One of the most impactful disruptions rippling across the telecom industry right now is the global pandemic. While this is true across sectors, what we’ll discuss here are the seismic shifts it’s causing on an industry the world is most dependant on given the norms of social distancing. The post-pandemic time will see telcos relied upon to perform with renewed stability as well as organizations more ready for such calamities.
Here we discuss some of the key trends triggered by COVID-19 in the telecom industry:
Increase in adoption of varied services
The telecom industry is experiencing a transformational period of advancement – to adjust itself as per new technologies and cloud patterns. With an increasing number of people currently working from home, obtaining educational resources for homeschooling, and streaming video entertainment is on the rise. Given this, the telco industry is naturally seeing spikes in voice, data, and broadband services.
On the purchaser side, we see OTT gain more momentum. Experts at MKM Partners said in an ongoing study that 19% of shoppers spend more on their media communications administrations, while just 3% state they spend less. Moreover, telecom administrator Ericsson contends that this emergency could at last prize administrators who prioritize investments on network quality, as businesses heavily depend on it.
Based on the CompTIA “State of the Channel” study, government regulations in the tech space tops the list of industry concerns, with the economic slowdown also fueling fears. This is a far cry from last year when the main concerns for future success focused on emerging technologies. The big question in the coming years, however, will be, whether all it takes is a pandemic to change the way this industry is viewed and regulated.
People are becoming aware that the days of the wild west are over as the technologies mature and become more complex. The success factor for future innovators will depend on their ability to address market demands while ensuring ownership and accountability.
Capturing the finserv opportunity
As money becomes mobile, more telecom companies are expected to capture big opportunities within the financial services sector. The two will keep forging new alliances to enable real-time payments between individuals and businesses. With convenience and high speed on the consumer agenda, telecom providers need to be more involved in the development of mobile payment systems and mobile banking services. Today’s telecommunications companies are increasingly focusing on location-based data services, such as tracking and sharing location information.
With stores closed across the globe, self-service is outdoing human support as more and more customers prefer being in control of their needs. The biggest challenge will be to realign business and revenue models to support a slew of new services while focusing on streamlining processes to cope with expected spikes in workloads.
Next, cloud technologies are anticipated to become increasingly embedded in business processes. This is because telecom firms are striving to manage and automate omnichannel interactions with customers and tap additional revenue opportunities. This includes investing in cloud platforms to deliver new digital services, including cloud-based unified communications services. Telecom companies can leverage the scale and agility of the cloud to virtualize networks, innovate rapidly, and take advantage of IoT opportunities.
5G and the future
As an industry, the shift from managing 4G growth to fixing the core network for 5G is accelerating. For leaders aiming to stay updated on COVID-19 triggered trends in the telecom industry this one is worth noting. Once established, sectors like energy, agriculture, transport, healthcare, and manufacturing are ready to exploit the potential of 5G and IoT technologies. Consumer and business demands alike are driving the roll-out of 5G networks. Energy, agriculture, and transport are already visualizing the real potential of 5G technology revolutionizing how goods and services can be delivered.
Apart from this, 5G is also attracting great interest as it increases the demand for IoT developments, including the development of high-speed, low-latency, and high-bandwidth networks. The use of 5G networks in the mobile phone market should also improve the use and availability of low-cost, fast, and low-latency networks for mobile devices.
Growth of data centers
As costs drop, companies are investing in storage resources needed to accommodate the data generated by today’s networks and data centers. Data centers play an important role in the continued growth of AI technologies and applications, as they can store their powerful servers in efficient colocation environments and use data centers to harness the enormous power of cloud computing. Plus, the availability of high-speed, low-latency networks. and cloud storage provides organizations with an ideal platform to access such resources.
All in all, the current pandemic has got businesses into partnerships that were unthinkable a couple of months ago. From developing network resiliency to focusing on innovation and automation for a competitive advantage, players focusing on growth beyond the crisis will win the long-term.