‘The time to act is now’ – Arrcus urges mobile operators to seize the AI opportunity

‘The time to act is now’ – Arrcus urges mobile operators to seize the AI opportunity

  • 19.03.2025 00:00
  • rcrwireless.com
  • Keywords: AI, 5G

Arrcus urges mobile operators to act swiftly on AI opportunities, emphasizing bold moves and rapid service launches. They highlight tools like TGAX and collaborations with NVIDIA and Liberty Global for monetizing 5G and edge AI.

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Estimated market influence

Arrcus

Positivesentiment_satisfied
Analyst rating: N/A

Arrcus is a hyperscale network software company that emphasizes the importance of AI in mobile networks and provides solutions for operators to monetize edge services.

NVIDIA

NVIDIA

Positivesentiment_satisfied
Analyst rating: Strong buy

NVIDIA led the $30 million funding round for Arrcus and collaborated on developing products like TGAX and Actapio's network infrastructure.

Broadcom

Broadcom

Positivesentiment_satisfied
Analyst rating: Strong buy

Broadcom provided switching silicon for Arrcus' Actapio system and worked with them on the TGAX product.

Actapio

Positivesentiment_satisfied
Analyst rating: N/A

Actapio, owned by LY Corporation, partnered with Arrcus to build AI clusters using NVIDIA GPUs.

Liberty Global

Positivesentiment_satisfied
Analyst rating: N/A

Collaborated with Arrcus at MWC 2025 to showcase 5G-AI video solutions for various industries.

Fujitsu

Fujitsu

Positivesentiment_satisfied
Analyst rating: Buy

Involved in discussions and collaborations related to AI applications and network infrastructure.

Eviden

Positivesentiment_satisfied
Analyst rating: N/A

Participated in the Ultra Ethernet Consortium with Arrcus and contributed to high-performance network solutions for AI workloads.

Philips

Philips

Positivesentiment_satisfied
Analyst rating: Buy

Involved in discussions and collaborations related to AI applications and network infrastructure.

Cisco

Cisco

Positivesentiment_satisfied
Analyst rating: Buy

Member of the Ultra Ethernet Consortium alongside Arrcus, contributing to high-performance networks for AI.

Juniper Networks

Juniper Networks

Positivesentiment_satisfied
Analyst rating: Neutral

Member of the Ultra Ethernet Consortium with Arrcus, supporting Ethernet-based communication stacks for AI workloads.

AMD

AMD

Positivesentiment_satisfied
Analyst rating: Buy

Founding member of the Ultra Ethernet Consortium and works with Arrcus on network solutions for AI.

Arista Networks

Arista Networks

Positivesentiment_satisfied
Analyst rating: Buy

Founding member of the Ultra Ethernet Consortium, contributing to high-performance networks supporting AI workloads.

HPE

HPE

Positivesentiment_satisfied
Analyst rating: Buy

Member of the Ultra Ethernet Consortium with Arrcus, involved in developing network solutions for AI.

Intel

Intel

Positivesentiment_satisfied
Analyst rating: Neutral

Founding member of the Ultra Ethernet Consortium and collaborates with Arrcus on AI-related infrastructure.

Meta

Meta

Positivesentiment_satisfied
Analyst rating: Strong buy

Member of the Ultra Ethernet Consortium, supporting high-performance networks for AI workloads alongside Arrcus.

Microsoft

Microsoft

Positivesentiment_satisfied
Analyst rating: Strong buy

Founding member of the Ultra Ethernet Consortium and works with Arrcus on network solutions for AI.

Context

Analysis of Arrcus's Call for Mobile Operators to Embrace AI

Overview

  • Message: Arrcus CEO Shekar Ayyar urges mobile operators to act boldly and launch new AI-driven services immediately.
  • Focus Areas: Monetizing 5G, edge AI inferencing, and leveraging distributed infrastructure.
  • Key Products: TGAX telco-grade network switch for edge services and a network infrastructure solution for Actapio (owned by LY Corporation).

Business Insights

1. AI as a Growth Driver

  • Quote: "AI can generate services which are both network- and application-oriented, which build on top of intelligent infrastructure."
  • Opportunity: Operators can monetize AI-driven services like volumetric video apps, smart city solutions, and industrial automation.

2. 5G Monetization Challenge

  • Issue: Many operators struggle to monetize 5G while already discussing 6G.
  • Solution: Leverage edge infrastructure for AI workloads and build out AI clusters using NVIDIA GPUs and Broadcom Tomahawk 5 silicon.

Market Implications

1. Shift to AI-Driven Services

  • Trend: Operators must pivot from internal operational gains to external service launches.
  • Timeframe: New services can be launched in 2-3 weeks, compared to the traditional lengthy process.

2. Edge Infrastructure and Ethernet Evolution

  • Product Launches: TGAX (based on NVIDIA Spectrum-4) and Actapio's AI clusters highlight the importance of edge infrastructure for AI.
  • Ethernet Consortium: Arrcus is part of the Ultra Ethernet Consortium (UEC), alongside Cisco, Juniper, and others, to build high-performance Ethernet networks for AI workloads.

Competitive Dynamics

1. Partnerships and Ecosystems

  • Collaborations: Arrcus partners with Liberty Global, NVIDIA, Broadcom, and others to showcase 5G-AI video solutions.
  • Ecosystem Approach: Interoperability with diverse AI engines (e.g., AMD, Intel, Nvidia) ensures flexibility for operators and enterprises.

2. Rapid Innovation

  • Pressure on Competitors: Operators must act quickly to avoid missing the AI revolution, similar to their earlier experience with cloud adoption.

Strategic Considerations

1. Programmable Network Infrastructure

  • Key Benefit: A programmable network allows operators to launch services faster and adapt to evolving AI workloads.
  • Implementation: Use software to connect distributed compute resources across the cloud-edge continuum, including metro edge (MEC) sites and colocation facilities.

2. Cooperation in Open RAN

  • Learning from Past: The telecom industry's experience with open RAN development highlights the importance of collaboration for innovation.
  • Future Focus: Operators should focus on building ecosystems to stitch together diverse infrastructure components.

Long-Term Effects and Regulatory Impacts

1. Regulatory Considerations

  • Potential Impact: As AI-driven services scale, regulators may need to address new challenges in data privacy, security, and network governance.

2. Industry Evolution

  • Future Outlook: The shift to edge AI and programmable networks will redefine the telecom landscape, with operators needing to balance innovation with legacy infrastructure.

Conclusion

Arrcus's message underscores the urgency for mobile operators to embrace AI and leverage their existing infrastructure to stay competitive. The focus on rapid service launches, partnerships, and ecosystem-building highlights the evolving dynamics of the telecom industry in the age of AI. Operators that act boldly now will be better positioned to thrive in the long term.