Future of the telecommunication industry

The introduction of new technology and devices is changing the telecommunication industry as we know it. This means that the telecom industry needs to adapt, change and develop in order for telcos to remain competitive and relevant. Agility is key for the future of the telecommunication industry and requires telecom operators to look beyond connectivity, complexity, and towards new growth opportunities that offer end-to-end solutions for both enterprise and consumers.

The telecommunications industry is one of the most dynamic and rapidly growing industries globally. But in recent years, the industry has seen a decline in revenue which is primarily related to the increase of competition in the market, changing business and customer needs. Even with the decline, the market is still expected to see growth. In 2019, the global telecom market was valued at USD 1.74 trillion but is expected to grow at a compound annual growth rate of 5% between 2020 and 2027.

Several elements are set to impact growth in the future of the telecommunication industry and will require telcos to innovate their service offerings, change their business models, and move towards being more flexible, agile and connected. These elements include the impact of 5G technology on bandwidth, reliability and high-speed connectivity, growing demand for value-added managed services, the value of IoT, enhanced customer service and a need for end-to-end solutions.

5G is the 5th generation of mobile wireless communications technology and will account for 20% of global connections according to GSMA. Operators and carriers across the globe are supporting the shift towards 5G with an expected investment of around $1.1 trillion in mobile CAPEX between 2020 and 2025. This technology is set to change the way many businesses operate, as it allows for faster connectivity, low-latency, enhances bandwidth and connectivity speed.

This impacts more than just connectivity as it paves the way for IoT and edge computing, which enables digitisation, automation, and the remote monitoring and management of business processes and operations. 5G networks will allow telcos to target enterprises with 5G-related applications specifically built for industries, for example, telemedicine solutions for the healthcare sector.

IoT continues to gain traction and impact different industry verticals globally, especially since we are seeing shifts towards smart cities, vehicle telematics, industrial automation and smart manufacturing. It is estimated that the total operator-billed revenue from 5G IoT connections will reach $8 billion by 2024. This move towards IoT provides an opportunity for telcos to innovate their offerings and utilise 5G capabilities, like network slicing and multi-edge computing solutions, to add value to their customer base with end-to-end solutions that talk to the changing needs of customers.

By using AI, telcos can process and analyse large volumes of big data and gain access to actionable insights that can be used to enhance customer experience, improve operations and profitability. This is done by using AI technology for network optimisation and automation which will enable telcos to detect any problems or issues with the network and fix the problem before it affects customers. AI is also being used to connect, engage and support customers through the use of virtual assistants.

Web3 will become three-dimensional, enabling the reading, writing and owning of content. To create this more intelligent and connected internet, we’ll need to continue developing the technologies that underlay Web3. And also consider how we use the internet will change. Web3 will operate similar to the current internet in terms of servers, internet providers and element of the ecosystem. The change and opportunity for telecoms players lie in the virtual ecosystem.

Data and analytics are at the centre of business success and at remaining competitive in a crowded market. Analytics provide insight into customer behaviours and patterns, thereby giving you a better understanding of your customer. It provides insight into ways to enhance customer interaction and satisfaction and identifies opportunities for new offerings that talk to their needs with the aim of reducing churn and increasing retention and revenue.

FinTech innovations, in the form of digital payments, mobile money, mobile wallets, etc, have become an essential service. Telcos have the opportunity to connect with an estimated 1.7 billion unbanked customers. This is a market that has immense growth potential and which is looking for financial inclusion and simple and convenient ways to make payments.

Glow’s role

Here at Glow, we are always one step ahead of the competition when it comes to adopting the latest technology and proving our superiority in the field. We believe in staying updated with the current developments, making us a clear leader in the telecom industry. We invest in creating a brighter future for everyone, be it clients or customers.