Key IT and Digital Investment Areas Shaping the Industry

Telecom companies are increasingly reliant on IT and digital solutions to meet the growing demands of their customers and stay ahead of the competition. Read the report to learn about the key investment areas, telecommunication players, service providers, focus areas in various regions, and more.

Read more at: https://draup.com/sales/whitepapers/transforming-telecom-key-it-and-digital-investment-areas-shaping-the-industry/

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1. 1 IT and Digital Spend Areas in Telecom Industry An Analysis by Draup 30th June 2023 The objective of the document is to provide a comprehensive analysis on the Telecommunication IT & Digital spending CLICK HERE To access the full report
2. 2 IT and Digital Spend on Telecommunication Market Overview Investment Areas IT Spend on Technology Technology Initiatives IT and Digital Spend areas in Telecom Industry (2022 – 2023) Telecom Trends and Innovations ➢ Global Telecom Services Spending ➢ Telecom Trends and Innovations ➢ Key Technology Trends IT Regional Analysis ➢ Companies generating Revenue more than USD 45 Billion ➢ Companies generating Revenue between USD 13 Billion to 45 Billion ➢ Companies generating Revenue less than USD 13 Billion ➢ Big Data/ Analytics ➢ Artificial Intelligence ➢ 5G ➢ Internet of Things ➢ Cloud ➢ Key Technologies ➢ Telecom Industry’s Strategic Investment Areas ➢ Telecom Industry’s Priority Investment Areas ➢ EMEA IT Spending (2021 – 2023) ➢ APAC IT Spending (2021 – 2023) ➢ Americas IT Spending (2021 – 2023) 1. Outsourcing 2. Hiring Low Medium High Note: Above numerical data are number of outsourcing workflows Methodology
3. 3 Global Telecom Industry Overview: Increased spending on next-generation wireless communication infrastructures due to the shift in customer preferences toward the 5G network and cloud-based technology is driving the demand for telecom services Global Telecom Services Spending (In USD Billion) 1565 1575 1590 1595 2021E 2022E 2023E 2024E Key Players Market Insights Growth Drivers of Telecom Industry $49 $48 $49 $28 $31 $31 $21 $22 $22 2021 E 2022 E 2023 E AMERICAS APAC EMEA Region wise IT spending (2021 – 2023) Bn USD 1 Source: Market Reports, Case Studies, News Articles like Statista, Telecom Industry Blogs and Press & Media Releases. Note: [1] The values mentioned are estimated by Draup based on internal Draup Module and annual reports of 140+ Telecom companies • IoT technology adoption by manufacturing and transportation services companies is driving the telecom market in the forecast period • Enterprises are adopting cloud technologies to have a competitive advantage and differentiation in the market, cloud infrastructure and Business Intelligence (BI) are expected to see increased spending in the coming years • The deployment of 5G technology is a significant driver for the telecom industry. 5G offers faster speeds, lower latency, and increased network capacity, enabling new applications and services such as autonomous vehicles, smart cities, remote healthcare, and industrial automation • Businesses and industries are undergoing digital transformation, adopting technologies such as cloud computing, IoT, big data analytics, and artificial intelligence. This transformation requires robust telecom infrastructure and connectivity to support the exchange of data and enable seamless communication • Emerging markets, particularly in regions such as Asia, Africa, and Latin America, present significant growth opportunities for the telecom industry. As these markets experience economic growth and increasing disposable incomes, there is a surge in demand for telecom services and connectivity
4. 4 Key Technology Trends (1/2): The telecom sector continued to make progress in augmenting its network capacity with additional fiber and wireless deployments to meet the constant demand for higher-speed networks Global IoT in Telecomm Market In $ Bn Global AI in Telecomm Market In $ Bn $2.49 $6.60 2023E 2026E Global 5G services in Telecomm Market In $ Bn Internet of Things • Companies using IoT technologies in the telecom sector to transform the role of mobile network providers in ensuring the connection between users and devices • Implement IoT-based solutions to ensures minimal downtime for the network, enhances business procedures, and generates more revenue Artificial Intelligence • Telecom companies are already using AI technology such as virtual assistants, chatbots, and AI tools to personalize user experience and improve customer satisfaction • It has an unmatched ability to process and analyze an enormous amount of data without risking security 5G Network • Mobile operators and telecommunication equipment companies developing the technologies and hardware systems required to bring the fifth-generation (5G) of mobile networking to the market • It provides a much higher speed, than previous cellular broadband network standards, and most importantly, has much lower latency $19.54 $23.26 2023E 2026E $134.10 $264.10 2023E 2026E Source: The above insights are curated through various news articles, journals and other similar sources Note: Primary and secondary research sources have been used to align the Market Trends, updated as of June 2023
