Skip to main content

Global Telecom Providers Adapt to Digital Transformation

Each new year brings a fresh set of industry and market predictions from the leading analysts. This year, the Internet of Things (IoT) is a hot topic. The Analysys Mason annual Technology, Media and Telecom (TMT) predictions reveal which trends will make an impact in the marketplace during the next 12 months.

According to their assessment, telecom network operators and their suppliers must pay close attention to these 10 key trends for their decision-making during 2016 -- note, they are listed in order of significance.

Top-Ten TMT Predictions for 2016

  1. The contest for worldwide dominance in low-power, wide-area (LPWA) wireless networking technology will be confined to NarrowBand IoT (NB-IoT) and LoRa wide area networks for IoT.
  2. The most important M2M sector in 2016 will be connected cars – the number of connected vehicles will increase to over 150 million, with the largest network operators reaping the benefits.
  3. Google will decisively intervene in the communication services market with Android N: it will support Rich Communications Suite (RCS) services natively, while also opening up the smartphone native-dial capabilities to third parties.
  4. Network operators will be extending service reach to non-SIM devices such as tablets and smart watches; they will also integrate real-time features into IoT initiatives, such as smart homes and connected cars.
  5. The proportion of mobile network operators that offer fixed broadband services will rise to above 50 percent worldwide in 2016.
  6. Average monthly data consumption per household will exceed 100GB in developed markets in 2016.
  7. Network operators and telecom equipment vendors will increase the adoption rate of LTE-A to enable mobile broadband speeds above 500Mbps and support the transition to 5G.
  8. Communications service providers (CSPs) will prioritize short-term gains over new service delivery opportunities. As a result, network function virtualization (NFV) spending will nearly double in 2016, outpacing software defined networking (SDN) spend, to account for more than 20 percent of the $9.5 billion software-controlled networking market.
  9. Network virtualization technology will enable distribution of content delivery elements much closer to the mobile network edge to improve customer experience even as video traffic grows, as demonstrated by at least one high-profile "mobile edge computing" commercial deployment.
  10. CSP to digital service provider (DSP) conversions will increase in 2016 and will require stronger relationships with digital content providers, including leading video and music distributors.

The Analysys Mason TMT predictions are based on worldwide primary research supported by analysis. They come from research focused on five key long-term themes for communications service providers, which include: digital economy and IoT, the future of communication, convergence, network innovation and digital operating models.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga
Read more

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,
Read more

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno
Read more