Telecom & Media Connect Us

As a provider of technology and AI, your firm is experiencing incredibly rapid changes. Many of these are transformational and others are disruptive. A proven revenue consulting firm like CEVOH will allow your firm to focus on technology advances while we build and execute powerful revenue plans. Our plans will help you enhance your value proposition for new customers and help you capture new business from evolving innovation.  

Executive Summary - telecom & Media Sector

Current Situation

CEVOH defines a unified Telecom & Media industry, encompassing Telecom, Media Entertainment, and Media Information sectors, all enabling content communication. Historically, telecom has been fundamental to global development, evolving from basic telephony to 5G and fiber. This evolution now sees "pipe," speed, and content merging with new technologies and business models. We anticipate stabilization in M&A activity and wireless market-share competition, as aggressive marketing has eroded already thin margins. Over-the-top (OTT) models will face continued challenges from smaller, underlying models like MVNOs, driving further fragmentation and unbundling of services.

Telecom executives are increasingly concerned about becoming commoditized. A KPMG report revealed 82% of 580 global executives acknowledge their core operating model is changing due to disruptive technologies, yet only 23% feel prepared. Innovation is surging, and telcos struggle to execute ideas quickly enough.

The Media, Entertainment, and Information (MEI) industry is also undergoing unprecedented change, driven by digital disruption and evolving consumer behaviors. This dynamic environment presents both significant challenges and substantial opportunities. Success in MEI hinges on embracing digital transformation, leveraging data and AI, reinventing business models, and adapting swiftly to technological advancements and consumer preferences.

Streaming services like Netflix and Apple TV+ allow customers to bypass traditional cable, paying for content in flexible increments. Many of these companies produce their own content, drawing customers into new, profitable media ecosystems. OTT players innovate beyond content creation, as seen with Netflix’s interactive "Bandersnatch."

While these services rely on telco networks, the demand for fast, reliable infrastructure has exploded. This forces telcos to invest heavily in avoiding outages and optimizing bandwidth. Innovation is crucial for telcos in this omnichannel era. The rise of IoT services, like Amazon's Alexa, will further pressure networks, requiring telcos to support a constantly evolving array of connected platforms.

What customers want and do not want

Customers of telecom and media providers prioritize reliable, high-quality service and content, including strong network performance, fast internet, and compelling, buffer-free media. They seek fair and transparent pricing with no hidden fees and flexible plans that offer good value.

Convenience and simplicity are key, encompassing all-in-one platforms, seamless cross-device experiences, easy navigation, and accessibility features. They expect responsive customer support across multiple channels, quick problem resolution, and user-friendly self-service tools.

Customers also value wide coverage, customization and personalization (like tailored recommendations and a-la-carte options), and control and flexibility over their subscriptions and on-demand content. Innovation and added features, such as 5G and interactive experiences, are attractive, as is trust, transparency, and a positive brand reputation.

Conversely, customers are driven away by poor network performance, unexpected price increases, aggressive sales tactics, and frustrating customer service. They dislike a lack of flexibility, limited coverage, and outdated features. Other frustrations include subscription fatigue, difficulty finding content, intrusive ads, content disappearing, poor streaming quality, canceled original shows, complex processes, and a lack of personalization. Younger consumers are less brand-loyal, and bundled services tend to reduce churn.

Future Trends

The telecom and media industries are rapidly evolving, driven by several key trends. 5G rollout continues, with 6G development on the horizon, promising ultra-low latency and vast IoT expansion for smart cities and AR/VR. There's a clear convergence of telecom and media, as companies partner or merge to offer bundled services, blurring traditional lines and increasing customer expectations for integrated digital experiences.

Streaming fragmentation is leading to consumer fatigue, pushing companies towards content aggregation and personalized bundles for retention. AI and network automation are revolutionizing operations, reducing costs, and improving customer service through predictive maintenance. Edge computing and IoT demand local processing, positioning telcos as crucial infrastructure enablers.

Concerns over cybersecurity and privacy necessitate significant investment in secure infrastructure and regulatory compliance. Sustainability is also a growing focus, with pressure on telcos to reduce carbon emissions. Personalized and interactive media appeals to younger audiences, requiring innovation in gamified and two-way content. Finally, subscription fatigue is boosting ad-supported models, while global connectivity via satellite internet introduces new competition.

To thrive, companies must invest in scalable infrastructure, develop cross-industry partnerships, enhance customer experience with AI, strengthen cybersecurity, embrace hybrid monetization, focus on sustainability, and adopt an agile, data-driven culture.

Challenges Facing the Telecom & Media Industry

The telecom and media industries face significant headwinds. High infrastructure costs for 5G and fiber networks yield slow returns, especially in rural areas. Heavy regulation around spectrum, data privacy, and net neutrality adds complexity and expense. Market saturation in mature areas drives price wars and commoditization, eroding thin margins as customers chase the lowest cost.

Cybersecurity risks are escalating, with networks being prime targets, and the shift to cloud-based systems increases vulnerability. Integrating legacy systems with new technologies like SDN and NFV presents substantial technological complexity. Additionally, environmental concerns pressure companies to adopt greener practices due to high energy consumption from networks and data centers. A growing talent shortage in areas like AI and cybersecurity poses a strategic risk, hindering digital transformation.

Furthermore, declining traditional revenue streams (e.g., cord-cutting) force a pivot to digital monetization. Content oversaturation leads to consumer fatigue and high production costs with diminishing ROI, evident in the streaming market. The demand for personalized and interactive content from younger audiences requires continuous innovation. Finally, subscription fatigue is pushing a shift towards ad-supported models, while global satellite internet introduces new competition.

These challenges are reflected in net margins, which vary widely. Large diversified telecom providers generally show margins from 10% to 14%, while regional carriers are 5% to 10%, and MVNOs 2% to 7%. Streaming services range from Netflix's 16% to negative margins for many others. Traditional media often struggles, with some reporting negative margins, while specialized media information sectors, like financial data, can achieve over 28%.

Major Disruptors Affecting Telecom & Media

The telecom and media sectors are experiencing significant disruption, presenting both challenges and opportunities. 5G and beyond are redefining monetization with services like network slicing. Over-the-top (OTT) services (WhatsApp, Netflix) are eroding traditional revenue, prompting telcos to innovate or partner. Cloud and edge computing are vital for low-latency applications, leading to telco partnerships with hyperscalers.

eSIMs and software-defined carriers enhance user flexibility but intensify competition. AI, machine learning, and network automation are optimizing network management, reducing costs, and improving service. AI-integrated phone OS and services (Google Gemini, Samsung Gauss) are transforming phones into AI agents, potentially replacing traditional interfaces. AI-powered alternative devices like Humane AI Pin and Rabbit R1 challenge the smartphone's dominance, hinting at a "post-phone era."

Generative AI is revolutionizing content creation, personalization, and efficiency in media, though it raises ethical and IP concerns. Private 5G networks are enabling enterprises to bypass traditional carriers, while MVNOs and satellite-to-phone connectivity (Starlink, AST SpaceMobile) offer cheaper global alternatives, undercutting traditional roaming models. Decentralized, open-access networks (Helium Mobile) are emerging, offering low-cost, crowd-sourced wireless.

In media, fragmented consumption is driven by streaming fatigue and the rise of short-form video. The user-generated content and creator economy empower individuals, shifting monetization models. Web3, blockchain, and the metaverse promise decentralized ownership and immersive experiences. Finally, data overload and privacy regulations necessitate smarter data strategies across both industries.

Where We See Growth Opportunities for the Telecom & Media Sector

The telecom sector is experiencing significant revenue growth, fueled by several disruptive trends. 5G expansion and monetization are paramount, enabling ultra-fast speeds, low latency, and new applications like autonomous vehicles and IoT. Monetizing these through premium plans and Fixed Wireless Access (FWA) is a key driver.

