Tech on the rise: exploring 2024’s hottest telco trends
Get ready to dive into the future of telecommunications! Before ending 2023 from Telecoming we already presented the 5G monetization challenges report (2023-2027), and with the turn of the year, now we take the opportunity to explore the most exciting trends set to reshape how we connect and communicate in 2024. From high-flying satellites to cutting-edge AI, these developments are not just tech talk – they are about to change our world.
Sky-high connections: the satellite surge
According to Juniper Research, by 2024, we’ll see over 300,000 connections to 5G satellite networks. Most satellites in use today are in North America, West Europe, and Far East & China, making up about 80% of the 8,000-plus satellites. This rise in satellite launches will boost services like 5G IoT, mobile broadband, and subscriptions. 5G satellite services will bring fast internet to areas that don’t have it yet and may help make 5G more affordable in less wealthy countries. It will also meet the growing demand for high-quality services that use more data, especially in the IoT market.
By 2030, the average revenue per 5G satellite connection is anticipated to significantly vary by region, with Canada and the US leading the way at $70.57 and $66.26 respectively. These figures underscore the importance of monetization for operators to recover their investments in satellite services. Ireland, Austria, and Qatar are also expected to see notable revenues, emphasizing the global potential for 5G expansion. With an expected average revenue of $36.15, the UAE is well-positioned to benefit from this trend, which is essential for the continued growth and technological advancement in the Middle East. Monetization of these services is key, especially as operators look to extend 5G’s reach into less affluent nations and underserved areas.
Open APIs: the new telecom game-changer
Due to rising SMS costs and fraud, there’s a shift towards open APIs for enhanced connectivity and new services, like Number Verify and SilentAuthentication. Open APIs are gaining traction, enabling third-party applications to integrate with operator networks.
This change is anticipated to reshape the mobile messaging landscape in 2024, with businesses and developers exploring alternative communication channels via open APIs. Additionally, third-party channels like WhatsApp for Business pose a growing threat to operators’ mobile messaging revenue.
Generative AI to revolutionize conversational market
The integration of Generative AI into Large Language Models (LLMs) is expected to significantly revolutionize conversational AI and personalized marketing. This advancement will enable more nuanced understanding of user queries, sentiments, and contexts, greatly enhancing user experience in various applications like virtual assistants, chatbots, and customer service interactions.
Furthermore, with the ability to generate natural and contextually relevant responses, these advanced AI models will offer more personalized and effective marketing solutions. Companies can leverage this technology for targeted advertising, customer engagement, and content creation, leading to more efficient and customer-centric marketing strategies. The inclusion of Generative AI in LLMs represents a significant leap forward in the field of AI and its application in daily technology use and business practices.
iSIM: the next big thing in connectivity
The adoption of iSIM technology, which integrates SIM functionalities directly into device software, is set to significantly impact the telecommunications landscape. By streamlining the traditional SIM card into a software-based solution, iSIM not only reduces hardware requirements but also simplifies device design and manufacturing processes. This evolution is particularly beneficial for IoT applications, where smaller, more efficient, and cost-effective devices are crucial.
Moreover, iSIM technology facilitates easier and more secure management of device connectivity, especially crucial for large-scale IoT deployments. It enables seamless network switching and improved security protocols, making it an attractive option for IoT device manufacturers and service providers. As a result, the shift towards iSIM is expected to accelerate the adoption of eSIM technology globally, marking a significant step in the evolution of mobile connectivity.
EU’s new rules: OTT platforms to expand
The EU’s Digital Markets Act (DMA) mandates third-party interoperability for Over-The-Top (OTT) messaging apps, significantly impacting the OTT business messaging landscape. This regulation will force major platforms like WhatsApp and Messenger to develop cross-platform capabilities, allowing users to communicate across different OTT messenger apps. The DMA aims to reduce fragmentation in the EU’s OTT messaging market, enabling businesses to interact with consumers regardless of the messaging app they use.
This shift is expected to greatly expand the value of OTT business messaging and its ability to compete with traditional A2P messaging channels such as SMS services provided by operators. The introduction of interoperability will also influence the wider business messaging ecosystem, affecting competing channels like Rich Communication Services (RCS), which offers capabilities beyond SMS and MMS.
AI-powered chats: revolutionizing customer service
Large Language Models (LLMs) are set to significantly enhance voicebot capabilities, offering a more personalized and efficient experience in various industries. With their advanced understanding of natural language, LLMs can provide more accurate and context-aware responses, making interactions with voicebots more natural and user-friendly. This will be particularly beneficial in customer service, where voicebots can handle a wider range of queries more effectively, improving both customer satisfaction and operational efficiency.
Moreover, the integration of LLMs into voicebots will enable more sophisticated applications in sectors like healthcare, banking, and e-commerce. By providing personalized recommendations and support, voicebots powered by LLMs can enhance user engagement and streamline business processes, leading to increased productivity and better customer experiences. This technological advancement promises to revolutionize the way businesses interact with their customers, leveraging AI to meet the growing demand for more personalized and efficient services.
5G’s next wave: unlocking new digital realms
The launch of 5G Advanced is poised to significantly enhance the capabilities of interactive applications. This evolution in 5G technology will facilitate a range of new services and experiences, including augmented reality (AR), virtual reality (VR), and other immersive technologies. To fully leverage the potential of these applications, operators will need to provide robust support for service access through APIs. This will enable seamless integration and interaction between different services and platforms, making the user experience more fluid and engaging.
Furthermore, 5G Advanced’s improved bandwidth and lower latency will make it possible for operators to offer more complex and data-intensive services. This will open up new opportunities in industries such as gaming, media, and telemedicine, where real-time data transfer and high-quality streaming are essential. The requirement for operators to support these services through APIs will play a crucial role in ensuring that the infrastructure is flexible and adaptable enough to meet the evolving demands of users and developers alike.