The top five technology advancements driving a significant shift in the telecom sector.
- Expansion of 5G:
According to a CCS Insight analysis, worldwide connections to 5G networks are expected to exceed 1.34 billion in 2022.1 Telcos are targeting industry sectors with 5G apps and IoT devices to amplify the position of network systems and streamline business processes. Telemedicine is being used in the healthcare industry to offer cost-effective and timely diagnoses and care. The transportation and traffic infrastructure is also improved by connected autos. As the world accustoms to the new normal due to the Covid-19 scenario, the education sector is turning to e-learning to transform and improve education. The 5G network, with its diverse range of technologies, is helping telecommunications aim for significant enterprise growth.
- Artificial Intelligence:
By 2025, the percentage of operators investing in AI technologies to upgrade their infrastructure is predicted to rise to 70%.2 Artificial intelligence opens up new avenues for network maintenance, predictive maintenance, and customer service cost reduction with real time decision making. It enables operators to create customized offers for their B2C and B2B clients.
AI can also detect network issues, allow self-preservation, and safeguard networks from fraudulent activity. It also aids operators in monitoring equipment startup and predicting failure based on patterns. In short, AI can help improve root cause investigation, allowing for more efficient resolution of visible and potential hardware defects.
- Internet of Things:
A Berg Insight (an IoT analyst company) suggests that by 2025, close to 4.15 billion IoT devices will be linked to cellular networks worldwide, offering enormous prospects for telecom carriers.3
Furthermore, IoT in Home Automation is one of the most promising domains since it provides superior mobile and network services to intelligent home mobile apps and real-time surveillance systems.
To commercialize IoT solutions, the telecom industry is bringing in new methodologies and applications to leverage these technologies, reinvent themselves to go beyond core network connectivity. Communications service providers (CSPs) can also unleash greater possibilities to offer a wide range of services for various industries, including healthcare, education, manufacturing, automotive etc.
- Edge Computing:
According to Mobile Experts, the worldwide demand for connected edge computing services will reach $7 billion by 2025.4
The Edge Computing ecosystem is rapidly evolving. It brings processing capabilities closer to the device’s location in real-time, eliminating the need to transport data to a cloud data center and lowering waiting time. The data becomes more relevant and beneficial to the end-user with faster speed and on-time delivery. Edge computing also helps businesses, and their customers reduce total network traffic and improve performance. Not only that, but it also boosts network security by offering low-cost local encryption and security features.
- Cloud Computing:
According to the Mordor Intelligence analysis, the telecom cloud market was valued at $25.33 billion in 2020 and is expected to reach $74.36 billion by 2026.5 As a result, we can see the industry pivot towards virtual network and witness a tremendous transition of communication service providers (CSPs) to the cloud in the years to come.
Most telecom companies rely on colossal computing infrastructure to serve various applications, manage data, and charge services. Migrating to the cloud lowers internal computing resource requirements, reduces internal costs, and boosts revenue streams.
With the pay-per-use service model, telecoms can launch new services, lower service costs, and work more efficiently while responding to evolving market demands. In addition, the industry can benefit from the cloud technology by moving essential business processes to the cloud. Single-product carriers can also use the cloud to broaden their service portfolio and expand at the pace demanded by today’s market.