Explosive data consumption from streaming, gaming, and cloud services continues to boost demand for both mobile and fixed broadband. Beyond connectivity, telecom companies are transforming into enterprise service providers (B2B), offering IoT solutions, private 5G networks, cloud/edge computing, cybersecurity, unified communications, and managed IT services.

Value-added services (VAS) and content bundling are diversifying revenue streams, with telcos partnering with or acquiring streaming platforms, offering gaming, cloud storage, and mobile payments. AI and Machine Learning (ML) are enhancing operational efficiency, predicting network faults, and generating new revenue through personalized offerings and predictive analytics. Subscriber growth in emerging markets and increased ARPU (Average Revenue Per User) through premium plans also contribute.

For the Media, Entertainment, and Information (MEI) industry, advertising is a core growth driver, especially digital advertising and new hybrid monetization models for streaming. The gaming sector is booming, with innovative models like microtransactions and the rise of esports. Data-driven personalization and AI-powered recommendations are crucial for engagement. Business model reinvention involves diversification beyond advertising, consolidation, and investing in ad tech and AI for efficiency. Leveraging social platforms and user-generated content (UGC) is vital for discovery and audience engagement.

Underlay providers like Visible and Google Fi offer cost-effective wireless by leveraging parent company networks with digital-first, AI-assisted service. The MVNO (Mobile Virtual Network Operator) market is projected for substantial growth, driven by affordable, flexible plans, digital-first approaches, technological advancements (5G, eSIM, IoT), and niche market targeting. Despite facing challenges like lower net margins (5-7%), MVNOs offer compelling alternatives, particularly for price-sensitive consumers and those seeking unbundled services.

Ultimately, both sectors are shifting towards diversified revenue models centered on high-speed connectivity, data-driven insights, advanced enterprise solutions, and a rich ecosystem of digital services.

Conclusion

Companies in this sector are experiencing significant disruption, and challenges: From basic communication services and traditional media to all things digital. The modern digital landscape is evolving toward enabling hyperconnectivity, a variety of digital services, and network intelligence. The global rollout of 5G, the rise of satellite internet, IoT proliferation, and AI-powered automation are reshaping how companies operate and deliver value.

Despite these innovations, the industry faces several structural and competitive challenges—ranging from high CapEx demands to price competition and regulatory burdens. OTT players continue to erode traditional revenue streams, and customers increasingly expect seamless, high-speed, low-latency connectivity everywhere.

However, telecom & media companies are also uniquely positioned to drive the next wave of digital innovation, especially by embracing partnerships, diversifying revenue streams (e.g., through fintech, cloud, and media), and committing to more sustainable infrastructure.

The future lies in convergence—of services, technologies, and industries. Operators that adapt quickly, prioritize digital transformation, and place customer experience at the center of their strategy will be best positioned for long-term growth and relevance.

To explore some exciting new possibilities, have a look through the content below.

What Customers Want With Telecom & Media Solutions

Buyers and Users Want to Participate in an Iterative Design Processes, but often have difficulty identifying cutting edge product and service enhancements in the telecom & media sector.

What Customers Want

Customers value several core attributes from a telecom and media provider, but the most important factors typically fall into the following key categories:

Reliable and High-Quality Service and Content

  • Network reliability (minimal downtime, strong signal strength, fast internet speeds) is the top priority.

·        Despite the abundance of content, customers still prioritize quality storytelling, acting, and world-building for TV and movies. They also want content that lives up to their expectations, especially for original shows.

  • Seamless media access (buffer-free streaming, clear audio/video quality).

  • Consistency across all services (e.g., mobile, broadband, TV).

Fair and Transparent Pricing

  • Clear billing with no hidden fees or sudden price hikes.

  • Flexible plans that fit different user needs (e.g., family bundles, pay-as-you-go, unlimited data).

  • Value for money—customers want to feel they’re getting good service at a reasonable cost.

Convenience and Simplicity:

  • All-in-one platforms: Many desire a single, aggregated platform to access various entertainment services (video, music, gaming, social media, e-commerce) to simplify their experience and reduce subscription fatigue.

  • Seamless cross-platform experience: Content should be easily accessible across multiple devices (mobile, TV, tablet) with consistent quality and user-friendly interfaces.

  • Easy navigation: Intuitive interfaces that make it easy to find desired content.

  • Accessibility Features such as accurate and customizable subtitles, which are increasingly important for a diverse audience.

Customer Support and Service Experience

  • Responsive support via multiple channels (phone, app, chat).

  • Quick problem resolution and knowledgeable staff.

  • User-friendly apps and self-service tools to manage accounts or troubleshoot.

  • Proactive Communication, receiving relevant updates, notifications, and personalized offers.

Coverage and Availability

  • Wide geographic coverage for mobile and internet services, especially in rural or underserved areas.

  • Access to content (live TV, on-demand streaming, exclusive shows).

Customization and Personalization

  • Personalized recommendations for shows, music, or data plans.

  • Options to customize channels, streaming libraries, or service bundles.

  • Options to buy single services (a-la-cart)

Control and Flexibility:

  • On-demand access: The ability to choose what they want to watch, when they want to watch it, moving away from traditional broadcast schedules.

  • Subscription management: Clear and easy ways to manage and cancel subscriptions.

  • Multiple communication channels: Options to connect with companies through social media, live chat, phone, and email.

Innovation and Added Features

  • New tech features like 5G, smart home integration, or cloud DVR.

  • Exclusive partnerships or content (sports, original programming).

  • Enhanced security and privacy tools.

  • Interactive Experiences: Audiences prefer engaging avenues rather than passive consumption. This can include virtual reality (VR) and augmented reality (AR) experiences, live Q&As, quizzes, and other interactive elements.

Trust, Transparency and Reputation

  • A trustworthy brand that respects data privacy and maintains ethical practices.

  • Positive reviews, low complaint rates, and good word-of-mouth.

  • Privacy and data protection, with customers expecting their personal information to be handled securely and transparently.

  • They also want brands to be authentic and align with their values (e.g., cause-led marketing).

If you're a telecom or media provider looking to deliver more value, focusing on network reliability, transparent pricing, and excellent customer service will deliver the most immediate impact. Innovating around personalization and content access can then deepen customer loyalty.

What Customers Don’t Want

Almost a perfect mirror image of what customers say they value from a provider, customers switch telecom and media providers for a variety of reasons, and industry research consistently highlights a set of common, statistically significant drivers. Based on reports from Deloitte, PwC, Ericsson ConsumerLab, and other studies, the top quantitative reasons customers switch providers typically include:

Top Reported Reasons

Poor Network Performance / Service Quality

  • 42–50% switch due to dropped calls, slow internet, or inconsistent service.

  • This is especially true for mobile and broadband users in rural or high-demand urban areas.

Price Increases or Poor Value for Money

  • 30–45% cite unexpected charges, rising bills, or better offers elsewhere.

  • Hidden fees and confusing bundles are major irritants.

High Pressure or Ineffective Sales Tactics

  • 30-35% indicated the sales approach was a deal killer (gauntlet sellers, door-to-door and repetitive email, calls and texts were deemed most annoying

  • For providers without human sales interaction, ineffective on-line processes were cited as most annoying.

Better Offer from a Competitor

  • 25–35% switch because of promotional deals or introductory pricing.

  • Many consumers are highly price-sensitive and will change for short-term gains.

Poor Customer Service

  • 20–30% leave due to frustrating support experiences, long wait times, or unresolved issues.

Negative interactions can drive even otherwise satisfied customers to switch.

  • Lack of Flexibility or Customization

  • 10–20% report dissatisfaction with bundling, rigid contracts, or inability to tailor plans to their needs.

  • Limited Coverage / Availability - 10–15% leave because the provider doesn’t offer coverage in a new location (e.g., after moving) or lacks service in needed areas.

