The numbers show 2017 was another monumental year for the telecom sector. With the continuance of trends such as shortening product life cycles, competition from cable operators, and dominance of wireless penetration in several markets, last year was certainly a mixed basket of changes in the industry (McKinsey). The industry trends and projections for 2018 so far are showing that this year will again be a full of both good and bad developments for the telecom sector.
One aspect of the industry telecom workers should be particularly focused on in the new year is how to reduce churn. With the decline of the tendency of consumers to differentiate telecom services by handset device options and network quality that we saw in 2017, churn is becoming a serious threat to businesses. Minimizing churn will become essential. McKinsey recommends using cutting edge analytics to better get to know the customer. It might also be worthwhile to try using a CRM (customer relationship management) software to develop a more targeted marketing strategy for customers that will keep them around longer.
Although the year has only just begun, the telecom sector in India has already faced a volatile 2018 that has shaken the industry globally. Revenue from telecommunications in India has dropped nearly 50% in the past year, which doesn’t bode well for the market. The workforce of the sector has also taken a hit. However, it’s not all bad news as both revenue and operating income in the Indian sector are predicted to rise by 10% starting April 1 (Economic Times).
As far as what to expect to grow in popularity this year, Deloitte has released their annual report on industry trends and predicts that smartphone penetration will continue to soar to nearly 85% of adults in developed countries and that live broadcasting will be a huge source of revenue, bringing in around $545 billion (Deloitte).