5 predictions for telcos for 2024

I’m looking at my crystal ball, let’s see if I can come up with predictions that materialize throughout 2024.

Prediction #1 - SK Telecom will use generative AI to dub its video streams:

• Background
  SK Telecom invests $100m in generative AI startup Anthropic - Read more
  YouTube is testing a new tool that will help creators automatically dub their videos into other languages using generative AI - Read more

• Trend
  Telcos will invest in generative AI proof-of-concepts in the domains of customer care, marketing, content, and network operations to save costs.

Prediction #2 - Telenor will announce a major cloud migration program where its key IT applications will go to the cloud:

• Background
  Amol Phadke left Google’s Global Communications Service Providers Industry GM position and is now the group CTO of Telenor - Read more

• Trend
  Telecom operators worldwide will continue to experiment with the cloud, mainly by bringing new applications live on the public cloud and keeping their legacy applications untouched.

Prediction #3 - e& will buy into Ethio Telecom:

• Background
  e& is the biggest shareholder of Vodafone Group Plc. e& is moving ahead with its global expansion strategy, undeterred by a drop in Vodafone’s share price that has wiped out a slice of its most important investment: Read more and more

• Trend
  To pursue the Economies Of Scale, mergers and acquisitions of telecoms will continue throughout 2024 in the industry.

Prediction #4 - Despite heavy investment in 5G, Telefonica will report <%2 revenue growth. The consumers are not willing to pay a premium for 5G and the 5G industrial use cases will have moderate success.

• Background
  STC Group announced a 9.9% stake in Telefonica to become the Spanish telecom giant's top shareholder. Telefonica has faced a profitability drop due to competition and the need for hefty investment in 5G. Moreover, it has been selling stakes in other businesses such as submarine cables or mobile masts to fund 5G - Read more

• Trend
  5G is meant to have the potential to revolutionize various industries by enabling high-speed, low-latency communication and supporting a wide range of innovative use cases (telemedicine, autonomous vehicles, connected traffic management, smart metering, AR/VR, Industry 4.0, IoT sensors in agriculture). None of the industrial use cases of 5G has demonstrated significant market interest and outstanding profit.

Prediction #5 - Deutsche Telekom will acquire a stake in N26 neo bank:

• Background
  Allianz Group is looking to exit N26, which has been struggling recently - Read more

  Deutsche Telekom could be becoming more interested in FinTech after its Greek subsidiary (OTE) entered this space with a new app - Read more

• Trend
  Telecom companies will continue seeking diversification and adjacent revenue streams by acquiring OTT, SaaS, food delivery, FinTech, and InsurTech companies.

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This is a personal post. The author does not have insider information. The views and opinions expressed here are only those of the author and do not represent those of any organization or any individual with whom the author may be associated, professionally or personally.