5 Timely Trends Shaping Telecommunications into 2023

Rural telecommunications are one of the most dynamic markets in the U.S., fueled by fascinating and durable tailwinds that will push companies through 2023 and beyond.

Rural telecommunications are one of the most dynamic markets in the U.S., fueled by fascinating and durable tailwinds that will push companies through 2023 and beyond.

For example, we are witnessing unprecedented levels of investment to expand broadband access. The data center market is bracing for exponential growth. And big tech companies are pouring billions of dollars into virtual reality applications, which will be mainstream sooner than expected. Meanwhile, private communications companies are taking a star turn as their market valuations continue to outshine those of their publicly traded counterparts. 

Here are five notable market-moving developments to watch.

 

Private wireless networks can connect the farm

Previously unserved businesses and organizations in rural America have found an affordable solution in these carrier-grade networks. The business case for farmers, who need high-speed broadband to leverage precision agriculture technologies, is compelling. According to The Ohio State University, farmers are willing to pay between $10 and $30 per acre for broadband. That means a grower with 8,000 acres is willing to pay up to $240,000 for coverage.

However, CoBank’s modeling indicates that a 50-member cooperative can build a private wireless network for around $55,000 per farmer with the same acreage – up to 77% less than they expected.

Meteoric rise in the datasphere is coming

The metaverse, autonomous vehicles, migration to the cloud: The demand for data processing and storage will only skyrocket. In 2020, the global datasphere, or the total volume of data created in that year alone, was about 64 zettabytes. 

Datacenter infrastructure to support the 64 zettabytes in 2020 was estimated to cost 2 trillion dollars. By 2035, self-driving cars alone will spike the datasphere to an estimated eye-popping 10,000–15,000 zettabytes. Suffice it to say that the additional capital required for infrastructure, fiber, and data centers to support 10,000 zettabytes will be astronomical.

Fully immersive AR/VR has a need for speed

Big tech companies have recently announced levels of spending on augmented and virtual reality applications that signal accelerated development and time to market. Meta is spending a minimum of $10 billion a year on AR/VR. Apple and Microsoft haven’t been as explicit about their investments, but rest assured, they’re in the billions.

Fully immersive AR/VR applications will require home broadband connection speeds of 200 to 5,000 Mbps. In addition to ultra-fast networks, AR/VR will need data centers located close to where the applications are being used.

Wireless providers are competing for home broadband

National wireless operators are making big gains in the home broadband market with their fixed wireless access offerings as they take market share from incumbent cable companies.

In Q2 2022, FWA providers claimed 100% of broadband net subscription additions. (FWA market share is calculated by comparing T-Mobile and Verizon’s FWA additions to Comcast, Charter and Altice fixed-line broadband additions.) That’s quite a jump from Q4 2021, when it was 43%.

T-Mobile already covers 30 million homes with FWA and is targeting second and third-tier markets where they typically have excess network capacity. Verizon plans to cover 30 million homes by 2023 and is focusing primarily on urban markets. Meanwhile, Charter Communications, Comcast, and Altice USA aren’t taking chances and have all launched wireless services via mobile virtual network operator (MVNO) models. They bundle their broadband service with smartphone plans and phones, a strategy that is paying off with subscriber growth.

Valuations soar for private broadband companies

The valuation gap between private communication companies and public cable companies is the widest we’ve ever seen. Based on recent transactions, valuations for private companies are more than two times higher than the average valuation for the main publicly traded cable companies. Several factors are driving this gap, including strong M&A interest from institutional investors.

Electric co-ops that have deployed broadband networks are well-positioned to enjoy similar valuations given their brand equity, strong balance sheets, and similarities to competitive fiber operators. Despite these tailwinds, as we enter 2023 with rising interest rates and recession warnings signs flashing red, it’s reasonable to assume some downward pressure on private valuations.

