As we hit the ground running into a new business year, we reflect on how the past 2 years has seen some of the biggest changes to the telecommunications industry and the business community in general in decades. It's also fair to say that these changes are only the beginning as the pandemic has shifted how staff engage with their workplaces as well as their connectivity requirements and expectations.
2020 and 2021 was a challenging period for telecommunications providers who have had to contend with surging demand for both support and provision as demand surged as workplaces shifted their teams to remote environments and students began studying from home. At the same time, many telcos themselves have faced the same significant challenges as their customers in running their businesses; dealing with mandated lockdowns, density restrictions in offices, illness/quarantine and high staff turnover. For many businesses the past year was time to accelerate their plans for introducing more digital services and create a telecommunications ecosystem that would serve them well into the future no matter what was thrown at them. In an environment where more retail and enterprise consumers are demanding digital services and digital engagement, what trends can telecom operators expect in 2022?
Businesses will prioritise a cloud-first approach
2022 will be yet another year of “cloud-first” strategies. I’ve seen more evolution from telcos this year than the year before in how they are approaching a cloud-first mindset in an entirely new way. Up until last year, some telcos hesitated to even bring data into a cloud environment because of concerns around things like privacy. Either beginning to bring or bringing more data into the cloud is a prominent trend that I am continuing to see come through strong in all my conversations with telcos. This goes hand-and-hand with the fact that telcos’ businesses are increasingly being run in the cloud and being increasingly software-defined.
As enterprises continue to move towards a cloud-first approach, they will need a cloud future proof data & analytics partner, simultaneously helping them grow profitably in both current and future times of disruption.
The pandemic has completely changed how customers interact with their service providers, transforming the way business is conducted. More interactions are online, and subscribers are more inclined to choose a service provider who offers digital onboarding and self-care services. While many have already modernized their networks, in 2022, CSPs will continue to transform operations through digitalization of infrastructure and services.
More operators will also introduce the zero-touch network, which enables 100% digital customer journeys. This means replacing all physical touchpoints such as stores or support agents with digital and automated ones. Operators will be able to digitize customer experience (CX) with fully digital sales and support, while keeping their initial investment and overheads low. They will be able to offer customers full control over their subscriptions, implementing end-to-end automation to enable everything from digital self-onboarding and eKYC to accessing self-help using chatbots.
5G, IoT, IoE and AI will drive business opportunities for telco resellers
Connectivity matters – people want to stay in touch with those they care about.
To support more advanced and digital services, operators will also need to implement more flexible and agile backend operations and systems. This includes technologies such as hyperscale infrastructure, automated workflows, artificial intelligence (AI), digital apps, and more. Many operators may introduce a new lean, agile, cloud-native digital brand rather than attempting to transform their existing complex network infrastructure.
In the future, unlimited connectivity will become a must for telcos, and technologies like smart homes powered by AI and integrated with Iot will need to be included.
5G will enable:
- Richer augmented + virtual realities
- Completely autonomous vehicles
- Higher resolution video
- Connected IoT networks (think: smart cities)
The expansion of 5G and Wi-Fi 6 networks will offer connectivity in areas that have previously been difficult to reach, further driving connectivity and offering global opportunities to improve businesses, governments, and the lives of people around the world.
Remote workers, manufacturing, telehealth, and education will likely reap big benefits of this telco trend.
While 5G will solve bandwidth demands, it’s up to telcos to select the right revenue streams today to help their companies grow tomorrow.
IoT vs IoE
The enterprise segment will drive growth over the new few years, and connectivity is just one part of what CSPs have to offer. Business models will evolve to provide end-to-end service offerings, including many new innovative use cases around IoT. In fact, there will be a shift from simply facilitating use cases involving the Internet of Things to applications that leverage the Internet of Everything. What exactly is the difference between IoT and IoE? The simple explanation is that IoT connects machines, while IoE extends beyond connecting mobile devices and facilitates intelligent connections between all types of data, processes, people, appliances, and things. These connections will be facilitated over public or private networks over standard protocols, and each one can be accessed and measured in real-time. With billions of potential connections supporting a more cognitive and intelligent environment, IoE holds the potential to transform our lives.
This report forecasts that the global IoE market will reach $3,352 billion by 2022. While actual implementation of use cases may still be a while away, there will be significant investments in research and studies to determine the most relevant applications. What use cases networks will facilitate relies heavily on industry-based needs and how they evolve their business models. Industries such as manufacturing and mining are likely to be early adapters, and are already implementing process automation.
Customer experience will be prioritised over budget
Digitalisation is still very much a front and centre priority for both telecommunications resellers and wholesaler, and the industry has seen a lot of progress over the past two years to add value add or to cut costs in support and provisioning. In our conversations with partners and vendors, time and time again, we hear them say that digitalisation is a ‘cost play’.
For example, a common scenario for telcos is to try to reduce customer phone calls to a call centre and instead provide self-service capabilities. Looking ahead to 2022, we predict that telcos will start to shift their mindset in how they approach digitalisation and view customer experience and value as the main driver for digitalisation, not cost-cutting. By telcos digitalising their interactions with customers with the goal of providing more proactive and relevant experiences, they will, in turn, increase the value and perception from their customers in the end.
Cybersecurity
As the uptake of services such as IoT becomes larger, vendors will have access to more customer data than ever, providing more scope to personalise services. Service providers will need to protect this data to maintain customer trust. And with the huge increase in cyber crime over the past two years we are expecting to see more regulatory control being proposed by consumer groups and government. Security in 2022 will go beyond the traditional approaches, with assets and users becoming more mobile. It means implementing a cybersecurity mesh architecture (CSMA), which helps provide an integrated security structure to keep all assets safe, regardless of their location.
From the security standpoint, another added layer that operators can provide is the eSIM. By transmitting all SIM data digitally, operators can eliminate the need for a physical SIM card and delivery address, securing customer data through online verification.
In 2022, 5G and digitalization of networks and service offerings will continue to drive revenue and subscriber growth. A host of new devices and technologies are making 5G and the promise of its advanced use cases a reality. Operators will need to support this growth by implementing modern next-gen applications and infrastructure, such as leveraging the public cloud, all while keeping security in mind. Partner Wholesale Networks provides a host of digital-first offerings that enable Australian & New Zealand service provides the opportunity to future-proof and expand their product offering to their customers.
The changes in the business landscape we have seen over the past 12 month presents an opportunity—and a need—for many businesses to build the competences previous lacking: to be more digital, data-driven, and in the cloud; to have more variable cost structures, agile operations and automation; to create stronger capabilities in e-commerce and security. Partner Wholesale Networks provides a complete telecommunication product ecosystem to help your customers face challenges and grow their businesses. If you would like to find out more about the benefits of partnering with us, contact Graeme Kelly on 1800 701 138
