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Drivers for growth in the Telecom Industry: The Snakes and the Ladders for Development
Technological advances in the telecom industry have always impacted the lives of humans across the world. For example, the telecom sector has been able to penetrate into remote areas of large countries. In countries like India, it is rare to find people who do not have a mobile connection today, even if they don’t have a bank account. That is the power of connectivity that is now being tapped into to provide many utilities to the mass population.
All this is possible due to recent developments like 5G, the growing demand for Internet of Things (IoT), and cross-industry partnerships that make certain services available to the people like mHeatlh or mPayments. These things are likely to drive a huge demand and fuel the growth in the telecom industry in the coming few years.
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The Indian Context
India has a huge role in the Telecom Industry growth. After all, it has more than a billion mobile subscribers and also the second largest Internet user base.
In India, social networking, digital payments, and online shopping have caught on like wildfire. With the Government’s push for Digital India, many service providers are rolling out services in health, financial services, education, and entertainment. For example, people are subscribing to music streaming or learning facilities. mPayments are driven by the government’s push for cashless India using internet which is provided by telecom operators.
Remote areas with lack of healthcare facilities, rising health issues, and various financial constraints are the drivers for mHealth growth. While 30% of Indians do not have access to primary healthcare, India accounts for 21% of the global burden of disease. This is the potential which can be tapped through drivers like reduced healthcare costs, more extensive reach, and reduced administrative costs and burden for the providers. Also, as per Frost & Sullivan estimates, the Indian IoT market is set to grow to a whopping $16.7 billion by 2022.
The Challenges
The kind of growth that is set to happen in the Indian Telecom industry poses a challenge. The infrastructure needs to scale up for 5G. Also, there is a highly competitive trend in the market to retain or woo customers. It will require an excellent balancing act by the Telecom service providers to ensure reach, quality services as well as affordability. This could mean that these companies would have to invest in these facilities while being forced to adopt innovative approaches for providing services.
Also, there is the question of providing value to customers. This would depend a lot on how these companies tie up with other service providers to offer services like mHealth or mPayments. The idea of using your mobile device as a safe and secure device using which payments can be made is essential.
This is what has driven services like Vodafone mPesa; Airtel Money and these can also drive alternate revenue generation options for them. In other words, companies are exploring non-core functions to garner revenue. There is much disruption happening in the market, and this has also led to a consolidation of sorts.
The 5G and IoT impact
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Drivers Kyohritsu Electronic Industry Jobs
Companies like Ericsson and Nokia are in talks with telecom operators to help them check the feasibility of setting up 5G in India. With the Indian government also making a push for smart cities, IoT also comes into the play.
Drivers Kyohritsu Electronic Industry Co. Ltd
The investment in this sector will have to be for the hardware, infrastructure and software platforms as well as applications and network connectivity. Cloud storage and data analytics are another part of the ecosystem. There are also many other factors that need to be considered like regulations, security, data privacy and standards for connectivity.
While the challenges are many, India looks set to grow and move into a formidable position in the telecom industry and its growth. This is due to the vast nature of our country, the penetration level that can be made possible, and the massive demand for alternative services through the telecom ecosystem.