, reduced costs, faster decision making, enhanced communication and collaboration, and more effective customer service.”

UK logistics operators call for government action to incentivise digital transformation

The government is crucial in creating an environment that supports and promotes digital initiatives, encouraging investments from stakeholders. By doing so, it facilitates the digital transformation of logistics companies.

To ensure the logistics industry keeps up with digital adoption, it’s essential that the government champions investment in critical connectivity infrastructure, like full fibre connectivity networks through Project Gigabit.

Findings:

  • The government should go further to support investment in digital technology, according to the majority of UK logistics operators (65.2%) — two in three logistics companies call for more support.
Pie chart: Is the government doing enough to incentivise digital technology investment from logistics operators

Conclusion: three focus areas to unlock a world-leading digital-first logistics industry in the UK

 

1. Logistics industry set to invest in connectivity to facilitate digital adoption

  • Many in the industry are already aware of the need to adopt digital processes across their operations to remain competitive. The majority of operators plan to onboard technological solutions over the next two years.
  • To operate the digital solutions, companies must be aware of the connectivity requirements they will demand.
  • While 19.6% of companies have recently invested in developing their connectivity infrastructure, more than double the number of companies — a little over two in five — haven’t updated their connectivity systems since the turn of the decade. They are warned they risk falling behind the technology curve.
  • Companies who have failed to upgrade connectivity and still operate with a public switched telephone network (PSTN) — on which services such as ISDN (Integrated Services Digital Network) and broadband operate — are warned to upgrade soon. Besides the company being unlikely to get the required speed, resiliency and internet access required to digitally transform, PSTN is also set to be switched off in December 2025 to be replaced by more modern digital services. Those who are slow to upgrade will be left without service.

2. Opportunity for telcos to support logistics digital transformation, coordinated with government support

  • The final say in creating the connectivity infrastructure to meet the demands of the logistics industry is down to investment from telecommunication providers (telcos). As logistics processes become increasingly digitised, this demand is only going to become greater.
  • The UK government passed the Electronic Trade Documents Act, which navigates a major hurdle in digitising international trade documents.
  • For the UK logistics industry to truly compete on a global scale, further incentives are required to push UK operators towards full digital integration.
  • As it stands, UK operators still experience barriers to digital access, such as insufficient infrastructure nationally, as well as a lack of funding and cybersecurity concerns.

3. Bridging the digital skills gap is essential for future digital adoption

  • There remains a shortage of digital talent coming into the logistics sector.
  • 9% of companies in the sector state their employee digital skills are below what’s needed to grow digital solutions in their operations.
  • It will be the responsibility of UK logistic trade bodies, business groups, and logistic industry qualification boards to market the advantages of the logistics industry to the next generation of digital talent.

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What is a backbone network?

A backbone network is the central core of large computer networks that connects smaller networks. Learn all about backbone networks and how they ensure network performance for service providers and end users.

What is a backbone network?

A backbone network, also known as a core network, is the central infrastructure in larger computer networks that interconnects local subnetworks. They’re usually high capacity, low latency connections designed to transmit high data volumes as efficiently as possible.

For example, a backbone network can connect different local area networks (LANs) in one building or across many buildings in a business park or university campus. Large enterprises with geographically dispersed sites might create a backbone network to connect their sites in a wide area network (WAN).

Similarly, backbone networks connect different cities, regions or countries. For instance, internet service providers (ISPs) and data centres use backbone networks to provide high capacity connectivity between dispersed locations.

How does a backbone network work?

A backbone network works like a central highway, providing fast, reliable traffic flow to local road networks. It typically uses high capacity optical connectivity with fibre optic cables, routers, switches and other networking equipment to transmit high volumes of data as efficiently as possible.

In addition, wireless satellite or microwave links, or a hybrid core network of wired and wired connections, can be used to reach remote areas where laying cables is impractical.

While core networks vary, they use standard technologies like Internet Protocol (IP), Multiprotocol Label Switching (MPLS) and Dense Wavelength Division Multiplexing (DWDM) to ensure seamless communication between subnetworks.

Backbone network vs access network

Backbone and access networks are distinct components of computer networks with different functions. In national or global networks, the two are interconnected as follows:

  1. A backbone network is the high capacity core that connects different regions, data centres and ISPs to the internet and cloud services.
  2. A distribution network, which may include backhaul, connects the backbone network to an access network, distributing traffic to regional or local metropolitan area networks (MAN), streets or buildings.
  3. An access network, also known as the “last mile”, connects end users or subscribers to the distribution network, providing access to the internet and cloud services.
Example of a backbone network, showing how it's connected to a distribution network and an access network

In short, a backbone network is the core networking highway that ensures the reliability and performance of large-scale networks, including the internet.

Backbone network functions

In addition to providing high capacity connections between local networks, backbone networks perform several crucial functions, including but not limited to:

  • Aggregation: Backbone networks aggregate data traffic from various sources, including MANs, LANs, WANs and access networks.
  • Routing and switching: Routers and switches efficiently forward data packets across different parts of the network.
  • Redundancy: Core networks are typically designed with backup routes and failover mechanisms to maximise reliability.
  • Authentication and security: Backbone networks use encryption, firewalls and other measures to prevent unauthorised access, data breaches or other cyberattacks
  • Traffic management: As core networks are centralised, they allow you to optimise the data flow, ensuring Quality of Service (QoS) to prioritise critical types of traffic.

Typically, backbone networks can accommodate much higher capacities than the local networks they serve. They’re usually designed to scale as you grow to meet the ever-increasing demand for data.

Types of backbone networks

Backbone networks vary in technology and scale, from local core networks to the internet backbone, which connects network service providers worldwide. However, most core networks have one of the following basic network topologies:

  • Serial backbone: A simple point-to-point connection links two or more connectivity devices, such as connecting a hub to a subnetwork.
  • Distributed backbone: Numerous connectivity devices link to various central hubs, switches, or routers in a layered hierarchy, which is typically used for most large core networks.
  • Collapsed backbone: All connectivity devices link back to a central location in a star topology, which is easy to manage but has a single point of failure.
  • Parallel backbone: Connectivity devices link to a central location but with duplicate connections providing redundancy and resilience.

Backbone network solutions

To sum up, backbone networks are vital components of large-scale networks, ensuring network performance for both service providers and end users. Core networks give you:

  • Seamless connectivity to grow your network
  • Redundancy and resilience to ensure customer experience
  • Flexibility and scalability to meet growing demand

At Neos Networks, we provide backbone networks and backhaul services for businesses across the UK. Optical connectivity is the fabric of any large backbone network, and we offer a range of optical wavelength services to suit your business’s needs with:

  • High availability: Up to 99.95% uptime across our UK-wide network
  • Ultrafast connections: Choose between 10Gbps, 100Gbps and 400Gbps
  • Flexibility: Connectivity options to suit your business and customers nationwide

We’ve already helped several service providers achieve their ambitious growth plans, including:

  • Jisc: Enabling their mission-critical national backbone for education and research facilities across the UK
  • CityFibre: Deploying a Dark Fibre backbone network for their UK fibre-to-the-premises (FTTP) services on the south coast
  • Gigabit Networks: Providing exchange backhaul to supercharge their connectivity in the ‘Golden Triangle’ of Nottingham, Leicester and Derby

To see how we could boost your connectivity across the UK, download our network map. We’ll be happy to help you supercharge your network.

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What is DWDM (Dense Wavelength Division Multiplexing)?

DWDM wavelength

Dense Wavelength Division Multiplexing (DWDM) is an optical networking technology that dramatically increases the bandwidth of existing networks. Learn how it works and how DWDM solutions can help supercharge your business’s connectivity.

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What is Dense Wavelength Division Multiplexing (DWDM)?

Dense Wavelength Division Multiplexing (DWDM) is a kind of Wavelength Division Multiplexing – a technology used to expand the capacity of fibre optic networks. It allows multiple data streams to be transmitted over different light wavelengths through a single fibre.

It’s called ‘dense’ because the gaps between each channel’s wavelengths are much smaller than in Course Wavelength Division Multiplexing (CWDM). As a result, you can transmit many more channels on a single fibre over longer distances.

Learn more about the difference between CWDM and DWDM

How does DWDM work?

Dense Wavelength Division Multiplexing slices the ultraviolet light section of the electromagnetic spectrum into small segments. It’s this tighter wavelength spacing that allows a large number of channels to be carried over a single pair of optical fibres.

DWDM operates on the C band (1525nm to 1565nm wavelengths) or L band (1570nm to 1610nm). The wavelength spacing varies, but a typical DWDM system uses 0.4nm spacing to create up to 88 channels.

DWDM (typical 88-channel plan)

DWDM - typical 88-channel plan showing 0.4nm wavelength spacing

 

That means you can use your existing network infrastructure far more efficiently, removing the high cost and disruption of laying more fibre.

What are the main components of DWDM systems?

