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February 11, 2016

Influence of Technology On Telecom Sector In The Recent Years

As per the 2015 Global Telecommunications Study, there has been a sea change in the telecommunication industry in the last one decade as there has been a remarkable shift in the customer needs, and competition has increased manifold.

The industry is engaged in offering two kinds of services. One is wire line services, which includes fixed voice telephony and broadband access. The other one is the wireless services encompassing mobile voice services and broadband access from mobile. Telecom service providers offer all these services in exchange for subscription fee or other usage fee. Asia –Pacific region has become the fastest-growing market for the telecommunication services. North America and Europe are the other two major markets. Cheaper and new technologies have resulted in an easy access to communication channels across the world.

Advent of new technology in the telecom sector

The industry is subjected to heavy regulation and the advent of new technology has resulted into introducing plenty of changes in the way the industry used to operate earlier. There are, in fact, many new technologies like the wireless communication technology – machine-to-machine (M2M) which is at present benefiting the wireless service providers and the Wi-Fi market managed by a cloud now is adopted by all small and mid-scale enterprises all over the world. Of these, M2M technology has arrived in the market forty-three years ago while the cloud-enabled Wi-Fi debuted in the mid-2000. There is also software-defined networking (SDN) as well as the network function virtualization (NFV) technologies that are creating waves in the telecom sector.

Influence and advantages of technology in the telecom sector

The arrival of an array of new technologies has disrupted the telecom sector like no one. The customer is also now more data hungry armed with smart mobile devices, and capital expenditure is rising high. Cross selling has become enormously important and operators are now busy in offering tailor-made individual packages for customer retention. Over-The-Top services also known as value-added services are growing at a breakneck speed.

According to the Over The Top (OTT) Market by Content, Access Type – Worldwide Forecasts & Analysis (2014 – 2019) report published in April 2014, the market for the OTT services will witness a growth of more than 29 billion dollars by 2019.

The new technology is proving advantageous for the customers as they can connect with each other more effortlessly irrespective of their time zones and culture. Service modes are also increasingly converging due to new technology and cost of hardware is decreasing rapidly. The sector has also become software incentive, and a plethora of new jobs is getting created each year for software development while many jobs like the assembly of telecommunication equipment have now become obsolete. In short, there have been plenty of changes and advantages too, but yes, challenges are also not a few. Telecom operators are facing a range of challenges in the evolving scenario and some of these are disruptive competition, uncertainty regarding regulatory environment, changing customer need and many more.

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