Telecommunications Industry in the UK- What’s Changing?

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telecommunications industry uk

The telecommunications industry makes communication on a global scale possible. The availability of telecoms infrastructure allows data in the form of voice, words, audio and video to be sent and received anywhere. Telecommunications underpins the social and economic activity in the UK and the majority of sectors will rely on the connectivity that it provides, the activities it supports and the services it enables in some shape or form. The biggest companies in the industry are wireless operators, cable companies, satellite companies and internet service providers. Take a look below at a more in-depth look at the industry on a global scale, how it has grown and the top trends for 2019.

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Telecommunication Industry Growth

Our everyday life is becoming more and more dependent on our use of telecommunications products and services, and so the global industry is predicted to grow at a staggering rate over the coming years, not to mention the amount of product innovation and increase in mergers and acquisitions which will facilitate the sector’s success. This innovation is driven primarily by advancing high-speed mobile services and internet connectivity between devices. The industry is focused on providing faster data services, particularly with high-resolution video. Its motivations lie predominantly with increased connectivity, quicker and clearer services and multi-application use.

Global Telecommunication Industry Analysis

Since GDPR (the General Data Protection Regulation) and similar regulations were implemented worldwide in 2018, there has been the introduction of stronger encryption processes to give users and organisations peace of mind about the privacy and safety of their data.

Also, consumer-driven data consumption, boosted by the range of loT (Internet of Things) devices with mobile and broadband services, has put a significant amount of pressure on networks.

The telecommunications industry has made great progress in the development of 5G, with BT planning to launch 5G products later this year.

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Top Telecommunication Trends for 2019

  • Immersive content. This year there will be a surge in immersive content as there is a dramatic increase in market demand. One thing set to enter the mainstream is AV1 format, with support in Microsoft Windows, Google Chrome and Mozilla Firefox. AV1 is a royalty-free video coding format that is being developed for video transmissions over the internet. Immersive content should also experience lower latency with 5G with the implementation of the Common Media Application Format (CMAF). It is also predicted that 2019 could be the year where OTT (over-the-top) will converge with e-commerce. OTT refers to content providers that distribute streaming media directly to viewers over the internet, bypassing platforms like broadcast television that would traditionally distribute such content. So, this convergence, paired with more personalised adverts and advanced analytics, should create new revenue models. To establish a loyal customer base, CSPs (communication service providers) may start to depend on personalisation to provide their services. This could be in terms of recommendations, subscription plans, content and UI (user interface). Personalisation will allow customers to have their needs met more effectively and efficiently with access to better targeted content.
  • The rise of 5G. 2018 saw the start of the 5G hype, but now is the time for companies to start delivering on their promises. The appeal of 5G is its enhanced efficiency and faster connectivity, on top of its capability in terms of cloud technology and virtualisation. 5G’s vast publicity is giving customers high expectations, which, as a consequence, will force telecommunications to improve their network operations to keep up. 5G will also influence artificial intelligence (AI) and automation, as well as inevitably impacting the rapidly evolving IoT.
  • The evolution of loT. loT has been growing based on 3G and 4G technology. However, with the rise of 5G, 2019 might be the year it reaches its full potential. New applications will be able to use 5G’s ultra-high speeds at incredibly low latency. Still, the growth in loT will not solely be because of 5G. As an increasing number of countries are developing a number of smart city initiatives, intelligent homes will start to become the mainstream in real estate, as well as energy-efficient building strategies. A new wave of opportunities will come from the merge of loT and automation.
  • The safety and security of our data. As we mentioned earlier, data security was a hot topic in 2018 with such an abundance of security breaches and hacks. So, it will remain a primary consideration for all companies this year. It appears that even the biggest tech companies in the industry aren’t ‘hackproof’, whether its Facebook or Google. The implementation of the GDPR and similar regulations across the globe has introduced new challenges for businesses in all sectors to overcome. Despite GDPR being a step in the right direction for our data security, noncompliance results in big penalties. So, organisations must keep their data protection policies up to date and enhance data security practices.

  • A new conception of the cloud. Whilst the cloud has been around for some time, it’s not set to become any less relevant. As well as providing scalability, the cloud offers low-cost models and easy access. Therefore, 2019 will likely see a surge in cloud-based telecommunications offerings. A number of CSPs are adopting cloud-based ‘as-a-service’ models. One of the main trends might be the cloud powering hybrid cloud ecosystems and enhancement in the value chain. The hybrid cloud model merges private or public cloud services with on-premises infrastructure. On-premises data centres (‘on prem’) mean you can be in complete control of your infrastructure, rather than leasing data centre resources from a third-party service provider. This makes it possible for businesses to transition to the cloud effortlessly without compromising on flexibility and control.

In conclusion, the telecommunications industry in the UK and across the globe is evolving and innovating every day to keep up with our expectations in a digital world. Who knows what will have changed in a decade’s time?

If you are interested in investing in an IT-related franchise, check out BT Local Business and Activ Net Marketing. Or, take a look at our UK Franchise Directory for even more opportunities.

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