A DWDM system consists of five main components:

  • Optical transmitters and receivers
  • DWDM mux and demux filters
  • Optical add/drop multiplexers
  • Optical amplifiers
  • Optical transponders

Optical transmitters and receivers

Optical transmitters and receivers are fundamental components of DWDM systems. Multiple transmitters in each system provide source signals before they are multiplexed, with several individual lasers deployed to handle different channels in the signal.

Each optical transmitter is fed with electronic data bits – ones and zeros – which trigger the modulation of precise optical pulses. To represent ‘one’, the transmitter’s laser generates a pulse of light. To represent ‘zero’, the laser remains inactive.

The pulses of light then travel the length of the optical fibre, where they are demultiplexed before terminating at optical receivers. These optical receivers detect the light pulses and convert them back into electronic data bits.

DWDM mux and demux filters

The mux filter receives different signals from the optical transmitters via multiple fibres. It then combines and transmits them as a composite signal over a single optical fibre.

At the demux filter on the receiving terminal, all the separate wavelengths of the composite signal are separated and sent down different fibres to the optical receivers.

Mux and demux devices are usually passive, requiring no power supply or maintenance to function correctly.

Optical add/drop multiplexers

Optical add/drop multiplexers (OADMs) are installed at intermediate points along a transmission line. They enable new signals to enter the network and existing signals to leave, separating or rerouting different wavelength channels.

Most signals simply pass through the OADM unchanged, but some are dropped by splitting them from the line. At the same time, signals originating at that point can be added and transmitted to another destination.

Reconfigurable optical add-drop multiplexers (ROADMs) are now widely used, allowing the routing and rerouting of any wavelength in any direction.

Optical amplifiers

Optical amplifiers enhance optical signals by directly stimulating photons, increasing amplitude and strengthening the signal.

They’re built into the fibre and can amplify signals over a wide range of wavelengths. A vital part of DWDM systems, they greatly extend the transmission distances of DWDM equipment.

RAMAN amplifiers can be used to allow transmission over longer distances.

Optical transponders

An optical transponder, also known as an O-E-O (optical-electrical-optical) wavelength converter, is a crucial signal transmission component. It gathers incoming optical signals from the client service and converts them to outgoing optical wavelengths compatible with DWDM components.

First, it converts the optical signal into an electrical signal. It then performs either 2R (reamplify and reshape) functions or 3R (reamplify, reshape and retime) functions. Finally, it converts the signal back into an optical signal, hence the name O-E-O.

What is Dense Wavelength Division Multiplexing used for?

Faced with an explosion of data fuelled by the adoption of AI, 5G and IoT, businesses are looking to boost their network capacity. They use DWDM to greatly increase the bandwidth and reach of their optical networks.

With DWDM, you don’t need to install new cables, avoiding the huge costs and long lead times of fibre infrastructure upgrades. Instead, you can fully realise the investment in your existing network by enabling different data streams to be sent simultaneously over a single optical fibre.

While DWDM hardware can be more expensive than other solutions, the cost is justified by significant financial and time savings. In addition, amplifiers serve as repeaters, mitigating optical power loss and enabling DWDM operation over long distances.

Overall, DWDM provides tremendous scalability, reliability and reach for fibre optic networks. Without it, many cloud computing solutions would not be possible, and infrastructure overheads would be significantly higher.

Is DWDM the same as Dark Fibre?

A Dark Fibre network consists of ‘unlit’ fibre optic cables with no service or traffic running on them. You deploy and manage the equipment needed to light it.

DWDM is a technology you can deploy to enhance your network efficiency and maximise capacity. However, running your own DWDM service requires significant IT resources and expertise to deploy and maintain your network.

If you don’t want the upfront costs and hassle of Dark Fibre, consider a managed DWDM solution.

Learn more about Dark Fibre vs DWDM

DWDM solutions for your business

At Neos Networks, we’re helping businesses nationwide transform their networks with DWDM-enabled Optical Wavelengths up to 400Gbps.

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If you’re looking to upgrade your network to meet the exploding demand for bandwidth, get in touch. We’ll be happy to design a high-capacity DWDM solution for your business.

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What is WDM (Wavelength Division Multiplexing)?

Wavelength Division Multiplexing

Wavelength Division Multiplexing (WDM) is a technology that increases the bandwidth of existing fibre optic networks. We explain the different types of WDM and how WDM-enabled optical networks can help your business.

Get ultrafast, low latency Optical Wavelengths

Supercharge your network up to 400Gbps

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What is Wavelength Division Multiplexing (WDM)?

Wavelength Division Multiplexing (WDM) is an optical networking technology that allows you to expand the capacity of optical fibre by adding a multiplexer and a demultiplexer at each end of the fibre.

This enables multiple data streams to be transmitted over different light wavelengths through a single fibre. In this way, you can optimise your network infrastructure without the additional cost of laying more fibre.

What is WDM used for?

Traditionally, WDM technology was used for large networks like national infrastructure due to its complexity and cost. Today, businesses use cost-effective WDM solutions in various networking applications to maximise their bandwidth.

WDM is used in metro access networks, data centres, network service providers, or any enterprise environment that needs high capacity, low latency connectivity.

Types of Wavelength Division Multiplexing

There are two main types of WDM: Coarse Wavelength Division Multiplexing and Dense Wavelength Division Multiplexing.

CWDM

Coarse Wavelength Division Multiplexing (CWDM) typically uses eight active wavelengths per fibre but can support up to 18 channels or more. It’s generally used for connections across shorter distances and can be more cost-effective than DWDM.

Learn more about CWDM

DWDM

Dense Wavelength Division Multiplexing (DWDM) uses precision lasers to create up to 88 channels or more per fibre. Typically used in core networks where high capacity is required, DWDM is a good choice for businesses transmitting large data volumes over longer distances.

Learn more about DWDM

WDM and Dark Fibre

If you’re looking to lease Dark Fibre for your business’s network, the cost is usually significant. So taking advantage of WDM technology to maximise your network capacity can help offset some of that cost.

Dark Fibre offers almost limitless capacity, easy scalability, and a dedicated connection for maximum security. However, if you’re looking for a swifter setup, less cost upfront, and a guaranteed service without having to manage it yourself, a Lit Fibre service might be the better choice.

Learn more about Dark Fibre vs Lit Fibre

WDM solutions for your business

Whether you lease Dark Fibre or opt for a managed optical network, WDM is a great way to maximise your existing capacity at minimal cost.

At Neos Networks, we’re helping UK businesses boost their connectivity with DWDM-enabled Optical Wavelengths up to 400Gbps across our nationwide network.

Get ultrafast, low latency Optical Wavelengths

Supercharge your network up to 400Gbps

Learn more

If you’re looking to future-proof your connectivity to meet the growing data demands of AI, 5G and IoT, get in touch. We’ll be happy to help you supercharge your network for the future.

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What is CWDM (Coarse Wavelength Division Multiplexing)?

CWDM wavelength

Coarse Wavelength Division Multiplexing (CWDM) is an optical networking technology that increases the bandwidth of existing networks. Learn all about CWDM, how it differs from DWDM, and whether a CWDM solution is right for your business’s network.

Get ultrafast, low latency Optical Wavelengths

Supercharge your network up to 400Gbps

Learn more

What is Coarse Wavelength Division Multiplexing?

Coarse Wavelength Division Multiplexing (CWDM) is a kind of Wavelength Division Multiplexing – a technology used to expand the capacity of fibre optic networks. It enables multiple data streams to be transmitted over different light wavelengths through a single fibre.

How does CWDM work?

CWDM uses a multiplexer to divide the light wavelengths into different channels, each carrying a separate data stream.

The channels are combined and transmitted over a single fibre optic cable. At the receiving end, a demultiplexer separates the wavelengths into the original channels. This allows multiple independent data streams to be transmitted over a single fibre.

CWDM is called “coarse” because the gaps between each channel's wavelengths are much larger than in Dense Wavelength Division Multiplexing (DWDM).

What is the difference between CWDM and DWDM?

Both CWDM and DWDM are technologies used to increase the capacity of fibre networks, but they divide up the available optical wavelengths differently. Here’s how they differ.

Wavelength range and spacing

CWDM and DWDM use different wavelength ranges and spacing:

  • CWDM operates in the 1270-1610 nanometre (nm) range of the electromagnetic spectrum. It usually spaces wavelengths 20nm apart.
  • DWDM operates on the C band (1525nm to 1565nm) or L band (1570nm to 1610nm). Wavelength spacing varies, but it’s far narrower than that of CWDM: 0.4nm for a typical DWDM system with up to 88 channels.

Number of channels

As DWDM wavelengths are much closer together than those of CWDM, DWDM can pack in significantly more channels:

  • CWDM typically uses eight channels but can support up to 18 or more.
  • DWDM provides up to 88 channels or more, depending on the multiplexing technique used.

The International Telecommunication Union (ITU) has standardised the nominal wavelengths and channels for CWDM (G.694.2) and DWDM (G.694.1), as shown in the comparison below.

