Communication is integral to growth, whether it is in the form of voice, text, or video. Especially, in the era ruled by the standards of social distancing and remote development, communication has become the key to moving forward and pushing through the pandemic. Companies that provide avenues of communication are constantly under the pressure to meet consumer demands, the onslaught of new technological innovations, and the shift towards a digital future. These communication service providers are called telcos and constitute the telecommunication industry.
Telecommunication is an umbrella term. It encompasses all the entities that provide an infrastructure of communication to consumers, whether through cable or airwaves, wirelessly, or through a wired network. Telecom companies that deliver internet service are called internet service providers. Charter Spectrum is one such provider and is a household name across the US.
The thing about the telecommunication industry is that it is dynamic. In other words, it faces a setback and bounces right back up. It moves with the trends of the time and transforms business models, network platforms, or service capabilities to meet unpredictable challenges. Here is a testimony to the growth of the internet and telecom industry. Check it out.
Internet & Telecom Sector – Growth Rate 2021
When the COVID-19 first shook the world, it hit too close to home for telcos and internet providers, who were forced to rearrange their operations and rethink their growth strategy in response to the restrictive commercial operations and the transition to virtual platforms. Nevertheless, the telecom industry persisted through economic turbulence. For instance, its global market is expected to grow by a CAGR of 6.2% from 2020 to 2021 and reach a value of almost $35 billion in 2025. Overall, the growth rate has increased so far and is predicted to see a boost in the upcoming years.
How the Internet and Telecom Industry are Growing?
Next comes the question of “how?” How are the internet and telecom companies evolving? By adopting new technologies, channels, and outlooks.
Voice over Internet Protocol
Landline is an essential service, no doubt, and a core offering of telcos. However, this is the age of internet connectivity, so consumers expect telcos to reform their services accordingly. Nowadays, you’ll see most of the internet providers and telecommunication giants hosting a new form of voice technology called VoIP.
VoIP or Voice over Internet Protocol converts audio data into digital data and allows you to make calls both nationwide and across international waters over the internet. This conjunction of internet and phone is innovative and opens doors to new forms of voice communication that are fast, efficient, and low-cost.
Streaming TV services and OTT carriers pose one of the biggest threats to telecom companies and their long-held monopoly in the market. Why? Because consumer preferences have tilted towards video. Video is king in the 21st century, so people naturally tend towards services that deliver video data to their homes.
Telecom companies and ISPs have also started participating in the trend. Many ISPs now offer IPTV services as part of their subscriptions to customers. These can be their own signature live TV streaming services, like AT&T TV, or partnerships with already existing top streaming platforms. The point is that the telecom industry has come far from its original voice offerings, and now includes video, as well as text and data as part of its makeup, exhibiting growth.
In addition to basic services, telcos have expanded their customer base, too. They have incorporated business users into their subscriber pool as well as the residential ones, and this has proven to be quite an effective move, contributing towards their growth. Businesses and enterprises require voice, text, video, and data solutions to stay on their feet, communicate 24/7 with customers and keep their profit curve stable. So, they are more inclined to sign service level agreements with telcos and internet providers, cultivating mutual benefits. Thus, by opening its services to businesses and enterprises, the telecom industry experiences massive growth year after year.
The world is becoming increasingly mobile. Everything is available at your fingertips. The proliferation of mobile devices and wireless internet technology has brought immeasurable convenience into the lives of people. 5G is no longer hovering at the horizon but has finally arrived at the scene, bringing 10x faster mobile data speeds, supporting more devices than ever, and turning the dream of smart cities into a reality. Who’s leading this groundbreaking revolution, you ask? Telcos and wireless broadband carriers, along with leading smartphone manufacturers. This is enough to show you how speedily the telecom industry is growing.
Telcos laid the foundation of communication in form of the telegraph and the telecom industry has come a long way since then – upgrading its services with VoIP, expanding its offerings with video, catering to enterprises, and carving the future with innovative technologies like 5G. Telcos and ISPs have grown significantly and by the looks of it, they’ll continue to do so with each passing year.