Top 4 Challenges Telecommunications Companies Need to Overcome

Nov 28, 2017

Telecommunication Industry

Over the years, the telecom industry and communication techniques have come a long way; therefore, telecommunications companies have been compelled to continually evolve and innovate to survive and stay afloat in the market successfully. In an industry that has no shortage of competition and pressure from rivals, what are some of the critical challenges that telecommunications companies face?

Challenges for Telecommunication Companies

OTT Services are Slowly Taking Over the Market

Over the years, various messaging apps such as WhatsApp and Facebook messenger have gained popularity among the users. This poses a significant threat to the revenue of telecommunications companies. If this trend continues, the text messaging service offered by providers in the telecom industry will die out, leading to OTT service providers stealing large chunks of the revenue. Mobile apps like WhatsApp and Facebook messenger have also launched free voice calling and video calling facilities that will pose a serious challenge for the growth of telecommunications companies.

Speak to an analytics expert to know more about the challenges faced by telecom companies.

Gearing Up for IoT

As the number of connected devices is rapidly increasing, IoT is slowly making its way to becoming part and parcel of our everyday lives. To sustain this mounting growth of connected devices, there is high pressure on telecommunications companies to develop more advanced technologies and platforms that support s high level of connectivity.

Voice Revenues are Falling

Once upon a time, text and voice used to dominate the telecom industry. However, these trends are slowly changing with internet messaging and VoIP calls dominating the market. With increased internet and Wi-Fi speed and data limit, it has become much more comfortable and cheaper for people to resort to such services, cutting short the revenues of telecom companies by a significant margin. The need of the hour is for telecommunications companies to find an additional source of revenue to replace voice and text such as network-level value-added services.

Quantzig is at the forefront of enabling digitalization for telcos, request a proposal to learn more about our capabilities.

The Rise of 5G

The 5G spectrum is undoubtedly the next big thing for telcos. It is not only expected to improve the speed of the network but also to bring in greater capacity and latency as well. The introduction of 5G will not just facilitate the development of IoT in the telecom industry but will result in a complete revolution of mobile technology. This will compel other industries to venture into the telecom industry, for example, technology giants and car manufacturers partnering with telecommunications companies in order to launch their products. This will eventually put more pressure on telecommunications companies to invest heavily in 5G technology to stay updated and relevant in the market in the coming years.

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