Nowadays, the telecommunication industry is changing due to the introduction of new innovative technologies and devices where the global telecom market size was valued at 1.74 trillion in 2020 but expected to grow at a compound annual growth rate of 5.4% from 2021 to 2028, forcing Telcos to adapt, change and improve in order to remain competitive and relevant.
Considering that Agility is key for the telecommunications industry's future success, several factors are set to have an impact on the growth of the industry and require Telcos to reinvent their service offerings, adapt their business models and become more flexible and agile; these factors include the impact of 5G technology, the expansion of Internet of Things, Artificial Intelligence, data security, growth in cloud platforms and many others are biggest challenges in the industry.
Operators and carriers all across the world are supporting the transition to 5G, because it allows for speedier connectivity, low-latency, increased bandwidth, and connectivity speed.
This technology is expected to transform the way many organizations work and enable digital transformation, automation and remote monitoring for their business processes and operations, as it opens the way for IoT and edge computing.
Internet of Things (IoT)
IoT continues to gain popularity and impact several industries around the world, especially as smart cities, automotive telematics, industrial automation, and smart manufacturing become more prevalent. By 2024, total operator-billed income from 5G IoT connections is expected to reach $8 billion, representing an increase of over 1400 percent over the next five years. This shift to IoT gives telcos an opportunity to improve their products and use 5G capabilities like network slicing and multi-edge computing technologies to provide end-to-end solutions that address customers' shifting needs.
Artificial Intelligence (AI)
Telcos may use AI to handle and analyze enormous amounts of big data and get actionable insights that can be used to improve customer experience, operations, and profitability through virtual assistants. This is accomplished through the use of AI technology for network optimization and automation, which helps Telcos detect and anticipate any network difficulties or challenges, allowing them to identify and resolve an issue before it negatively impacts customers.
This technology enables operators to deploy self-service platforms and solutions that allow customers to do more on their own, reducing the need for contact centers and support resources in the future of the telecommunication industry.
To be successful in developing new value-added services in the future, the telecommunication industry must ensure that the created digital ecosystem is one that prioritizes public safety and data security.
Growth in Cloud Platforms
Investing in cloud, blockchain and big data analytics will increase in the next phase.
The COVID-19 pandemic highlighted the need for Fintech solutions that allow for virtual payments to be made online or by mobile phone such as digital payments, mobile money and mobile wallets that will continue to have an impact on the telecommunications industry's future, allowing Telcos to extend their service offerings.
In conclusion, agility and flexibility will impact profitability and the future of the telecommunication industry by enabling Telcos to better customer experience, give businesses with ways to improve productivity and effectiveness, and generate new revenues.