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Telecom Industry

Global Telecommunications Industry Trends and Market Updates

The telecommunication industry is undoubtedly the cornerstone for digital revolution around the globe. Yet, some telecom companies fail to make the cut in attaining better profitability. Although large players in the telecommunications industry invest billions of dollars into networks, operations, and other telecommunications industry trends that make digital lifestyle possible for their customers, sometimes their performance can be inconsistent, resulting in poor service, dissatisfied customers, and declining profits. To overcome such situations, companies in this sector should not only keep abreast of the latest telecommunications industry trends, but they must also reimagine and reinvent how they operate in order to radically lower costs and deliver remarkably better customer experiences.

 

Infiniti Research helps telecom companies discover new opportunities to build customer intimacy and expand connectivity. Request a free proposal to know how our solutions can help your business achieve this and also stay updated with the latest telecommunications industry trends.

Telecommunications industry trends and market updates

Threat of new entrants

It is a known fact that that telecommunication sector is highly capital-intensive, making access to finance one of the biggest barriers to entry in this sector. Higher capital investments are a necessity to cover the high fixed cost for telecom operators. One of the most common telecommunications industry trends is that when the capital markets become more generous, there is an escalating threat of competitive entrants. On the other hand, there is a visible slowdown in the pace of new market entry when financing opportunities are less readily available. Furthermore, ownership of a telecom license can also represent a huge barrier to market entry. For instance, in the U.S., telecom operators must still apply to the Federal Communications Commission (FCC) to receive regulatory approval and licensing, making market entry difficult in the telecom industry.

Tug of war for 5G leadership

5G is one of the most awaited telecommunications industry trends right now. Over the past couple of months, there has been tremendous competition among China, Japan, South Korea, and the US for the first full 5G launch. Telecommunications industry trends like 5G come with tremendous benefits that go far beyond what we can do with 4G. The big answer everyone is waiting for now is ‘who will roll out 5G first?’. Top network operators around the globe are already gearing up to implement 5G technology. In the US, the Federal Communications Commission’s (FCC) Spectrum Frontiers Order has laid the groundwork for the use of 5G technology in the United States by the year 2020. Even China is in the process of making 5G technology commercially available in 2020. However, as the Chinese authorities control the implementation of the technology, the process may be slow.

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Mergers and acquisitions

Online streaming platforms have made major strides in the last few years.  Research shows that over 50% of young adults of the age group 18 to 29 resort to streaming services over satellite subscriptions or cable. As a result, companies in the telecommunication industry are forced to merge with or acquire streaming services and offer on-demand options to customers. Furthermore, cable replacement services such as Hulu Live TV, Sling, and YouTube TV are becoming popular hybrids. So, providers in the telecom industry are acquiring these content providers to join the bandwagon. Owning the content and increasing the profit margin is now one of the major telecommunications industry trends that top providers are already following.

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IPTV Service

Market Analysis for a Leading IPTV Service Provider

IPTV service refers to a TV service that is delivered via the internet over an IP-based network. The IPTV ecosystem includes the operators, middleware providers, set-top box vendors, and others. It makes use of a broadband internet connection to transmit TV signal; thereby, enabling efficient data transmission when compared with traditional broadcasting technologies. The increased penetration of Internet-based services is a key growth driver of the global IPTV service market. Other factors fueling the growth of IPTV service market include better internet infrastructure and video streaming services in developed economies.

The IPTV market is mainly driven by technology, with leading players offering high-end services to consumers like HD and ultra-HD IPTV. However, poor infrastructure and slow replacement are major challenges for IPTV service providers, making it difficult for them to penetrate in developing regions.

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The Business Challenge

The client– A leading IPTV service provider

Objective– To identify and assess the market needs more profitably. Also, implement the right strategies to reach potential customers.

The client, a leading IPTV service provider, wanted to devise strategies to reach the potential customers and appeal to their needs.The client wanted to leverage the use of Infiniti’s market analysis solution to better understand their penetration levels in the market space. The client also wanted a detailed report of the entry barriers, new opportunities, risks, and competition in the IPTV service market space.