CWDM vs DWDM: Comparing wavelengths and channels

Diagram comparing the available channels and wavelengths of CWDM (typical 8-channel plan) and DWDM (typical 88-channel plan)

 

Distance

CWDM wavelength spacing is not suitable for signal amplification, so its range is limited compared to DWDM:

  • CWDM is typically used for distances up to 80km (50 miles). It’s commonly used in short-haul, metropolitan or regional networks
  • DWDM wavelengths can be amplified to support transmission distances of hundreds or thousands of kilometres. It’s ideal for regional or long-distance networks.

Cost

CWDM systems tend to be cheaper to set up and run than DWDM networks:

  • CWDM’s “coarse” wavelength spacing typically requires fewer, simpler components than DWDM.
  • DWDM uses more sophisticated laser equipment to control wavelengths more precisely and amplify signals for longer distances.

Although the price difference between CWDM and DWDM equipment has narrowed, CWDM systems can be cheaper to install per kilometre than DWDM deployments.

What is CWDM suitable for?

CWDM is a low-cost, relatively high-capacity optical networking solution that’s ideal for a range of networks over shorter distances. Here are some common use cases for CWDM solutions:

Metro access networks

CWDM is often used to interconnect multiple locations in a city or metropolitan area. It’s a cost-effective technology for metro access networks or metropolitan area networks.

ISP connectivity

Internet service providers (ISPs) may use CWDM over passive optical networks to provide fibre to the premises – the “last mile” supplying ultrafast broadband to homes and businesses. In addition, ISPs may deploy CWDM to transmit data between their data centres or points of presence (PoPs).

Enterprise networks

For businesses, CWDM provides a low-cost way to interconnect different offices or data centres in a local area. For example, it can provide scalable connectivity across a business park, city or region.

Data centres

Data centre businesses require high-capacity, low-latency links between storage systems. With CWDM, they can reduce the number of fibres needed while maintaining sufficient bandwidth.

Video distribution

Broadcasters and streaming services can use CWDM to transmit multiple channels of ultra-high-definition content over a single fibre. Similarly, CWDM may be suitable for interconnecting local video surveillance systems.

Overall, CWDM offers a simple way to increase your fibre network’s capacity using existing infrastructure. However, DWDM can give you far more channels, longer distance connections and greater bandwidth.

Optical wavelength solutions for your business

Ultimately, your choice of networking technology depends on your business needs and budget. If you’re looking to upgrade your network to meet the ever-increasing bandwidth demands of AI, 5G and IoT, we can help.

At Neos Networks, we’re helping businesses nationwide transform their networks with Optical Wavelengths up to 400Gbps and other high-capacity connectivity.

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We’ll be happy to design a scalable network to future-proof your business.

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What is a network-to-network interface (NNI)?

Network-to-network interface

A network-to-network interface (NNI) is a connection between different networks. We explain NNIs, how they work, and how they can help you expand your business connectivity quickly and efficiently.

What is a network-to-network interface (NNI)

In telecommunications, a network-to-network interface (NNI), also known as a network node interface, is a physical or virtual connection between two or more different networks. It defines the signalling and network management between two networks, allowing them to communicate seamlessly regardless of the underlying protocols they use.

Like an efficient motorway interchange that allows smooth traffic flow between different roads, NNIs ensure data moves smoothly from one network to another.

What are NNIs used for?

Telecom providers use network-to-network interfaces to connect to other network operators. Typically located in data centres or points of presence (PoPs), NNIs ensure seamless data exchange between the networks of different service providers.

Example NNI connecting two network service providers

Example of network-to-network interface connecting two network service providers

 

In addition, network service providers may use NNIs to interconnect or expand their own networks. For example, UK providers use exchange backhaul and NNIs to extend high-capacity gigabit connectivity nationwide.

NNIs are also a vital component of internet exchange points (IXPs). They interconnect multiple internet service providers (ISPs), enabling them to exchange network traffic.

How does a network-to-network interface work?

Simply put, a network-to-network interface defines how two interlinked networks communicate. For example, it specifies the physical connections and data formats to allow seamless data exchange. It also exchanges routing and signalling information to ensure network traffic is routed efficiently.

Exactly how NNIs work depends on the type of networks involved. For instance, MPLS-based networks use protocols like Border Gateway Protocol (BGP) and Autonomous System Numbers (ASNs) to route traffic.

To maintain performance across networks, NNIs typically support Quality of Service (QoS) and Service-Level Agreements (SLAs). They may also include encryption and authentication controls to ensure security.

How can NNIs help your business?

NNIs offer several benefits for businesses and network service providers looking to expand their networks or connect to other carriers. Among the advantages of NNIs are:

  • Interoperability: NNIs interconnect networks with different networking protocols and architectures, allowing seamless data exchange between providers.
  • Flexibility: Designed to work with various networking technologies, NNIs can connect different network types.
  • Scalability: By connecting multiple existing networks, NNIs allow you to scale up without investing in new network infrastructure.
  • Quality: With support for QoS, traffic engineering and SLAs, NNIs can help you prioritise traffic and guarantee service levels across networks.
  • Simplicity: Interconnecting multiple networks enables you to centralise and streamline network management.

In short, NNIs can enable you to interconnect or expand your network as efficiently as possible, minimising costly changes to your underlying network architecture.

NNI solutions with Neos Networks

At Neos Networks, we’re helping businesses and network service providers grow with our high capacity network. Boost your network by connecting to NNIs in over 20 data centres and selected exchanges nationwide.

Joining our ultrafast network gives you:

  • Flexibility: Extend your reach with 550 unbundled exchanges and 90 on-net data centres across the UK.
  • Scalability: Connect to 1Gbps, 10Gbps or 100Gbps NNIs using Ethernet or Optical Wavelengths.
  • High availability: Get up to 99.95% uptime with secondary backup routing and monitoring from our Network Operations Centre 24/7, 365 days a year.
  • Quality of Service: Configure QoS and SLAs with NNIs to optimise resources and guarantee performance across networks.
  • Fast deployment: Quote and order online with our connectivity pricing tool, LIVEQUOTE.

If you’re a larger business with multiple dispersed sites, our point-to-NNI services enable you to interconnect your sites efficiently with bandwidths you can scale as you grow.

Point-to-NNI

Point to NNI Ethernet

 

For growing network service providers, backhaul and NNIs are a quick and cost-effective way to extend your reach.

We’re already helping UK service providers like Colt leverage NNIs to expand gigabit connectivity nationwide, so get in touch. We’ll be happy to help you supercharge your network.

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What is 10 Gigabit Ethernet (10GbE)?

10 Gigabit Ethernet

10 Gigabit Ethernet is an ultrafast business Ethernet service that provides reliable, low latency connectivity. We explain 10 Gigabit Ethernet, how it differs from other Ethernet services and how it could benefit your business.

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What is Gigabit Ethernet?

Gigabit Ethernet is a networking technology based on Ethernet standards that provides data transfer rates up to 1 billion bits per second, or 1 gigabit per second (1Gbps).

Standardised by the IEEE (Institute of Electrical and Electronics Engineers) in 1999, Gigabit Ethernet is an evolution of Fast Ethernet, which delivers speeds of 10 or 100 megabits per second (Mbps). It works over copper-based cables or fibre optic cables.

As Gigabit Ethernet is fully compatible with earlier Ethernet standards, it’s often deployed in enterprise backbone networks serving 10/100 Mbps local area networks (LANs).

What is 10 Gigabit Ethernet?

10 Gigabit Ethernet – also known as 10GbE, 10GE, or 10G Ethernet – is a networking standard that offers data speeds up to 10 billion bits per second (10Gbps).

Released in 2002, 10 Gigabit Ethernet offers significantly higher data transfer speeds than Fast Ethernet (100Mbps) or Gigabit Ethernet (1Gpbs). Like Gigabit Ethernet, 10GbE can run over fibre optic or copper cables.

With its higher bandwidth and lower latency, 10GbE is being widely adopted in enterprise LANs and wide area networks (WANs) to address the growing data demands of artificial intelligence (AI), 5G, and IoT.

What is the difference between 10Gb Ethernet and 1Gb Ethernet?

10Gb Ethernet differs from 1Gb Ethernet in its data transfer speed, use cases, implementation and cost:

  • Speed: 10GbE provides up to ten times faster data transfer speeds than 1GbE. 10GbE takes advantage of the full-duplex protocol, meaning it can transmit up to 10Gbps of data in both directions simultaneously.
  • Use cases: 1GbE is used in various scenarios, from home networks to business environments. By contrast, 10GbE is typically used in high-performance enterprise applications like data centres, storage area networks and cloud computing infrastructure.
  • Implementation: 1GbE commonly uses Category 5e twisted-pair copper cables for connections up to 100 metres and fibre optic cables over longer distances. 10GbE typically uses Category 6 or 6A short-distance cables, fibre cabling for longer distances, and 10GbE-capable switches, network interface cards, and routers.
  • Cost: 1GbE hardware tends to be cheaper than 10GbE equipment because it’s less sophisticated. However, the cost difference between the two is narrowing as technology improves.

