Young Consumer Base Demands Innovative New Offerings From Telecom Providers

The rapid development of technology has had a profound impact on consumer trends and demands, with expectations largely growing unabated

Image by Gerd Altmann from Pixabay
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The very first generation of wireless telephone technology was commercially available during the 1980s, while nowadays, most consumers are connected to a 4G LTE network on their mobile phones. 4G LTE technology provides download speeds upwards of 50 megabits per seconds. At the current bit rate, which currently goes up to 50 megabits per second, consumers can view a movie with little to no buffering interruptions or load a web page in a matter of seconds. Bit rates are crucial for various applications because they dictate how fast a consumer can access data.

During peak internet usage, consumers can experience their upload or download speeds drastically slow down. Moreover, there are specific regions across the world that aren’t covered by the 4G LTE umbrella network. The slow speeds and lack of coverage can be frustrating for many consumers and as a result, the demand for 5G technology has emerged over the past several years. Even though 5G technology is not commercially available yet, many telecom and tech companies have partnered to launch pilot initiatives.

Through these various pilot trials, results have shown that 5G technology can top out at speeds of up to 10 gigabits per second. To put the speed into perspective, the Consumer Technology Association highlighted that 5G technology can download a 2-hour movie in just 3.6 seconds compared to 4G’s speed of 6 minutes and 3G’s speed of 26 hours. Furthermore, 5G also reduces latency, meaning there are faster loading times and improved responsiveness.

According to data compiled by Transparency Market Research, the global telecommunication services market was valued at USD 0.8 Billion in 2016. By 2025, the market is expected to reach USD 1.4 Billion while also exhibiting a CAGR of 6.6%. TPT Global Tech Inc., Telefonaktiebolaget LM Ericsson  Sprint Corporation, BlackBerry Limited, Infinera Corporation.

Primarily, most telecom consumers are millennials that grew up during the rise of technology. In underdeveloped regions around the world, 67% of the youth is connected to the internet, on the other hand, in developed regions, 94% of the youth is online, according to the International Telecommunications Union.

In particular, the U.S. has one of the largest network coverages. Predominantly, most U.S. consumers access the internet through their smartphones. According to the Pew Research Center, approximately 92% of millennials own a smartphone compared to 85% of Gen Xers and 67% of Baby Boomers. However, unlike Gen Xers and Baby Boomers, Millennials are heavily invested into the internet as a vast majority of millennials (85%) say they use social media.

For instance, Millennials alone account for a majority of the market share on major social media apps like Instagram and Snapchat. Overall, telecom services have completely reshaped the social media platform because users can now simply upload, download, view images, posts, and videos in a matter of seconds. Furthermore, as technology continues to advance, consumers will experience faster connectivity, allowing them to upload or download content at speeds quicker than ever before.

“In the tech industry, we have a lot of “next big things.” 5G, however in my opinion, really is the thing that will make every other next big thing possible. It’s a super highway that will make 4G look like a little back country road. 5G is taking digital transformation to new heights and it will be exciting to see the developments that come with it,” said Daniel Newman, Chief Executive Officer of Broadsuite Media Group and Principal Analyst at Futurum.

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