Results– Devised effective strategies to evaluate current market trends and drive profitability. Also, identified future growth areas for the IPTV service provider by drawing conclusions on customer preferences and market opportunities.

IPTV Service

The market analysis experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the IPTV service market space to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the competitive scenario.

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The Solution and the Business Impact:

Implementing a market analysis engagement helped the client identify and target potential customers based on demographics. This engagement also helped the IPTV service provider avoid significant losses, which could have otherwise affected their overall market share. The market analysis solution offered enabled the client to modify and renovated their existing products and services to give them a competitive edge. Moreover, this helped them in identifying a scalable approach to discover new market opportunities and assess market trends.

The Future:

The global telecommunication industry is undergoing a dramatic transformation. The emergence of internet protocol has brought about new encoding and transport mechanisms in the video streaming sector. Moreover, the ever-changing regulatory landscape, new technologies and delivery models, and the promise of ubiquitous broadband access have sparked new business opportunities among firms operating in the telecommunications industry. Therefore, those who carefully anticipate, access such opportunities, and address them proactively will be better positioned to succeed in this sophisticated market space.

Key trends in the IPTV service market:

Wireless IPTV service: With the growing preference for wireless services, IPTV service providers are now focusing on offering services that differentiate them from their competitors in the market. This service is characterized by ultra HD videos based on the Wi-Fi connection between an Internet modem and an Internet protocol television (IPTV) set-top box.

Growing focus on HD and UHD IPTV service: Transition to HD has been one of the most important media technology. IPTV service providers are increasingly focusing on offering HD and UHD IPTV service.

Cloud-based IPTV service: Cloud computing is the new infrastructure environment that delivers on the promise of supporting on-demand services flexibly by scheduling bandwidth, storage and compute resources.

Partnerships and acquisitions: IPTV service market is experiencing an increase in mergers and acquisitions. 

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IR26

Telecommunication Industry Client Develops Personalized Brand Experiences with The Help of Marketing Strategy Solution

Marketing Strategy Telecommunications IndustryLONDON: Infiniti Research, a global market intelligence solutions provider, has announced the completion of their latest marketing strategy solution for a renowned telecommunications industry client. The telecommunication industry creates a set-up that allows data to be sent anywhere in the world. Factors such as frequent innovations and increasing competition are posing challenges that hinder the growth of the telecommunications industry.

“Marketing strategy helps companies to increase their focus on identifying and analyzing the primary market and the secondary market and evaluate competition. Additionally, the marketing strategy solutions offered by Infiniti Research help firms address the customer requirements and devise new strategies to market the offerings,” says an expert at Infiniti Research.

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The marketing strategy solutions offered helped the telecommunication industry client to improve their marketing campaigns and provide their customers with personalized brand experiences. The client also gained actionable insights into the unique selling points in order to fix a right price for the products and services offered.

 

Additional benefits of the marketing strategy solution

  • Develop a robust marketing campaign that resonates with the target audience
  • Gained insights into ways to position the product in the marketplace and generate a better return on the investments

 

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competitive pricing

The Key to Successful Reinvention of Telecom Services

Though the consumption of mobile data has boomed, telecom companies have been going through a tough time over the last few years. However, significant technological advancements in telecom services such as the use of artificial intelligence, data analytics, and other equipment have re-written the telecom industry’s winning formula. With these latest technologies in place, telecom companies are capable of achieving break-through cost-savings and capital investments by simultaneously maintaining and even increasing their scale. However, to capitalize on these opportunities, companies providing telecom services must realize the importance of these technologies in streamlining business processes and take calculative decisions on investing in them. Let us take a closer look at how providers of telecom services can successfully reinvent their business strategies :IR_Brochure

Managing networks with next-gen technologies

Embracing leading-edge technology helps telecom companies to meet the flourishing demand. One of the most fundamental steps towards next-generation technologies is the shift to small cell networks. The main issue with mobile networks that consisted of expansive cells was that it was difficult for operators to resolve problems pertaining only to a small area within a cell.The introduction of smaller cell networks has helped them to mitigate this problem. And additionally, helped telecom services providers to upgrade networks at lesser costs.