Despite its significantly better performance, 10GbE remains fully interoperable with 1GbE and earlier Ethernet standards.

10GbE-enabled router showing 1G and 10G Ethernet ports

10GbE-enabled router showing 1G and 10G Ethernet ports

 

How does 10 Gigabit Ethernet work?

10 Gigabit Ethernet operates like other Ethernet services, using a similar format of frames and packets to transmit data. That’s why it’s fully compatible with traditional Ethernet and easy to integrate into existing networks. However, there are significant differences between 10GbE and traditional Ethernet.

First, 10 Gigabit Ethernet achieves a higher data transmission rate by encoding and modulating data differently, depending on the type of cabling used.

Second, 10GbE is designed to operate in full-duplex mode only. That means it simultaneously transmits data in both directions on one channel, improving network efficiency and reducing latency.

Like 1Gbps Ethernet, 10GbE can use various types of fibre optic or copper cabling, depending on the purpose and reach of the network.

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Types of 10 Gigabit Ethernet

The IEEE has introduced various 10 Gigabit Ethernet standards for LANs, WANs and other applications over different distances. Copper-based cables can be used for connections up to 100 metres. For longer distances, 10GbE uses:

  • Multimode fibre, which divides the light signal into multiple paths for different channels, with a range of up to 300 metres
  • Single-mode fibre, featuring a single path, suitable for longer distances up to 40km (25 miles) or more

Here are some common 10 Gigabit Ethernet standards in order of maximum reach.

Common types of 10 Gigabit Ethernet

Name IEEE standard Cable Max distance
10GBASE-CX4 802.3ak-2004 Copper (twinaxial) 15m
10GBASE-T 802.3an-2006 Copper (twisted pair) 100m
10GBASE-LRM 802.3aq-2006 Fibre (multimode) 220m
10GBASE-SR/SW
(for LAN/WAN)		 802.3ae-2002 Fibre (multimode) 300m
10GBASE-LR/LW
(for LAN/WAN)		 802.3ae-2002 Fibre (single mode) 10km (6 miles)
10GBASE-ER/EW
(for LAN/WAN)		 802.3ae-2002 Fibre (single mode)

40km (25 miles)

 

In addition to IEEE standards, several manufacturers offer proprietary 10GbE types, such as 10GBASE-ZR/ZW, with a maximum range of 80km (50 miles).

What are the benefits of 10GbE?

Many advanced computers and mobile devices can now read files at speeds of 10Gbps. However, when numerous devices connect and share data over your network, bottlenecks may occur.

10 Gigabit Ethernet solves this problem. With 10GbE, you can achieve speeds up to 10Gbps for content downloads or uploads.

While it may cost more than 1GbE to implement, the benefits can more than offset the expense. With 10GbE, you can:

  • Prevent data bottlenecks even when multiple computers share bandwidth in a server cluster
  • Boost employee productivity with a more stable connection, eliminating interruptions and delays
  • Improve customer response times, especially when many customers and employees are connected at the same time
  • Simplify your IT by increasing your connection speeds using one server instead of combining multiple Gigabit Ethernet ports
  • Strengthen your security with a fully contained fibre network that requires physical access to the router

Overall, 10 Gigabit Ethernet provides much higher bandwidth and lower latency than 1GbE, making it suitable for data-hungry enterprise applications.

What is 10 Gigabit Ethernet used for?

10 Gigabit Ethernet is used in various business applications where high speed and low latency are critical, including:

  • Data centres: interconnecting data centres, servers, storage systems and networking equipment
  • Network service providers: enabling backbone networks and ensuring reliable services for customers
  • Cloud computing: connecting cloud environments and providing virtual services
  • Banking and financial services: enabling real-time trading transactions and reliable customer service
  • Media and entertainment: handling large files for video and other content creation
  • Education and research: connecting universities and research organisations for collaboration and data sharing

Whatever your business, a 1Gbps Ethernet connection can lead to bottlenecks. For example, when 100 devices share a 1GbE connection, each is limited to 10Mbps throughput, which can slow down or interrupt connections.

That’s why many UK businesses are turning to 10GbE to meet the increasing bandwidth demands of cloud computing, AI, 5G, and IoT.

Do you need 10 Gigabit Ethernet?

Whether 10 Gigabit Ethernet is right for you depends on your needs and budget. If you’re a data centre business, network service provider, or operating in data-heavy industries like financial services, media, online retail or health care, then 10GbE may be an ideal solution.

At Neos Networks, we offer a range of scalable, high-performance Business Ethernet services to suit your business, from 10Mbps to 100Gbps.

If you’d like to discuss how best to boost your connectivity, get in touch. We’ll be happy to supercharge your network for the future.

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By tapping into Neos Networks’ expansive network and utilising its underlying infrastructure, we’re enhancing connectivity capabilities across 250 towns and cities in the UK, futureproofing the UK’s digital economy. In doing so, we’re creating the underlying foundations for future smart cities innovations, which will require high capacity, reliable connectivity to bring about the next generation of urban life.

– James C Smith, Director of Partner Management, Three UK

"Having worked with Neos Networks on previous connectivity requirements we knew of the benefits of their LIVEQUOTE portal, but not even in our wildest dreams could we have predicted an eight-day turnaround from order to completion. This well managed, smooth process is a great display of how the industry can support our front-line key workers, should we all pull together."
“Neos Networks was perfectly placed to help us deliver exceptional WiFi managed services to our UK hospitality customers in a way that supports their long-term growth. As the success of the highlighted project has shown, we have established an important synergy with Neos Networks which has resulted in an improved end experience and service availability for our customer. Without its skills and expertise, as well as its infrastructure and reach, we wouldn’t have been able to act tactically to pursue this specific business opportunity outside of our home country.”
Neos Networks’ excellent standards of customer care and speed of delivery has made them a long-standing, reliable partner. Most recently, we worked with them to deploy two 100Gbps Network-to-Network Interfaces (NNIs) in Manchester and London to better connect our UK network, providing our customers with access to high capacity business Ethernet services across the country.

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What is backhaul in networking?

What is backhaul in networking?

Backhaul is the link between a network and its subnetworks – a critical part of high capacity network infrastructure. Learn all about backhaul and how it can supercharge your business’s network.

What is backhaul?

Backhaul in networking refers to the infrastructure that connects a local network, or subnetwork, to a backbone or core network. It’s typically a high capacity, low latency link designed to transmit data efficiently and fast.

Think of networks as roads and the data as the vehicles travelling along them. A backbone network is like a motorway, the main road ensuring traffic travels quickly and efficiently between major cities.

Backhaul is like the major roads branching off the motorway, connecting local towns and regions to the main highway.

Backhaul examples

Internet service providers (ISPs) use backhaul to deliver internet access. ISPs connect you to the internet through a backbone network connecting data centres linked to an internet gateway.

Backhaul, or exchange backhaul, is the subnetwork that connects these data centres to local exchanges. These exchanges typically link to street cabinets, which link to your router by copper or fibre optic cable, delivering internet to your office or home.

Backhaul is also used for mobile data access. When you browse the internet on your mobile phone, your device connects to cell towers in a local Radio Access Network (RAN).

Backhaul is this local RAN and its related infrastructure, which connects your mobile device to a wired backbone network and the internet.

How does backhaul work?

Streaming illustrates the significant role backhaul plays in network architecture. When customers use a streaming service like Netflix, their data travels through several stages of the network.

How exchange backhaul works, connecting data centres to local exchanges
  1. Data Centre: When a customer requests a movie, the content is retrieved from Netflix’s servers in a data centre.
  2. Backbone network: The data travels through the backbone network, a high capacity network that connects regions, ISPs and data centres to the internet and cloud services.
  3. Exchange backhaul: Backhaul connects the backbone network to your local exchange, ensuring the data is transported efficiently to and from the internet.
  4. Access network: If the customer uses a fixed-line connection like DSL or fibre, the data may pass through a street cabinet connecting to their home or business.
  5. Router: The data reaches their router, which creates a wired or wireless local area network to deliver the movie to their laptop, mobile phone or smart TV. You connect your devices to the router by Wi-Fi or by plugging in an Ethernet cable.

Exchange backhaul plays a critical role in this process. By providing high capacity transport between the backbone network (2) and the customer’s local access network (4), backhaul ensures their content is transmitted efficiently, ensuring a smooth streaming experience.

So, if you’re a network service provider, backhaul can be a vital link between your data centres and the customers you supply.

Backhaul connected to an access network providing connectivity to businesses, office buildings and homes

Types of backhaul

Backhaul solutions can be divided into two broad categories: wired or wireless.

Wired (fixed-line) backhaul

Wired or fixed-line backhaul uses cables to transmit data, which can provide higher bandwidth and lower latency than wireless backhaul.

Wired backhaul can use fibre optic, copper, Ethernet or coaxial cabling. Today, wired backhaul tends to use fibre as it offers very low latency and the highest capacity to satisfy the growing demand for data.

