At the beginning of 2023 we conducted an analysis of telco trends with the aim of serving as a a navigational compass for companies in the telecommunications sector.. These organizations are very important in our societies as they have a direct influence on our daily lives, including the way we study, work and do business. Its capabilities facilitate the connection between people, the exchange of information and ensure access to essential services.
This year we wanted to repeat the exercise and analyze the new challenges that telecommunications companies will have to face in order to discover new development opportunities in their business portfolios.
Changes in the Spanish telecommunications market
Before delving into telco trends, we would like to zoom in a bit on our domestic market.
After the next Joint-venture between two of the most important players in the market, Orange and MásMóvilexpected to be announced by the end of February of this year, the telecommunications sector is heading towards a new restructuring phase marked by strategic movementsIn addition to this, other possible mergers are envisaged in the area of local fiber infrastructure, among the neutral network operators.
It is expected that the convergence strategy convergence strategy ARPU (Average Revenue per User) is expected to continue to grow steadily, albeit at a more moderate pace. at a more moderate pace compared to previous years. In addition, the market is moving towards a duality situation. On the one hand, intense competition in certain segments, especially those linked to new households seeking savings through independent packages, while in other segments loyalty will continue to be important.
Another fact that is expected is that DIGI and Avatel DIGI and Avatel are expected to present themselves as companies interested in the sale of assets derived from the merger between Orange and MásMóvil.This could include obtaining spectrum as part of the transaction. In this situation, DIGI and Avatel could face the challenge of having to find innovative ways to leverage this spectrum and use it to manage their own traffic, which could catalyze the exploration of more flexible mobile infrastructure sharing models, thus impacting the overall structure of the sector.thus impacting the overall structure of the sector.
In the B2B area some movements are expected that may have significant impacts with changes in the roles of the different players and other corporate operations with possible exits of assets and business areas.
In addition, 5G traffic is expected to continue to increasetraffic is expected to continue to increase, in line with the LEO and MEO satellite networks are also expected to continue to grow.. The big question is how to effectively monetize this traffic, as, to some extent, is still the case with 5G.
In view of the above, we consider the following trends to be key for the sector during 2024.
AI in business process efficiency
It already sounds repetitive and a speech on everyone’s lips, but we still strongly believe in it. With the scenario described above, business processes in the telecommunications sector will continue to evolve with a strong focus on operational efficiency and effectiveness, through the integration of technologies such as artificial intelligence, which will be applied from network planning to sales and customer service, and we may even see cases of generative artificial intelligence in the near future.
5G alliance and satellite connections
As we noted, the 5G adoption process is moving at a steady pace, reaching 1.4 billion connections by 2023, as indicated in the recent
“Ericsson’s recent Mobility Report.
Fifth-generation connections offer high-speed data transmission with lower latency than predecessor technology. Its global adoption will allow accelerate the advancement of innovations such as autonomous vehicles, virtual reality and the development of smart cities..
The synergies emerging between 5G networks and satellite connections are proving to be critical. Being able to offer high quality connectivity in remote areas without having to invest in infrastructure is accelerating the adoption of products and services previously only available in urban centers. Everyone will be able to benefit from next-generation technological advances, alleviating the isolationism of the most rural or depopulated populations. Can you imagine a 5G bubble where everything is connected and yet moves with you? Only the ability to imagine limits the use cases..
Expansion of the Internet of Things (IoT) and smart cities
It is expected that by 2024 IoT will continue to gain ground, driving the number of connected devices, this will redefine the way people interact with the environment, most especially in the realm of their relationships with other people.
The massification and democratization of IoT devices and industrial sensors will make it possible to significantly increase efficiency in sectors such as health, energy efficiency and agriculture, among others. significantly increase efficiency in sectors such as health, energy efficiency and agriculture, among others.. Our cities will increasingly become smart cities. While it is true that the concept of smart city has been with us for some time now, the digitization of public services, the creation of smart transportation solutions and the use of IoT to monitor traffic, measure air quality and other aspects of the city are in urban and not-so-urban areas around the world..
Virtual Reality (VR) for immersive training
Virtual Reality (VR) and Augmented Reality (AR) have also proven their usefulness in the field of training and professional development. In this case, VR and AR have made it possible to create immersive simulations that allow for a realistic and personalized learning experience..
Both technologies are applying a Copernican twist to the way many professionals learn, especially in sectors such as medicine, engineering and various technical training.
By 2024, greater integration of VR and AR in educational programs, as well as in corporate learning, is expected. Good telecommunications not only helps to optimize a company’s resources. Think of the savings that this distance training can generate for an organization, while reducing its negative impact on the environment. Better distance learning programs thanks to more developed networks make it possible to create more realistic, effective and accessible simulations, which will better develop professionals to be better prepared for professional success.The development of better distance learning programs through more developed networks allows for more realistic, effective and accessible simulations that better prepare professionals to achieve professional success.
Development of cybersecurity and data privacy.
The facilitating role played by telecommunications companies in the digital universe makes them, in turn, the guarantors of citizens’ rights. of citizens’ rights, as well as the guarantors of. This is why telcos are leading the way in developing and maintaining secure network infrastructures. An example of this is the security protocols to protect your users from threats and intrusions.
Data encryption will be a determining factor in the transmission of information over networks.. This unique way of protecting both confidentiality and data integrity will bring security never before seen in the computing world.
The role that telecommunications companies themselves play in prevention and awareness-raising among their users will also be key. prevention and awareness-raising among their users. Collaboration between organizations, institutions and companies will allow users to fully trust their digital activity, putting it on the same level as the actions they carry out through physical interactions. The ethical use of data held by telcos, which are the first to ensure its security, also contributes to this.
Follow the path to the cloud
Telecommunications companies will continue to move their infrastructure and services to the cloud. This is because the
reduce dependence on proprietary hardware, while increasing the flexibility and scalability of a number of critical services for enterprises and end users..
An increasing number of companies are making the decision to manage data storage, applications and collaborative platforms in the cloud. With the increased use of Artificial Intelligence and machine learning, more and more businesses are expected to adopt solutions related to the
Telco data centers and hosting offer companies dedicated servers and computing resources. This avoids the need for them to be the ones to develop them, and they can dedicate their infrastructure efforts to their business activity. In addition, they have network optimization toolsThe network optimization tools can provide the necessary capacities at a specific time, without wasting resources and reducing bottlenecks that could compromise production or service delivery.
Juan Martínez, D
Telco and High Tech
in Grupo Oesía