The global Telecommunications market was valued at USD 2.8 Trillion in 2022 and is expected to grow to USD 3.4 Trillion by 2025 at a CAGR of 6.2 %. The rapid increase in voice broadcasting, video streaming, and data sharing propels the market’s growth.
The telecom market has recently been at the forefront of technological innovation. The introduction of modern technologies such as IoT, Cloud, and Big Data to the market has created a digital ecosystem that is virtually unbreakable today.
These innovations will catapult the telecom industry into the futuristic era that the world now anticipates. In this analysis, we will examine the future of telecom, the trends that may influence it, and the opportunities for service providers.
Trends in the Telecom Market
The vast majority of trends that have the potential to influence the telecom market are technological, allowing service providers to target upcoming outsourcing deals.
The Advent of 5G: 5G enables a unified connectivity platform to meet the diverse requirements of many use cases. Some of the emerging use cases concerning 5G are Mobile Broadband (eMBB), massive Machine Type Communication (mMTC), and ultra-Reliable Low Latency Communication (uRLLC)
Internet of Things (IoT): Telecommunications can enable energy-efficient machine-to-machine communication by integrating IoT into operations. By combining IoT with Big Data Analytics, telecom companies can build predictive models to forecast and prepare for upcoming industry trends.
Big Data & Network Analytics: Using Big Data, Telecom is building intelligence and analytics tools to proactively identify and fix issues before it impacts the customer. Data Analytics is helping companies continually monitor and manage network inconsistencies by examining a ton of current and historical data in real time.
Network Security: The extended detection and response platform increases detection accuracy by correlating threat intelligence and signals across multiple security offerings. This prevents the network from any possible threat and improves overall operations efficiency.
SDN/NFV: NFV and SDN capitalize and rely heavily on network virtualization to enable their respective capabilities and deliver to distinguish connections and packet handling.
Cloud Computing: The increasing availability of cost-effective, cloud-based applications for data storage and usage of cloud-powered telecom services are critical in 2023. They are helping the company manage and scale IT operations, creating significant demand for Cloud.
Business Intentions Analysis
Value-Added Services, Network Management, Sales & Marketing, and Customer Support are the primary business intentions in the telecommunications industry. These four key segments will become the overwhelming focus in enhancing the sector throughout the following decade.
Value-Added Services: The idea behind this is to offer enhanced services to increase customer value over a longer term. The central focus here would be on Ecosystem enablement through use cases including Digital wallets, Telemedicine, Video OTT, and mHealth. Another priority would be utilizing the mobile device’s internet to provide voice calling and video streaming services.
Network Management: The focus here would be on providing seamless network connectivity with easy integration worldwide. Some of the efforts in this segment will be targeted at Intelligent Networks and Operations digitalization. Top use cases in this segment include Network virtualization, Virtual assistants, and Self-Optimizing Networks.
Sales & Marketing: Digitizing Sales and Marketing for precise customer targeting will be one of the prime areas of focus for telecom companies in 2023. Most efforts in this segment will be directed toward Customer Experience (CX) and Customer Intelligence. Some of the top use cases include Customer Churn Prediction, Recommendation Engines, and mobile apps.
Customer Support: The idea behind a Customer Support revamp is providing loyalty rewards & securing identity management for private customers as a privacy-first initiative. Support Transformation and Customer Intelligence will be the digitalization theme of this segment. Top use cases in focus include ChatBots, Intelligent Call Routing, and Call Analytics.
Challenges for Telecom Business Intentions
The opportunities in these business intentions can be captured but are equally challenging to micro-target. Telecom companies will need to build an antidote to the critical challenges mentioned below:
Value-Added Services:
- Nearly every smart home device connects to a companion smartphone app, but the best experience is being able to open a single app and experience everything.
- Making content compatible with all devices, irrespective of specifications is a crucial challenge OTT service providers face.
Network Management:
- Through rapid advancements in AI and automation, network management has become one of the key generators of business value in the telecom industry.
- The arrival of 5G has presented communication service providers with an increasingly dynamic set of operational challenges.
Sales & Marketing:
- ArcGIS provides a collaborative system for managing customer interactions, planning and developing regional strategies and tactics, and safeguarding the customer experience.
- This will help telecom companies better understand customers and create effective action plans to serve them.
Customer Support:
- The growing demand for digital services by billions of global customers is a significant challenge for the telecom industry. Therefore, the sector needs fast and efficient digital customer service.
- Mobile and web applications are now essential for distributing bills and miscellaneous materials to customers.
Key Focus Areas for Service Providers:
Technologies that service providers have to precisely target will include Artificial Intelligence, Cloud Computing, Big Data, Machine Learning, and Robotic Process Automation.
These technologies will transform and manifest themselves in multiple use cases throughout the industry, and keeping an eye out for these trends is critical. Here are some top focus areas for telecom service providers:
Cloud Computing: Telecom companies and cloud service providers can collaborate to enhance data centers and complete server utilization. Communications Service Providers can broaden offered services and transform into digital service providers (DSPs).
Internet of Things: Implementation of IoT in telecom can bring Business Analytics, Safety, and equipment monitoring to the sector in a seamless manner. Service providers can also provide IoT-powered Tower Operations Center to collect and analyze data from all cell towers in a region.
5G Deployment: Service providers can collaborate with telecom companies to build applications specific to industries seeking digitalization. This will power Industry 4.0, machine-to-machine communication, and enhanced bandwidth.
AI & ML Integration: Predicting peak traffic, providing end-to-end service, and enhancing overall connectivity is possible with AI & ML. Telecom service providers can use these technologies to optimize network performance and streamline business processes.
Draup conducted a detailed analysis of the Telecommunications industry. The report provides information on focus areas, industry outlook, opportunity areas, and more in a context-rich presentation. The report also details competitor strengths, associated micro verticals, and critical workloads.
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