“Out with the old and in with the new” seems to be the mantra of the 21st century for the big telecoms companies. One example of this affecting our world is the rapidly expanding digital technology push in the telecoms industry. Telecoms companies are finding themselves redefining their businesses in order to continue holding their place as world leaders in long distance communication. Significant increases in the number of mergers and acquisitions (M&A) have encouraged bold developments and diversification; paving the way for an industry that will be unrecognizable within the next few years.
With innovation comfortably seated at the heart of all technology, internet-based communication services have taken over what was once the foundation of telecoms, with over 80% of messaging traffic represented by the likes of WhatsApp, Viber, and Apple’s iMessage.
Network improvements are in high demand to, with the upcoming 5G upgrades showing immense potential. The pressure is on telecom companies to find modern solutions to keep up with ongoing advancements.
This is where M&A serves as an easy alternative for entering new markets, making it simpler to specialize in many areas of digital expertise. Telecoms spent an additional 137% on M&A in 2016, with further deals continuing to be well-documented in 2017.
Remaining relevant in an ever-changing and competitive digital world is no easy feat. Pushed by ongoing advancements and innovation, telecoms can expect even greater growth and industry expansion during 2017. Further changes will become apparent as M&A continues, encouraging a fresh approach from traditional telecom businesses.
While the exact direction of digital technology may be uncertain, one thing is for sure: continued diversification will completely redefine what it means to be a telecom company.