5. 5 Key Investment Areas: Telecom companies have been expanding the operations, covering a wider on-ground area in terms of coverage and increased investment in diversified growth verticals to move beyond conventional mobile services 38% 27% 26% 9% AI/ML IoT/IIoT 5G Densification Others Telecom Industry’s Strategic Investment Areas Most Overhyped Technologies1 5G Initial development Digital Transformation 5G Densification 5G has met or exceeded expectations Security concerns of running telco application in the public cloud Using converged BSS stack to serve both consumer and enterprise customers Agreeing government funding for broadband insufficient Already deploying or planning to deploy open RAN in the next 2 years Already offering or planning to offer APIs to enterprise customers for self-troubleshoot • This rise in ambition to drive 3rd party revenue opportunities ties into the realization that 5G is not delivering the amount of revenue uplift that telcos had hoped for • Therefore, telcos are searching for new revenue streams to pay for 5G investments • Additionally, there is a growing appreciation that the customer relationship is the most important asset telcos have, as opposed to the network and by fostering trust in that relationship telcos earn themselves the ability to leverage those relationships into new sales opportunities Telecom Industry’s Priority Investment Areas [1] Growth in mobile money & mobile financial services Enhanced customer experience Reduce OPEX via Digital Transformation Low Medium High Source: Draup analysis on various company website, Market Reports, Case Studies, News Articles, Journal Articles, Press & Media Releases [1] based on survey conducted by mobilizablel 1. RAN: Radio Access Network
6. 6 Use-Cases Dashboard: The use-cases involved in telecommunication sector are categorized based on Digital use cases intensity Network Virtualization Microservices Adoption Virtual Assistant SAP Implementation Over-The-Top (OTT) Voice Calling Navigation/Route Assist Proximity Marketing Telecom Mobile Apps Network Automation Salesforce Implementation Self-optimising Networks Predictive Network Maintenance Call Analytics AI-enabled 5G Network Traffic Optimisation Cloud-based Data Management Telemedicine Remote Patient Monitoring mHealth 5G Network Slicing Desktop Virtualization QR Code Payments Customer Support Chatbots Digital Wallet Cyber Threat Analytics Oracle Implementation Recommendation Engine Disaster Management using Drones Rapid Prototyping Network Modernization e-Commerce eSIM Virtual Customer Premises Equipment (vCPE) Over-The-Air Updates Cloud-based Contact Center Asset Tracking using IoT Video Over-The-Top (OTT) Cloud Migration Cyber Threat Detection Using AI Storage Virtualization V2X Communication Invoice Processing Automation Usage based auto Insurance Server Virtualization Telecom Network Orchestration Intelligent Call Routing Software-defined Wide Area Network (SD-WAN) Infrastructure Inspection using Drones Customer Churn Prediction Real-time Shipment Location Tracking Digital Use cases Source: Draup’s internal modules & External Sources such as Industry reports, case studies, news articles
7. 7 Use Case 5G-enabled Cloud Companies Involved Key Business Initiatives (1/5): The cloud-based models help in simplifying the process and offer unique product solutions for multi-cloud management for bringing automation to the telecom industries Cloud Cloud Services and Cloud Management Private Cloud Services 5G Core Network Modernization Enterprise Cloud Partnership Description • AWS partnered with multiple telecom companies to deploy private wireless networks on AWS • The partnership provides a comprehensive solution for designing, building, and managing private wireless networks using AWS services and partner solutions • T Mobile partnered with Google Cloud to give business customers managed 5G connectivity through a public mobile network, a hybrid mobile network, or a private mobile network • The partnership enables enterprises and government customers build 5G application use cases such as augmented reality and virtual reality experiences that will require low latency • AT&T partnered with Google Cloud to deploy 5G-enabled edge cloud computing services to improve performance and reduce latency for applications that require real-time processing. • The partnership allows AT&T to offer these services to a wider range of customers, and it will help clients accelerate the adoption of 5G edge computing • Airtel partnered with Vultr to offer cloud solutions to enterprise customers • The partnership focus on solutions such as cloud compute, Optimized cloud compute, Cloud GPU, and fractionalized GPU offerings • Microsoft partnered with Tech Mahindra to provide telecom operators with cloud-based solutions for 5G core network modernization • The solutions leverages Microsoft Azure and Tech Mahindra's network transformation expertise to enable faster and more cost-effective deployment of 5G services Source: Draup’s internal modules & External Sources such as Industry reports, case studies, news articles curated for past 1 year 1. GPU: Graphics Processing Unit
8. 8 Artificial Intelligence/Machine learning Cloud Analytics/ Big Data Internet of Things Augmented / Virtual Reality Robotic Process Automation 1 2 1 2 1 2 1 2 1 2 1 2 Medium High Medium Low Low Low Top Players Technology/ Industry Segments Medium level Players Niche Players IT Spend on Telecommunication Technology: Artificial Intelligence, Cloud and Analytics are the majorly invested technology areas for the companies whose revenue is above USD 45 Billion 1. Outsourcing 2. Hiring Low Medium High IT Spend Areas Source: Draup Outsourcing module and Hiring Module Note: Based on the revenue the industry, the players are further segmented into Top, Medium and Niche Players. Parameters such as Hiring for past 12 months and live outsourcing deals has been analyzed for the above data.