Wireless backhaul

Wireless backhaul is used where wired backhaul is either impossible or not cost-effective.

Wireless backhaul typically uses microwave signals, which can make point-to-point and point-to-multipoint connections over medium to long distances. For remote areas or areas without wired infrastructure, satellites can be used to transmit data over long distances, while Wi-Fi can extend networks locally.

What are the benefits of backhaul?

For network service providers, investing in exchange backhaul is a strategic move to enhance your network capabilities and competitiveness. By deploying high capacity fibre backhaul, you can get:

  • Longer reach: Extend your network into new areas to expand your customer base.
  • Lower costs: Exchange backhaul can be a significantly more cost-effective way to expand your network than building your own infrastructure.
  • Faster speeds: High capacity fibre backhaul can boost speeds for your customers.
  • Lower latency: Direct fibre connections can reduce latency, resulting in a smoother gaming or video conferencing experience.
  • Greater resilience: High capacity backhaul allows you to build in redundancy to bolster your network’s reliability.
  • Better scalability: Fibre backhaul has huge potential capacity, so you can scale up your network as you grow your business.

In short, exchange backhaul is not only a great way to extend your network reach. It’s also vital to support a competitive customer experience and meet the ever-growing data demands of AI, 5G and IoT.

Exchange backhaul with Neos Networks

If you’re looking to boost your network with exchange backhaul, we can help. With Neos Networks, you can extend and supercharge your network with our UK-wide high capacity network, including:

Ethernet backhaul

Our Ethernet backhaul gives you:

  • Up to 99.95% availability: Your 1Gbps and 10Gbps backhaul is protected across our MPLS core network: traffic is automatically rerouted to a secondary path should an issue arise.
  • Scalability: Upgrade your backhaul at 1Gbps increments from 1Gbps to 10Gbps.
  • High throughput: 1Gbps and 10Gbps backhaul can be configured to take jumbo frames (MTU size of up 9100 bytes), simulating a throughput like optical wavelengths.
  • No distance limits: Deliver services from exchanges in Scotland to data centres in Manchester or London, as required.
  • Network-to-network interfaces (NNIs): Meet growing customer demand with our 100Gbps NNIs in 20 data centres nationwide, from Edinburgh and Newcastle to Leeds, Manchester and London.

Optical backhaul

For faster speeds, consider high capacity optical backhaul with Optical Wavelengths or Dark Fibre.

With Optical Wavelengths, you get:

  • Up to 99.95% availability: Low latency, highly available service, including dedicated wavelengths.
  • Flexibility: Choose between 10Gbps, 100Gbps and 400Gbps across the UK.
  • Diversity: Route separation protects against outages.
  • Resilience: Managed switching adds resilience to your network.
  • Guaranteed bandwidth: Always receive the full bandwidth you pay for.

We’ve already helped several network service providers achieve their ambitious growth plans, supporting:

  • brsk to roll out 100Gbps services to key regions across the North of England and the Midlands
  • Giganet to enable their national network service and boost their capacity offering tenfold
  • Gigabit Networks to supercharge connectivity in and around the ‘Golden Triangle’ of Nottingham, Leicester and Derby

If you’re a network service provider, AltNet or any business wanting a cost-effective way to expand your high capacity network nationwide, get in touch. We’ll be happy to help you supercharge your network.

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What is an optical network terminal (ONT)?

What is an optical network terminal (ONT)?

An optical network terminal is a device that connects a customer’s premises to an optical network. Learn all about ONTs, how they work, and why they’re a critical link in the “last mile” of fibre networks.

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What is an optical network terminal (ONT)?

An optical network terminal (ONT) is a device that serves as the endpoint of an optical network, connecting users to the network. It’s typically used in fibre-to-the-premises (FTTP) or fibre-to-the-home (FTTH) networks to deliver ultrafast connectivity to your business or home.

Commonly known as a “fibre box”, an ONT is installed inside or outside your building as the interface between the optical fibre infrastructure and your premises.

Example of an optical network terminal (ONT)

Openreach optical network terminal

 

How does an ONT work?

In fibre optic networks, your network service provider transmits data as pulses of light. An ONT processes this light as follows:

  1. The ONT converts the light into electrical signals using an optical interface. It corrects errors and prepares the data for transmission over your business or home local area network (LAN).
  2. The ONT transmits the data via one or more Ethernet ports to a router, computer or other connected devices, delivering internet access to your end users.
  3. In reverse, the ONT converts data your users generate into optical signals and transmits them to the internet over the fibre optic network.

In short, an ONT is a gateway for two-way communication between your premises, the fibre network and the internet beyond.

What is the difference between an OLT and an ONT?

An optical line terminal (OLT) and an optical network terminal (ONT) are both critical components in an FTTP passive optical network (PON), but they play different roles.

ONTs and OLTs in a passive optical network (PON)

Low latency network

 

An OLT (1) is located at the network service provider's central office or point of presence (PoP). It aggregates and distributes data to many customers, connecting to multiple ONTs via passive optical splitters (2).

In contrast, an ONT (3) is situated at the customer’s business or home and converts optical signals into electrical signals usable by devices like routers, computers, and printers. An ONT is installed in each customer’s premises, from individual businesses and homes to office and apartment buildings.

Both OLTs and ONTs process and distribute data upstream and downstream between backbone networks and end users.

Types of optical network terminals

ONTs vary in size and purpose, ranging from single-user units for individual businesses or households to multi-user devices for office buildings or apartments. They also come in compact, indoor models and larger, weatherproof units for outdoor installation.

In addition to their basic functionality, some ONTs have built-in routers and support for features like Wi-Fi or Voice over Internet Protocol (VoIP) for voice calls. Business-oriented ONTs may also incorporate advanced security features and enhanced Quality of Service (QoS) settings.

Designed to work with PONs, ONTs may support various PON standards, like EPON, GPON or XGS-PON. However, active optical networks may use a different type of optical network unit.

What are the benefits of ONTs and PONs?

ONTs and passive optical networks (PONs) offer several advantages over traditional, copper-based access networks, including:

  • High speed: Fibre optic cables support significantly higher data transmission than copper cables.
  • High bandwidth: Fibre connections offer higher bandwidth, which is ideal for streaming, online gaming and high-definition video conferencing.
  • Reliability: Fibre cables are less prone to interference or loss of signal over long distances.
  • Low latency: Fibre networks have lower latency compared to copper-based networks.
  • Low cost: PONs are more energy-efficient over long distances than copper-based networks.

To sum up, ONTs are a vital component of PONs, the “last mile” providing ultrafast connectivity to businesses and homes across Britain.

As UK companies look to invest in digital infrastructure to meet the growing demands of AI, 5G and IoT, network service providers are using PONs to give businesses the high-capacity networking they need.

Networking solutions for your business

At Neos Networks, we’re helping businesses nationwide build their digital futures with a range of networking solutions, from Business Ethernet, including Ethernet over FTTP, and Dedicated Internet Access to Optical Wavelengths and Dark Fibre.

If you’re looking to boost your connectivity to grow your business, get in touch. We’ll be happy to help you supercharge your network for the future.

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Optical network terminal FAQs

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What is digital infrastructure?

Digital infrastructure in a cloud

Digital infrastructure is the technological foundation that supports the digital operations of businesses, governments and society. We explain how the right digital infrastructure can transform your business and why connectivity is critical.

What is digital infrastructure?

Digital infrastructure is the physical hardware and software-based technologies that enable digital services. It includes the IT systems and networks that enable organisations to operate and communicate.

Among the key components of digital infrastructure are:

  • Hardware: Computers, mobile phones, Internet of Things (IoT) devices, servers, etc
  • Software: Operating systems running computer hardware and apps
  • Networks: Physical and virtual networks, from copper or fibre-optic cables in the ground to local area networks (LANs), wide area networks (WANs) and the internet
  • Data centres: Facilities housing servers and networking equipment to store, process and distribute vast amounts of data
  • Cloud computing: Services delivered over the internet, including cloud storage, Software as a Service (SaaS), Platform as a Service (SaaS) and Infrastructure as a Service (IaaS)
  • Cybersecurity systems: Software and physical security measures protecting all levels of digital infrastructure

As the backbone of today’s global digital economy, digital infrastructure underpins all aspects of a connected business’s operations.

Why is digital infrastructure important for businesses?

Businesses rely on digital infrastructure to work efficiently and compete in increasingly connected global markets.

In addition, emerging technologies, like artificial intelligence (AI), 5G and IoT, are driving consumer demand and transforming how businesses are run. Yet digital transformation can’t happen without the right digital infrastructure.

In other words, digital infrastructure is critical for companies to operate, innovate and grow. In today’s digital economy, it could make or break your business.

What are the benefits of digital infrastructure?

