Explore the Technological Trends Shaping the Telecommunication Services Industry

Guest Post:

Since the COVID-19 pandemic, every industry is undergoing a digital transition to remain competitive in the market. The telecommunication services industry is no exception. Telecom enterprises have started leveraging technologies such as 5G, internet of things (IoT), NB-IoT, Mobile Edge Computing (MEC), artificial intelligence (AI), big data analytics, cloud computing, and many others in order to recover from the pandemic losses and confidently grow in the future.

With the emergence of advanced technologies, several telecommunication service providers (TSPs) are moving away from traditional business models, ultimately focusing on becoming more efficient, more customer-centric, and adding better profits to the business. The major companies in the global telecommunication services market are augmenting their network capacity to fulfill all customers’ needs and expectations. Companies are going under massive structural change by turning their content, customer channels, and communication services digital to create a whole new ecosystem. The following are the major technological trends that are influencing the telecom industry to change dramatically –

• The Advent of 5G: Some of the emerging use cases concerning 5G are ultra-Reliable Low Latency Communication (uRLLC), massive Machine Type Communication (mMTC), and Mobile Broadband (eMBB). Telecoms are already using 5G applications along with IoT tools to target end use verticals including transportation, medicine, agriculture, public services, etc. For instance, the healthcare industry is using telemedicine to offer cost effective and timely diagnoses and care. Meanwhile, the education sector is focusing on e-learning to transform and improve education.
• Artificial Intelligence: AI is playing a major role in the transformation of the telecom industry. Telecommunication businesses are already using AI technology such as virtual assistants, chatbots, and AI tools to customize user experience and enhance customer satisfaction. AI-powered chatbots can answer customer questions and resolve issues without the need for human intervention. Also, the fact that AI can analyze data from network sensors to identify potential problems before occurrence, AI allows telecom providers to take proactive steps to fix problems and prevent outages. AI has undeniably helped deliver added value for enterprises through network optimization, predictive maintenance, fraud prevention, virtual assistants, and new revenue streams. This way, the future of AI in the telecom industry will continue to develop.
• Internet of Things: IoT has revolutionized various industries, including telecommunications. IoT in telecommunications helps companies to build enhanced predictive analytics models. IoT allows telecom to track and trace all data and information regarding products and services provided to consumers. IoT-powered asset tracking systems allow businesses to track and manage their assets in real-time. IoT-enabled beacons and cameras help combat the challenge of maintaining security. IoT- driven sensors allow telcos to monitor the device performance installed at various places, including warehouses, workstations, and factories. The usage of IoT in smart cities, smart buildings, smart homes, smart industries, smart health, smart agriculture, smart vehicles, and smart transport is increasing, which in turn, is giving lucrative opportunities to telecom. Here, it is worth mentioning that integration of IoT in Telecommunications is a boon for industries operating in this sector.
• Cloud Computing: In the last few years, cloud computing has transformed the telecom industry in more than one way. It is expected to take the telecom companies to the next level. Most of the telecom providers today rely on a large computing infrastructure to deliver a diverse array of applications, manage data, and bill services remotely. With cloud computing, telecom companies can deliver their products and services faster. Cloud computing in the telecom industry provides software at lesser rates and decreases the expense of operation of a company need to set up and manage its own data center, hence generating more revenue than with general local infrastructure services.

According to a report published by Allied Market Research, the global AI in banking market telecommunication services market size is projected to reach $2556.2 billion with a considerable CAGR from 2022 to 2031. With around 3 billion internet users in the world, who are looking for higher speed connectivity, the market for telecommunication services is expanding exponentially.

With this drift on board, fiber optics deployment is entering the largest investment cycle ever. Fiber networks are beneficial for high data connectivity uses and transmitting information conveniently at high speeds. Fiber to the Home (FTTH) and Fiber to the Building (FTTB) have amplified the positioning of fiber optics deployment network systems.

North America is currently dominating the market with the largest market share, owing to factors such as effective storage management, real-time user contact, and huge demand from businesses for on-demand services. The Asia-Pacific region, at the same time, is expected to witness the fastest growth rate during the forecasted period, attributed to IoT-powered devices, Industry 4.0, 5G, Big Data, cloud computing, and the rise in importance of other smart technologies in the developing economies like India, China, and others. To conclude, the telecommunication services market is anticipated to continue accelerating growth in highly competitive space in the near future.