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Telecom services market size to hit US$ 2.65 Trillion by 2030

Asia Pacific Market had the largest share of 33% in 2021. The telecom services market is soaring due to 5G networks, availability of smartphones as well as e-commerce. Japan, India and China are key countries in the growth of this market. India and China were the leading global Internet users of to 854 million clients as stated by the international telecommunication Union. Increased government initiatives by incorporating ICT are expected to help in the expansion of the Asia Pacific market. There shall be a group of 100 smart city schemes with the amount of money spent which will be USD 600 and million in India. The introduction of IFC in North America and European countries is also expected to help the market grow. The Asia Pacific region will dominate this market due to rapidly growing population, rising Internet penetration and adoption of smartphones.

Report highlights

  • Due to R&D in this field there is a major increase in the market share. Availability of smartphones and internet connectivity has increased the market share. The introduction of 5G internet has boosted the market. The Asia Pacific region is expected to grow well in future.
  • Based on the type of transmission, the wireless segment hit largest market share 76% in 2021.
  • Based on end user, the consumer/residential segment has garnered market share of 61% in 2021.

Market Dynamics
Drivers
Due to liking for smartphones and next generation Internet doesn’t increase expenditure on all these. The governments are creating new infrastructures in the market of telecom services. Also, there is a rise in the quantity of mobile subscribers. which have an elevated demand for data connectivity and also a demand for value added services. All of these factors are responsible for the enlargement of the market. During the pandemic, there has been a major shift to digital entertainment in the houses, this has helped in achieving the profit. The market players are investing in order to acquire the necessary spectrum for offering high speed Internet services as this would help them to strengthen their presence in the market.

Restraints
The wireless and the cable Telecommunication network requires an extensive infrastructure in case of corporates or big offices. Maintenance of these infrastructures is also a lot of investment. It is very difficult to reach the some geographical areas. The telecom services are dominated only by a handful of players. Owing to frequent changes in communication technology, there are shorter and shorter upgrade cycles which require new infrastructure so there’s a lot of investment. Apart from this, there are network congestion issues that are a leading cause of Internet coverage problems today. Due to improper phone lines or fiber optic cables, infected computers or smartphones there could be malfunctioning also there could be fitment failures due to various climatic changes causing damage to these hardware devices.

Opportunities
5G is the next big thing happening in this sector. Apart from that, the smart city projects that use IoT plays an important role in the development. There is a potential for an extensive broadband market across the various nations. As there are options for high quality communication and Internet services for cable, wireless, satellite Internet providers, consumers will enjoy flexibility in purchasing the services in the years coming. As there are many benefits offered by the 5G network, it also creates security concerns and challenges so there is a need to recheck the cyber security for the 5G era.

Challenges
Many telecom operators like AT&T and Verizon Communications have mentioned that there is a decline in the revenue expansion post covid as the telecom services have become sluggish. As the worldwide financial system has weakened, the per capita earnings of the customers are also coming down thereby reducing the expenditure on unnecessary services. When there are crisis clients expect instant customer service, to meet the consumer demands and stay on the top of the situations becomes a challenge. Building quick and good assistance becomes a problem. As there are millions of subscribers and various products the operational tasks are complex. Even the smallest of the tasks like invoicing fulfillment of the orders and payments are becoming challenging day by day. But as the customers expect a quick reply and they do not tolerate any delays in the processes customer service is a core of the telecom industry. It’s a huge challenge to continue operating and providing support even with agents working from home. Therefore, a technology which can be managed from the cloud has become a boon and if some telecom service providers do not have this technology, they need to implement one as soon as possible. New threats come along with new technology. In order to make this in order to secure the networks and applications there should be new technologies and more reliable and secure authentication features.

CT Bureau

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