Mobile Telecommunications Industry-Europe (Part 2)
The European telecommunications industry is increasing in size and in technological advancements. Higher revenues and more efficient/effective mobile network service capabilities are providing greater and faster coverage at lower costs with decreased human operated maintenance.
FUTURE TRENDS AND INDUSTRY DRIVERS
- Continuing developments are expected in fully integrating mobile telecommunications with other aspects of living, including vehicle and home connectivity, and even the creation of smart cities.
- It's well understood that consumers have "an insatiable appetite for mobile data." With such an intense consumer demand coupled with consistent and rapid advancements in telecommunications quality and offerings, the mobile telecommunications market seems to have nearly limitless opportunity for expansion.
- These advancements may also spur telecommunications companies into expanding over wider regions, including more in-depth arrays of service areas in an attempt to balance pricing.
- Unlimited data plans are also becoming not only more common, but approaching total market control/engagement at a rapid pace.
- With increased quality of mobile telecommunications services, new technological breakthroughs such as augmented and virtual reality are becoming more available to a broader consumer base.
- Voice assistance through mobile telecommunications is still rising in popularity, having reached use rates of 69% of customers weekly, and 47% of customers daily.
- Satellite system providers are also being implemented to massively increase mobile telecommunications effectiveness and range, reaching excessively remote locations through direct communication, reducing the need for centralized data flow on Earth's surface.
INDUSTRY SIZE INCREASE
- At the end of 2017, the mobile industry in Europe was worth €143 billion and is expected to reach €144 billion at the end of 2025 at a CAGR of 0.1%. This indicates that at the end of 2019, the mobile industry will be worth approximately €143.3 billion (€143 billion *1.001^2).
ADVANCES IN PRIMARY SERVICES
- "Mobile operators in Europe have invested heavily" in 4G networks over the past years. As of 2017, 4G services covered 97% of the population and are estimated to increase to 98% in 2025.
- LTE Advanced Pro is a new standard (2018 findings) in Europe, providing improved transfer and latency rates. "Over the past 3 years, 17 LTE Advanced Pro networks have launched in the region." Technology is continuing to advance, providing even more powerful telecommunications networks that may further improve the future outlook and market presence of mobile network providers.
- Mobile Virtual Network Operators (MVNOs) are secondary providers of mobile telecommunications services through excess capacities of primary network providers that own and operate physical telecommunications equipment and locations.
- According to a 2018 report by Billrun, MVNOs are seeing their highest success rates in Europe from approximately 10% to 40% of the mobile market. There were 599 MVNOs in the region in 2015. As telecommunications markets expand, there may be further opportunity for these types of companies to capitalize on increased mobile communication capacities.
- Europe's mobile operators are investing in further "development of the Internet of Things (IoT) market, with commercial launches of Licensed Low Power Wide Areas (LPWAs) across the region."
- LPWA networks provide lower maintenance telecommunications services while still covering larger areas, making a highly economical and effective mobile network that outperforms many traditional telecommunications service methods.
4th GENERATION TO 5th GENERATION INTRODUCTION
- At the end of 2017, there were 285 million 4G connections, accounting for 42% of total connections in Europe. 4G has now surpassed 3G as the leading mobile technology in the region. This demonstrates a continuing trend of technological advancement that is constantly evolving, creating newer, faster networks, and providing enhanced services.
- As network types develop, The European Commission expects 5G to be commercially available in at least one major city in each EU country by 2020. It is estimated that there will be 203 million 5G connections by 2025.
- As 5G networks are becoming more popular, costs per customer are expected to decrease as mobile connectivity packages/plans are made more accessible to the total public, in part due to the expanding lucrative market with higher revenue and profit margins.
- 5G may also have significant opportunities in implementing blockchain technology that can simplify data systems and create self-managed networks.