Smarter capital spending through analytics

With the help of advanced analytics, mobile operators can determine which capital investments in their network would gain them the most value. The customer usage patterns and other useful customer data derived from advanced analytics can help companies providing telecom services to tailor their offerings to suit the customers’ needs. Analytical data can also help businesses to avoid unnecessary losses by ‘putting all the eggs in one basket.’

Machine learning to improve efficiency

As a matter of fact, machines are slowly replacing human labor in various industries. Machines have the capability of reducing errors and carry inbuilt analytics capabilities. As far as telecom operators are concerned, they can incorporate machine learning into their operations to predict the network usage based on real-time data and meet unforeseen demands in network capacity.  Machine learning can be used to adjust wireless networks automatically based on demand fluctuations.

Digitization for customer support

Several telecom companies are looking forward to setting up sophisticated systems to predict and track the problems of their customers and also give them the resources to solve problems themselves. Resolving customer problems with the help of automated systems or even facilitating interaction with employees through digital medium helps to fix customer problems faster. With the help of digitization, telecom operators can transform their business functions and customer experience into a faster, easier, and cost-effective one.

Predictive analytics for marketing and sales

Using predictive analytics tools that are enriched with customer data, telecom services providers can use better tactics to pitch products and services to the customers. Predictive analytics extracts relevant data from the database to figure out the right strategies for marketing the right products to the customer. Furthermore, telecom industry players can use predictive analysis to increase sales from the existing customers as well.


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Customer Engagement

Market Segmentation Assists a Prominent Network Services Provider to Profile the Most Ideal Customers

The revenue generated from telecom services is expected to reach 1.2 trillion Euros by 2019.

Over the years, the global telecommunication industry has witnessed promising growth due to the advent of cheaper technologies and innovations. It has also been noted that with the growing concern for reliable and seamless communications, the stakeholders in the industry are investing highly on skilled personnel to meet the demands of the target audience. The Asia-pacific region is estimated to witness a profitable growth, accounting for 373 billion Euros. Along with the key factors, additional trends such as advances in technology, intense market competition, and high investments like wireless communication and satellite are expected to sustain the growth of the market over the coming years. Although the telecommunication space is witnessing a gradual growth due to the considerable adoption of internet among the end-users, several factors may influence the growth of the industry. These factors include:

  • Competition from OTT services: In the seamless and mobile environment, over-the-top services (OTT services) such as mobile messaging and chat apps are witnessing exponential growth. With the changing preferences, consumers are shifting their preferences toward these third-party applications, owing to their agility and the services they render. With these apps gaining widespread popularity, text messaging services have been dwindling downwards with a radical decline in the usage of these apps.
  • Privacy and security issues: Telecom services comprise of a large repository of data and sensitive information which is vulnerable to threats. So, it becomes essential for the network services providers to maintain regulations to secure the user data. Moreover, to maintain large repositories of data, organizations have to rely on third-party applications.
  • Growth in IoT: Latest innovations such as IoT is paving the way for more connected devices into the existing network services architecture. As the integration of IoT services relies on the higher level of connectivity and data flow, leading organizations are the need to develop a functional platform that can robustly support such applications.

To address such challenges and profile the most suitable customer segments, leading organizations are utilizing market segmentation solutions. Market segmentation is a technique of using market research to learn all about the customers and sell products and services to the right target audiences. The market segmentation solution also aims at differentiating the customers based on their service offerings and brand affinity.IR_Brochure

The Business Challenge

  • The client: Telecommunication services provider
  • Area of engagement: Market segmentation

The client, a renowned network services provider, wanted to differentiate the customers based on their attributes and profile the most profitable segments to focus on their service offerings. The client wanted to explore and analyze the characteristics of the customers and refine their marketing models to accurately meet the business requirements. With the help of a market segmentation strategy, the client wanted to tailor their offerings to different groups to precisely meet the needs of the customers. The primary concern for the client was to implement a segmentation strategy to deliver service offerings for each segment and direct their investment to gain insights on potential sales volume.

