Mobile market trends and insights for your business

At the recent Telstra Wholesale Business Connect 24 Strategy and Performance Executive​ Juliet Tomkins shared insights about the global and local mobile telecommunications market. Below are some key points from her presentation.

The global view: external factors shaping the telco industry​

Each mobile market has its own particular characteristics. However, there are global macro forces that shape the overall environment for MNOs and MVNOs.

Essential connectivity leads to network investment and innovation

The first point is that resilient and secure mobile connectivity is now essential​ globally. With everything from consumer shopping apps to industrial control systems becoming dependent on connectivity, network infrastructure is vital.

We have seen a wave of investment in digital infrastructure worldwide to meet demand. Mobile World Congress (MWC) this year highlighted the emphasis on network innovation and efficiency. Key themes from MWC include the advancement of industry use cases, showcasing B2B technologies for sectors such as manufacturing, logistics, and IoT. 5G evolution and 6G research and development were also significant topics, including 5G slicing, artificial intelligence (AI) integration, autonomous networks, and Open RAN (O-RAN) architecture. These discussions reflect the growing importance of digital infrastructure and connectivity, demonstrating the commitment to driving innovation and enhancing network capabilities.

We are also seeing the satellite ecosystem evolve. More operators are entering into partnerships with LEOsat providers to offer reliable, available connectivity in areas where it’s not cost-effective to deploy traditional mobile infrastructure of towers and fibre backbone.

AI comes to mobile

As you might expect, AI has been a hot topic in the mobile market. Consumer expectations and purchasing look set to be shaped by AI. ​

At MWC, industry leaders and experts explored how AI can enhance various aspects of our lives, from improving customer experiences (CX) to boosting productivity and enabling innovation on devices.

Creating a sustainable mobile industry

The mobile industry must be sustainable in more ways than one. Making the investments needed to support the ever-increasing growth in data volumes on mobile networks and deliver improved connectivity for customers in line with expectations ultimately contributes to the digital economy, and through that, the prosperity of the nation.  

As a result, there is a trend within the global industry to enhance sustainability within the device ecosystem and in network technology. For example, with ever-increasing data volumes, power management​ is becoming a vital consideration in network operations.

We saw these themes play out at MWC. A common conversation topic was how different players were helping to build a resilient, sustainable industry through people and policy engagement.

The Australian mobile market dynamics

Within Australia, the nature of "being connected" has been transformed. Connectivity has become essential for various services. And digital inclusion, digital literacy, and digital well-being are becoming increasingly vital for policy-makers and communities.

Demand for mobile services continues to be strong. By 2030, mobile traffic is expected to grow three times that of today. Over the five years to end FY24, network traffic on Telstra’s mobile network has increased by approximately 3.5x and continues to grow by around 20 percent per annum, driven by the increasing demand for high-resolution video, video streaming, and conferencing. It is worth noting these are use cases with high symmetrical traffic needs. There is no sign of this demand letting up.

Despite strong fundamentals in terms of consumer demand, there are local external factors that will weigh on the industry. The Australian economy faces macroeconomic challenges, including persistent low growth and low productivity. This has implications for the local industry's sustainability and continued pressure on returns, mirroring the global industry.

The above trends and forces offer several lessons for mobile network operators. Operators will have to be focused on creating strong business models that harness innovation to keep meeting customer demand while maximising efficiency. Quality, breadth and capacity of the underlying infrastructure will be vital here. And lastly, sustainability must be front of mind because it benefits both the planet and the bottom line.