The telecom industry has witnessed rapid changes over the last few years. Advancements in technology have completely altered the market landscape for the telecom industry. The advent of 4G, wearables, smartphones, and mobile apps have changed the way people consume telecom services. However, such disruptive innovations are posing challenges for the telecom giants as they are looking for means to stabilize their revenue streams.
Top Challenges Facing the Telecom Industry
Competition from OTT services
Mobile messaging and chat apps have been growing at a phenomenal rate, hurting the call and messaging revenues of telecom players. Customers of today have the option of choosing from a wide variety of messaging apps and most of the apps have included voice and video calling features as well. Text messaging services have been dwindling downwards along with the decline in voice revenue per user.
Privacy and Security Issues
Telecom service providers maintain a large repository of personal data and sensitive information. They are constantly under threat and vulnerable to hacking. Therefore, it has forced government bodies to create regulations regarding user data protection. Telecom players are always on the lookout for third-party organizations and state-of-the-art security frameworks.
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Growth in IoT
The number of connected devices in the IoT ecosystem is increasing exponentially, and players in the telecom industry are facing challenges in gearing up to the task. Since the integration of IoT requires a higher level of connectivity and data flow from the underlying platform, telecom players are facing challenges to develop a functional platform that can support such IoT ecosystems.
Development of 5G
The development of 5G is in the pipeline and is expected to be available to the public by 2020. The development goes beyond data speed and bandwidth to improve latency issues to provide a unique browsing experience. The biggest challenge facing the telecom industry is that non-telecom companies are also trying to force their way into this technology. Also, numerous players in the telecom industry are still catching up to the 4G technology as they are still stuck with 2G and 3G technology.
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