Indian service providers are increasingly looking to AI as the next major growth opportunity, with network modernization and new AI-focused services expected to create significant revenue potential over the next three to five years, according to a recent Ciena survey.
The research found that 67% of Indian service providers strongly agree that AI-driven network services will be a primary driver of revenue growth over the next three to five years. Another 27% somewhat agree, highlighting strong overall confidence in AI-led services.
The Ciena survey, conducted by Censuswide, covered 1,200 telecommunications providers, wholesale fiber network operators and regional service providers across 12 markets, including 100 respondents from India.
For Indian service providers, the focus is extending beyond simply supporting rising AI traffic. The findings point to three key priorities:
- Modernizing network infrastructure,
- Delivering more reliable performance for enterprise customers,
- Developing new business models around edge computing, cloud connectivity and physical AI.
Data Center Connectivity Gains Importance
The expansion of distributed AI workloads is also expected to create new opportunities in data center connectivity.
98% of Indian respondents expect multi-orbit fiber network (MOFN) services to contribute to revenue from connecting distributed AI compute clusters over the next three years, with 48% expecting these services to make a significant contribution.
As AI workloads become increasingly distributed, service providers will need networks capable of handling higher capacity, greater reliability and changing traffic patterns.
Optical Upgrades Become a Priority
The survey also highlights the scale of network investment required to support AI-driven services.
93% of Indian respondents said next-generation optical technologies, including higher-capacity wavelengths and power-efficient coherent optics, are critical to making AI connectivity services more profitable and competitive.
At the same time, 88% said optical network upgrades are urgently needed to deliver the reliable, low-latency performance enterprises will expect from premium AI services. Of those respondents, 38% said major upgrades are needed immediately.
Network automation is another major priority. 94% of respondents consider advanced network automation important or absolutely critical to capturing AI-driven opportunities, reflecting the need for networks that can respond quickly as AI traffic patterns evolve.
Edge and Physical AI Open New Revenue Opportunities
Low latency is emerging as an important differentiator as service providers look to monetize enterprise edge deployments. 96% of Indian respondents said guaranteed low-latency performance is very important or absolutely critical for generating revenue from enterprise edge services.
Stable performance and low jitter also stood out, with 37% identifying them as the area with the highest potential for premium services.
Physical AI is another area attracting strong interest. Applications such as autonomous industrial robots, machine vision and remote-control systems are expected to create opportunities across private networks and edge computing.
According to the survey, 93% of Indian respondents see moderate or high revenue potential from physical AI for private network and edge computing offerings. Meanwhile, 59% expect physical AI to account for more than 15% of total AI enterprise revenue within five years.
Cloud Connectivity and Consumption-Based Models
The growing movement of large datasets between cloud environments is also prompting service providers to explore new commercial models.
The survey found that 58% of Indian respondents plan to generate revenue from multi-cloud connectivity management, while the same percentage expects to generate revenue through consumption-based bandwidth services.
Services delivered closer to enterprise users and devices are also expected to become important sources of revenue. These include GPU-as-a-Service, edge computing, localized AI inference and private wireless.
Overall, 88% of Indian respondents expect these services to generate at least 10% of total enterprise revenue over the next three years, with 35% expecting them to contribute more than 20%.
AI Monetization Moves Up the Agenda
The findings suggest that Indian service providers are moving into a new phase following the country’s rapid 5G rollout, with greater attention now being placed on building AI-ready infrastructure and turning that infrastructure into new sources of revenue.
“After going through one of the fastest 5G roll outs globally, Indian service providers are now shifting focus to AI infrastructure builds and AI monetization,” said Gautam Billa, Vice President, Solutions Engineering and Chief Technology Officer, Asia Pacific, India and Japan, Ciena.
“AI momentum continues to escalate, and the survey findings point to growing confidence in the revenue potential of AI-driven services,” he added.
Survey Methodology
The research was conducted by Censuswide among 1,200 telecommunications providers, wholesale fiber network operators and regional service providers across 12 markets: the US, Canada, Brazil, Mexico, the UK, UAE, Saudi Arabia, Australia, India, Vietnam, Indonesia and Singapore.
Each market contributed 100 respondents. The survey was conducted between July 13 and July 23, 2026, among decision-makers from the relevant telecommunications and service provider organizations.
Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and is a signatory of the Global Data Quality Pledge. The research follows the MRS Code of Conduct and ESOMAR principles.
The India-specific findings cited in the survey are based on responses from 100 decision-makers from telecommunications providers, telcos and related service providers in the country.
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