In a recent report entitled ‘Global Telecom Outlook 2023-2027’, developed by PwC, the dynamics and challenges that the telecommunications industry will face in the coming years are revealed. With a projected increase in global data usage and the need for substantial investments in network infrastructure, telecommunications companies are seeking growth strategies in an increasingly complex and competitive environment.
Growth of Data Usage and Investment Challenges
The report highlights massive growth in data usage, driven mainly by video consumption. Data volume is expected to triple by 2027, reaching 9.7 million petabytes. Despite this increase, revenues derived from Internet access show moderate growth, with a projected increase of 4% by 2027. This scenario presents a challenge for telcos, which must balance the need for investment in infrastructure with limited profit margins.
Opportunities and Growth Strategies
To maintain their relevance and profitability, telecommunications companies are exploring new growth opportunities. These include Internet of Things (IoT) based services, private 5G networks for corporate clients, and the supply of digital infrastructures and services tailored to specific sectors such as entertainment, health, and industry.
Evolution of Networks and Consumer Demand
Consumer demand remains a key driver in the B2C market, with a significant increase in demand for telecommunications services. Digital video represents a large part of this growth, while the use of data for online gaming and virtual reality is also on the rise. This dynamic is leading to a reduction in data prices, limiting the growth of Internet access service revenues.
Rise of IoT in the Enterprise
In the business sphere, the use of IoT is growing in many sectors, although revenues have so far shown linear growth. The total number of IoT devices is expected to increase significantly, reaching about 25.1 billion in 2027. The consumer sector will experience the greatest growth, but enterprise applications will also stand out, especially in the commercial and industrial electronics sector.
Infrastructure Investments and Future Strategies
It is projected that investments in telecommunications infrastructure will grow to $342.1 billion in 2027. Although investments in 5G networks are currently the largest area of investment, the pace of growth in these investments is expected to decrease in the coming years. This highlights the need for telcos to seek operational efficiency and cost control while exploring new avenues of growth.
Development of Ecosystems and Collaborations
The report emphasizes the importance of developing ecosystems and collaborations within and outside the telecommunications sector. Strategic growth opportunities will require companies to interact with providers, customers, and competitors in new ways, excelling in solution selling, system integration, and the development of offerings as a service.
In conclusion, the report ‘Global Telecom Outlook 2023-2027’ underscores that while the telecommunications sector faces significant challenges, it also presents substantial growth opportunities. The ability of companies to adapt, innovate, and collaborate will be crucial in leveraging these opportunities in a rapidly evolving market.