In 2019 the global telecommunications market continues its transformation and is underpinning the digital, sharing and interconnected economy. This evolution is mainly driven by the ongoing innovations and technological developments relating to M2M, Big Data Analytics, AI, Cloud Computing and the over-arching Internet of Things. The industry is working hard to keep up with these rapid changes.
Telecom operators know, they have a problem controlling their capital expenditure (capex). According to a PwC survey telecoms operators indicated that they could be wasting up to 20% or $65 billion/year in capex.
As per our report, Telecom industry is the back bone of digital transformation. Since, no project could function without the help of telco. Without Telco, no data center, cloud service, Smart city and every project one can name , it is absolutely zero. This brings the opportunity for the Telcos come forward thinking on shared approach aims to bring applications closer to end-users and enable the implementation of innovative enterprise services.
The global telecoms sector is a unique and vibrant industry that is constantly evolving due to the new technologies and infrastructure which continue to filter into the market. The overall global telecoms statistics are impressive – in 2020 there are around 7.7 billion active mobile broadband subscriptions worldwide, an enormous rise from 3.3 billion just 5 years ago, thanks in part to the deployment of 4G LTE.
In 2020 there are over 1.1 billion fixed broadband subscribers globally and this indicates, there is still room for growth in the fixed broadband sector, particularly in the emerging markets and those transitioning to FttH.
Many operators around the world have experienced challenging issues in recent years and will embrace the improved services and opportunities offered by 5G and fibre-based broadband, but it is the time for all the leading Operators including China Unicom, Deutche Telekom, EE,KDDI, Orange, Singtel,SK Telecom, Telefonica and TIM to come forward and do a consortium, along with the support of GSMA to develop an interoperable platform to make edge compute capabilities widely and easily available.
When we see to the CAPEX of service providers China Mobile is the stood at the No. 1 telecom operator in the world in terms of capital expenditure of $5.7 billion during Q4 2019. At the same time Verizon Communications stood at $5.6 billion as it focused on building its fiber and 5G network across the United States. NTT Japan stood at No.3 with and investment of $3.8 billion towards Capex in Q4 2019 and AT&T had a Capex spending of $3.8 billion at the fourth position followed by Deutsche Telekom with $3.4 billion and China Telecom made an investment of $3 billion towards Capex in Q4 2019.Whereas, SoftBank made an investment of $2.8 billion towards its Capex for building up of 5G network in Japan.
With so much investments Telcos are doing to bring a strong and secure connectivity, Telcom players will see the golden era in 2020. Reason, being Telcos can better provide the secure connectivity, security- storage and cloud services by designing edge-compute architectural framework and reference platform
A new platform to develop in 2020 will make local operator assets and capabilities, such as latency, compute, and storage available to application developers and software vendors, enabling to fulfil the needs of enterprise clients. Since, operators are very well placed to provide capabilities like low latency through their network assets.
With this operators could offer enterprises level unmatched proximity to their respective customers with high level of performance. This will create the next Billion dollar opportunity for expansion in the local and international market to comply with the local data protection laws. Only challenge one can see in the de-growth of the data center business.
The market needs an edge cloud that meets the enterprise demands to service their customers. Telecom operators are in good position to provide a trusted and open edge cloud. Hence, enterprises can maximise their service offering and business opportunities to their respective customers. Edge cloud is a fundamental asset for the new requirements to enable and enhance many innovative experience to many business segments and customers.
Telco edge cloud to provide best data protection and offer carrier-grade security by leveraging the best possible next generation technology solutions on demand in both at the edge and cloud. Expert says, Edge cloud is a key enabler to unlock the full potential of emerging applications like AR/VR, Cloud, robots and smart factory with improved QoS,real-time intelligence, security and data privacy.
