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Telecom Business Review | Friday, July 02, 2021
In addition to opportunities, telecom companies worldwide are facing many challenges in this era.
Fremont, CA: The telecommunication industry is going through a transformational development phase–to acclimate itself to the new technological & cloud trends.
At the very outset, the target was Communication Technology (CT) which marked the first wave of the information era.
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The second stage was the internet phase, which started around 2000. The industry reorganized itself around horizontal solutions during this stage. It was the time of e-commerce & portals.
After 2006, the cloud began taking shape, marking the third phase of transformation in the telecommunication industry. Come 2019, and we are in the midst of the cloud era, where a new world of opportunities has opened for the carriers. It is evident that this era is unstoppable, and there is no escape.
In addition to opportunities, telecom companies around the world are facing a lot of challenges in this era. New technologies such as augmented reality (AR), Internet of Things (IoT), virtual reality (VR), microservices, and more demand than telecom providers realign their business strategies and restructure themselves as per the cloud era in terms of operations, architecture and networks as well.
Moreover, they must focus on providing customized solutions to their customers and developing long-term relationships with them to gain a competitive edge.
Top challenges in the telecommunication industry
1. Telcos must decentralize the purchasing and decision power internally and externally due to the essential agile restructure of the cloud.
2. With the accessibility of new technologies, the variety and quality of services from telecom companies and internet service providers (ISP) are growing, profit margins are reducing, and the lines between telecom companies and technology vendors are blurring. Therefore, telcos have to take a fresh look at the level of ICT innovation and adapt their organization to digital transmutation by creating strong cross-functional interfaces and seeking tools for keeping organizational flexibility.
3. With millions of subscribers, new products, and bundled and customized solutions, the operational support services like service configuration, order completion, customer care, and billing are becoming increasingly complex. Thus, the cost of handling these operations requires resources and different tools, thus, increasing the financial overhead.
4. Telecommunication providers should upgrade their IT and connectivity infrastructure and concentrate on offering data and voice services, i.e., high quality, reliable, and affordable. Security of the networks has become a major priority for the telcos, and they are facing problems with the emergence of new threats powered by new technologies. So, several operational and technical innovations are needed to meet customer expectations of complete system security from the network to the device level.
5. One more problem waiting in the wings for telcos and ISPs is the impact of the Internet of Things (IoT), leading to explosive growth in connected devices. This growth is generating billions and trillions of new data sources; thus, it is expected that this growth will drive the data to be managed by networks to zettabytes per year.
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