  • Lack of Modern Features or Innovation - 8–12% switch due to missing features like 5G, streaming apps, or smart device integration.

  • Negative Brand Perception / Ethics - 5–10% cite poor company reputation, data privacy breaches, or negative press as switching motivators.

Additional Trends:

·        Subscription Fatigue: Being overwhelmed by the sheer number of streaming services and having to manage multiple subscriptions to get the content they desire.

  • Difficulty Finding Content: Struggling to locate specific shows or movies across various platforms, or spending too much time trying to decide what to watch.

  • Churn is higher among younger consumers (Gen Z and Millennials), who are more likely to shop around and less brand-loyal.

  • Bundled services reduce churn—customers with multiple services (e.g., mobile + internet + TV) are 25–30% less likely to switch.

  • Loyalty perks (like streaming access, device trade-ins, or reward programs) can reduce churn by 10–20%.

  • Ads (especially intrusive ones): While ad-supported models exist, customers often prefer ad-free experiences and are increasingly intolerant of disruptive advertising, particularly if they are paying for a service.

  • Content Disappearing: Frustration when shows or movies they enjoy are removed from services.

  • Poor Streaming Quality: Technical issues like buffering, low resolution, and audio/subtitle problems.

  • Canceled Original Shows: Disappointment when original series are canceled without a proper conclusion.

  • Poor Customer Service: Long response times, difficulty reaching support, and having to repeat information across different channels.

  • Overly Complex Processes: Anything that makes it difficult to sign up, manage, or use a service.

  • Lack of Personalization: Generic content recommendations or marketing that doesn't feel relevant to their interests.

In essence, customers want telecom, media, entertainment, and information companies to deliver a high-quality, personalized, convenient, and value-driven experience that respects their time, preferences, and data.

Current situation With the Telecom & Media Sector

Counting Digital and Traditional Sources, There Are Now More Media Channels than People In The World

Current situation

Telecom & Media

  • 5G Deployment and Expansion
    The global rollout of 5G networks continues to redefine mobile connectivity with ultra-fast speeds, lower latency, and increased capacity. It supports new applications in smart cities, autonomous vehicles, industrial automation, and immersive media (AR/VR). However, adoption varies by region, with North America and parts of Asia leading, while other areas face slower rollout due to cost and regulatory hurdles.

  • Fiber-Optic Growth
    Fiber-to-the-home (FTTH) infrastructure is expanding rapidly to meet the demand for high-speed and reliable broadband. Governments and private sectors are heavily investing in fiber deployment, especially in underserved and rural areas.

  • Satellite Internet Emergence
    Players like SpaceX (Starlink), Amazon (Project Kuiper), and OneWeb are pioneering Low Earth Orbit (LEO) satellite networks to provide global high-speed internet access, particularly in remote areas where traditional infrastructure is unviable.

  • Consolidation and Convergence
    The telecom sector is seeing increased mergers and acquisitions, with companies seeking economies of scale and the ability to offer bundled services (mobile, internet, TV, and content streaming). Telcos are also entering adjacent sectors like media and cloud computing.

  • IoT Connectivity
    Telecoms are central to the growing Internet of Things (IoT) ecosystem, enabling device-to-device communication for smart homes, smart cities, agriculture, and industrial operations.

Key Metrics

  • Subscriber Count, Subscriber Growth Rate, and Churn Rate: All these metrics have to do with how many monthly subscriber customers you have and how they stick around.

  • ARPU and Lifetime Value: Average revenue per unit (ARPU) describes the amount each subscriber pays per month for each service. Lifetime value describes the total per subscriber before they churn out. These numbers are mostly flat over an 8-year span. Telecom & Media providers are working hard to add supplemental services to maintain or increase these metrics.

  • Market Capitalization & Revenue Growth: Leading tech companies often dominate global market cap rankings. For example, as of mid-2025, Apple, Microsoft, and Nvidia each have market caps exceeding $2 trillion.

  • R&D Spending: Innovation-driven firms invest heavily in research and development. Alphabet and Amazon each spend over $40 billion annually on R&D.

  • Adoption Rates: Metrics such as cloud migration rates, AI deployment percentages, and SaaS usage growth are critical to understanding industry trends.

  • M&A Activity: Mergers and acquisitions remain strong, with companies acquiring startups for talent capture, intellectual property, or market expansion.

  • Talent Demand: There is continued high demand for roles in AI, data science, cloud architecture, cybersecurity, and software engineering, often outpacing supply.

Key Industry Links for the Telecom & Media Industry

Key Industry Associations & Organizations

Leading Telecom Companies (Innovators & Service Providers)

Leading Telecom Equipment Vendors

Influential Telecom Conferences & Events

Leading Telecom Publications & News Sources

Major Telecom Research & Analyst Firms

Major Media Content Platforms (Streaming, Social, Gaming, etc.): These are the direct-to-consumer platforms that distribute the vast majority of digital media and entertainment.

Video Streaming (SVOD/AVOD/FAST)

Music Streaming

Gaming Platforms

Social Media Platforms significant for content dissemination and discovery

Entertainment Industry News & Trade Publications Essential for staying informed about industry trends, deals, and analysis.

Media Information & Research (Market Data, Analytics, Industry Reports) These provide the data and insights that drive strategic decisions.

  • PwC Global Entertainment & Media Outlook: pwc.com (Search for "Global Entertainment & Media Outlook")

  • Statista: statista.com (Subscription often required for full reports, but offers valuable public data)

  • Nielsen (Media measurement, audience insights): nielsen.com

  • Comscore (Digital audience measurement): comscore.com

  • Kagan (S&P Global Market Intelligence Media Research): spglobal.com/marketintelligence (Search for "Kagan media research")

  • Deloitte (Digital Media Trends, TMT Predictions): deloitte.com (Search for "Digital Media Trends" or "TMT Predictions")

  • eMarketer (Insider Intelligence): emarketer.com (Focus on digital trends, ad spend)

Key Industry Associations & Regulatory Bodies These organizations represent collective industry interests, set standards, and provide oversight.

  • Motion Picture Association (MPA): motionpictures.org

  • Recording Industry Association of America (RIAA): riaa.com

  • Entertainment Software Association (ESA): theesa.com

  • National Association of Broadcasters (NAB): nab.org

  • Association of American Publishers (AAP): publishers.org

  • Online News Association (ONA): journalism.org (Redirects to onlinnewsassociation.org)

  • Federal Communications Commission (FCC) (U.S. Regulator): fcc.gov

Future Trends and How to Prepare

Future Trends in Telecom & Media

5G and Beyond (6G Development)

  • Trend: Full-scale 5G rollout continues, with early research and pilot programs for 6G already underway.

  • Implications: Ultra-low latency, massive IoT expansion, smart cities, autonomous vehicles, and immersive AR/VR applications.

Convergence of Telecom and Media

  • Trend: Traditional telecoms are acquiring or partnering with media/content companies to bundle services (e.g., Verizon + Disney+, AT&T + Warner).

  • Implications: Blurred lines between carriers, streamers, and broadcasters. Customers increasingly expect integrated digital experiences.

Streaming Fragmentation and Consolidation

  • Trend: Intense competition among streaming services leads to consumer fatigue, churn, and bundling efforts.

  • Implications: Content aggregation, simplified billing, and personalized bundles become key to retention.

AI and Network Automation

  • Trend: AI is used to manage networks, predict faults, optimize traffic, and deliver personalized content.

  • Implications: Significant cost savings and improved customer experience through predictive maintenance and AI-powered customer service.

Edge Computing and IoT

  • Trend: Increasing demand for local processing to support low-latency applications and IoT devices.

  • Implications: Telecoms will play a key role as enablers of edge infrastructure and data delivery at the network's edge.

