Description

Market trends such as remote working and learning and entertainment needs have reshaped the business segments of the telecommunications industry in Asia-Pacific, including the mobile, fixed, and digital segments. Consumers have increased the adoption of digital services such as videoconferencing, digital financial services, and eCommerce to meet their digital habits and needs, and enterprises are acquiring ICT solutions, including security, cloud technology, and Big Data, to help remote workers. In the digital world, connectivity is essential for individuals to connect and enterprises to continue business operations. This Frost & Sullivan study offers telecommunications service providers (telcos) clear strategies to drive growth opportunities in the industry.

The rising digital consumption increases the use of data- and bandwidth-intensive applications and the number of computing devices, thereby boosting the demand for higher speed, higher bandwidth, and lower latency. Robust network quality helps telcos differentiate themselves and retain customers, and it is critical in terms of implementing successful growth strategies and generating revenue. The proliferation of 5G technology presents telcos with opportunities to address the rising network traffic volumes and innovate and transform business models.

As customers become more digitalized, telcos will transform themselves into digital service providers to capture new market opportunities within vertical markets such as eCommerce, healthcare, manufacturing, and financial services. Telcos' business models have shifted, and they are focused on enhancing the technology aspect of the value chain with disruptive technologies such as 5G, cloud computing, artificial intelligence (AI), and edge computing for new business models and revenue generation.

Nevertheless, the rising digital consumption has resulted in a growing number of cyberattacks, which is pressurizing telcos' network infrastructure and impacting customer experience and churn rate. Customers are showing keen interest in additional value-added services such as advanced security, higher speed, capacity, and coverage, and telcos can offer value-added services to provide differentiated service offerings at a premium pricing to improve the customer experience and drive a competitive advantage and market value.

The industry remains saturated due to the intense competition, but market trends provide ample growth opportunities for telcos. The rising demand for high-speed network services, ICT and digital services, applications, and platforms drives revenue growth. As telcos continue to invest in network quality, improve product attractiveness, and launch innovative services, revenue is expected to record a CAGR of 3.6% from 2021 to 2027 and reach $489.24 billion in 2027.