Wired and wireless telecommunications are changing: what it will look like in the future

Ever since AT&T split into seven baby bells and one long-distance behemoth in 1984, the telecommunications industry has been changing. Over the last 25 years, we have seen various changes in the industry grab headlines. Today, the industry is in the midst of another transformation. Let’s take a look at the forces that are reshaping it and what the industry will look like in the future.

Whether you’re a customer, investor, or employee, you need to know the direction of change and what’s coming. Let’s break down the industry and the companies into segments and look at each one separately because each company has parts that are growing and doing well, and parts that are not.

Look at the telecommunications industry in separate cubes. Actually, there are more than these basic packages, but these are the main important categories for now. Wireless, wired, Internet and television.

The wireless part of the business is the fastest growing, however, it is now beginning to experience some major changes. Until now, carriers have been fighting each other to win new customers. Today there are fewer new customers, so future growth is in new areas.

One is to gain existing customers from each other. We will see advertising and marketing battles discussing strengths and weaknesses. Verizon is currently waging a battle with AT&T over the quality of 3G coverage.

Is it successful? I remember a similar campaign years ago and it was much more successful. Nowadays people know that the main transport companies offer excellent quality. They also know that each has strengths and weaknesses. So whether a carrier is better or worse is different for every customer.

This type of advertising is no longer of value to customers, but that doesn’t stop Verizon from serving it or AT&T from responding. That’s the publicity game.

Another is wireless internet and data. In the late 1990s, networks transformed from voice-only analog devices to wireless data powerhouses. People started emailing and texting. They began taking pictures and then sent them to each other. They started by watching video clips, then live TV and movies. They started using GPS and reading books on their devices. Normal mobile phones are giving way to smartphones.

During the last few years, people are using their cell phones more than regular phones. We have seen wireless applications become very popular. When Apple released the iPhone a few years ago, only a few hundred app clients could use it. Today there are about 150,000 applications. That’s an incredible jump and it’s still growing.

Suddenly, Google is also competing in the wireless space with its Android phones and Nexus One. These aren’t even wireless carriers. This is just the beginning of this new area of ​​the industry. Expect much more in the years to come.

In the future, there are new opportunities that are beginning to be pursued in the wireless sector.

The wireless industry is focused on bringing other industries into the wireless revolution. Sprint is working with Ford to bring the Internet to the dashboard, and AT&T is working with power companies to help them read meters without sending people to cars. Industry after industry is a huge opportunity for growth in the coming years.

The wireless industry sees great opportunity, but the market is getting harder to break out of soft economics. Many customers are looking to cut costs. Smartphones continue to grow in part of the market. On the other hand, customers prefer fewer extra services and a lower bill.

Postpaid was always the engine of growth and prepaid was the service for customers with bad credit. Prepaid was more expensive, but at least it provided the customer with a phone. Today that is changing. Nowadays, many people choose prepaid for many reasons. The economy of the plans has moved closer to postpaid, making them more attractive. Customers who use their phone less can save money. Prepaid devices are more basic, but that’s what many customers want. Not everyone wants a powerful iPhone or Nexus One. Some just want a phone.

Companies want customers to opt for more expensive data plans, but more and more customers are opting for cheaper plans. Prepayment is becoming widespread. It’s not just bad credit anymore. Now it’s for the cost-conscious customer. This segment should continue to grow rapidly.

Expect the prepaid side of the business to start rolling out juicier devices that allow customers to easily browse the web and send emails and text messages. As they get better phones, carriers will advertise, market and entice prepaid customers to spend more.

Carriers spot new opportunities and customers spot the best deals. Until the economy improves, this trend will continue. The novelty of all these wireless devices is still interesting for many customers, but it is considered a toy that they can do without if necessary.

The wireless industry is beginning to compete with the world of fixed telephony. Remember that as wireless high-speed Internet connectivity increases and as wireless service providers offer devices that allow customers to connect their various computers and laptops, many think to themselves, why also have a landline phone? and separate DSL Internet or cable Internet service? Two services cost more, so expect to see more changes.

On the fixed line side, telephone companies are successfully rolling out TV services, but not as fast as we had hoped. I find the quality of service to be excellent based on the companies that rate these things. AT&T continues to roll out its Uverse services, but Verizon said it will slow down the rollout of FiOS TV service in more markets.

Is this a temporary measure during the bad economy or is Verizon saying it’s not happy with the results and pulling out?

They have invested huge sums to make this a reality, so I can’t imagine they won’t go ahead, but we have to look and wonder. I wonder if it will come back for Verizon, and I wonder if this is just Verizon or if we may see something similar at AT&T in the next few months.

Telephone company television has been an excellent source of competition in some markets for cable television companies such as Comcast, Time Warner, and Cox. However, we have not yet seen the cost drop, which was expected. What does this mean in the future?

Regular phone service at phone companies is down. Ten years ago, if we wanted to make a phone call, we used a period from the phone company. Today we have many options. Cable companies offer an Internet phone service called VoIP. Also, all wireless providers continue to grow. In addition, there are services such as Skype and Vonage, which are independent companies that offer telephony over the Internet. There are many options.

This means that the future of the local phone line continues to shrink. It will continue to exist for a long time, but it is not growing. When will it stop shrinking? It won’t go down to zero. It will stop somewhere. Where and when is the question? It will take a while to know the answer and the investors of the telephone companies are biting their nails.

The telecommunications industry is in transition. In fact, it has never stopped since the mid-1980s. Today it is just a snapshot in time. Knowing the address is key whether you invest, work or are a client of any of these companies. Keep your eyes open. The market will look completely different in a few years. Which companies and technologies will lead is the only question.