By Arshdeep Singh Mundi, Executive Director Jujhar Group
The outbreak of the deadly Covid-19 pandemic affected nearly all industries, with the telecom industry being an outlier keeping the world economy afloat. In fact, in India, the nation with the largest population in the world—roughly 1,428.6 million people, according to UNFPA (United Nations Population Fund), communication has long been linked to mobility and connectedness. In response to pandemic-induced situations, businesses worldwide were propelled to embrace major digital transformations, which as a result, increased the importance of connectivity in terms of fostering chances for collaboration and enhancing organisational strength.
Because of technological developments that are paving the way for a new era of connection, the telecom industry in India is at a critical juncture. With modern-day technologies like 5G, IoT, AI, big data, and cloud driving the industry and influencing how businesses interact with customers, telecom is aggressively embracing digital transformation.
Key trends: Reshaping the future of telecom
5G technology: As consumers rely on their smart gadgets more and more, wireless network efficiency is becoming increasingly important. Because of its substantially faster speeds and lower latency, 5G is proving to be the ideal solution for applications requiring enormous capacity or real-time communication. In order to provide the public with the most efficient network, a rising number of telecom companies are vigorously deploying and promoting 5G. By 2026, 350 million 5G subscriptions, or 27% of all mobile subscriptions, are expected in India, according to IBEF. Additionally, thanks to 5G’s enhanced speed and bandwidth, users can avoid a number of problems when gaining access to vital data. According to a McKinsey analysis, enabling more people to connect to global information, communication, and service flows may increase GDP by an additional $1.5 trillion to $2 trillion. By enhancing connectivity and expanding access to information, 5G will actually increase human potential and prosperity, especially in developing nations.
Artificial intelligence: Artificial intelligence is radically changing the telecom industry by enabling businesses to analyze and assess massive amounts of data in real time and automate various operations. A report by Allied Market Research estimates that the global market for artificial intelligence in telecommunications, which was valued at $1.2 billion in 2021, would rise to $38.8 billion by 2031, with a CAGR of 41.4% between 2022 and 2031. However, due to the region’s expanding digital capabilities, which are projected to drive the expansion of AI in the telecommunications market over the next few years, Asia-Pacific is predicted to experience significant growth over the projection period. Additionally, one of the most recent trends, AI-driven predictive analytics, is assisting telecoms to deliver better services by utilizing data, advanced algorithms, and machine learning approaches to forecast future outcomes based on prior data. Gartner predicts a 70% increase in Telco investment in artificial intelligence (AI) technology for 2025, with the goal of enhancing infrastructure planning, operation, and product development.
IoT: The need for quicker and more reliable connections has emerged as the number of internet-connected devices increases. This is where IoT enters the picture, offering a high level of efficiency and agility and having an impact on the entire telecom business. Additionally, IoT makes it simple for telecom companies to remotely monitor numerous communications bases and offer more ways for devices and people to communicate with one another. The IoT market is expected to generate $27.31 billion in revenue by 2023, according to Statista. As a result of widespread IoT device adoption and recent technological developments, the data shows that the market for IoT telecom services is expected to increase rapidly.
Telecom industry: Road ahead
A report by Mordor Intelligence projects that the Indian telecom market will expand at a CAGR of 11.2% by 2028. Increased end-user applications and integration of cutting-edge technologies like IoT, cloud, artificial intelligence, and 5G are the main factors driving the expansion of the telecom business in India. Additionally, the nation is seeing a rise in internet usage, which is highlighting the need for wireless networks and making it critical for the telecom sector to adopt new-age technologies to close the gap.
In an effort to usher in a new era of connection, innovation, and revolution, the government has also stepped forward by allocating ₹ 97,579.05 crores (US$ 11.92 billion) in the recent Union Budget. With the help of cutting-edge technologies, this step aims to revolutionize the telecom industry and promote quicker speeds, smoother communication, and greater customer service.