Our guest writer Emre Beşli is a Partner in EY Turkey (Ernst & Young) Consultancy Department and leader of the Telecom, Technology and Media Sector.
The next generation mobile telecommunications service 5G offers unmissable opportunities for companies to reconsider the value propositions it offers to its customers. Given the expectation that the share of mobile technologies and services in Europe in regional product is 3.3% in 2017 and that this rate will exceed 4% in 2022, 5G is the basis for a radical global transformation in the telecommunications sector. we predict that it will create.
On the other hand, we cannot look at the positive outlook of the future for the European telecommunications sector. The region’s fragmented market structure, uncertain demand projections and ongoing complexities in regulations present considerable challenges for telecommunications companies. However, internet of things (IoT) services are a low single-digit portion of telecommunications revenues. Therefore, it is vital to draw a stronger digital transformation roadmap across the industry, to develop dialogue with stakeholders in this direction, and to make customer interactions more meaningful to contribute to this transformation. With the preparation of companies for 5G, data protection regulations and increased security requirements and the rising talent gap in the digital arena are the risks that require companies to change their approach.
Europe has the highest mobile penetration rate worldwide and is expected to reach 88% in 2025, up from 85% in 2017. We observe that governments and policymakers in the region are aware of the potential of 5G to increase productivity in traditional industries. This is reflected in Europe’s 5G targets. For example, the European Union’s (EU) 5G Action Plan envisions uninterrupted 5G service on all major roads and train lines by 2025. We also see that governments have made arrangements to encourage investments in this direction.
In light of these developments, 5G offers telecommunications operators a great area of innovation to develop new services. Data analysis, artificial intelligence and machine learning combined with 5G will enable operators to provide more informed services on location and content and improve customer satisfaction with personalized services. As a result, operators will play a much more important role in the sector’s value chain with the new services they offer. We anticipate that their share in the digital economy will increase due to deepening the relationship with their customers and the new experiences they offer.