The telecoms industry typically changes at warp speed, with exciting new developments not allowing us to dwell on the latest technology for too long. 2022 was characterized by the metaverse, and at Mobile World Congress 2022 it was all anybody could talk about. But this was quickly surpassed in 2023 by Generative AI: how can we use it, what are its capabilities, and is it secure? It seems to have more staying power than the metaverse, and it has the potential to redefine not only telecoms but our entire way of life.
Nonetheless, it is almost impossible to predict what we’ll be talking about in December this year, there might be a new technology that isn’t even on our radar yet. But, for now, I believe several trends will characterize the next 12 months. From a focus on enterprise data analytics and network-driven transformation to a final victor in the cloud-edge battle and connectivity in orbit – here are where my bets lie.
#1: The unstoppable ascent of enterprise data analytics
As the private network world matured, the chatter around 5G, enhanced Wi-Fi, killer apps, and complex integrations seemed to dominate the discourse. The turbulence of teething issues is finally subsiding, and the industry is metamorphosing. Enterprises are shifting their focus from the question of “Why do I want this?” to the more profound “How do I leverage this?” This shift in mindset is a harbinger of a forthcoming data revolution. The reservoirs of data, flowing from legacy and next-gen operational technology systems, combined with the troves from the Edge and Network, promise a mother lode of insights. When mined skillfully, this data becomes the golden key to elevating enterprise competitiveness to unprecedented heights.
#2: Network-driven transformation becomes increasingly necessary
Beyond the data realm, another dimension of transformation awaits through operational technology systems leveraging the full spectrum of network capabilities via network exposure. Network exposure combines network, edge, infrastructure, and applications, and therefore gives operators the chance to monetize their networks based on their full range of capabilities. This can also help make their networks a magnet for innovative developer communities.
Although network exposure adoption can be a ground-up journey, with initial challenges such as ROI and integrations needing to be overcome, the lessons from Network-as-a-Service (NaaS), private networks, and Edge/Cloud developments will serve as accelerants. The path to maturity is poised to accelerate, reshaping industries and redefining possibilities.
#3: The resolution of the cloud-edge conundrum
Predictions surrounding the domicile of enterprise data have been a rollercoaster ride, oscillating between the Edge and the Cloud. The Edge initially gained the upper hand due to latency and security concerns, but the Cloud reasserted itself as latency improved. Cloud costs surged, and hyperscalers harnessed the Edge’s potential, causing predictions to swing back toward the Edge.
We firmly believe that the Cloud-Edge battle is about to find a resolution, akin to the Mobile Core Control/Data plane separation. The Cloud, as the Control Plane, will host a multitude of applications and bulk data, while the Edge transforms into the Data Plane, catering to data primed for AI and Analytics. As this equilibrium settles, hyperscalers will extend Edge capabilities that currently reside in the Cloud. The tantalizing question remains: which Edge will reign supreme?
#4: Satellite technology's meteoric ascent
The convergence of cellular and satellite technologies, epitomized by the rise of Low Earth Orbit (LEO) constellations, is advancing at warp speed. It is a story we predicted years ago, foreseeing a transformation not only in technology but in global economics. Surprisingly, swift tests of successful integrations, such as VF and AST Mobile's transcontinental call and blazing 14 Mbps download speeds using an unmodified Samsung Galaxy S22, have left us astounded. Developments were even made in the first two weeks of 2024, with SpaceX launching its first six direct-to-handset satellites and then successfully trialing them by sending and receiving test messages on unmodified devices. If this pace of development continues unabated, the commercial offers that could revolutionize connectivity may materialize sooner than anyone expected.
#5: Fail to prepare, prepare to fail
Connectivity is at the core of our society and the world would be a very different place without it. It’s therefore understandable that the volume and speed of innovation in the telecoms sector are truly amazing.
For example, although we’re only now seeing 5G SA networks going live, the industry is already chattering about 6G. While it won’t become standardized until around 2030, this is one example of why telecoms companies must keep up with these trends and begin to lay the groundwork for next-generation networks now. As the old saying goes, “fail to prepare, prepare to fail.”
Therefore, players within the telecoms ecosystem need to ensure they stay abreast of telecoms trends like network exposure and satellite connectivity, and invest where they can to not only stay ahead of their competitors but to continue offering users the quality and range of experiences they have come to expect.