Cybersecurity and Privacy Regulations

  • Trend: As data use surges, so do concerns around privacy, data sovereignty, and cybersecurity.

  • Implications: Telecom and media companies must invest heavily in securing infrastructure and complying with regional data laws (like GDPR, CCPA).

Sustainability and Energy Efficiency

  • Trend: Pressure from investors, regulators, and consumers is forcing telecoms to reduce carbon emissions.

  • Implications: Adoption of energy-efficient infrastructure (like green data centers), renewable energy, and circular economy practices.

Personalized and Interactive Media

  • Trend: Gen Z and Alpha audiences prefer interactive content (e.g., TikTok, Twitch, metaverse-like experiences).

  • Implications: Companies need to innovate with gamified content, two-way media, and social co-viewing experiences.

Subscription Fatigue and Ad-Supported Models

  • Trend: Rising prices and too many subscriptions are driving users toward free, ad-supported services.

  • Implications: Growth of FAST (Free Ad-Supported Streaming TV), dynamic ad insertion, and hybrid monetization models.

Global Connectivity and Satellite Internet

  • Trend: Projects like Starlink and OneWeb aim to provide global internet coverage.

  • Implications: New competition for rural broadband, need for partnerships or regulatory defense by traditional telcos.

How Companies Should Exploit These Trends

Invest in Scalable Infrastructure

  • Upgrade to support 5G/6G, fiber, and edge computing.

  • Embrace network virtualization and software-defined networking (SDN).

Develop Cross-Industry Partnerships

  • Collaborate with media creators, cloud providers, and tech innovators.

  • Consider mergers/acquisitions or content deals to remain competitive.

Enhance Customer Experience with AI

  • Use AI for smart support, personalized content recommendations, churn prediction, and dynamic pricing.

Strengthen Cybersecurity Measures

  • Embed security at every layer: device, network, cloud.

  • Prepare for zero-trust models and proactive threat detection.

Embrace Hybrid Monetization Models

  • Offer freemium services, flexible bundles, and value-based pricing.

  • Integrate ad-tech and data analytics to increase ROI on content.

Focus on Sustainability

  • Measure and report environmental impact.

  • Deploy energy-efficient hardware and reduce electronic waste.

Adopt Agile and Data-Driven Culture

  • Leverage real-time analytics to guide programming, content, and network investments.

  • Use A/B testing and rapid iteration to align with user preferences.

Challenges Facing the Telecom & Media Industry

Key Challenges - And, Well, There’s a Lot…

  • High Infrastructure Costs: Building and maintaining networks—especially 5G and fiber—is capital intensive. The return on investment (ROI) can be slow, especially in rural or low-income markets.

  • Regulatory and Compliance Pressures: Telecoms operate under heavy regulation regarding spectrum licensing, data privacy, net neutrality, and cross-border data flows. Compliance can be complex and costly.

  • Market Saturation In many mature markets, mobile and broadband penetration has reached near saturation, making organic subscriber growth difficult. Operators must focus on service differentiation and upselling.

  • Price Wars and Commoditization Fierce competition leads to price erosion, especially in markets with multiple operators. Consumers often choose the lowest-cost provider, pressuring margins.

  • Cybersecurity Risks: Telecom networks are critical infrastructure and frequent targets of cyberattacks, espionage, and ransomware. As networks become more software-defined and cloud-based, the attack surface grows.

  • Technological Complexity: Integrating legacy systems with new technologies like 5G, SDN (Software Defined Networking), and NFV (Network Function Virtualization) can be technically challenging and resource-intensive.

  • Environmental and Sustainability Issues: Energy consumption from data centers and networks, especially with the rise of 5G and AI, is under scrutiny. Telecoms face pressure to adopt greener practices and reduce carbon footprints.

  • Talent Shortages: The telecom sector increasingly overlaps with IT, requiring new skills in AI, cybersecurity, software development, and network engineering. Talent gaps are becoming a strategic risk.

Intense Market Competition and Price Pressure

  • Issue: Telecom markets are saturated in many regions, and media services (especially streaming) face over-crowded competition.

  • Impact: Price wars and customer churn erode profit margins.

  • Example: Streaming fatigue has led to consumer backlash over too many subscriptions, increasing churn rates.

Infrastructure and Capital Expenditures

  • Issue: Building and upgrading 5G, fiber, and edge networks requires massive investments.

  • Impact: Long ROI periods, especially in rural or underdeveloped areas, create financial strain.

  • Related Challenge: Limited monetization options for cutting-edge tech like 5G beyond mobile.

Declining Traditional Revenue Streams

  • Issue: Cord-cutting, SMS and voice call decline, and shrinking linear TV viewership continue to hit traditional revenue.

  • Impact: Media companies must pivot to digital monetization while telecoms look to upsell value-added services.

  • Example: Cable companies losing subscribers to streaming platforms.

Regulatory and Legal Pressures

  • Issue: Rising data privacy expectations and antitrust scrutiny.

  • Impact: Global companies must comply with varying laws like GDPR (EU), CCPA (California), and others—raising complexity and cost.

  • Note: Mergers and content deals often face regulatory pushback.

Cybersecurity and Data Privacy Threats

  • Issue: As media and telecom systems handle more data, they become attractive targets for cybercriminals.

  • Impact: Outages, data breaches, and customer trust erosion.

  • Recent Trends: Increase in ransomware attacks on telecom infrastructure.

Content Oversaturation and Consumer Fatigue

  • Issue: Too many platforms offering similar content leads to decision fatigue and value dilution.

  • Impact: High content production costs with lower ROI, harder to retain customers.

  • Example: Streaming platforms now struggle to differentiate offerings.

Skills Gaps and Talent Shortages

  • Issue: Demand is growing for AI, cybersecurity, cloud, and 5G talent—but supply is limited.

  • Impact: Slower digital transformation, higher labor costs, and risk of poor execution.

Fragmented User Experiences

  • Issue: Customers often juggle multiple services and apps across devices with poor integration.

  • Impact: Lower satisfaction, more churn, and lost cross-sell opportunities.

  • Solution Area: Need for unified digital platforms and bundles.

Energy Consumption and Environmental Impact

  • Issue: Data centers, networks, and streaming services consume significant energy.

  • Impact: Rising operating costs and increasing pressure to meet sustainability goals.

  • Example: Governments and investors demand ESG disclosures and net-zero commitments.

Rapid Technological Disruption

  • Issue: Emerging tech like AI, XR, and blockchain create both opportunity and chaos.

  • Impact: Hard to prioritize investments or keep up with pace of innovation without clear business cases.

Key Challenges for the Media, Entertainment, and Information Industry:

Digital Disruption and Evolving Business Models:

  • Content Distribution and Monetization: The shift from traditional linear models (TV, radio, print) to digital platforms has revolutionized content distribution and monetization. Companies must constantly adapt by investing in digital platforms and creating new revenue streams.

  • Subscription Fatigue and Churn: The proliferation of streaming services has led to consumer fatigue and a reluctance to manage multiple subscriptions, resulting in high churn rates. Companies struggle to differentiate offerings and retain subscribers in a crowded market.

  • Declining Traditional Revenue Streams: Cord-cutting, declining print advertising, and reduced voice/SMS revenue continue to impact traditional media and telecom companies, forcing them to pivot to digital monetization.

  • Monetization Strategies: Creating efficient monetization solutions in the Video-on-Demand (VoD) sector is challenging, as services must balance subscription, advertising, and hybrid models.

Changing Consumer Behavior and Attention Economy:

  • Fragmented Audiences: Audiences are atomized across numerous platforms (linear TV, SVOD, social media, gaming, podcasts), making audience measurement and tracking ROI incredibly complex.

  • Demand for Personalized and Interactive Content: Consumers, especially younger generations, expect highly personalized recommendations and interactive experiences (e.g., TikTok, Twitch, metaverse-like interactions).

