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2019 Telecommunications Industry Outlook

(Summary description)2019TelecommunicationsIndustryOutlook  Year2019hasbeenlinkedwiththerolloutoffifthgenerationtechnology(5G).Industryexpertshaveembarkedontheir5Gjourneyandareaspiringtoseetheireffortsbearfruitin2019.Howe

2019 Telecommunications Industry Outlook

(Summary description)2019TelecommunicationsIndustryOutlook  Year2019hasbeenlinkedwiththerolloutoffifthgenerationtechnology(5G).Industryexpertshaveembarkedontheir5Gjourneyandareaspiringtoseetheireffortsbearfruitin2019.Howe

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2019 Telecommunications Industry Outlook
 
 
Year 2019 has been linked with the rollout of fifth generation technology (5G). Industry experts have embarked on their 5G journey and are aspiring to see their efforts bear fruit in 2019. However, other trends are expected to impact the telecommunications industry. Technological advances have created what is dubbed the ‘digital era’ and are paving the way for significant IT and network architecture changes in 2019.
 
A recent study by S&P Global Ratings forecasted global telecom revenue growth of 2%-3% through 2019 driven primarily by broadband as demand for high speed data continues to increase. In fact, the revolution of increased data consumption will persist in 2019 with even greater volumes of data generated by new technologies. Streaming video on ultra-high-definition TV screens, virtual reality applications, real-time online gaming, and smart homes are trends that emerged a couple of years ago and that require high-capacity, low-latency network connections.
 
In 2019, investment in capital and wireless spectrum for 5G is expected to be substantially higher than prior generations of wireless deployments because carriers need new wireless spectrum, deeper fiber backhauls, particularly in key urban markets, and substantially more cell sites to deliver the benefits of 5G. In this context, network element virtualization, improved spectrum efficiency, and the use of fiber optics will generate potential cost benefits.
 
S&P Global Ratings predicts, “Despite the excitement and promise of 5G, we have a cautious view on its timing, and our ratings don't yet fully incorporate 5G-specific cost or revenue assumptions. High 5G investment could raise cash flow and balance sheet risk for telecom operators, although there will clearly be new revenue opportunities in the long term. With modest 4G returns still in mind and 5G use cases likely several years from maturity, we believe telecom operators will take a measured, economically-focused approach that results in a slower global rollout than we saw with 4G.”
 
5G deployment’s timeline will vary by markets and regions because it is bound to policies, financial resources, regulatory frameworks and demand on technology. The deployment is also expected to be initially limited to denser urban and suburban markets.
 
 
 

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Time of issue:2021-04-28 10:55:44
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