A highly competitive market, the wireless telecom services industry has grown significantly in the past decade. With suppliers increasingly working on customized plans and strategies to cater to the industry, a great deal of innovations is underway. Procurement specialists at Technavio predict the global wireless telecom services market to grow at a CAGR of a little over 2% by 2021.
Buyers of wireless telecom services are looking for an integrated set of mobile, video, and data solutions across multiple devices. Reliable networks in terms of consistent connectivity and network coverage are other primary demands that suppliers throughout the globe are working to fulfill. It is in this context that we bring you a list of the top drivers of the wireless telecom services industry:
- Growing adoption of Internet of Things (IoT)
Category managers believe that the emerging ecosystem of IoT will need continued network connectivity, equipment, and services. While wearables, smartphones, connected cars, and smart homes are emerging market opportunities, industries such as manufacturing, transport, retail, and hospitality are providing wide-scale opportunities for growth and profitability. It is this ecosystem that suppliers are targeting to widen their consumer base.
- Alliances and cross-sector partnerships
Another key driver of the wireless telecom services market is the growing number of alliances and cross-sector partnerships. As high-speed, affordable network connectivity is important for the smooth execution of any modern-day business, telecom companies are looking to work with key players across industries to improve market presence and diversify revenue mix. For instance: In 2015, Airtel partnered with e-commerce company Flipkart and Samsung in India to bundle 4G SIMs and 4G handsets, not only managing to cover 70% of 4G smartphone buyers in the country but also improving 4G adoption rates in India.
- Development of digital ecosystems
Telecom service providers have begun to undertake JVs, acquisitions, and internal R&D to develop advanced and innovative digital enterprises. For example: Deutsche Telekom Capital Partners set aside US $620 million in 2015 to fund start-ups based in Germany. Suppliers are also looking for opportunities to monetize the delivery platforms of high-quality content (videos) centered around satisfying end-users. For instance, In 2015, Verizon acquired AOL Inc., a major player in the digital content and advertising space, to improve its revenue-earning opportunities.
- Adoption of alternate operating models
Wireless telecom service providers need to adopt dynamic business models to stay competitive. They focus on developing core capabilities while creating strategic partnerships for other support areas such as media, content, and network infrastructure. In 2016, Vodafone Group decided to partner with Huawei, Nokia, Ericsson, Intel, and Qualcomm Technologies Inc. to research 5G technologies and prepare their networks.
- Big Data analytics
Wireless telecom service providers have access to large amounts of real-time information from their networks. Using Big Data analytics, they can improve network operations and quality of service. The increased use of smart devices generates data points such as customer demographics, relationships, call quality, and experience, which can be leveraged by suppliers in order for them to remain competitive.
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