9. 9 Key Technologies Investment Areas: Telecom industries invest in analytics, AI, and cloud models to deliver high-quality, low- latency services to customers Sigma Computing has raised USD 300 Million funding by D1 Capital Partners and hedge fund XN to increased adoption of cloud analytics sector, cloud computing and data warehousing in Europe & Australia Federated Wireless has secured USD 58 Million in Series D funding of Cerberus with existing investors Allied Minds & GIC investing in cloud-native tools, including application analytics H.I.G. made an investment of USD 47 Billions in Mobileum through HTP to accelerate technology investments by providing analytics-driven solutions for roaming network services and network security Google has invested USD 1 Billion in CME Group and has a separate deal for exchange operator will begin moving its technology infrastructure to Google Cloud next year Robin.io has raised USD 38 Million in a Series C funding by Rakuten Mobile to accelerate adoption of Kubernetes & cloud-native technologies Google invested USD 1 Billion in Bharti Airtel to offer inexpensive data and digital offerings in the areas of devices, network and cloud technologies WEKA has raising USD 73 Million in funding by Hitachi Ventures, which brings the total amount raised to $140 Million to accelerate AI data platform Glance has agreed to raise USD 200 Million from Reliance Jio Platforms accomplished by pioneering personalized, AI-driven content, live entertainment commerce and gaming on the lock screen Analytics/Big Data Cloud Artificial Intelligence Kore.ai has raised USD 70 Million by Vistara Growth and PNC to create text-based virtual assistants for customer service and accelerate conversational AI platform market Cloud Analytics Sector Application Analytics Analytics-Driven Solutions Cloud Infrastructure Cloud Technologies Cloud-native technologies AI Data Platform AI Platform AI Platform AI-Drive Content Source: Draup’s internal modules & External Sources such as Industry reports, case studies, news articles
10. 10 Americas IT Spending (2021 – 2023) Bn USD 1 Americas: The rapid advancement of technology in the telecommunications sector and optimized network investments enhance customer satisfaction and contribute to market growth in North America AT&T partnered with Cisco to enhance Webex calling experience for users and provide a powerful, mobile-first, and unified collaboration experience via a single business mobile number and working together to bring SD-WAN connectivity with add-on services such as 5G Telefonica partnered with Nokia to provide private LTE and 5G wireless networks and supply private wireless equipment in LATAM region for industries across ports, mining, energy, and manufacturing AT&T Business offered a managed wireless WAN solution providing Quick-to-Deploy, secure and flexible connectivity with AT&T Managed Wireless WAN, customers receive a plug-and- play, managed solution that enables rapid deployment of wireless connectivity 48.9 47.5 48.5 2021 E 2022 E 2023 E Key Client Locations and Service providers Key Start-ups USA Canada Brazil Mexico Chile 51% 28% 12% 3% 2% Case studies Source: Draup Locations and Various Market Reports, Case Studies, News Articles. Note: [1] The values mentioned are estimated by Draup based on internal Draup Module and annual reports of 140+ telecom companies globally
11. 11 Private 5G Network ➢ Private 5G networks offers secure networks than public 5G networks as they are not accessible to the general public ➢ Private 5G networks allows players to customize the network to meet their specific needs ➢ The cloud environment provides greater connectivity and integration of solutions to the players ➢ The increased use of IoT devices and machine learning require high computing power and helps players to connect at different environments ➢ Connectivity Solutions helps providers to include both wired and wireless communication are essential to increase data volumes, and the need for network connectivity and access ➢ This creates an opportunity for Telcom players to innovate connectivity technologies and create new revenue streams ➢ Network analytics is used by telecom players to monitor the performance of the network, such as the bandwidth utilization, latency, and packet loss ➢ Network analytics can be used to improve the security of the network by identifying threats and vulnerabilities Cloud Computing Connectivity Solutions Network Analytics Technology Description Key Focus Areas: Telecom Players focusing on to provide infrastructure, reliable transmission services and digital services to add value for retail and business customers Source: Media articles, journal articles, and other similar sources
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