Telecom communication and data services will command 50 percent of the digital consumer services industry by 2023, according to Ovum.
Telecoms’ share will drop 6 percentage points from 2019 through 2023 as revenues from mobile data and fixed broadband start to slow and all other service areas continue their sharp drop.
Pay TV, a business that telecoms invested heavily in, will also be nearing market saturation by 2023. As a result, the average household spend on traditional telecom services will decline during the next five years.
Business areas such as smart home, OTT video and digital gaming represent the biggest new revenue growth opportunities for telecoms. OTT video remains the largest opportunity due to the telecoms’ investment in pay-TV.
Smart home represents the fastest growing opportunity, with the digital games market providing the most attractive prospects due to its size and the rapid changes the industry is experiencing.
Technology areas such as 5G, artificial intelligence (AI) data analytics, and smart Wi-Fi platforms are enabling innovative bundles as well as more efficient methods of delivering new services and applications.
“Telecoms need to answer complex questions about their businesses, including what value can they can deliver to customers beyond services already offered by OTT players—and what strategies should they adopt to ensure future success,” said Michael Philpott, senior practice leader for consumer services at Ovum.