Industry Statistics

Industry Statistics

The Challenges Faced by Telecom Industry

challenges of telcos

Telecommunications companies are on the brink of becoming wholesalers of connectivity services but even that is being threatened. Revenues are shrinking despite the fast increase in demand, creating a unique and complex dilemma. The problem is there’s no single cause for this but several factors eating away at sales. Here are some of the biggest challenges faced by companies in the telecom industry.

1. The Challenge of Deregulation of Telecommunication 

While the waves of deregulation occurred in the 80s and 90s, we’re seeing the full effect of it today. AT&T or American Telephone & Telegraph initially was the sole operator in the market with the government regulating prices. The general belief was that it was the only way to operate the telecommunication industry. With new technological developments rising in the 70s, so did a new way of thinking.

The following decade, AT&T was forced to let go of its Baby Bells, the regional branches, and had to focus on long-distance calls in a move to break the firm’s monopoly. However, this did little to relieve the Baby Bells’ control over their own regions. Their power made it difficult for alternative services to enter and boom in certain parts of the US.

In the 90s, another deregulation law was enacted to solve this problem. This situation of encouraging competition and creating a more level playing field among telecom companies was also mirrored in other parts of the world such as Japan, Australia and Canada. While new names eventually came in, it did little to shake the market share of the old guards until today.

2. The Challenge of Innovation and Technological Advancements

The Challenge of Innovation and Technological Advancements - Challenges Faced by Telecom Industry

Since the boom of the internet, many fields have been disrupted but the telecom industry has managed to steer clear for decades, which may or may not have been a win for any of the parties. However, the changing times have started to close in and the outside pressure is forcing corporations to change as new industry sectors begin to emerge.

Service Brokers Entering the Scene

Service Brokers Entering the Scene

Many tech giants, such as Google, rely on fast internet to power their business, not just for internal operations but so users can access their services. Now, they’ve decided to make this one of their top priorities. The tech conglomerate that was once just a search results provider has recently launched Google Fiber and, even more recently, Google Fi.

Google Fiber is similar to other traditional telcos in that they offer wireless broadband internet but Google Fi threatens to change the game. It’s a new service that allows phones to choose between telecom operators based on their signal strength in the user’s current location.

It’s a win for consumers but strips industry players of the control they once had over their market shares and reduces them to white label telecom services with zero customer loyalty. With revenue decreasing, firms don’t have the leeway to compete solely on price, which is already a risky position for any business.

High-speed Space-based Internet

High-speed Space-based Internet

Meanwhile, Elon Musk is developing wireless internet connectivity without the use of fiber optic cables, powered by a network of satellites, Starlink, from his space tech company, SpaceX. The aim is to have thousands of connectivity-providing hardware floating outside Earth.

Internet speed is predicted to be much faster, since light can pass easily through air, almost 50% faster, than through fiber optic cables. Users can expect to have more seamless videoconferencing and over-the-top or OTT service as lag time reduces. Good quality internet connection would also be made available to more far-flung areas around the globe.

As the launch of the first rocket, Falcon 9, containing 60 satellites draws near, Musk warns the public that these might not work initially. He also said that there would have to be at least 6 more rockets launched, each with 60 satellites, to achieve minor coverage and at least 12 rockets total for moderate.

Even before this new technology has been introduced to the market, there’s already competition between big firms. Amazon is also claiming their stake in the game. They’ll have their own web of more than 3,000 satellites called, Blue Origin. In all aspects, outer space wifi has great chances of being the gamechanger for the digital era.

3. The Challenge of Mergers and Acquisitions

The Challenge of Mergers and Acquisitions

Movements in the industry have become an intricate, complicated web. Smaller companies have joined forces in an effort to gain bigger footprints in the telco sphere. Powerful names from other industries are now entering this field of business while telecom establishments are looking to expand their portfolio.

One well-known merger is the joining of forces between Sprint and T-Mobile, two of the biggest telecommunications service providers. It hasn’t been their first try to combine resources, and after several attempts, the government has now finally agreed to their plan.

While eyes have been on tech firms to disrupt and enter the market, an unexpected long-time media closed a deal with another conglomerate: Disney bought 21st Century Fox for $71.3 billion. The deal came with rights to several films and TV shows as well as television networks such as the National Geographic Channel, a movie studio, and 30% of Hulu, a streaming app.

Consolidations are happening at rapid rates in a world where keeping a major business afloat for the long-term means diversifying. As voice revenue continues to decline and messaging apps remain the preferred methods of communication, it won’t be a surprise if we hear telecom brands going into connected devices and the Internet of Things or IoT, launch a social media app, purchase a media company or more.

Undoubtedly, there are many ways a firm can stay relevant in today’s hyper-competition. The key lies in innovation and vision. If you’re a firm considering investing in alternative messaging, schedule a consultation with us and let’s discuss how you can help change the future of communication technology.

