The Telecoms industry plays an essential role in the digital age of today. As the digital landscape leans towards a connected experience, there is an increased reliance on Telecoms services. A connected experience is defined by a “seamless connectivity” in which companies develop “meaningful relationships” with consumers through the use of automative and intelligent software (IBM, 2017).
However, due to the Telecoms industry being marked by fierce competition and low “customer retention rates” (Crawford, 2023), it is vital for Telecoms service providers (Telco’s) to remain ahead of global trends. This can be achieved through continuous product/service innovation.
We discuss the top Telecoms trends for 2023:
The move to independent 5G:
Since the launch of 5G in 2019 (Thales, 2022), Telco’s have used their 4G infrastructure to provide 5G services, essentially restricting 5G’s potential to the capabilities of their current infrastructure. This is expected to change in 2023 as Telco’s place a focus on the upgrading of their “infrastructure” and “features” in order to assist 5G in reaching its full capabilities (ECN, 2022).
Deloitte Global predicts that 2023 will see an increase of 100% in the number of Telcos investing in independent 5G networks (Hoque Essing et al., 2022). Marr (2022) explains that the investment in “stand-alone” 5G will introduce exciting new “applications and digital services” stemming from the improved security and stability offered by 5G networks. Independent 5G networks will increase a network’s ability to handle “device density” and improve “reliability and latency” (Hoque Essing et al., 2022).
The adoption of cloud computing:
While a majority of Telcos are still dependent on hosting their IT infrastructure in-house, Crawford (2023) predicts that these Telcos are likely to make the switch from in-house hosting towards cloud hosting during the 2023 year. Cloud hosting will give Telcos the ability to scale up and down more easily in response to fluctuations in their customers’ demand (ECN, 2022). ECN (2022) lists additional benefits attainable through the use of cloud hosting, such as reductions in energy usage and infrastructure costs.
Critical focus on network security:
Due to the sensitivity of the data that Telco’s collect from their clients, their risk of being the target of cyber-attacks is continuously growing (Chowdhury, 2023). From 2021 to 2022, the number of cyber-attacks carried out worldwide saw a growth of 38% (De Pasquale, 2023). A contributing factor to this growth was a 47% increase in the number of cyber-attacks specifically targeting personal information, also known as “Personally Identifiable Information” (De Pasquale, 2023).
With the shift from in-house hosted IT infrastructure towards cloud hosting and the widespread adoption of 5G, it is vital for Telcos to not only adopt stricter cyber-security measures but to continuously adapt these measures as cyber-attacks evolve. While the adoption of blockchain has become a popular line of defense against cyber-attacks (Crawford, 2023), Valle (2023) suggests that utilizing AI in cyber-security can result in a faster identification and response to potential cyber-attacks.
References:
Chowdhury, S. (2023) Telecom trends 2023: 5G within sight, but telcos under pressure, The Future of Commerce. The Future of Commerce. Available at: https://www.the-future-of-commerce.com/2023/02/13/telecom-trends-2023/
Crawford, S. (2023) 5 Trends in the Telecom Industry for 2023, Plecto. Plecto. Available at: https://www.plecto.com/blog/sales-performance/trends-in-telecom-industry/.
De Pasquale, F. (2023) 63 Terrifying Cyber Security Statistics from 2022, Tekspace. Tekspace. Available at: https://www.tekspace.com.au/blog/cyber-security-stats-2022/.
ECN (2022) TELECOMMUNICATIONS TRENDS 2023, ECN. ECN. Available at: https://www.ecn.co.za/telecommunications-trends-2023/
Hoque Essing, N. et al. (2022) 5G’s promised land finally arrives: 5G standalone networks can transform enterprise connectivity, Deloitte Insights. Deloitte. Available at: https://www2.deloitte.com/za/en/insights/industry/technology/technology-media-and-telecom-predictions.html#5gs-promised-land-finally-arrives
Marr, B. (2022) The Top 4 Telecom Trends In 2023, Forbes. Forbes. Available at: https://www.forbes.com/sites/bernardmarr/2022/12/09/the-top-4-telecom-trends-in-2023/
Valle, D. (2023) The Top 4 Telecom Trends To Watch Out For In 2023, World Wide Technology. World Wide Technology. Available at: https://www.wwt.com/article/global-service-provider-2023-industry-trends
Thales (2022) A 5G PROGRESS REPORT: LAUNCHES, SUBSCRIBERS, DEVICES & MORE, Thales. Thales. Available at: https://www.thalesgroup.com/en/worldwide/digital-identity-and-security/magazine/5g-progress-report-launches-subscribers-devices#:~:text=5G%3A%20available%20devices,2022%20and%20network%20rollouts%20accelerated
