As we usher in 2024, it’s time to peer into the crystal ball to see what the telecommunications industry has in store. Jeff Fraleigh, President of ETI Software, shares his insights on what lies ahead in an ever-evolving landscape – from the impact of funding to technological innovations, regulatory shifts, consumer preferences, and security concerns.
Here are the key trends Fraleigh sees that will shape telecommunications in 2024:
In the world of telecommunications, funding is a driving force. Public and private investment plays a pivotal role in shaping the industry. “The impact of strategic private equity will continue to be a dominant force in 2024,” says Fraleigh. “While government funding is getting lots of attention, private equity is set to make an even more significant impact.” This influx of private capital is expected to intensify competition among internet providers as they vie for a piece of the investment pie.
2024 will mark a significant shift in how telecommunications companies approach their IT and business transformations. After a period of relative stagnation, there is renewed vigor in reassessing internal capabilities and growth strategies. Many organizations are now asking, “Is what we have good enough?” As Fraleigh points out, “This self-examination is closely intertwined with financial considerations, as companies strive to allocate resources effectively.”
Moreover, as the IT landscape is evolving rapidly, there’s a growing interest in next-generation technologies. “Companies are no longer content with maintaining the status quo but are actively exploring innovative solutions to stay ahead in the telecommunications game,” he observes.
One of the most exciting prospects for 2024 is the role of artificial intelligence (AI) in the industry. Major industry telecom players are actively integrating AI into their services, while smaller ISPs are embracing cloud-related applications and bolstering their IT infrastructure. This pivotal shift promises to deliver heightened efficiency and an array of enhanced services for consumers.
“But, it’s going to be crucial to distinguish between the realm of AI fantasy and its practical applications,” Fraleigh warns. “What you’re going to discover is that the impending AI revolution is poised to revolutionize the customer experience across several key dimensions, which range from initial onboarding to ongoing account management.”
Historically, customers have contended with the frustration of relying on human representatives for service alterations, their experiences often dictated by the availability and preparedness of customer service personnel. However, as AI emerges, it will become a game-changer by harnessing data and automation to elevate customer interactions. “AI empowers customer service representatives with a wealth of information,” he points out, “which enables them to offer personalized and highly effective assistance.”
Moreover, AI-driven field service management mirrors the convenience and safety found in popular ride-sharing apps like Uber. Customers can now access precise information regarding service technician arrival times, along with comprehensive details about their appearance and vehicle, fostering trust and a heightened sense of security. This shift from vague timeframes to specific appointment slots significantly contributes to improved customer satisfaction.
“AI’s practical applications extend to resource scheduling and equipping customer service representatives with tailored information to address individual issues. As businesses continue to leverage the potential of AI, these areas are undoubtedly becoming focal points for enhancing the customer journey,” Fraleigh says.
Regulatory enforcement is set to take center stage in 2024. While many regulations exist, their effectiveness often hinges on enforcement. So, as enforcement becomes a higher priority, companies will face increased scrutiny regarding metrics like the number of homes served, take rates, and efforts to bridge the digital divide. “As I see it, the regulatory landscape will play a crucial role in shaping the industry’s future, driving providers to adhere to higher standards,” says Fraleigh.
In the race for market dominance, competition isn’t just about price; it’s about the customer experience. With the initial price wars subsiding, internet service providers (ISPs) are focusing not just on delivering faster speeds but also on providing superior quality of service. Consumers are increasingly comfortable with streaming services, and this shift is reshaping the traditional cable industry.
“Streaming benefits both consumers and ISPs,” notes Fraleigh. “It allows providers to allocate fewer resources to video services while offering consumers greater on-demand flexibility. While traditional cable companies may have reservations, this trend is a win-win for most.”
As technology advances, so do concerns about security and privacy. In 2024, these concerns will remain a top priority. Telecommunications companies will continue to invest in bolstering their network security and protecting sensitive information. For mid-tier ISPs, partnerships with trusted entities such as Microsoft and managed services help mitigate risks, especially in the face of budget constraints.
The telecommunications industry is poised for a dynamic year ahead. Jeff Fraleigh’s insights provide a glimpse into the key trends and challenges shaping the landscape in 2024. From financial influences to technological advancements, regulatory shifts, evolving consumer preferences, and the ever-present need for security and privacy, the industry is in for an eventful year. As technology continues to evolve, adaptability and innovation will be the keys to success in this competitive arena.