Read the complete article in the 5G Magazine

Spotlight Your Innovation in 5G Magazine

The Private Network Revolution

Related Magazine Content

Magazine
Explore Nokia’s leadership in private 5G/LTE networks, showcasing a global reach with over 500 enterprise customers and 1500+ mission-critical networks across industries like healthcare, manufacturing, and more.
Magazine
Explore Nokia’s leadership in private 5G/LTE networks, showcasing a global reach with over 500 enterprise customers and 1500+ mission-critical networks across industries like healthcare, manufacturing, and more.
Magazine
Explore how Cox’s MOCN Neutral Host revolutionizes indoor cellular connectivity in education and healthcare, offering robust, cost-effective solutions.
Magazine
Explore how Cox’s MOCN Neutral Host revolutionizes indoor cellular connectivity in education and healthcare, offering robust, cost-effective solutions.
Magazine
Discover how 5G analytics, through NWDAF, enhances telecom operations, enabling cost reduction and new revenue channels.
Magazine
Discover how 5G analytics, through NWDAF, enhances telecom operations, enabling cost reduction and new revenue channels.
Magazine
Explore how John Deere is systematically adopting private 5G networks, addressing challenges arising from rapid growth of industrial IoT and network limitations.
Magazine
Explore how John Deere is systematically adopting private 5G networks, addressing challenges arising from rapid growth of industrial IoT and network limitations.
Magazine
Organizations globally are tapping into the vast potential of the Operational IoT market, from transforming weather monitoring in remote mines to ensuring safe drinking water in African communities. The real game-changer is the integration of reliable, cost-effective satellite connections, predicted to rise to tens of millions by 2030. These connections make it possible to transmit data periodically rather than in real-time, reducing costs and meeting the specific needs of industries like agriculture, shipping, and environmental monitoring. The challenge for Systems Integrators (SIs) is to ensure their Satellite IoT deployments are not only technologically viable but also commercially successful. Ensuring robust satellite coverage, cost-effective deployment, and prolonged battery life are essential to this business case. Forward-thinking SIs have already started their journeys, optimizing Satellite IoT solutions, proving its business worth, and preparing for large-scale deployments.
Magazine
Organizations globally are tapping into the vast potential of the Operational IoT market, from transforming weather monitoring in remote mines to ensuring safe drinking water in African communities. The real game-changer is the integration of reliable, cost-effective satellite connections, predicted to rise to tens of millions by 2030. These connections make it possible to transmit data periodically rather than in real-time, reducing costs and meeting the specific needs of industries like agriculture, shipping, and environmental monitoring. The challenge for Systems Integrators (SIs) is to ensure their Satellite IoT deployments are not only technologically viable but also commercially successful. Ensuring robust satellite coverage, cost-effective deployment, and prolonged battery life are essential to this business case. Forward-thinking SIs have already started their journeys, optimizing Satellite IoT solutions, proving its business worth, and preparing for large-scale deployments.
Magazine
The emergence of 5G New Radio NTN is set to revolutionize the satellite communication market by bridging the gap between terrestrial and non-terrestrial networks. Offering improved speeds, lower latency, and enhanced reliability, 5G NR unlocks new transformative use cases from smart cities to augmented reality. With 5G NR’s potential to beam signals from space, satellite communication will gain a competitive edge, providing powerful, seamless connectivity globally. Additionally, the unification of 5G standardization for both types of technologies promises heightened interoperability, allowing users to switch between networks effortlessly. This synergy presents a lucrative opportunity for businesses in both sectors, even as technical challenges persist.
Magazine
The emergence of 5G New Radio NTN is set to revolutionize the satellite communication market by bridging the gap between terrestrial and non-terrestrial networks. Offering improved speeds, lower latency, and enhanced reliability, 5G NR unlocks new transformative use cases from smart cities to augmented reality. With 5G NR’s potential to beam signals from space, satellite communication will gain a competitive edge, providing powerful, seamless connectivity globally. Additionally, the unification of 5G standardization for both types of technologies promises heightened interoperability, allowing users to switch between networks effortlessly. This synergy presents a lucrative opportunity for businesses in both sectors, even as technical challenges persist.
Magazine
The rise of smart vehicles, projected to surpass 470 million connected cars by 2025, is rapidly transforming the transportation landscape. Enabled by IoT, these vehicles offer real-time communication with infrastructure, on-the-go diagnostics, and advanced safety features. Yet, challenges like patchy cellular network coverage persist. From facilitating autonomous driving and vehicle-to-vehicle communication to enhancing safety and sustainability, satellite-powered IoT is set to accelerate the connected vehicles revolution, optimizing transportation efficiency and environmental impact.
Magazine
The rise of smart vehicles, projected to surpass 470 million connected cars by 2025, is rapidly transforming the transportation landscape. Enabled by IoT, these vehicles offer real-time communication with infrastructure, on-the-go diagnostics, and advanced safety features. Yet, challenges like patchy cellular network coverage persist. From facilitating autonomous driving and vehicle-to-vehicle communication to enhancing safety and sustainability, satellite-powered IoT is set to accelerate the connected vehicles revolution, optimizing transportation efficiency and environmental impact.
Magazine
The mobile phone industry is undergoing a transformation, with emerging technology enabling direct communication between standard mobile phones and satellites. With regulatory changes, international partnerships, and new technological standards, mobile devices will soon boast enhanced satellite connectivity. Companies like SpaceX and Apple are diving deep into the race to provide extensive satellite communication, partnering with T-Mobile and Globalstar, respectively. As the competition intensifies, companies are pushed to innovate or risk becoming obsolete.
Magazine
The mobile phone industry is undergoing a transformation, with emerging technology enabling direct communication between standard mobile phones and satellites. With regulatory changes, international partnerships, and new technological standards, mobile devices will soon boast enhanced satellite connectivity. Companies like SpaceX and Apple are diving deep into the race to provide extensive satellite communication, partnering with T-Mobile and Globalstar, respectively. As the competition intensifies, companies are pushed to innovate or risk becoming obsolete.
Magazine
Discover how Radisys Corporation is shaping the future of Open RAN and 5G technologies. Embracing change and spurring innovation, Radisys is accelerating the deployment of flexible and integrated solutions, pioneering a new era in wireless communication. Learn how they are extending network coverage, deploying private 5G use cases, and championing energy efficiency. Explore Radisys’ strategic focus areas in partner collaboration and their extensive collaborations within the 5G ecosystem in our comprehensive article.
Magazine
Discover how Radisys Corporation is shaping the future of Open RAN and 5G technologies. Embracing change and spurring innovation, Radisys is accelerating the deployment of flexible and integrated solutions, pioneering a new era in wireless communication. Learn how they are extending network coverage, deploying private 5G use cases, and championing energy efficiency. Explore Radisys’ strategic focus areas in partner collaboration and their extensive collaborations within the 5G ecosystem in our comprehensive article.
Magazine
Discover how the Telecom Infra Project (TIP) is leading the Open RAN revolution by accelerating the commercial adoption of secure, high-performance network solutions. Tackling challenges in Open RAN adoption and catalyzing industry effort, TIP’s project groups, badging processes, and marketplace initiatives are reshaping the future of Open RAN and 5G technology.
Magazine
Discover how the Telecom Infra Project (TIP) is leading the Open RAN revolution by accelerating the commercial adoption of secure, high-performance network solutions. Tackling challenges in Open RAN adoption and catalyzing industry effort, TIP’s project groups, badging processes, and marketplace initiatives are reshaping the future of Open RAN and 5G technology.

Content, Design, And Lead Generation Services to Elevate your Marketing Efforts