Telecom trends and the challenge to connect the unconnected

By: Naveed Haq
With the fast-growing demand for content and data over the Internet, the telecommunications market is undergoing an unprecedented transformation. Many companies are considering mergers and acquisitions to enhance their capabilities and adapt their businesses to the next era.

Global data consumption over telecom networks is expected to nearly triple, from 3.4 million petabytes (PB) in 2022 to 9.7 million PB in 2027, primarily driven by video traffic (Source: PwC).

However, revenue growth and optimization opportunities may progress slowly while capital costs rise. With the transition to 5G and newer technological standards, telcos are projected to invest US$342.1 billion in their networks in 2027 alone (Source: PwC).

Telecommunication companies need to master the capability of efficiently constructing and operating network assets to recover the cost of capital and some margin in urban markets, which will remain the primary consumer base for telecommunication markets. 

In addition to increasing capital requirements and slow revenues, the industry faces emerging competitive threats. We observe patterns indicating market saturation in countries controlled by two or three major operators. For example, Pakistan, a market with five mobile network operators in 2017, has shrunk to three operators today. 

This trend could also mean that connecting the remaining 2.6 Billion to the Internet would be challenging in underserved areas.

The number of people worldwide who are not connected to the Internet decreased to an estimated 2.6 billion people in 2023, according to data from ITU, the UN tech agency.  This reduction is from 2.7 billion in 2022. This means that if we keep reducing the gap of .1 billion each year, we will be able to bring everyone online in the next 27 years!

Investing in infrastructure development, such as laying fiber optic cables or erecting cell towers, is financially challenging. Due to limited returns, this is particularly challenging in rural areas with low population density. This lack of investment has wide-reaching consequences! 

For 33 percent of the world, on every continent, in rural, remote, and even urban communities, each day without Internet access is a day of lost opportunity. It impacts everyone’s access to employment, education, healthcare, information, and other vital services. 

Standard solutions may only sometimes be practical in areas where connectivity could be provided. Telecommunication companies may need to focus on engaging with unconnected communities directly to understand their requirements and offer customized solutions that don’t require heavy investments. 

Examples of low-cost, community-centric connectivity already exist around the world. These solutions are helping to bridge the connectivity gap. A community network is when individuals come together to establish and maintain an Internet connection themselves. It is an Internet by the people, for the people.

Telecommunication companies can help set up such solutions, working with the community to deploy spots with internet connections to serve as hubs for the community’s use of online healthcare, education, and business tools.

 About the Author  

I’m Regional Director for Infrastructure and Connectivity, primarily working in Asia and the Pacific. I have a professional appetite for working with people and building Internet infrastructure and networks to connect the unconnected. I have been lucky to fulfill this appetite over the years, working with various communities in various capacities and through diverse projects.

Internet technology, policy, and regulations are my essential skills, and working with people from different cultures is my passion. 

I aspire to live in a world with an open Internet, music bundled with a strong coffee, and a force that drives inclusion and collaboration.