Digital infrastructure offers numerous potential advantages for businesses, including:

  • Speed: Ultrafast, fibre connectivity can enable you to communicate and collaborate faster, responding in near real-time to challenges facing your organisation.
  • Efficiency: Digital technologies allow you to make your company’s processes more efficient, saving you time and money.
  • Innovation: Automation and AI-powered tools enable you to innovate more quickly, meaning faster time to market for your products or services.
  • Flexibility: Cloud-based digital infrastructure gives you the agility to deploy new systems quickly to react to changing market conditions.
  • Scalability: Digital infrastructure can be highly scalable; start small and scale up rather than risk a large upfront investment.

By optimising your digital infrastructure, you can enhance the experience for employees, partners and customers, setting up your business for growth.

What is the future of digital infrastructure?

Predicting the future evolution of digital infrastructure is challenging, but here are three emerging trends to watch.

5G, 6G and beyond

The expansion of 5G mobile networks and the introduction of next generation 6G are set to deliver faster, more reliable mobile connectivity. These new standards are likely to herald new applications and services.

However, they’ll require upgrading digital infrastructure with high capacity, low latency core connectivity to cope with the resultant data explosion.

Cloud and edge computing

Cloud services and edge computing are already changing digital infrastructure. By accessing on-demand services in the cloud, businesses can improve the scalability and flexibility of their digital operations without upfront investment in hardware.

Similarly, edge computing allows organisations to move data processing closer to the source of data generation, enhancing latency and efficiency and supporting the growth of 5G and IoT.

Automation and integrating AI

Automation and AI are poised to transform digital infrastructure. Automated ways of working are already helping to streamline operations and improve overall efficiency and reliability.

In the future, we can expect to see all kinds of AI-powered solutions in networking, from design and provisioning to maintenance, optimisation and cybersecurity.

Why is connectivity critical for digital infrastructure?

Over the last decade, the rise of smartphones, data analytics, hybrid working, 5G and IoT devices has fuelled an explosion of data.

Today, networks must adapt to ever-greater volumes of data as IoT, AI, and other emerging technologies take off. Meanwhile, hybrid cloud and edge-enabled networks are increasingly complex, with multiple interlinked components and data sources.

That’s why implementing the right connectivity is critical for your business’s digital infrastructure.

How Neos Networks can support your digital infrastructure

At Neos Networks, we aim to provide high capacity, low latency connectivity for UK businesses to thrive, whatever the future brings.

We offer a range of networking solutions to help you grow your business, from Business Ethernet services and Dedicated Internet Access to Optical Wavelengths and Dark Fibre.

If you’re looking to upgrade your connectivity to transform your business’s digital infrastructure, get in touch.

 

We’ll be happy to design a networking solution for your digital future.

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What is low latency and why is it needed?

What is low latency?

Low latency in networking means transmitting data with minimal delay. Learn all about low latency connectivity and how it could benefit your business.

What is latency?

In networking, latency is the time it takes to send a unit of data across a network.

When you send an image, video, or document to another user, that data packet is transmitted over various networks and devices before reaching its destination. Latency is the time this process takes, and it can be fast or slow, depending on your network.

How is latency measured?

To measure latency, you can ping another device to see the delay in receiving a reply. The response time is measured in fractions of a second, typically milliseconds (ms).

Networks with a fast response time have low latency, while those with a longer delay have high latency.

What is a low latency network?

A low latency network is one designed to minimise data transmission delays. They’re vital for applications that require near real-time access to data that changes rapidly, like financial trading or online gaming.

When is low latency important?

No one wants high latency. But minor delays needn’t be a game-changer if you want to live-stream a concert or send a non-urgent attachment to a colleague. The outcomes aren’t time critical.

By contrast, if you’re a stockbroker timing the market, any delay could cost you millions. Likewise, a gamer could win or lose a tournament depending on their streaming speed.

So low latency matters, whether you’re a business owner or a customer wanting the best experience.

Low latency network

Low latency network

What is ultra low latency?

Ultra low latency describes networks designed to transmit very high volumes of data with an extremely low delay – transmission is almost instantaneous.

Typically, ultra low latency connectivity is measured in milliseconds (ms) or nanoseconds (ns).

When is ultra low latency needed?

Ultra low latency is needed in various applications where minimising the delay between request and response is critical.

It’s common in financial trading, allowing traders to get accurate, real-time market data and buy and sell as quickly as possible. High-frequency, algorithmic trading systems rely on ultra low latency to make split-second decisions.

Ultra low latency can also be critical for real-time business communications, industrial automation, remote surgery and robotics, autonomous vehicles, online gaming, virtual reality (VR) and augmented reality (AR).

What factors affect latency?

Several factors influence latency. Some can be fixed, while others are just part of the online experience.

Among the key contributors are:

  • Distance: The further the distance between your computer and the target server, the higher the latency.
  • Connection: Fibre optic is the fastest type of connection, closely followed by copper cable, then Digital Subscriber Line (DSL). Satellite internet is the slowest.
  • Hardware: Data is transmitted through various controllers, switches and routers, which affect latency. For example, an old or poor-quality router will produce high, rather than low, latency if it isn’t designed to support your internet speed.
  • Bandwidth: To achieve low latency, you’ll need more bandwidth. The faster the bandwidth, the sooner your data will be sent.
  • Ethernet vs. wireless: Ethernet typically has lower latency and more reliability than wireless connections such as Wi-Fi, as wireless signals are more susceptible to signal degradation and interference. However, microwave radio can actually provide an even faster transmission medium for certain point-to-point, low latency use cases.
  • Sharing: Latency can also be affected if the connection is shared across many services, particularly if the traffic is not prioritised to your device.

Investing in faster routers and dedicated high capacity business internet services are two ways to enable low latency even when transmitting large data packets over long distances.

Another is to use optical wavelengths, which provide superior bandwidth, allowing you to transport large data volumes over long distances faster.

Use cases for low latency networks

Low latency networks are vital for applications where minimising the delay between a request and a response is critical.

Here are some of the main applications for low latency connectivity:

  • Financial trading: Low latency plays a crucial part in trading infrastructure where quick decisions are made based on fast-moving data. Although a trading firm’s algorithms matter, best-in-class infrastructure is essential to maintain low latency and a competitive edge.
  • Online gaming: Low latency ensures a smooth online gaming experience. High-level gamers require minimum response times to beat the competition.
  • Autonomous vehicles: Driverless cars require low latency as they rely on real-time updates to function safely. For example, in a critical situation, a car might return control to the driver for safety reasons.
  • Enterprise collaboration systems: Video conferencing software like Teams and Zoom, cloud-based project systems, and instant messaging apps require low latency to work smoothly. High latency can lead to slow data sharing or communication breakdown.
  • Industrial automation and the Internet of Things (IoT): Low latency is critical to control robots in real-time manufacturing processes. In smart homes, smart cities and industrial and domestic IoT devices, rapid response to sensor data is vital for IoT devices to function correctly.
  • Augmented Reality (AR) and Virtual Reality (VR): AR and VR applications rely on low latency to enable fast responses and create an immersive experience. High latency can mar performance and may even lead to cybersickness.
  • Healthcare: Low latency is critical for timely healthcare data exchange. For example, low latency networks help to ensure surgeons maintain precise control of surgical systems while operating
  • Emergency response systems: Emergency services, such as fire, police, and ambulance services, rely on low latency connectivity. It’s vital to ensure reliable, real-time communication to coordinate emergency responses.

Which connectivity solution provides the lowest latency?

Optical fibre is the choice for businesses that need to make time-critical decisions and outmanoeuvre their rivals. It uses Dense Wavelength Division Multiplexing (DWDM) technology to deliver high capacity, low latency connectivity.

DWDM technology:

  1. Is a layer 1 connectivity solution, which avoids processing over packet frames and improves on layer 2 Ethernet services.
  2. Increases bandwidth capacity by allowing multiple signals to be transmitted simultaneously.
  3. Transmits data quickly and securely by ensuring wavelengths don’t interfere with one another.
  4. Reduces overall cost by ensuring businesses get maximum performance and capacity from each fibre.
  5. Is over fibre, meaning its service latency is significantly shorter than that of copper.
  6. Allows you to determine routes across the network, giving you more control over latency.

DWDM technology empowers businesses to transport more data between sites quickly and cost-effectively, future-proofing networks to meet the challenges of tomorrow.

Low latency networks with Neos

If low latency connectivity is critical for your business, we can help. Our high capacity, low latency network is transforming connectivity for Critical National Infrastructure and businesses across the UK, so get in touch.

 

We’ll be happy to design a low latency network to supercharge your business.

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Metro Ethernet vs. MPLS: what’s the difference?

Metro Ethernet and MPLS are both data transport technologies for telecommunications networks, but they’re fundamentally different. Learn how they differ and the benefits and use cases of each.

What’s Metro Ethernet

Metro Ethernet is a network that uses Ethernet standards to interconnect sites across an urban area or region in a metropolitan area network (MAN).

Metro Ethernet works primarily in layer 2 of the OSI model – the Data Link layer. It provides the transport path, or road, for data to travel along.