  • Competition for Time and Spending: The amount of time and discretionary spending available for entertainment is not growing, meaning MEI companies are competing for a fixed pool, facing competition not just from other media companies, but also from social media platforms and gaming.

Technological Integration and Impact of AI:

  • Sweeping Impact of Generative AI: AI revolutionizes content creation (automating editorial tasks, assisting research, streamlining distribution), but raises complex intellectual property and copyright issues. It also creates challenges related to deepfakes, bias, privacy, and the potential erosion of human creativity.

  • Data Privacy and Security: AI systems rely on vast amounts of data, raising concerns around data privacy, sovereignty, and cybersecurity, requiring heavy investment in secure infrastructure and compliance with regulations like GDPR and CCPA.

  • Ad Tech and Data Analytics: While crucial for targeted advertising and personalization, the ongoing phaseout of cookies and stricter privacy regulations make data collection and ROI tracking more challenging.

Content Creation and Quality Control:

  • Content Oversaturation: Too many platforms offering similar content leads to decision fatigue and value dilution, making it harder to differentiate and retain customers.

  • Rising Production Costs: Acquiring and producing premium content is increasingly expensive, especially with global competition and the need for high-quality content across various genres.

  • Quality Control and Technical Glitches: Tight schedules, budget constraints, and human error can lead to poor reception, disruptions, and damage to brand reputation.

  • Diversity and Inclusion: Lack of diversity in creative teams and stereotypical portrayals can lead to backlash and missed audience connections.

Talent and Operational Challenges:

  • Skills Gaps and Talent Shortages: The demand for tech-savvy talent (AI, cybersecurity, cloud, 5G) outstrips supply, leading to slower digital transformation and higher labor costs.

  • Recruitment and Retention: Media companies now compete with tech companies for talent, making hiring and retaining top talent a significant challenge, exacerbated by economic downturns and calls for diversity.

  • Agile Organizational Structures: Shifting to flexible, cross-team working methods requires redesigning traditional hierarchies, overcoming resistance to change, and developing new digital skills.

  • Sustainability Concerns: Growing influence of environmental, social, and governance (ESG) issues puts pressure on the entertainment sector to adopt sustainable practices.

Typical Net Margin Levels

Several areas of the telecom & media industry are experiencing very thin margins, as a result we’ve included net margin as a key challenge. Net margin is also a key indicator of best practice – it shows us many things including how disruptors are affecting the market, whether a company is managing thru the disruption and how likely it is for new money investment to continue. It's important to note that net margins can vary significantly within an industry based on specific company strategies, market conditions, quarters with unique conditions and business models. However, here's a breakdown of net margins for the telecom, media and entertainment, and media information industries:

Large diversified telecom & media providers such as Verizon Communications Inc., AT&T Inc., T-Mobile US, and Comcast Corp. showed net margin in 2024 of 13.3%; 10%; 13.9% and 12.8% respectively. There continues to be massive disruptors present in this category, however no large diversified companies have shown losses in quite some time.

Regional/smaller carriers showed margins of 5% - 10%, Prepaid or MVNO wireless providers showed margins of 2% - 7%. Wholesale/infrastructure providers had better margins of 8% - 12%. In these smaller niche operators, how the business is run (rather than disruptors) will likely determine the level of margin

Streaming Services showed a wide range of net margins from 16% with Netflix to negative margins for many others.

Media and Entertainment Industry:

The media and entertainment industry is quite diverse, encompassing everything from film studios and television networks to streaming services and music labels. Net margins can vary widely depending on the segment and company.

  • Streaming Services: Companies like Netflix have achieved relatively high net profit margins. For example, in 2023, Netflix had a net profit margin of 16.0%. Other pure-play streaming companies have struggled, with some even reporting losses.

  • Diversified Media Conglomerates: Larger companies like Sony and Walt Disney, which have diversified revenue streams (e.g., theme parks, gaming, traditional media), tend to have lower, but still positive, net margins. In 2023/2024, Sony was around 7.5% and Walt Disney around 5.4%.

  • Traditional Broadcast/Cable: Some traditional media companies, especially those heavily impacted by cord-cutting (e.g., Paramount Global, Warner Bros. Discovery), have faced challenges and reported negative net margins in recent years. For example, Paramount Global was at -2.1% and Warner Bros. Discovery at -7.6% in 2023.

  • Overall: The industry as a whole can be challenging, with profitability heavily influenced by content costs and the transition to digital platforms. Some sources indicate an average net margin for the broader "Entertainment" sector around -0.23% in recent analyses, highlighting the current struggles for some players. However, other sources for "Movies and Entertainment Industry" list a range of net income margins, with some profitable companies being in the 5-15% range.

Media Information Industry:

This category often includes companies involved in advertising, publishing, data services, and other information-related media.

  • Advertising: The "Advertising" sector has been reported with an average net margin of around 3.00%.

  • Internet Content & Information: This can be a broad category. Some analyses show the "Internet Content & Information" sector with a net margin around 0.4%.

  • Financial Data & Stock Exchanges: This niche within media information tends to be highly profitable, with reported net margins around 28.2%.

  • Local Media (Digital Revenue): A survey found that digital revenue for local media companies generated average gross profit margins of 41.6% and EBITDA margins of 32.8%, indicating healthy profitability from digital operations. While this is not net margin, it suggests strong underlying profitability before all expenses.

Key Considerations:

  • Data Fluctuations: Net margins can change quarter-to-quarter and year-to-year due to various factors like economic conditions, investment cycles (especially in streaming content), and mergers/acquisitions.

  • Business Model: The specific business model within media (e.g., subscription, advertising, licensing, data) significantly impacts profitability.

  • Diversification: Companies with diversified revenue streams may have more stable, though potentially lower, overall net margins.

  • Industry Transformation: Both industries are undergoing significant transformation due to digital disruption, which impacts traditional revenue streams and creates new opportunities and challenges for profitability.

·        Average Subscriber Tenure Before Churn

In summary, while there's a wide range, the media and entertainment industry has seen some companies achieve strong net margins (like Netflix), while others are struggling with profitability due to ongoing industry shifts. The media information industry, while also diverse, shows varying profitability, with specialized data services often being quite lucrative.

Disruptors - Telecom & Media

Disruptors

There are many disruptors occurring within the Telecom & Media sector. Each of these will cause transformation - but also revenue opportunity.

5G and Beyond: The arrival of 5G is a major technological leap, but it’s also a business model disruptor. It enables new services like network slicing and private mobile networks for enterprises, forcing telcos to rethink how they monetize connectivity.

Over-the-Top (OTT) Services: OTT platforms like WhatsApp, Zoom, Skype, and Netflix bypass traditional telecom networks, significantly reducing telco revenues from voice, SMS, and media delivery. Telcos are responding by developing their own digital services or partnering with OTTs.

Cloud and Edge Computing: This reduces latency by processing data closer to the source—critical for IoT and real-time applications. Telcos are investing in edge networks and forming partnerships with hyperscalers like AWS, Azure, and Google Cloud to deliver hybrid solutions.

Embedded SIM (eSIM), Remote Provisioning and Software-Defined Carriers: This technology allows consumers to switch carriers without needing a physical SIM card aiding plan comparisons on price/performance and avoidance of roaming fees. While convenient for users, it challenges traditional customer lock-in models and intensifies competition. One advantage is that users can run multiple networks on one device.

Artificial intelligence, Machine learning and Network Automation: These approaches are transforming network management, allowing predictive maintenance, anomaly detection, and self-optimizing networks (SONs), reducing operational costs and improving service quality.

