A Risk-Averse Investment Opportunity in the Turbulent Ecosystem of Emerging Technology.
During the last ten years, the Telecommunication Infrastructure industry has seen rapid growth. Driven by significant factors including rising volume of mobile subscribers, Third Generation (3G), Fourth Generation Long-Term Evolution (4G LTE) and increasing government support for the expansion of Telecommunication Infrastructure.
Now, the evolving ecosystem of emerging technology is driving the demand further for the development of Telecommunication Infrastructure and opening new doors to investment opportunities for investors and organizations. Both, the investors and organizations can grasp the opportunities by investing in various telecom assets and unique business models such as:
Telecommunication Towers Sites
Sharing Economy Models
Off-Grid Telecommunication Systems
Emerging technologies such as Internet of Things (IoT), Self-Driving Cars, Drone, Artificial Intelligence are increasing the demand for connectivity and bandwidth for data transmission. The demand is requiring an enhancement to the existing Telecommunication Tower Sites in existing locations and installation of new sites in uncovered zones.
Given the uncertainty and unrecognized risks around ambiguous IoT, gizmos are requiring device’s behavioral analysis and categorization before designing a dedicated network. For example, many IoT devices relatively use low bandwidth and stay on the network for a longer period, almost continuously compare to the smartphones or computers. This trend is making telecom infrastructure providers to re-think their core business model and enabling a new opportunity to adapt Sharing Economy Model to mitigate risks, reduce operational cost, increase revenue, and diversify their assets by selling or renting the tower holdings since the towers make-up a huge part of their capital investment. That allows the companies to divert the on-going financial investment towards development, especially to support emerging technologies.
On top of that, growing environmental concerns is further driving the changes toward Off-Grid Telecommunication Systems, and allowing the telecom organizations to reform and enhance the infrastructure with environmentally friendly systems.
As evident, The Wall Street Journal reported, T-Mobile U.S. promises a 5G network by 2020 and Gartner Inc. forecasts 20.4 billion IoT devices will be online by 2020. The myriad of IoT devices is pouring into the market at an incomprehensible rate, increasing the demand for connectivity and ubiquitous network ecosystem for a seamless experience. Enabling new opportunities in the Telecommunication Infrastructure sector to support the applications while emerging technology as whole remains turbulent.