The seven layers of the OSI Model

# Layer Function
7 Application Layer Enables humans or software to interact with the network through applications like file sharing, email clients and databases
6 Presentation Layer Formats, encrypts and decrypts data for the application layer
5 Session Layer Starts, maintains and ends connections between applications
4 Transport Layer Transfers data across the network, for example, using TCP or UDP transport protocols
3 Network Layer Enables communication between multiple networks and determines the data’s path, for example, applying IP addresses
2 Data Link Layer Manages connections between physically connected nodes on a network
1 Physical Layer Transmits raw data bits over physical media like cables or wireless connections

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What’s MPLS?

MPLS (Multiprotocol Label Switching) is a routing technology that directs data packets from one node to another in a network.

Unlike Metro Ethernet, MPLS operates between layer 2 (the data link layer) and layer 3 (the network layer) of the OSI model, also known as layer 2.5. It’s a technology that directs the data to the correct destination.

What’s the difference between Metro Ethernet and MPLS?

In simplified terms, the fundamental difference between Metro Ethernet and MPLS is their function:

  • Metro Ethernet is a network that transports data.
  • MPLS is a label-switching technology that directs traffic on a network.

MPLS is typically used to create wide area networks (WANs) over long distances but may also be deployed as a routing protocol in Metro Ethernet networks. For example, many Metro Ethernet networks use MPLS to connect their backbone networks.

Here are the differences between Metro Ethernet and MPLS in more detail.

Function

Metro Ethernet is a network used primarily to interconnect an organisation’s sites, or local-area networks (LANs), into a metropolitan area network (MAN). The network can also connect an organisation’s sites to the internet and cloud services, providing IPTV, video conferencing and other collaboration tools.

MPLS is a switching technology that directs and speeds up network traffic flow. It’s often deployed in enterprise wide-area networks (WANs) or service provider environments, as well as MANs.

Routing

Metro Ethernet primarily operates at layer 2 (the data link layer) using various control protocols. Typically, traffic is switched based on MAC (Media Access Control) addresses rather than IP (internet protocol) addresses, as in layer 3 (the network layer).

By contrast, MPLS operates in layer 2.5 (between the data link and network layers). It gives each data packet a label with details about its final destination. The label provides a short path to the target IP address rather than a long network address, resulting in higher traffic speeds and lower latency.

Topologies

Metro Ethernet networks are typically point-to-point (P2P) or point-to-multipoint (P2MP), although they can also be any-to-any (mesh). Find out more about types of Metro Ethernet services.

MPLS is just a routing technology, so it can be deployed in various network topologies, including P2P, P2MP or mesh.

Scalability

Both Metro Ethernet and MPLS are highly scalable. Typically, Metro Ethernet is used over limited distances across a region and can be scaled up to speeds of 10Gbps.

Since MPLS is not dependent on a particular transport protocol, MPLS-based networks aren’t limited by distance. They can be used for regional, national or global networks with speeds from 10Mbps to 10Gbps.

Quality of Service (QoS)

Both Metro Ethernet and MPLS support Quality of Service (QoS), allowing you to prioritise network traffic for critical applications.

However, MPLS, with its label-based technology and native support for traffic engineering, provides flexible options to meet the needs of new applications.

MPLS and VPLS

One common network architecture that combines Ethernet and MPLS is Virtual Private LAN service (VPLS). VPLS is a type of Ethernet-based virtual private network (VPN) that links multiple sites in a single domain through an IP or MPLS network.

VPLS mimics the functionality of a local area network (LAN) by configuring virtual LANs. In this way, your devices are connected as if they were on the same local network, whatever the geographical distance between your sites.

VPLS network

A VPLS network, which combines ethernet and MPLS

 

Metro Ethernet vs. MPLS: which is right for your business?

To sum up, a Metro Ethernet network may be a cost-effective solution if you’re looking for high-speed connections within a limited geographical area that’s flexible and easy to deploy using common ethernet standards.

By contrast, if you want to connect more complex, geographically dispersed sites over a wide area network (WAN) with enhanced QoS and traffic engineering, an MPLS-based network may work better.

Or you could combine the two with VPLS, securely connecting multiple sites over a WAN with the reliability and performance of a local area network.

Whatever your networking needs, we can help. At Neos Networks, we offer a range of business Ethernet or MPLS-based network options. We’ll be happy to design a cost-effective, high-speed, secure network solution to interlink your sites.

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What is Metro Ethernet?

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  • Ethernet ,
What is Metro Ethernet?

Metro Ethernet is an Ethernet transport network used to connect sites across a city. Learn all about Metro Ethernet, the different types of Metro Ethernet services, and how they can benefit your business.

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What’s Metro Ethernet

Metro Ethernet is a network that uses Ethernet standards to interconnect sites in a metropolitan area network (MAN). It’s a cost-effective, scalable way to connect multiple locations across a city or urban area.

Originally developed as a technology for local area networks (LANs), Ethernet used to have limited range and capacity. Today, Ethernet has evolved into Carrier Ethernet, which offers high-bandwidth data transmission over longer distances for wide area networks (WANs).

Metro Ethernet is a type of Carrier Ethernet used in a city location offering data transfer speeds of 1Mbps to 10Gbps.

What’s Metro Ethernet used for?

If you’re a business or network service provider, you can use Metro Ethernet in a metropolitan area network to:

  • Interconnect your business offices or data centres
  • Connect your business sites to the internet
  • Provide IPTV, video conferencing and other collaboration tools via multicasting
  • Connect your business sites to cloud services
  • Deliver internet connectivity to business or domestic subscribers if you’re an internet service provider (ISP)
  • Provide mobile backhaul services if you’re a mobile provider

In other words, you can connect all your sites in a city to the internet and the cloud in a single, scalable network.

What are the benefits of Metro Ethernet for businesses?

Metro Ethernet offers several advantages over traditional wide area networks, including:

  • High speed: Metro Ethernet offers high bandwidth, providing fast connectivity with low latency.
  • Cost-effectiveness: As Metro Ethernet networks are simpler, they can offer competitive prices for a given bandwidth.
  • Ease of management: Ethernet standards are widely used in businesses, making Metro Ethernet easy to set up, manage and maintain.
  • Scalability: Metro Ethernet networks typically use fibre optic cabling and can be scaled up to speeds of 10Gbps without significantly upgrading infrastructure.
  • Flexibility: Metro Ethernet supports various topologies and configurations and different types of traffic, including voice, data and video.
  • Reliability: Metro Ethernet supports Quality of Service (QoS) for critical applications and Ethernet operations, administration, and maintenance (OAM) for easy troubleshooting.

Overall, Metro Ethernet gives you flexible, high-bandwidth connectivity across a city at a relatively low cost.

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How does Metro Ethernet work?

Metro Ethernet uses switches and routers typically connected by fibre optic cable to create a point-to-point (P2P) or point-to-multipoint (P2MP) network.

A Metro Ethernet network comprises:

The physical arrangement of a Metro Ethernet network – the network topology – depends on the type of service.

Types of Metro Ethernet services

There are several types of Metro Ethernet services, as defined by the Metro Ethernet Forum, the non-profit association that sets Carrier Ethernet standards. Below are the main Metro Ethernet services and their network topologies:

Metro Ethernet services

Service type Topology Description
E-Line (Ethernet Line Service) Point-to-point Directly connects two business sites
E-LAN (Ethernet LAN Service) Multipoint-to-multipoint Allows multiple sites to exchange data directly with each other
E-Tree (Ethernet Tree Service) Rooted multipoint Connects a central site to multiple sites, but the “leaves” (branch nodes) of the tree don’t exchange data directly
E-Access (Ethernet Access Service) Network-to-network Provides a local access connection to another carrier’s network

 

Which Metro Ethernet service is right for you depends on the size and complexity of your network and your business priorities.

Our Metro Ethernet solutions

At Neos Networks, we offer a range of Metro Ethernet solutions with various network services and topologies to suit your needs. Here are some Ethernet services we can configure for your business.

Point-to-point Ethernet

Ethernet Private Line (EPL), a kind of E-Line service, provides point-to-point (P2P) connectivity between a pair of dedicated user network interfaces (UNIs) and allows for a high degree of transparency along the network.

Point-to-point Ethernet

Passive optical wavelength

 

If your business needs a private, high-bandwidth connection between two locations with low latency and high availability, EPL is an excellent choice.

Point-to-multipoint Ethernet

If you want to connect multiple sites, Ethernet Virtual Private Line (EVPL), another E-Line service, may be for you. EVPL can enable multiple Ethernet Virtual Connections (EVCs) per UNI to support point-to-multipoint (P2MP) connectivity.

Point-to-multipoint Ethernet

 

EVPL P2MP ethernet network

 

Both P2P and P2MP Ethernet provide the simplicity of private connections combined with the flexibility and scalability of MPLS technology across a range of bandwidths.

Any-to-any Virtual Private LAN Service (VPLS)

If you want the flexibility of any-to-any connectivity, an E-LAN service like Virtual Private LAN Service (VPLS) may work for you. VPLS is a type of virtual private network (VPN) that links multiple sites in a single domain through IP routing or MPLS.