AI-Integrated Phone OS and Services: Companies such as Google (Gemini), OpenAI + Microsoft (Copilot integration), Samsung (Gauss), and Humane AI Pin are helping phones evolve from communication tools to context-aware AI agents. Traditional interfaces (apps, search, settings) could be replaced by conversational or predictive AI. This may also reduce dependence on traditional mobile platforms and ecosystems.

AI-Powered Alternative Devices: Companies such as Humane, Rabbit R1, Meta (smart glasses), Motorola’s AI wearable prototype and start-ups are designing AI-first devices that don’t resemble phones at all—no app store, no carrier dependency, just a voice interface. These devices challenge the form factor and function of the smartphone. And, could lead to a post-phone era where personal AI assistants manage communication across devices.

Artificial Intelligence (AI) - Especially Generative AI:

  • Content Creation & Production: AI is revolutionizing how content is made. Generative AI can automate tasks like scriptwriting, image and video generation, voiceovers, and even basic news reporting, leading to faster, cheaper, and more voluminous content output. This challenges traditional production pipelines and roles.

  • Personalization & Recommendation: AI algorithms are becoming incredibly sophisticated at analyzing user data to deliver hyper-personalized content recommendations, advertising, and user experiences. This increases engagement but also raises privacy concerns and creates echo chambers.

  • Efficiency & Optimization: AI optimizes workflows in everything from post-production to content management, advertising targeting, and customer service, leading to significant cost savings and improved effectiveness.

  • Ethical & IP Concerns: The rapid rise of AI-generated content brings major ethical debates around copyright, intellectual property ownership, "deepfakes" and misinformation, and the displacement of human creative jobs.

Private 5G Networks: Large enterprises (e.g., in manufacturing, mining, logistics) are deploying private 5G networks to have full control over coverage, speed, and security, bypassing traditional telecom carriers. Key Players include AWS, Cisco, Ericsson, telcos offering private 5G based on software and service, not SIM cards.

MVNO and Underlay Providers as well as freemium channel providers are providing a significant and growing level of disruption for traditional Telecom & Media providers. Aided by a strong and growing network of WiFi, providers such as WhatsApp, Helium and others offer super low cost or no cost services depending on minutes, usage and storage. Affordable Global MVNOs such as Airalo, GigSky, Holafly, Nomad are digital-first providers and offer instant global data plans via eSIM – popular with travelers and remote workers. This approach undercuts roaming fees and exposes how much traditional telcos charge. A discriminator with younger mobile-first users is a global telecom mindset.

Satellite-to-Phone Connectivity: Key players such as SpaceX (Starlink), AST SpaceMobile, Lynk Global and Apple (partnering with Globalstar) are offering direct-to-smartphone satellite communication is becoming a reality—offering global coverage without the need for cell towers. This bypasses traditional mobile networks for basic messaging and emergency calling and could become viable for voice and data in remote or underserved areas. This also challenges the very need for ground-based carriers in certain use cases.

Decentralized & Open-Access Networks: Using blockchain incentives and citizen-run infrastructure, networks such as Helium Mobile (Nova Labs), and Pollen Mobile offer crowd-sourced wireless coverage (5G/Wi-Fi hybrid). This approach promises lower costs, greater transparency, and ownership by users. Helium Mobile has already launched $5/month unlimited plans in some U.S. regions.

The media, entertainment, and information sectors are currently undergoing profound disruptions driven by a confluence of technological advancements, evolving consumer behaviors, and economic pressures. Here are the major disruptors:

Fragmented Consumption & "The Attention Economy":

  • Streaming Wars & Subscription Fatigue: The proliferation of streaming services means consumers are overwhelmed with choices and often paying for multiple subscriptions. This leads to churn as users hop between platforms for specific content and seek more aggregated, all-in-one solutions.

  • Short-Form Video Dominance: Platforms like TikTok, Instagram Reels, and YouTube Shorts have shifted consumer attention towards quick, digestible, and often user-generated content, challenging long-form content formats.

  • Multi-Platform/Multi-Screen Behavior: Consumers increasingly consume media across various devices simultaneously, demanding seamless cross-platform experiences.

  • Niche Content & Micro-Communities: Audiences are gravitating towards highly specific, niche content and creators, often found on platforms that foster strong community engagement, moving away from broad, mainstream channels.

User-Generated Content (UGC) & Creator Economy:

  • Empowerment of Individual Creators: Tools and platforms have made it easier and more affordable for individuals to create and distribute high-quality content, bypassing traditional gatekeepers.

  • Influence of Social Media: Social media platforms are no longer just distribution channels; they are primary sources of news, entertainment, and discovery, with influencers often rivaling traditional media outlets in reach and impact.

  • Monetization Shift: The rise of creator-centric monetization models (e.g., direct fan support, brand deals, platform revenue sharing) challenges traditional advertising and subscription revenue streams.

Web3, Blockchain, and the Metaverse:

  • Decentralization & Ownership: Web3 principles aim to give creators and consumers more direct ownership and control over digital assets and data through NFTs and blockchain technology, potentially disintermediating traditional platforms and distributors.

  • New Monetization Models: Blockchain enables new forms of monetization like token-gated content, fractional ownership of IP, and direct creator-to-fan transactions through cryptocurrencies.

  • Immersive Experiences (Metaverse/VR/AR): The development of more immersive virtual and augmented realities promises new ways to consume entertainment, engage with brands, and interact with content, creating entirely new media formats and experiences. This is still in early stages but holds significant long-term disruptive potential.

Data Overload & The Need for Actionable Insights:

  • Data-Driven Decision Making: While data is abundant, the challenge lies in effectively analyzing and deriving actionable insights from it to inform content strategy, personalize experiences, and optimize advertising spend.

  • Privacy Regulations: Increasing consumer demand for privacy and stricter regulations (e.g., GDPR, CCPA) compel companies to rethink data collection, usage, and transparency, impacting advertising models and personalization efforts.

Summary

These disruptors are forcing telecom, media, entertainment, and information companies to adapt rapidly, focusing on innovation, personalization, direct audience engagement, and exploring new business models to stay competitive.

Wireless phone disruption is no longer just about faster speeds or cheaper plans—it's about rethinking the entire telecom model. The convergence of satellite tech, AI, blockchain-based networks, and form factor innovation signals a shift toward decentralization, user control, and AI-driven interfaces. Incumbent carriers and manufacturers will face increasing pressure to adapt or risk obsolescence.

Major disruptions are reshaping media, entertainment, and information. AI, especially generative AI, is transforming content creation, personalization, and efficiency, while raising ethical and IP concerns. Private 5G networks, MVNOs offering low-cost global eSIMs, and satellite-to-phone connectivity are challenging traditional telecom models. Decentralized, open-access networks are emerging, offering crowd-sourced, cheaper wireless.

Simultaneously, fragmented consumption is driven by streaming fatigue and short-form video. The user-generated content and creator economy empowers individuals, shifting monetization. Finally, Web3, blockchain, and the metaverse promise decentralized ownership and immersive experiences, while data overload and privacy regulations demand smarter, more responsible data strategies.

What we’ve done (proof of impact)

CEVOH - Telecom & Media Industry

What We've Done

INNOVATION

CEVOH personnel helped form the strategic elements of the Verizon merger. Combining GTE, Bell Atlantic and NYNEX to form the largest Telecom & Media company was a massive project focused on providing customers what the need and want. Within months, the strategies, implementation plan, systems, training and delivery of new services were making money for the new company.

INNOVATION

CEVOH personnel also formed the first “bundle” of services in the Telecom & Media sector. Now common place among many, the first bundles were in the B2B and B2C segments and brought together new internet and telecom services. Later, various robust bundles were formed to combine advertising products that worked best as a combined single product. The issues of selecting just the right bundle components that provide better value for buyers was achieved using agile development.

