How the telecom sector is developing in times of digital transformation
The global telecommunications industry is developing dynamically; the main players seek to expand the boundaries of development, to create more long-term and reliable relations between market participants and customers everywhere.
Currently, overcoming all boundaries of mobile technologies in the development of the global telecommunications sphere, expanding the scope of LTE technologies, virtualisation of services, cloud, big data and analytics, the concepts of IoT and M2M, and cybersecurity, which is important under the current conditions, are all put forward on the first row of demands. The telecoms industry is already pouring into all possible areas of chance; smart technologies are becoming an integral part of human life. All of these innovations lead to a significant growth of information and telecommunication techniques – and in this area a variety of business models and customer requirements are offered.
World practice shows that in this era of current dynamic growth, the main sources of revenue for telecommunications companies are innovative projects as FBB (Fixed Broadband Business), FMC (Fixed Mobile Convergence), cloud technologies, MFS (Mobile Finance Services), and the implementation of various applications. Thus, revenues from traditional services – fixed line, traditional cable television, and mobile communications – are gradually decreasing, and their place is occupied by new technologies.
In conditions when new digital services become more advanced, all companies are involved in the process of digital transformation. Under these new conditions, the process of integration and consolidation is occurring in the industry; operators are entering the digital market segment, small market players are acquired by large players, and thus new holdings are created that diversify their activities.
Issues such as the formation of telecommunications companies around the client, the provision of a number of services using a single click, and the construction of a strategy for social multi-channel communications are being updated. To do this, companies must first make changes to their operating processes. Currently, companies must conduct business adaptation processes based on changing customer requirements, improve business models, transform into companies that can provide more affordable, different services within a single package, and of course pay special attention to the creation of infrastructure and its reconstruction.
According to a report by the GSMA, the number of mobile phone users in the world reached 5 billion in 2017, and this number will reach 5.7 billion – or three quarters of the world’s population – in 2020, while broadband mobile connection will reach 73% of mobile phone customers. Growth will occur mainly in the Asian continent, and within the next three years in India alone, the number of new customers will reach 310 million. In addition, according to the GSMA report, the number of direct or indirect employees working in the mobile ecosystem will be 30.9 million people. The capital investment of operators by 2020 will reach €567 billion (US $700bn).
In connection with these current development trends, McKinsey & Company presents some interesting information and comments. It recommends that, against the backdrop of the ongoing processes, company executives must take serious measures to increase revenues and pass through transformational processes which will benefit the customer with improvements in communication. According to the company’s research, the use of new technologies and digitalisation will allow companies to optimise business processes, thereby reducing costs, satisfying customers and increasing sales.
Wireless operators have little reason not to go for it or just wait, because all the technologies and management methods that they need are now available. Deloitte also presented its own forecast related to the development of technology. In its report, Forecasts of Telecommunications, Technologies and Media 2018, the company notes that in 2018, live broadcasts and events in the online world will bring significant revenues to the industry.
Interested in hearing industry leaders discuss subjects like this and sharing their use-cases? Attend the co-located IoT Tech Expo, Blockchain Expo, AI & Big Data Expo and Cyber Security & Cloud Expo World Series with upcoming events in Silicon Valley, London and Amsterdam and explore the future of enterprise technology.
- » Leak of meeting to decide Huawei’s UK 5G network fate causes fury
- » Editorial: Stop the 5G health risk scaremongering
- » Verizon secures partnership with Google to bring YouTube TV to customers
- » Ericsson CEO: Europe needs to stop playing ‘catch up’ and take a 5G lead
- » China's UK Ambassador: ‘Global Britain’ should make its own Huawei decision