Innovation from global internet companies is driving greater demand for bandwidth, which telecoms, cable and tower companies are well placed to supply – although the regulatory focus on end-user pricing has negatively impacted industry returns. At some point, regulatory oversight could ease as a result of privacy concerns and a shift away from globalization, allowing operators to unlock inherent scale advantages. Meanwhile, AI, ML and big data technologies should allow operators to reduce costs, simplify systems and improve customer experience, resulting in cost savings.

Company specific thoughts:

The new data economy will require a step-change in data storage and connectivity. Existing telecom, cable and tower operators such as Cellnex and Inwit are well placed to meet demand, alongside new neutral communications infrastructure providers. Where services are concerned, Vodafone is investing heavily to benefit from opportunities brought by big data, AI and ML to transform legacy cost structures and customer experience. Following strategic acquisitions, Video on Demand has segment leadership (albeit relatively small) and is well placed to benefit from new end-user revenue streams.


Media & Telecoms: Up close

The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.