Due to technology breakthroughs, telecommunication is a victim of drastic changes coupled with the fact that it belongs in one of the fast-paced industries.
As more opportunities arise, the end of 2020 promises to be a period of vast opportunities and new challenges for the industry giant.
A GSMA report highlights that there will be a massive increment in the telecommunications industry in 2020 according to the trend that the number of subscribers will be about 5.6 billion. In 2015, there was an increase in revenue from $1.1 trillion to $1.2 trillion with approximately 5.8 billion smartphone users.
With this forecast, there will be greater adoption of smartphones and a higher number of mobile network connections in ridiculously large figures.
For this reason, companies within the telecommunications industry must form an alliance to solve major challenges that may arise due to the advancements in technology.
The increasing need for capital expenditure is perhaps the biggest challenge in the telecommunication industry.
According to a recent survey by EY, the majority of telecom operators raised an issue about the growing CapEx requirement in the industry.
The trailing reasons were stringent regulatory requirements and the need to improve margins.
Stringent regulatory requirements are due to the increasing trend where most customers prefer data services to SMS and voice options.
An example of such services is Whatsapp which is notably replacing services which utilized cellular network rather than mobile applications. Most customers will rather send a Whatsapp message to folks that the regular SMS.
With reference to the year 2020 again, the trend will persist to cause an explosive growth in bandwidth requirement and data traffic.
For such reasons, operators must invest in broadband facilities and infrastructure. The main aim of such facilities must be to provide high-quality data services and increased data traffic to customers.
The decline in the use of voice and SMS services has resulted in dwindling revenues in the industry. Hence, data bundle packages are great plans for IP messaging and video streaming in order to compensate for the lack in the traditional services.
A promising move by MTN shows the introduction of data bundles that promote unlimited chatting on Whatsapp – the MTN Whatsapp Goodybag.
Mergers and acquisitions are the best ways for telecommunication companies to effectively tackle these challenges.
More so, they should adopt cost-efficient strategies such as smart investment modules for futuristic technology and outsourcing managed operations.
Another option is to roll out high-speed network access projects.
Whatever the future it is moving, and moving fast. Every changing and growing by leaps and bounds. Make sure your business is ready to keep up to date with the market trends from customer service to internal network management. Feel free to reach out to out team of specialists today to discuss your needs as the telecom industry expands and changes.
Remember… once the changes are made- you are already behind.
Keep your business in the lead.