IR- market segmentation

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Our Journey

To address the specific needs of the target segments, the market segmentation experts at Infiniti followed an extensive research methodology. The methodology comprised of interviews and discussions with prominent stakeholders in the network services space. To efficiently align their product resources, the experts also compiled information across a wide array of secondary sources such as trade shows, government bodies, and paid industry databases.

Solution Benefits and Business Impact for the Netword Services Provider

The market segmentation solution offered by Infiniti helped the network services provider find groups with different preferences and offer services that target these different groups. The client was able to meet the customer ‘s preferences and refine their marketing models to meet the target preferences. The network services provider was also able to deliver customized service offerings and meet the needs of each target segment. Moreover, the solution offered also helped engage the target customers with advertisements and media to reach out to the niche and profitable audiences.


The Future

The telecommunication industry is witnessing changes at a breakneck speed, and renowned network services providers have expanded their service portfolios to meet the explosive demand. Despite the slowdown, the future of the telecom industry will be marked by innovations in the form of advanced wearables such as virtual reality and smartwatches. Also, significant opportunities for mergers and acquisitions will trigger the expansion of network services across the globe.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the telecommunication industry

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IR17

Marketing Strategy Helps a Telecommunication Industry Client Improve Their Marketing Campaigns

No other industry touches as many technology-related business sectors as the telecommunication industry, which, by definition, includes not only the traditional areas of long-distance and local telephone service, but also advanced technology-based services including the internet, wireless communications, and fiber-optics and satellites.

The telecommunication industry includes companies that make communication possible on a global scale, through the phone or the Internet. These companies create the set-up that allows data to be sent anywhere in the world. The largest companies in the industry are internet service providers wireless operators, cable companies, and satellite companies. The global telecommunication industry is mainly driven by the ongoing technological developments and innovations to offer a wide range of facilities at low-cost margins. Request ProposalAdditionally, due to the emergence of the internet over the past couple of decades, the telecommunication industry has proliferated and is now expected to grow further in the coming years.

However, certain factors are expected to pose a challenge to the growth of the telecommunication industry, even though the industry is witnessing promising growth. Some of these factors include:

  • Innovations: Due to the relentless growth in innovations, firms within the telecommunication industry space are under pressure to develop a platform that supports the latest technology. Additionally, with the integration of IoT services, connecting devices have become more agile and seamless.
  • Increasing competition: Over the past decade, there has been a considerable increase in the competition among over the top (OTT) services providers. Additionally, according to a recent research report, it is estimated that approximately 2.5 billion people worldwide use messaging apps, which is further increasing the level of competition.

These factors are compelling firms within the telecommunication industry space to leverage the use of robust marketing strategy solutions. Marketing strategy helps companies increase their focus on identifying and analyzing the primary market and the secondary market and evaluate the competition. Additionally, the marketing strategy solutions offered by Infiniti Research help firms address the customer requirements and devise new strategies to market the offerings.

The Business Challenge

  • The Client: Telecommunication industry firm
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  • Area of Engagement: Marketing strategy

The client, a leading telecommunication industry player with business operations spread across the globe, wanted to refine their marketing activities and develop a marketing strategy to attract new customers. The client wanted to leverage the use of marketing strategy to change customer perceptions and demands. They also wanted to ensure that the product and service offerings meet the customer demands and gain insights into ways to develop profitable long-term relationships with the customers.

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The Journey

The marketing strategy specialists at Infiniti carried out extensive interviews and discussions with leading stakeholders within the telecommunication industry to help the client improve their marketing campaigns. The specialists also compiled information across a wide array of secondary sources such as paid industry databases, trade shows, company presentations, and industry forums to provide the client’s customers personalized brand experiences.

Solution Benefits and Business Impact

With the help of the marketing strategy solutions provided by Infiniti, the client was able to develop a robust marketing campaign that resonated with the target audience. The engagement also helped the client gain insights into ways to position the product in the marketplace and generate a better return on the investments. The client also gained actionable insights into the unique selling points and fix a right price for the products and services offered. Furthermore, the client developed a marketing mix to differentiate the product and service offerings with that of the competitors within the telecommunication industry.