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What we saw at MWC 2019

MWC-2019

This year, the Mobile World Congress (MWC) brought mind-blowing technologies and products to the scene. The event was held in Barcelona from 25th to 28th February, and Forest Interactive participated in the event to bring you some exciting ICT solutions developed by the company. MWC is the biggest event of the mobile world where multinational companies participate and portray their products and technologies on a bigger canvas. Under the umbrella of Intelligent Connectivity, this year’s MWC had eight themes—Connectivity, Artificial Intelligence, Industry 4.0, Immersive Content, Disruptive Innovation, Digital Wellness, Digital Trust, and The Future. Let’s give you an overview of the entire event and show you what we saw over there.

5G stormed MWC

Image Source: Mashable

5G was the center of everyone’s eye at MWC as it’s going to turn the tables once commercialized. Several companies shared their timelines to unveil 5G service, but there wasn’t any specific date revealed by any of them. However, the 5G technology was showcased as a few companies rolled out their 5G-capable mobile phones. We saw different capabilities of 5G technology at MWC, where the demonstration of real-time robotic surgery by remote doctors, real-time truck driving of a truck in Gothenburg from Barcelona, and jam sessions between far-flung musicians wowed everyone.

Sprint expects to commercialize its 5G service in four cities of the US that will hit the market in May this year. Verizon, AT&T, and T-Mobile haven’t revealed the launching date of their commercial 5G service; however, the second half of this year is being considered important for commercialization of 5G technology. Pete Lau, the OnePlus founder, has discussed that 5G will see three phases of revolution—the improvement of data speeds over the next 3-5 years, development of an ecosystem of AI-powered 5G devices, and interconnectivity.

Folding Phones—Wait—What? Folding?

Image Source: BGR

Yes! Folding phones took MWC by storm this year. Don’t get it mixed by flipping phones that made an appearance around a decade ago. At MWC, Samsung rolled out its Samsung Galaxy Fold flagship smartphone that has two AMOLED display. A 4.6-inch screen is meant for one-handed use while the phone opens up to a 7.3-inch display. Galaxy Fold is expected to rock the US on April 26th and will hang a price tag of around 2000 USD.

Image Source: AndroidPIT

Mate X by Huawei tried to steal the Galaxy Fold’s thunder that is also 5G compatible. Mate X has a single screen that can be used in three modes. When unfolded, Mate X sports an 8-inch OLED display that turns into a 6.6-inch front screen and a 6.38-inch rear screen in closed position. Huawei says that it will roll out Mate X in June or July and Huawei lovers can expect the phone to cost around 2600 USD. Motorola also sniffed the new folding phone trend, and it says that it will launch its folding phone—probably a revival of the Razr brand, which will cost roughly $1500.

Phones like Never Before

Image Source: Trusted Reviews

Nokia took a step ahead in introducing photography phone, and it shook the arena with its Nokia 9 PureView cellphone that features five cameras. Two cameras capture the RGB light while the remaining three are meant to pull in black and white data. This innovation will enhance the photography experience of pic lovers. Sony introduced its Xperia 1 at MWC that features a 6.5-inch 4K OLED display. This smartphone also features three 12 Megapixel cameras and the phone costs around £849. Apart from its Fold thrill, Samsung also launched its Galaxy S10 flagship phone.

Trending IoT

Internet of Things (IoT) got a big shot at MWC as 5G is being considered as the fuel to IoT. Even some people regarded it as 5G-enabled IoT. With the revelation of 5G technology, IoT trends have seen a boom, and the concept of connectivity is prevailing. With ultra-low latency, 5G will enhance the performance of several applications.

The biggest potential of IoT lies in smart cities where the concept of connected vehicles is breaking grounds. At MWC 2019, Mike Zeto, General Manager AT&T Smart Cities, said that his definition of a smart city includes proactive data usage. Analyzing camera feeds at low latency rates for public safety, and traffic monitoring will improve the concept of Intelligent Connectivity. AT&T and Vodafone revealed that both the companies will cooperate on IoT applications across the automobile space. The companies’ representatives stated,

AT&T and Vodafone Business understand the complexity of global deployments. The goal is to simplify the deployment process, improve operations, deliver innovative solutions, and make the network certification process easier.

Forest Interactive was at MWC

Yes, we were there! Did you find us at Elfo’s booth? Elfo is an innovative 360 digital marketing service by Forest Interactive that integrates performance-based solutions for digital marketing. Elfo is designed to increase your website visitors, expand online sales and extend your mobile reach. Elfo offers immersive solutions to connect to your target audience through different channels and devices. Elfo is the key to scaling your business in the digital space. Alongside presenting its services and products, Forest Interactive had numerous exciting events that drew everyone’s attention. Winners of different games got iPhone XS and Garmin products by Forest Interactive.

elfo.com

This year’s MWC revealed several new products and raised numerous tech claims by companies. Now it’s time for those companies to meet the user’s expectations by providing their impeccable services. See you at next year’s MWC!

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