SALES

The telecom global No. 2 hired CEVOH to assess its primary face-to-face direct channel and recommend actions to improve Cost of Sales and sales effectiveness. A big job for CEVOH but mission accomplished. Side benefits included improved first line manager coaching tools, and better customer facing sales positioning. Technology tools for the sales rep were simplified and a new compensation plan was developed with full tech stack integrations.

INNOVATION

The U.S. telecom leader hired CEVOH to create a new product roadmap for B2B customers in the small/medium category. The process involved internal and external ideation, product concept development, output of concepts in both summary and visual form and presentation to focus groups over a three-year period. Changing customer needs were mapped and new products evolved to meet these needs. All of the product innovation included significant technology productization that helped SMBs grow and better service their customers.

TRANSFORMATION

An international advertising/media sector leader hired CEVOH to develop a transformational change management plan. Facing significant market changes and competitive threats, our partners worked to complete and implement a plan that included executive evaluations, succession planning, quality improvement teams, governance committees and market innovation strategies.

SALES

A division of the world’s largest defense/aerospace company hired CEVOH to help develop a direct sales organization. We collaborated to create a best practice sales organization with integrated marketing programs, sales training, customer engagement approaches and effective compensation programs. The result has been a consistent increase in market share and achievement of the international market leadership position.    

INNOVATION

CEVOH created and implemented a technology innovation and marketing plan for a start-up focused on virtual reality cinematic production. This effort involved mixing traditional optical hardware with cutting edge LED virtual scape backdrops and spatial software to create realistic movies and videos for commercial production and cross-platform distribution.

MARKETING

A global top 70 telecom and media company hired CEVOH to optimize and simplify their product portfolio and pricing/promotions offerings. The partners at CEVOH assessed the current product portfolio against metrics of customer value and margin contribution – then greatly reduced the number of products & services in the product offering. A go-to-market strategy was implemented to reduce revenue risk and help 900 direct sales reps increase the ARPU.

TRANSFORMATION

CEVOH worked with several sector leaders within the media industry to develop an analytical model to predict consumer usage trends. The model is now in use by several companies to measure, benchmark and predict consumer traffic yield analytics. This approach creates significant transformational change for media companies – shifting the focus to end users. The model has evolved from Machine Learning to Predictive to a small language AI Bot.

MARKETING

CEVOH works with the world’s largest industrial electric hybrid propulsion company to implement effective go-to-market product launches. The CEVOH team collaborates with the sales, marketing and operations departments to create maximum market effect with limited budgets.

INNOVATION

The worlds largest SaaS biller asked CEVOH to add front-end services to their back-end suite. A major segment target for this work was the Telecom & Media sector. This involved iterative technology development – where customers are working with developers and UI/UX specialists. The output was a series of helpful technology applications that helped customer facing employees to sell using value added and insight approaches.

TRANSFORMATION

CEVOH has worked with several companies to identify the unique differences between ‘end-user’ and ‘customer’. These differences often involve needs attributes and can easily be overlooked. Once these are clarified, our clients can quickly pivot to adjust their actions and meet these needs. The result has been transformational change within the organizations in which we collaborate.

SALES

CEVOH is working with several companies to introduce insight selling initiatives. The adoption of these initiatives has had a material impact on improving the customer experience. We have helped develop industry and segment specific insight as well as efficient multi-touch methodology that strengthen the relationship with the customer. 

MARKETING

CEVOH works with a large industrial manufacturing firm to introduce net promoter score benchmarking and trended data. The result was clarity on quality reputation issues and clear actions to quickly improve product quality. This has also led to adoption of NPS as a unifying cross-functional metric – and initiatives to proactively improve customer experience. 

TRANSFORMATION

CEVOH has worked with several traditional media companies on the effects of disruptive technologies and the impacts of evolving business models.

SALES

The telecom global no 3 hired CEVOH to evaluate telephone and reseller channels and recommend improvements. The result was a streamlined front end system interface that could be quickly deployed. This resulted in hiring additional third-party sales channels that could more easily adapt to the order processing / sales input process.

MARKETING

A large media provider hired CEVOH to assess their marketing and sales operations departments. Gaps against best practices were identified and constructively communicated to senior management along with specific recommendations for improvement.

TRANSFORMATION

CEVOH is working with a large services company to bring innovative products to their SMB segment. We use a proven approach to introduce new ideas, and shorten time to market.

Where we see growth opportunities for the telecom & Media sector

Growth

The telecommunications (telecom) industry, while facing challenges like intense competition and infrastructure investment costs, is experiencing significant revenue growth driven by many of the disruptors seen above:

5G Expansion and Monetization:

  • Next-Generation Connectivity: The ongoing rollout and adoption of 5G networks are paramount. 5G offers significantly faster speeds, lower latency, and higher capacity than previous generations. This enables new applications and services that were previously impossible.

  • New Use Cases: 5G powers applications like enhanced mobile broadband, ultra-reliable low-latency communications (for autonomous vehicles, remote surgery), and massive machine-type communications (for IoT). Monetizing these advanced capabilities through premium service plans and specialized data packages for consumers and enterprises is a key growth driver.

  • Fixed Wireless Access (FWA): 5G FWA provides a competitive alternative to traditional fixed broadband, extending high-speed internet to new areas and generating revenue for telcos.

Data Consumption and Broadband Demand:

  • Explosive Data Growth: The insatiable demand for data, fueled by video streaming (4K UHD, live sports), online gaming, social media, and cloud services, continues to drive revenue. Consumers and businesses require increasingly high-speed and reliable internet connectivity.

  • Mobile Data Services: Mobile data remains a dominant revenue segment, with smartphone proliferation and data-intensive applications driving increased usage.

  • Fixed Broadband: Growing demand for high-speed broadband services for both residential and corporate applications (e.g., remote work, smart homes) fuels revenue from fiber optic and other fixed-line connections.

Enterprise Services and Digital Transformation (B2B):

  • Beyond Connectivity: Telecom companies are moving beyond simply providing connectivity to becoming providers of advanced digital solutions for businesses. This includes:

    • IoT Solutions: Offering connectivity platforms, management tools, and value-added services for IoT devices across industries like smart cities, manufacturing, healthcare, and logistics.

    • Private 5G Networks: Deploying dedicated 5G networks for enterprises that require secure, high-performance, and low-latency connectivity for their operations.

    • Cloud Computing and Edge Computing: Providing cloud-based storage, computing options, and edge computing solutions that bring data processing closer to the source, reducing latency for critical applications.

    • Cybersecurity Services: Offering AI-enhanced security solutions as a premium service, leveraging their network infrastructure and data insights.

    • Unified Communications (UCaaS): Providing integrated communication services like VoIP, video conferencing, and messaging for businesses.

    • Managed Services: Offering managed IT services, network management, and other support services to businesses.

Value-Added Services (VAS) and Content Bundling:

  • Diversification of Services: Telcos are diversifying their offerings beyond core voice and data services by providing value-added services such as:

    • Streaming Services: Bundling partnerships with content providers (Netflix, Disney+, Amazon Prime Video) or developing their own content.

    • Gaming: Offering cloud gaming platforms or bundles with gaming services.

    • Cloud Storage and Digital Services: Providing cloud storage, productivity tools, and other digital services.

    • Mobile Payments and Digital Wallets: Leveraging their customer base and network for e-commerce and financial services.

  • Personalization and Bundling: Creating tailored bundles of fixed and mobile connectivity, TV, streaming, and digital services to offer cost savings, simplified billing, and a more seamless customer experience, which also helps increase Average Revenue Per User (ARPU).

Artificial Intelligence (AI) and Machine Learning (ML):

  • Operational Efficiency: AI and ML are being used to optimize network performance, predict and resolve network failures, automate customer service (e.g., chatbots), and enhance operational efficiencies, ultimately reducing costs.

  • New Revenue Streams: AI is enabling new revenue streams through:

    • Personalized Offerings: Using AI to analyze customer data for tailored marketing campaigns and customized service plans.

