The future is full of exciting concepts and technologies that will become a reality. But the real unknown is the timing. As we look back over the past few years, there’s been discussion about 5G, metaverse, blockchain, private wireless networks and much more. All of these technologies are real, but none of them are truly mainstream yet. So, to predict the true impact in 2024, we will focus on three things.
#1: The Invisible Network
Access to internet connectivity and enormous data capacity are mandatory to power everything from smart home devices to metaverse gaming and AI-powered personal assistants, like Humane’s Ai Pin. Normally, you'd purchase a device, set it up and pair it with your Wi-Fi. As we step into 2024, however, we’re embarking on what we refer to as the “Invisible Network” era.
In this era, such devices will include embedded connectivity. In our digital world, we care about getting what we need, when we need it - not about the “back end.” The telecommunications sector has been intensely focused on enhancing network bandwidth, proudly touting the benefits of 4G, 5G, “network slicing,” and the multiplexing of virtualized networks. But none of that matters to us.
We want tailored, digital, intuitive customer experiences and the reliable, high-bandwidth capacity necessary to make that happen. In the Invisible Network Era, connectivity will be seamless and embedded everywhere, dramatically streamlining the customer experience.
But that’s not the only breaking news of the Invisible Network Era. Mobile network connectivity will also become more commonly bundled with services like local utilities, as Nova Energy did in New Zealand. Additionally, bundling will be included with subscription packages like Amazon Prime, making offerings more attractive to consumers and simplifying our lives.
It means innovators who embrace the need for invisible and seamless network connectivity will become mobile virtual network operators (MVNOs). But that acronym is a mystery to new market entrants who don’t want to dive deep into the complexities of the telecom world. These MVNOs, like end users, aren’t concerned with the intricacies of connectivity. It isn’t their field.
They expect software that automates processes like customer onboarding, billing, charging and customer self care. Most importantly, they will demand immediate and real-time access to customer data to drive the most personalized and proactive actions to keep their customers engaged.
#2: AI-Powered Customer Experience
The concept of artificial intelligence (AI), powered by machine learning (ML) algorithms continuously trained by massive data sets is not new. It was introduced to the computer science community in the 1950s by well-known tech geniuses, including Alan Turing and John McCarthy. But to turn the concept into executable reality, two very important components were required — an unimaginable amount of computing power to process an unimaginable amount of data.
A recent G2 article confirmed that in 2023, we will generate nearly three times the volume of data generated in 2019. By 2025, people will create more than 181 ZB of data. (Try to imagine 181 followed by 21 zeros!). With the technology needed to process this data and the data itself, the AI-powered customer experience will be a competitive advantage for all industries if used correctly and securely. 2024 will be a breakthrough year, moving from AI hype (which will obviously continue) to everyday consumer impact.
Imagine a world where you don’t have to set up your home thermostat to temperatures for daytime and nighttime. Instead, your smart home system will combine weather forecasting, your historical usage and pricing information from your utilities provider to optimize your temperature for the most comfortable and efficient home. Imagine a world where the call center you are contacting not only knows who you are but why you are calling and proactively recommends the best course of action — all without the need to listen to endless loops of music.
These are just two examples of an AI-powered experience, and embedded connectivity in the Invisible Network Era will be a key part of that experience. Enabling the transfer and unification of AI data workloads with a high-speed network and cloud-native analytics will be the foundation of the AI-powered customer experience.
#3: The Open Door Policy
Capital investment in telecom infrastructure worldwide continues to grow. In the United States alone, large carriers like AT&T, Comcast, Charter and Verizon spent more than $60 billion on infrastructure in 2022, according to Fierce Telecom. While this will likely slow down in the coming year, it’s still a number of epic proportions.
Historically, this level of necessary investment protected the telecom industry. Competition was limited because very few companies could afford to compete. But the burden of this Capex investment is not trivial. Now, ROI is a growing focus at the executive level, especially with the very disappointing impact of 5G.
To address this, strategic thinking carriers are implementing a new Open Door Policy, a high-priority business strategy that welcomes new market entrants, including MVNOs, embedded connectivity device manufacturers, IoT providers and more. Carriers like T-Mobile are already aggressively pursuing innovative new partnerships and, most importantly, creating an open architecture for integrating digital billing and charging platforms that new market entrants choose for themselves, enabling them to implement the highest level of digital customer experience.
In 2024, more Tier 1 and Tier 2 operators will shift their strategic focus to an Open Door Policy. It will enable innovative new players to embed connectivity more easily and target specific demographics with new devices, services and business models. Government regulators will be key to this collaboration.
It will become more than just a secondary revenue stream. It will become a major growth opportunity leveraging the unused bandwidth resulting from the billions of dollars in infrastructure investment that has yet to deliver the expected return. Shareholders will be happy to see the results.
