The telecommunications industry is witnessing rapid technological improvement. Unprecedented growth in high-speed mobile Internet traffic, particularly with respect to wireless data and video, has transformed this industry into the most evolving, inventive and keenly contested space.
A growing economy speeds up the demand for real-time voice, data and video manifold. The escalation in demand has encouraged telecom service providers to undertake large network extensions while upgrading plans. The rising demand for technologically superior products has been a silver lining for the telecommunication industry in an otherwise tough environment. This, in turn, has given a boost to the demand for telecom infrastructure developers, particularly wireless equipment manufacturers.
Wireless Is the Key
Wireless networks are key to the growth of the overall telecom industry. Wireless network standards are continuously evolving worldwide in order to provide faster speed. Long-Term Evolution (LTE), the most sought-after super-fast (4G) wireless communications technology, is gaining rapid momentum. Following significant deployment of 4G LTE networks, LTE-A (Long-Term Evolution Advanced) wireless networks are gradually finding a solid foothold.
Per a report by research firm iGR, U.S. telecom operators will spend around $104 billion during 2015 – 2025 to upgrade their existing 4G networks to the upcoming 5G standards and thereafter, execute full installation of 5G wireless services. This bodes well for wireless equipment manufacturers with enormous opportunity to grow.
We expect wireless networks to provide the primary impetus to the telecom industry. In this regard, Internet of Things (IoT) has the potential to emerge the numero uno factor for future growth in the space. According to a report by research firm International Data Corporation (IDC), worldwide spending on IoT will grow at 19.2% compound annual growth rate to nearly $1.7 trillion in 2020 from $698.6 billion in 2015. Exponential growth of Internet-connected devices will be a major boom for wireless equipment manufacturers.
