Petroc Taylor
Research expert covering global developments in the use of data
Telecommunications infrastructure & equipment - statistics & facts
Telecommunications infrastructure serves as the backbone of a modern, connected society. Be it video calls, online gaming, or cloud storage, the digital economy relies on fast, dependable networks, with consumers and businesses expecting a seamless and hassle-free user experience. Network operators are looking to innovative equipment and infrastructure solutions to meet these expectations, with a particular focus on ensuring reliability and minimizing latency. This has nurtured a competitive and high stakes global market for telecoms infrastructure products and services, which is led by some of the world’s most valuable companies and is increasingly entwined in mounting geopolitical tensions.
5G and fiber networks under the spotlight
Networks lie at the heart of the telecoms infrastructure industry. In mobile communications, the focus is on the expansion of 5G networks and the deployment of associated technologies such as millimeter wave, standalone networks, and network slicing. This has been mirrored in the fixed sector in the expansion of fiber networks, with operators looking to increase FTTP (fiber-to-the-premises) availability and deploy high-capacity subsea cables to boost global connectivity. Several major players operate globally across various subsectors, with European firms Ericsson and Nokia focusing heavily on mobile telecoms, while Shenzhen-based Huawei has sought to expand its influence in both the mobile and fixed markets.Competition intensifies amidst a global tech battle
The strategies of leading infrastructure firms center on the securing of major contracts with governments and network operators, leading to considerable volatility. This was underlined in 2023, when Nokia, which is pursuing a transition away from consumer hardware, lost a deal to deploy AT&T’s open radio access network to rival Ericsson, despite having a long-running relationship with the U.S. operator. Meanwhile, escalating U.S.-China tensions have seen infrastructure contracts placed under the microscope, with the United States and several other western governments banning the use Huawei products amid security concerns. The Biden administration has also restricted the supply of U.S. technology to Huawei, with multiple export licenses revoked in 2024.AI adoption will increase demand
As digital transformation powers ahead with the adoption of cutting-edge AI technologies, the demand placed on telecommunications networks will continue to grow. Meanwhile, the critical nature of telecoms services will see the industry remain in the spotlight amid broader geopolitical tensions. The challenge for the industry over the coming decade will be to drive innovation and investment in order to meet growing demand, while navigating an increasingly complex and unpredictable global market.