    • Predictive Analytics: Forecasting demand, segmenting customers, and informing dynamic pricing strategies.

    • Voice AI: Enhancing traditional voice services with AI capabilities.

    • AI-powered solutions for enterprises: Offering ready-to-deploy AI solutions for various industries.

Subscriber Growth and ARPU Improvement:

  • Expanding Subscriber Base: While saturated in some developed markets, continued subscriber growth in emerging markets, coupled with increasing smartphone adoption globally, still contributes to overall revenue.

  • Increasing ARPU: Strategies like offering premium 5G plans, value-added service bundles, and targeted upgrades aim to increase the average revenue generated per user.

Network Infrastructure Upgrades and Modernization:

  • Fiber Optic Deployment: Significant investments in fiber optic networks provide faster and more reliable internet access, supporting the growing demand for high-speed broadband.

  • Network Reliability and Quality: Focusing on the quality and reliability of services, beyond just speed and coverage, is crucial for customer retention and satisfaction, leading to sustained revenue.

  • Cloud-Native Architectures: Migrating to cloud-based infrastructure allows for flexible resource management, reduced infrastructure costs, and faster deployment of new services.

  • Market Size and Growth:

Revenue Growth Opportunities for the Media, Entertainment, and Information Industry:

The MEI industry is projected to surpass $3.4 trillion by 2028 globally, with significant new revenue pools forming in advertising, streaming, and emerging markets.

Advertising as a Core Growth Driver:

  • Digital Advertising Dominance: Advertising will account for 55% of revenue expansion in the MEI industry over the next five years, becoming a core strategy even for companies that previously avoided ad-based models. Digital advertising, especially on connected TV and retail platforms, is revolutionizing brand engagement.

  • Hybrid Monetization Models: The slowing growth of pure subscription models is forcing major streaming platforms to introduce ad-supported "hybrid tiers" (e.g., Disney+ ad-supported subscriptions). This diversifies revenue sources and caters to price-sensitive consumers.

  • Targeted Advertising: As consumers retreat into niche platforms and on-demand experiences, targeted, high-impact advertising driven by data and AI will be essential for engagement and higher ROI.

  • In-Game Advertising: Advertising within games is a fast-growing revenue stream, offering significant opportunities as gaming continues to expand.

Expansion of Gaming and Interactive Experiences:

  • Fastest-Growing Sector: Gaming remains a hot trend, projected to surpass $300 billion in revenue by 2028, more than twice its 2019 amount. Social and casual gaming are driving this growth, making up 75% of the global video games and esports market.

  • New Monetization Models in Gaming: Gaming platforms have pioneered innovative approaches like microtransactions, battle passes, and virtual merchandise, creating entirely new revenue categories (e.g., Fortnite's $5 billion annual revenue from optional purchases).

  • Esports and Mobile Gaming: The continued rise of mobile esports, particularly in emerging markets, and the professionalization of esports broadcasting offer significant growth.

  • Immersive Content (AR/VR/Metaverse): Emerging immersive technologies offer new ways for audiences to entertain themselves, with companies exploring interoperable digital spaces for virtual concerts and interactive storytelling.

Data-Driven Personalization and Micro-Moments:

  • Hyper-Personalization: Leveraging data gathered at every touchpoint allows companies to create "micro-moments" – brief interactions with highly personalized content that resonates deeply with specific audiences.

  • AI-Powered Recommendations: AI is increasingly used for dynamic pricing, customized subscription packages, better audience segmentation, and optimizing content creation for distinct user groups, leading to higher customer lifetime value.

Business Model Reinvention and Strategic Partnerships:

  • Diversification Beyond Advertising: Companies are exploring revenue beyond advertising, including e-commerce, merchandising, and other direct-to-consumer models.

  • Consolidation and Aggregation: Companies are exploring mergers, acquisitions, and partnerships to streamline operations, offer curated content, and gather larger audiences to compete in the new ad landscape.

  • Investing in Ad Tech and AI: Studios should invest in advertising technology and AI to deliver more affordable and effective impressions and conversions, potentially through strategic partnerships.

  • Virtual Production and Automation: Adopting virtual production and AI can enable cheaper and faster content production, generative AI for dubbing and translation, and automation of operational functions like contracts and script evaluation.

Leveraging Social Platforms and User-Generated Content (UGC):

  • Nexus of Discovery and Hype: Social platforms are becoming the primary nexus for discovery, awareness, and hype for film and TV, especially for younger generations who rely on creators online and social media for recommendations.

  • Short-Form Video and IP: Short-form videos on platforms like TikTok and Instagram Reels are effective for reaching younger demographics, and studios should get creative in publishing to social platforms to lift TV and movies.

  • Engaging Content Creators: Social content creators can be powerful advocates for studio creativity and storytelling, helping to engage audiences, communicate authentically, and drive virality.

Underlay Providers

·        Companies such as Visible and Google Fi offer the same wireless operational benefits as their parent company (Verizon and Alphabet), but do so with a lower cost service model. They cut costs by selling online direct, and services issues are handled using AI assist rather than live operator customer care.

MVNO

The global MVNO market was valued at $84.6 billion in 2023 and is expected to reach $116.8 billion by 2028, with a compound annual growth rate (CAGR) of 6.7%. Other reports project even higher growth, with some forecasting a rise to $167.7 billion by 2034. European growth is outpacing U.S. growth. Here are some of the factors driving growth:

Incentives to switch and low switching costs: Customers more often have an ‘unlocked’ device and can get service from any supplier.

Affordable and Flexible Plans: MVNOs often offer competitive pricing and customizable plans, attracting budget-conscious consumers. In many cases, the large telcos are pushing unlimited plans – often causing customers to overbuy. MVNOs debundle services and allow you to easily move up as your needs change.

Digital-First Approach: Many MVNOs prioritize online and digital channels, appealing to consumers who prefer digital-first experiences. 

Technological Advancements: The increasing adoption of 5G, eSIM technology, and IoT is creating new opportunities for MVNOs to offer innovative services. 

Niche Market Targeting: MVNOs can cater to specific demographics or needs, such as travelers, businesses, users of specific devices, or even political affiliation.  

Competition and Innovation: The MVNO market is competitive, with operators differentiating themselves through pricing, service offerings, and partnerships. Challenges facing MVNOs:  

While MVNOs offer many benefits, they can also face challenges such as network reprioritization during peak hours, other dependencies on telecoms and the need to adapt to evolving technologies and customer demands. 

Most importantly, MVNOs have the lowest net margin (5-7%) of the telecom & media sector.

In essence, the telecom industry's revenue growth is shifting from primarily voice and basic data to a more diversified model centered around high-speed, reliable connectivity (especially 5G), data-driven insights, advanced enterprise solutions, and a rich ecosystem of value-added digital services.

Conclusion:

The telecom and media industries are converging into a unified sector, driven by evolving technology and consumer behavior. Historically, telecom has provided the fundamental infrastructure, now integrating with content and new business models like over-the-top (OTT) services.

However, both sectors face significant challenges: telecom executives fear commoditization and struggle with rapid innovation, while media grapples with digital disruption and shifting consumer preferences. Customers demand reliable, high-quality service, transparent pricing, and excellent support, with poor network performance and price increases being major reasons for churn.

Future trends include the widespread adoption of 5G (and upcoming 6G), increasing convergence of services, content aggregation to combat streaming fatigue, and the pervasive use of AI for efficiency and customer service. Edge computing, IoT, cybersecurity, and sustainability are also critical areas. Growth opportunities lie in 5G monetization, expanding into enterprise services (B2B), value-added services, and data-driven personalization. Companies must invest in scalable infrastructure, foster partnerships, and prioritize customer experience to thrive in this hyperconnected, dynamic landscape.