The telecommunications industry makes part of the information and communication technology (ICT) infrastructure. The industry is comprised of all telecom or telephone companies and Internet service providers. What trends are going to be prevalent in the industry in 2018?
Global Telecom Sector
The global telecom sector is so much intertwined with the huge digital transformation that’s taking place. The important role the telecom industry plays in global societies and economies is undeniable.
In 2017, the main industry trends were associated with 5G, value-added and over-the-top services, fixed wireless technology, mergers and acquisitions, and network security. This year, the global telecoms industry will continue to develop based on a number of underlying trends, including the developments relating to the Internet of Things (IoT), also called the Internet of Everything (IoE).
There is an enormous shift towards digital technologies, and it goes on increasing. The digital evolution brings about changes that are of immense importance for a number of industries. However, the ICT industry is leading the way.
When it comes to industry revenue, flat-to-low single digit percentage revenue growth is expected in more developed markets, including Canada, Western Europe, Japan, and Australia, and modest erosion in the US, reflecting the maturity of the market, intense competition, and secular pressure in several wireline services.
Cable companies in the US and integrated telecom companies in Western Europe are anticipated to witness stronger growth as compared to their peers. Developing markets in Asia-Pacific (APAC) and LatAm are projected to grow more intensely as compared to other regions.
As for the industry risks, competitive risks will remain high because of the existing market and pro-competition regulatory structures, thus resulting in only modest price gains at best. There will be ongoing pressure in voice, legacy data, and video in developed markets, while broadband (wireline and wireless) will play an increasingly crucial role.
Emerging markets are projected to witness improved unit and revenue growth. Companies are expected to focus on customer retention, bundling, and cost control for the purpose of improving margins. Capital intensity is anticipated to keep its relative stability for the majority of markets.
Top Telecom Industry Trends 2018
The underlying trends of M2M (machine-to-machine), Big Data Analytics, Cloud Computing and the overarching Internet of Things will continue to grow in 2018. What are the top telecommunications industry trends that you should follow in 2018? Here they are:
- Customer Retention
The telecom operators will place their main focus on customer retention and churn in the face of dwindling revenues. Also, they’ll focus on improving mobile and fixed broadband infrastructure aimed at future.
- Digital Technologies
The apps and services brought about by digital technologies, such as video streaming, will go on placing great pressure on infrastructure and bandwidth.
- New Revenue Streams
The large operators are more and more focused on finding new revenue streams, such as moving into vertical and international markets. As a result, consolidation and acquisition in 2018 will increase as companies reposition themselves and compete for market share.
- 4G LTE Deployment and 5G Developments
4G LTE deployment is an important trend in the majority parts of the world. Appropriate markets also make a keen investment in fixed broadband based on fiber. 5G developments play a significant role as well and will remain a key trend in 2018.
- Mobile Infrastructure with Lower-Priced Smartphones
Most operators in the emerging markets will bring their primary focus on mobile infrastructure with more affordable smartphones: this trend is expected to become dominant. Mobile broadband infrastructure is increasingly playing an important role in the emerging markets of Middle East, Asia, Africa, and Latin America.
The telecom industry is one of the fastest growing industries in the world. Several trends are expected to play a key role in the industry in 2018.
What’s the most important telecom industry trend expected this year, according to you? Feel free to share your thoughts with us below.