Any-to-any VPLS

VPLS any-to-any ethernet network

 

With VPLS, you can connect all your sites to the same secure, high-speed network with a flexible capacity of up to 10Gbps.

Network-to-Network Interface (NNI)

If you’re a larger business, our E-Access Network-to-Network (NNI) services may be ideal. With Point-to-NNI connectivity, you can connect multiple sites back to your network as efficiently as possible at bandwidths that suit your needs.

Point-to-NNI

 

Point-to-NNI Ethernet

 

Whatever kind of connectivity you need, we’ll be happy to design a cost-effective, scalable, high-speed network for your business, so get in touch.

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What should a B2B telco be in 2024?

What should a B2B telco be in 2024? Vertically integrated or delayered? A communications service provider (CSP) or a techco?

I was delighted to participate in “The telco and the customer” session of The Great Telco Debate in London last week to probe some of these questions with industry peers.

There are many right answers to these questions, though what’s right here is highly subjective. Here I want to reiterate some key points I made in the debate.

Refocus on connectivity

In recent years, telcos have been under intense pressure to be many things, chasing additional services and revenues. The aim was to pursue completeness of offer to “own” the customer.

To this end, some telcos moved into the systems integrator (SI) space. Conversely, SIs moved into the infrastructure and network space. The technology of the day forced this behaviour as it was the only way to deliver a seamless customer experience.

Has technology now progressed to create a place for telcos dedicated to providing excellence in connectivity? It probably has, and as such, maybe it’s time for telcos to refocus on their core products and services, innovating and constantly improving those services and the customer experience. 

No need to own the customer

Today, we see incredibly high levels of interoperability between technologies for IaaS (Infrastructure as a Service), SaaS (Software as a Service) and PaaS (Platform as a Service). So B2B telcos have an opportunity to be excellent at connectivity and be highly interoperable and integrable, while still being highly accountable for their performance.

By working with complementary partners, we can pursue the best solution for customers and optimal customer satisfaction. Could this be the opportunity to be highly customer-centric without owning the customer?

Work for integrability

If we don’t need to be vertically integrated or to fully own the customer, we must do all we can to be fully integrable.

In this way, we can double down on what we’re good at – delivering excellent connectivity – and work with partners and customers to take that excellence into broader, deeper solutions. By integrating new technologies like AI and working with partners to put customers first, we can best meet their specific, evolving needs.

In short, maybe B2B telcos can have a monogamous and devoted relationship with connectivity again while being an excellent and highly sociable partner.

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What is artificial intelligence (AI) in networking?

AI in networking

Learn how AI is set to transform how we manage large, increasingly complex IT networks.

What is artificial intelligence (AI) in networking?

Artificial intelligence (AI) is a set of technologies that can reason and learn to solve problems or perform tasks that traditionally require human intelligence. For network service providers, that means new ways to make their networks more efficient, resilient and secure.

A range of AI technologies can be harnessed to help run complex IT networks, including the following:

  • Machine learning (ML) uses algorithms trained on data to predict outcomes and perform specific tasks.
  • Deep learning (DL), a subfield of ML, uses artificial neural networks to mimic the human brain.
  • Generative AI (GenAI) uses DL models to generate text, images, video or other media that mimic human-generated content.
  • Natural language processing (NLP) enables computers to understand spoken and written language.

 

AI technologies for networking

AI technologies for networking

 

While it’s still early days for AI in networking, these and related AI technologies are set to reshape how we design and operate growing IT networks.

Why use AI in networking?

The rise of AI, 5G, the Internet of Things (IoT) and cloud computing are fuelling an explosion of data. Meanwhile, networks are becoming larger and more complex.

They’re also becoming increasingly complex to manage, as recent outages at Amazon Web Services (AWS) and Microsoft Azure have shown. Cloud service downtime is often attributed to network issues, which can be challenging to diagnose and remedy quickly.

That’s where AI comes in. By analysing vast quantities of historical and real-time telemetry data, AI can help in all aspects of network management, from provisioning and deployment to maintenance, troubleshooting and optimisation.

First, AI can free up network administrators from routine, time-consuming jobs, allowing them to focus on higher value, strategic tasks. Second, it can identify network trends and anomalies that the most experienced engineer would find difficult or impossible to spot using manual processes.

In short, implementing AI in networks has the potential to:

  • Boost network efficiency and reliability
  • Simplify network troubleshooting and maintenance
  • Increase network resilience and security
  • Reduce set-up and maintenance costs
  • Enhance user experience

So how can AI deliver these benefits and transform how we manage large networks?

5 ways to use AI in networking

Here are some potential AI-enabled solutions for networking, though most are yet to be fully developed or widely adopted.

 

AI for network optimisation

1. AI for network optimisation

With the ability to monitor networks in real time, AI can dynamically allocate resources like bandwidth, processing power and storage to meet changing demands. In this way, AI can adjust Quality of Service (QoS) configurations, load balancing and dynamic routing to optimise network performance.

 

AI for network troubleshooting

2. AI for network troubleshooting

AI can monitor complex networks to quickly identify the root cause of issues, speeding up problem resolution. Sifting through reams of data in minutes, AI can help rapidly identify the network component at fault, eliminating false positives. And AI-powered self-healing systems allow some issues to be resolved without an engineer’s intervention.

 

AI for predictive maintenance

3. AI for predictive maintenance

Since AI can compare historical and current network patterns, it can detect minor abnormalities in performance before they develop into major faults. Similarly, with predictions based on historical data, AI can model the network to prevent network deterioration or outages in the future.

 

AI for network scalability

4. AI for network scalability

Automation enhanced by machine learning allows network providers to provision and deploy network resources automatically. In other words, AI enables you to dynamically scale network resources based on real-time and predicted demand.

 

AI for customer experience

5. AI for customer experience

Besides improving overall network performance and reliability, AI can significantly enhance the customer experience by providing intelligent, targeted solutions. For example, it can predict user behaviour to dynamically adjust bandwidth and minimise network disruptions. Meanwhile, chatbots and virtual assistants can give customers personalised, context-aware support 24/7.

Yet AI isn’t only useful to enhance efficiency and user experience. Its ability to intelligently analyse data in real time also makes it an excellent tool for network security.

How AI can enhance network security

AI-powered security solutions can monitor network operations for security issues and alert network engineers or automate incident responses.

Threat detection

Monitoring historical data and traffic data in real time, AI-powered systems can identify abnormalities or known patterns that may indicate a potential cyberattack. For example, it has the potential to detect zero-day attacks, which are usually missed by traditional signature-based detection methods.

Automated response

Once a potential threat is detected, AI-enabled risk analysis can triage and automate incident responses to prevent escalation, contain damage or enable rapid recovery. For instance, it can update firewalls, block malicious traffic or “clean” infected files.

Device tracking

AI can also help with one of the most demanding network security challenges – tracking connected devices. As IoT devices proliferate, machine learning can help identify, categorise and manage them, checking for potential vulnerabilities and outdated software.

Policy automation

Similarly, AI can create and deploy security policies as required. For example, it can allow or deny access to specific devices, users or apps, dynamically responding to changes on the network.

Whatever the security issue, AI has the potential to speed up human responses or deploy fast, automated self-healing, countering a potential threat before it escalates.

AIOps and the future of networking

Despite the enormous potential benefits, the AI-enabled solutions outlined above are yet to be widely implemented in the industry. So-called AIOps – artificial intelligence for IT operations – is still in its infancy.

However, as machine learning and other AI technologies evolve at breakneck speed, expect to see AI’s role switch from cameo to hero. From network design and deployment to maintenance and customer service, AI will become integral to future network operations.

One emerging trend is to apply AI to streamline network services. Machine learning can enhance zero-touch provisioning and enable end-to-end network automation.

Another is harnessing AI for software-defined networking (SDN). For instance, as more IoT devices come online daily, engineers can use AI-enhanced SDNs to design and control scalable, secure industrial IoT networks.

The challenge of AI in networking

Estimated at around $8.3 billion in 2022, the global AIOps platform market is expected to reach about $80 billion by 2032. Yet AI in networking faces several challenges before it becomes mainstream, such as:

  • Complexity and integration: Today’s networks are increasingly complex with multiple interlinked components, data sources and interfaces. Integrating AI solutions requires rethinking pre-existing networks to allow for this complexity.
  • Data integrity and security: AI relies on maintaining and processing vast quantities of high-quality data. Any emerging AI networking solutions must ensure data integrity, security and privacy by design.
  • Interoperability and open standards: Data from multi-vendor networks remains challenging because the data format and syntax may differ by vendor. In future, the evolution of open standards, like Open RAN, should help meet this challenge.
  • Skills gap and retraining: Integrating AI in networking will require a change in working culture for network engineers. As AI technologies evolve, they’ll need to learn new skills and working methods to deploy and maintain AI-powered networks.

In short, AI won’t transform networking overnight. A world of automated, software-defined, self-healing, self-defending networks is still some way off.

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