Powerbox Australia Blog

The Forces Disrupting Telecommunications in the Next Five Years

Written by Powerbox | 12-Dec-2017 10:35:08

There are massive changes on the way for the telco industry, many of which will revolutionise the way we communicate. Disruption is guaranteed, and the companies that are prepared for these external factors will be the ones that retain a competitive edge in the future.

These are the forces you can expect to drive the most change in the next five years:

 

IoT

We’re already seeing a major trend impacting telecommunications with the explosion of continually connected devices. Examples of connected devices include everything from basic homeware like toasters and coffeemakers to smart security systems and activity trackers.

Today, we’re seeing drones outfitted with LTE chips so they can self-pilot and avoid collisions, snowboards that can measure speed and give snowboarders real-time feedback as they approach a jump, and container tracking devices used for shipping companies, which include LTE, Wifi, GPS, and sensors measuring humidity and temperature.

It’s likely that the number of connected machines and devices will surpass the number of human subscriptions relatively quickly. That means operators need to be able to adopt a fast deployment and low-cost model to stay relevant in this growing market.

Big Data

According to The Economist, the most valuable resource in the world is no longer oil. Instead, data is quickly becoming the most lucrative commodity. We’ve created more data in the past two years than in our entire previous history, and this will continue to increase as more devices become “smart.”

Forward-thinking organisations are looking into ways to use Big Data, and there are plenty of opportunities waiting to be explored. Data is most useful when it’s being collected to improve customer experience. The challenge is finding ways to utilise this data to improve a service before your competitors do the same.

5G

Within the next few years, 5G will replace 4G. And if there’s one thing that the industry can agree on, it’s that 5G will be crazy stable, crazy versatile, and crazy fast. In many cases, it will replace home wifi networks, offering better coverage and faster speeds.

This shift will take time, as telcos will need to update their infrastructure. But one of the reasons why 5G will be a revolution in the industry is because it’s about more than just a faster iPhone experience. 5G will be built to connect delivery drones, VR headsets, self-driving cars, and billions of smart, interconnected home devices.

Security Threats

Telecommunications carriers are pivotal in the fight against new security threats. Consumers are continually reading about data leaks and hacks and will expect and demand more proactive protection. Carriers will need to support those expectations with plenty of operational and technical innovations.

MuLTEfire

MuLTEfire will mean that anyone can use an unlicensed spectrum to operate an LTE network. This will introduce new players into the global telecommunications industry. However, traditional operators can also use unlicensed spectrum bandwidth to bolster their current capacity, which will allow them to deliver even higher speeds to more users than at any time in the past.

This is guaranteed to disrupt the industry when it finally arrives. Not only will it provide opportunities for traditional telcos, but it will make it easier for new organisations entering the industry.

Off-grid Power

As electricity prices continue to rise, more telecommunications companies will switch to their own hybrid and off-grid power sources. In the developing world, many countries have skipped landlines altogether and instead jumped straight to mobile. But many communities are too far from working infrastructure to have reliable electricity, making it challenging to provide them with connectivity.

That’s why we’re seeing telcos switch to solar and hybrid generation options. In developed countries, we can also expect to see a decreased reliance on the grid as it becomes more cost-effective (and environmentally sustainable) to use hybrid solutions.

Are you planning to grow your telco business in the next few years? We can help with your power needs. Get in touch today to learn more.