Where does AI fit into the future of wireless, telecom, broadband, and pay TV?
The communications industry with wireless, telecom, broadband, and pay TV has had a very strange decade. That being said, today all three main carriers — AT&T, T-Mobile, and Verizon — seem to be back on track and growing stronger. What about Comcast Xfinity, Charter Spectrum, Altice, and Cox? Now, there is something new in the cards. The next, big question we are wrestling with is how will AI transform the communications industry? Let’s take a closer look at some of this.
In a recent interview with Schwab Networks, I discussed the three wireless networks for investors and workers, and what we can expect moving forward. We reviewed the growth trajectories they are currently on, identified areas for improvement, and talked about what lies ahead.
Allow me to share some key points we discussed with you here.
Recap of wireless going off track then finding its way again
I spend plenty of time with a variety of clients, competitors, investors, and more, sharing thoughts on the always-changing industry, finding new growth opportunities, and predicting what’s coming next.
First, a quick recap: A decade or so ago, Verizon and AT&T were struggling with slow growth. At that time, T-Mobile was pretty much lost. Then, about a decade ago, all three carriers started down very different growth paths.
AT&T acquired assets from Time Warner, including CNN, Warner Bros. Studios, and others. They called this new group WarnerMedia. They were going to grow beyond telecom. Verizon acquired AOL and Yahoo and saw itself growing far beyond its telecom roots as well.
T-Mobile had been struggling for years. They finally hired a new CEO who started them on their growth track, which they are still on today.
AT&T Industry Analyst briefing at Warner Bros. Studio in Hollywood
In fact, I attended an AT&T Industry Analyst Briefing at their new Warner Bros. studio in Hollywood. I have attended more of these Analyst Meetings than you can imagine over decades. This one was fun, to see where many Hollywood movies were made over time, but it didn’t fit with AT&T.
The same way the Verizon path didn’t work either. This was a bold and impressive move from both companies. It just did not work out for either of them. AT&T and Verizon both eventually spun off these albatrosses around their necks and started getting back to basics. They now focus on traditional growth with wireless, 5G, and broadband.
Fast forward to today
Today, both John Stankey, CEO of AT&T, and Hans Vestberg, CEO of Verizon, have done a good job helping their companies with recovery. Both have put their companies back onto the more traditional growth track.
T-Mobile finally started winning after acquiring Sprint and becoming a real industry leader, first under CEO John Legere, then under CEO Mike Sievert.
Today, all the cable television competitors are struggling to figure out what future growth looks like.
AT&T, T-Mobile and Verizon all seem to be strong wireless players today
While wireless seemed to be lost for quite a long time, suddenly all these players are hitting the ball, focusing on the basics. So far, so good.
However, today, growth in wireless and broadband is not as robust and rapid as it once was. It is not showing the same momentum as it has in the past. Something must be done if for no other reason than to keep the investors satisfied. After all, these are public companies.
In recent years, wireless is transforming from a growth industry to a more mature, slower-growth space.
Where will new wireless growth come from?
So, where will wireless, broadband, telecom, and pay TV growth come from?
This is where things get a little tricky to see clearly. I believe wireless and wireline telecommunications are key industries. They are not going away.
That being said, growth has slowed. So, carriers need to find new areas for growth to advance once again. And to keep their investors satisfied.
Carriers need to improve their outreach to the marketplace once again
These companies do not talk to the marketplace the way they used to. In many ways, they are strangers. Rather than taking advantage of obvious ways to get their message out, its more like a black hole.
Moving forward, I believe all three carriers will continue to focus on wireless and broadband. Plus, all sorts of telecom services for business and consumer customers. New growth seems to be coming from areas like private wireless and wireless broadband.
AI could be next growth engine for wireless, telecom, and broadband
AI is becoming another major growth engine. Artificial Intelligence could turn out to be one of the biggest news stories of all time. It could transform and grow various industries, including wireless, broadband, and telecom services.
AI promises to change the entire communications industry from the reliability of delivering good quality service to offering new services to make money.
Now, it seems something new is popping up. Customer service is another new area to focus on. Verizon is starting to talk about starting to re-focus on Customer Care, Customer Experience, and Customer Service.
Focus on customer care could provide Verizon a competitive advantage
If Verizon is successful in turning customer care into a real and longer term growth sector, it could become a competitive advantage for them, at least for a while, before AT&T and T-Mobile enter the market.
Bottom line, the wireless industry has been a growth engine for roughly fifty years, moving from analog to digital, then 2G to 5G and beyond.
The good news is that after taking wrong turns over the past decade, all three players seem to be back on the growth track once again.
What’s next for wireless, telecom, pay TV: AI and customer service?
Today, all three wireless networks have similar top-quality networks. What is next remains the big question.
We have touched on quite a few potential growth engines for the industry. So far, the industry looks like it is getting back to the growing side of the growth wave I always talk about. What comes next remains unknown.
There are several areas of potential growth. Today, like twenty-years ago before the iPhone and Android, we are throwing ideas against the wall to see what sticks.
Today, the telecom, broadband and wireless world look stronger than a few short years ago. However, the cable TV industry is still wondering in the darkness looking for their next growth wave.
So, let’s keep our eyes on the industry to see which direction works next.