The Future

Telecommunications is said to be one of the fast-paced industries, and has witnessed radical overnight changes due to technology advancements. And as the end of this decade approaches, it is expected that the year 2020 will carry new challenges as well as massive opportunities for the telecommunications industry.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the telecommunication industry

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IR28

How is 5G Technology Shaping the Communication Trends?

Mobile technology has come a long way from facilitating communication to being an integral part of our lives. Mobile devices are used as a medium for content consumption and communication. However, that scenario is soon going to change with the much-hyped 5G technology. The 5G technology is not just an upgrade over 4G; it promises much more than just an upgrade. Over 1000 times increased data volume, five times reduced latency, up to 100 times IR_Brochurefaster data transfer speed, up to 100 times more connected devices, and 100% connectivity are some of the widely supported goals of 5G.

Top Three Communication Trends in 5G Technology

5G and IoT Technology

IoT technology is dependent on the interconnectedness of multiple devices on one platform, and 5G technology provides just the right base for its success. Imagine getting notification form smart home cameras on your phone when a package is delivered to your doorstep. That’s precisely the kind of thing IoT and 5G technology together can achieve. 5G IoT devices will use narrow bandwidth to support thousands of things per cell or device, offer prolonged battery life, and provide deep coverage in challenging areas at a meager cost.

VR/AR Technology and 5G

VR and AR technologies are poised to be the ideal application for 5G technology due to its increased throughput, data transfer speed, and efficiency. The increasing popularity of AR and VR technologies is due to its ability to augment the user experience in activities such as online gaming, PlayStation, autonomous driving, and AR experience with the real environment.

Cloud Computing and 5G

The 5G technology will largely benefit the cloud computing industry along with various as-a-service models. The evolution of 5G technology is characterized by an exponential growth in traffic that can keep up with the demands of scaling possibilities in the mobile network. Extremely high transmission rates allow all infrastructure and storages to be shifted to the cloud. For instance, from a consumer point of view this could mean that you would be able to store all the high-quality content and 4K videos on the cloud and access it later without latency and performance issues.

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IR4

Digitalization in the Telecommunication Industry – A Game Changer

The telecommunication industry is struggling to keep up with the dynamic market environment and growing technological advancements. In their quest to adopt digitalization, the companies in the telecommunication industry have started taking small steps by undertaking infrastructural developments and inteIR_Brochuregrating technology. The digitalization wave has coerced telecommunication companies to pursue apps and services to develop new revenue streams. Several telecommunication companies have directed their efforts towards developing 5G by scheduling regular trials. By embracing digitalization, the service providers in the telecommunication industry can offer faster data, better performance, and several other high-level features.

Telecommunication Industry Embraces Digitalization

With the mass adoption of connected devices and applications by various stakeholders such as consumers, businesses, and governments, digitalization has had a transformational impact on the operational and strategic decisions of the telecommunication companies. Transforming to a digital economy helps the service providers in the telecommunication industry to monetize their investments, boost capabilities, improve their product offerings, enhance customer experience, and develop new competitive business models. Globally, the service providers’ revenues have been stagnant in spite of the sudden surge in the operational costs, thanks to the freeloading market players who make it more difficult.

Digitalization – Is It Good?

In the telecommunication industry, those service providers who have adopted the digital economy are faring better compared to those who haven’t. But before diving headfirst into the digitalization wave, the telecommunication companies must take a focused approach by leveraging market intelligence solutions to gain industry insights and develop digital friendly product portfolios. It may sound difficult, but the service providers in the telecommunication industry cannot just stand pat and let the market unfold on its own. The telecommunication companies must transform their business processes to maintain their profit margins, retain their market share, and expand their share of wallet in a digital economy.

Telecommunication Industry – What’s Stopping You?

The service providers in the telecommunication industry have realized the benefits of adapting to the digital economy – higher revenue, reduced costs, and enhanced customer satisfaction. But still, what is it that complicates the adoption of the digital economy, you ask? Here’s what. For decades now, telecommunication companies have thrived on legacy business systems and traditional product offerings, making it difficult for companies to adopt digitalization in its entirety.

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