The pandemic accelerated the growth of the sectors, giving rise to robust connectivity because of remote work culture
The need for high-performance, high-quality goods and services among consumers makes network operations’ optimization crucial for communications service providers (CSPs)
Pinkesh Kotecha, Chairman and MD, Ishan Technologies
The telecom sector has been at the forefront of technological innovation for several decades, continuously pushing the boundaries of what is possible in communication and connectivity. From the first telephone call made by Alexander Graham Bell to the development of fiber-optic networks, 5G technology, and now the advent of 6G technology, the sector has been instrumental in shaping the modern world. With the growing demand for digital transformation across industries and the increasing reliance on technology in our daily lives, the telecom sector is expected to continue to play a crucial role in driving innovation and shaping the future of communication and connectivity in the coming years. This is an exciting time for the telecom sector, as it embraces new technologies and approaches to meet the evolving needs of customers and businesses around the world.
The pandemic accelerated the growth of the sectors, giving rise to robust connectivity because of remote work culture and increasing digital penetration. It also helped create fixed-line and mobile network packages integrating VPN, teleconferencing, and productivity tools. The period aided expansion of artificial intelligence in telecommunication market too.
The telecom sector also contributes widely to the Indian economy as it’s the third largest sector in terms of FDI (Foreign Direct Investments) inflows, contributing 6.24% of total FDI inflow, and contributes directly to 2.2 million jobs and to 1.8 million indirect employment. . As per an industry report, India is on its way to becoming the second-largest smartphone market globally by 2025 which will include 88 million 5G connections. It is also estimated that 5G technology will contribute approximately $450 billion to the Indian economy in the period of 2023-2040. This indicates the growth potential of the sector in turn creating opportunities for players across the IT and ICT sector.
Considering the telecom sector has witnessed significant growth and transformation, the advent of new technologies and innovative solutions, unlocks huge potential. Here are a few trends that will dominate the sector this year-
Data analytics and machine learning for network operations
The need for high-performance, high-quality goods and services among consumers makes network operations’ optimization crucial for communications service providers (CSPs). In fact, using Machine Learning (ML) algorithms in the telecom industry lowers costs and increases profit margins. The future is being shaped by the integration of AI in telecom. This demand for high-performance technology will grow as 5G/ 6G, edge applications, the potential of the metaverse, and other factors emerge. This is necessary to match customer expectations. Incorporating ML entails switching from infrastructure-driven operations to a data-driven strategy, which currently appears to be the best course of action. This area of artificial intelligence and cutting-edge computing offers models that efficiently categorise, prioritise, and escalate issues through forecasts to take immediate corrective action. Moreover, deep learning, which is a type of machine learning, increases the accuracy of data.
Reliance on Cloud computing: The term “cloud computing” describes the process of storing and using data and software remotely. Scalability and adaptability are only a couple of its numerous benefits. It is expected that an increasing number of telecom companies will switch to the cloud in 2023. Although cloud computing is not a new trend, it still needs to be widely and thoroughly utilised in order to reap its benefits. We are witnessing a shift in the telecom sector towards virtual networks, which has tremendous scope for communication service providers (CSPs). Even now, the majority of telecommunications firms use massive processing infrastructure to run a variety of applications, handle data, and bill for services. A switch to the cloud lowers the on-premise hardware and HR requirements, reduces investment and operational costs, and therefore boosts revenue streams.
Demand for customized ICT services on the rise: The telecommunications industry has become increasingly reliant on customized information communication technology (ICT) services in order to provide their customers with high-quality, reliable and efficient services. These services range from network infrastructure and management, to customer service support, billing and analytics. As technology continues to evolve and customers demand more personalized and innovative services, telecom companies need to work with ICT players to develop and implement tailored solutions that meet their specific needs.
Cyber Security and Blockchain: Cyber security is a major concern for the telecom industry. With increase in technology the number of cyberattacks and data breaches is also expected to increase in 2023. According to Cybersecurity Ventures, the cost of cybercrime is predicted to hit $8 trillion in 2023 and will grow to $10.5 trillion by 2025. The telecom industry has always been the most vulnerable target for cyberattacks, given the vast amounts of sensitive data stored on various complex networks.
Telecom companies must prepare for cyber attacks as 5G/6G technology brings new security risks. This requires building robust IT infrastructure and implementing effective cybersecurity measures such as threat detection, incident response, and prevention protocols. IoT-enabled networks are especially vulnerable to cyber invasions, as hackers can exploit unprotected devices like laptops, routers, and webcams. Telcos need to prioritize cybersecurity to protect their networks and customers. Blockchain technology can provide a secure framework for communication service providers to offer innovative and reliable services while minimizing costs and improving revenue.
Artificial Intelligence: One of the significant trends shaping the telecom industry in 2023 is the adoption of artificial intelligence (AI). AI focuses on creating intelligent machines capable of performing tasks that typically require human intelligence. In the telecom industry, AI has the potential to revolutionize network operations by enabling the detection of issues, performing self-repairs, and safeguarding networks from fraudulent activities. Moreover, AI can predict usage and behavior patterns in equipment operations or customer interactions, allowing for more efficient resolution of potential hardware defects or customer issues that can impact the user experience. By automating tasks, improving decision-making, and providing personalized services, AI technology has the potential to enhance the overall quality of telecom services and customer satisfaction.
Private 5G: This has emerged as a top telecom trend in recent years and is set to become mainstream in the coming year. As consumers eagerly anticipate the rollout of 5G, many telecommunications companies have already invested heavily in the necessary infrastructure. With 5G ecosystems, users can expect significantly improved speed, reliability, and consistency. Private 5G, with its ultra-low latency capability, offers numerous high-value use cases for businesses, including 3D robot control, digital twins, medical remote control, and more. These next-gen use cases were previously unachievable with legacy network technologies, opening up a high-revenue generating market for Telcos. Overall, Private 5G has the potential to transform the telecommunications industry and revolutionize the way businesses operate.
Driven by the digital transformation and updated technologies, the telecom industry is all geared up for innovations in the coming years. Cutting-edge solutions such as Artificial Intelligence and cloud computing, will improve operations as well as enhance the customer experience while witnessing several new trends. These trends will serve as a catalyst for inventions and take the industry a notch higher.
