2023 looks set to be an exciting year for telecoms. A number of new innovations look set to hit the mainstream and promise exciting possibilities for both service providers and their customers. However to achieve a truly successful 2023 telecoms will need to ensure they have the correct balance of systems, automation and innovation to ensure they can capitalise on the upcoming technological trends throughout 2023 and beyond.
A large amount of the revenue generated by telco, in fact as much as two-thirds, has to be reinvested into operating expenses. Naturally, telcos are looking at ways to cut back on this cost. One of the most effective ways, which we can expect to grow in 2023 is Hyperscaler Convergence. This is where operators look to shift workloads into a hyperscaler (or public) cloud, rather than managing them within their own private data centre. Throughout 2023 we can expect many providers to start turning to public clouds to cut their expenditures. Many might start to look to shift some applications within their own BSS to these public clouds. In return, they will be hoping for improved deployment and scalability, improved performance and more.
5G will Drive Growth
5G has been spoken about and hyped up to a public audience for many years now. Although its widespread deployment was delayed by mitigating circumstances, like COVID-19, 2023 is predicted to be the year we see the full potential of 5G realised for the wider public. Service Providers will be hoping to take advantage of this emerging technology. While their consumers will be able to enjoy the performance enhancements of 5G, providers will be about to use technologies like “Network Slicing” to achieve 5G monetisation.
Due to the fact, widespread 5G deployment will greatly increase the number of interconnected devices within an ecosystem, providers will need to offer more innovative services and prepare for much more data-heavy activities. To then monetised this service, at the scale 5G is predicted to grow, they will need to ensure new business models can be monetised, deployed quickly and integrated with new or existing systems.
Saas-related telecoms software revenue is expected to grow throughout 2023, and the driving force behind this growth is expected to be spending on BSS. This is due to the fact the IT-heavy nature of BBS applications makes them more easily adapted to the SaaS delivery model. This delivery model has in recent years become more attractive to providers as they come under more pressure to reduce costs and make business more agile. This is because by using cloud-based SaaS applications, providers massively reduce the amount of upfront investment and time needed to deploy solutions. SaaS applications can also be scaled at a much quicker rate to keep up with business demand. This model will be particularly effective when dealing with emerging technologies, such as 5G. With 5G the investment demands are high but the investment risk and public demand are less defined so safer growth models will be favoured.
Another emerging technology for next year which telecoms will be looking to deploy is Multi-access edge computing. Formerly call Mobile Edge Computing, this term refers to a network architecture concept where an IT service environment is hosted at the edge of a mobile network. The theory of this concept is that by running applications and performing processing tasks closer to the consumer's end device network congestion will be reduced and systems and applications will perform better. By deploying this technology closer to the end user telecoms can enjoy enhanced flexibility and rapid deployment of new applications or services for customers.
By using this technology, service providers can deploy certain services for specific groups of customers, meaning that with the correct billing systems in place they can upsell certain premium services to clients.
With the deployment of other technological advancements and interconnected mobile devices expected throughout 2023, the amount of data generated by each individual customer will rise exponentially. While this demand for data storage and processing will create a drain on telecom resources, it does create an opportunity for providers. The more data they can collect on users the more they can personalise their individual experience and create packages designed to ensure customers stay loyal to the provider. To achieve this however they will need to deploy systems which can process this data and deploy intelligent automation to deliver the right offers to consumers at the ideal point in their customer journey.
With Apple’s recent announcement of an eSIM-only iPhone to be released, and many other companies expected to follow suit, 2023 looks set to be a big year in the rise of eSIM. With an eSIM, or embedded SIM, a user’s SIM is embedded directly into the device, rather than being a physical card which can be removed. This makes it much easier for a customer to switch between network providers. In fact, some eSIMs can hold as many as 10 different profiles within the same device. This freedom is expected to lead to customers taking out more short-term contracts with providers. This could be due to travelling to a different country or because it’s often cheaper to take out a new short-term deal than add additional minutes or data to an existing contract. With customers being able to switch between networks with just a press of a button providers need to ensure their systems are capable of meeting the rapid turnaround of customers onboarding, billing and collecting payment.
Whichever trends take the telecom industry by storm next year it's important providers have the correct business support system in place to support their consumers and the services they provide. Lifecycle’s BSS is an innovative and flexible billing platform, partnered with a support system for back-office operations which allows your organisation to take advantage of emerging technology and scale at your own pace. Find out more now.