The Future of NextGen Technologies in the Telecommunication Industry

Technology today is accelerating at an alarming pace, with technological innovations happening daily. This accelerating digital environment has had a monumental impact on many industries, including the telecommunications industry, which is currently facing a shifting landscape of competitive challenges and opportunities. This shift has been a catalyst for innovation in this sector, especially where digitisation and the development of NextGen technologies are concerned. These NextGen technologies are playing an essential role in creating a connected world. We deep dive into what these NextGen technologies are and how they are changing the future of the telecommunications industry below.

NextGen technologies defined

To fully understand the impact NextGen technologies have on this sector, defining what we mean by this term is essential. In simple terms, Next-Generation technologies or Next-Generation networks, which they are often referred to, is a term that describes the evolution and migration of fixed and mobile network infrastructures from distinct proprietary networks to converged networks. This refers to the need for different, newer, and more innovative technologies that will enable Telcos to develop and deploy new services and revenue streams to meet their customer base’s changing needs and demands.

Market drivers for the future of NextGen Technologies

Besides consumers’ changing needs and expectations, several other factors are driving the market and the need for NextGen technologies. These include:

• Increasing applications of wireless technology to boost market growth – the Internet of Things (IoT) is driving the market, especially with the need for different technologies to talk to each other and “interact”. Examples include  industrial machines, household appliances, and self-driving cars. As these technologies become more widely accessible, they will boost market growth.
• High cost to act as market restraint – in this context, the high costs of infrastructure and development to remain competitive within the market could act as market restraints.
• Lack of communication standards to act as a market challenge – a lack of communication standards, the trade between the flexibility of use and the platforms, high initial investment, compatibility issues with old devices, and the interoperability with existing technology may negatively impact market growth.

What does this mean for Telcos specifically? The answer is that Telcos need to use NextGen technologies to position themselves as competitors in the market. These new technologies will allow them to deploy new infrastructures and service offerings, thereby growing their business and increasing revenue.

Why Telcos will become the centre of dynamic NextGen Technologies Ecosystems?

Within the telecoms sector, we have moved past the digital tipping point; digital adoption has entered every level possible from personal, organisational, industry, and governmental. This has been driven by changing consumer behaviour and a move to utilising online platforms.

Telcos, specifically, are in a unique position to take advantage of this shift by changing their business strategy and model from a B2C mentality that is focused on cutting costs to a value-added approach where the focus is on providing customers with more value-added services. In this way, Telcos are moving beyond selling traditional connectivity to delivering customers with platform-based products and services.

This will be made possible by utilising new NextGen technologies to create modular, reusable, cloud-native, AI-ready IT architecture that allows Telcos to deploy new services and offerings faster, at a lower cost to meet the flexibility requirements of this new engaged consumer base.

2025 Telecommunications Industry Trends

Below we examine 8 NextGen Technology trends set to make a significant impact in the coming years.

1. Internet of Things – IoT is a technology that is helping to create a new world in which technology is being utilised to develop smart cities, vehicle telematics, industrial automation, and smart manufacturing. IoT will allow Telcos to innovate their service offerings and use 5G capabilities to add value to their customer base.  
2. Connectivity Solutions – include both wired and wireless communication and are essential in today’s world especially considering the increasing data volumes, use of IoT devices, and the need for network connectivity and access. This creates an opportunity for Telcos to innovate connectivity technologies and create new revenue streams.
3. 5G & Network Infrastructure – 5G allows for faster connectivity, low latency, enhanced bandwidth, and connectivity speed. These benefits are changing the way many organisations operate and enabling digitisation, automation, and the remote monitoring and management of business operations. In this way, 5G networks will allow Telcos to target businesses with 5G related applications built for specific industries and their needs.
4. Artificial Intelligence – Artificial intelligence (AI) and machine learning (ML) allow for big data and analytics extraction. This insight will provide Telcos with the data needed to identify and resolve problems related to network performance and identify opportunities to enhance operations.
5. High-Resolution Content – the growth in high-resolution content, such as videos, pictures, music etc., has created an opportunity for Telcos to tap into virtual, augmented, and mixed reality and cloud-based gaming. For these technologies to work effectively, they rely on a Telco to develop a high-capacity telecommunications network.
6. Cybersecurity – cyber-attacks are on the rise, but security methods often conflict with the network’s core requirements. Telcos are in a position to innovate industrial networks by allowing the system to remain dynamic when faced with a cyber-attack.
7. Cloud Computing – the increased use of IoT devices and machine learning require high computing power. The cloud environment provides this and greater connectivity and integration of solutions. By utilising cloud computing, Telcos can connect to different environments, from factories to houses to cars.
8. Edge Computing – this technology shifts processing and storage away from centralised data centres and embeds those capabilities closer to the users. This offers Telcos an opportunity to provide advanced network connections and services. By using edge computing, Telcos will extend their role beyond network and connectivity services and move into the application and platform environment.

NextGen Technologies are expected to continue creating a shift in the telecommunication industry over the next five years. These technologies will allow Telcos to develop new value-added services that speak directly to different industry verticals, businesses, and consumers. This opens up a world of opportunity for Telcos to grow the industry, increase their revenue, and remain competitive. For Telcos to take full advantage of these NextGen technologies and the opportunities these technologies hold, they need to adapt their business models and ensure they have the right software in place to create these value-added offerings. This is where Adapt IT Telecoms Next.Gen vServices Framework comes in. For more on this solution and how it will ensure that you, as a Telco, can grow your business, download our whitepaper here.