Drivers for growth
The underlying drivers for investment in mobile infrastructure and communications solutions are the ever-increasing market demand and growing regulatory requirements for ubiquitous, robust and secure high-speed communications. Given that service provider revenues are not evolving in line with increased network traffic, this also creates demand for software to better utilize network resources, prevent revenue leakage, and provide competitive differentiation through fast service delivery and superior user experience. Network automation powered by artificial intelligence, migration to cloud platforms, and new generations of Wi-Fi and mobile systems are some of the technology shifts that are already underway and are expected to continue in the coming years. Increasingly, telecom networks are considered critical infrastructure for society and face growing cybersecurity threats. Investments to protect mobile networks and digital communications are a priority area that has received additional focus due to a more uncertain global situation and where recent surveys indicate that many operators have not yet invested enough
Trends
The telecom industry and the market opportunities for Enea are shaped by a number of industry-specific factors, technology development and broader societal and economic trends. Some of the most relevant trends affecting our business include:
Fraud and security threats
In 2023, cybersecurity threats escalated from already high levels globally in part boosted by AI capabilities, affecting critical infrastructure including telecoms networks, as well as enterprises and consumers. Fraudulent voice calls, scam messages and major service interruptions have led to a strong increase in public awareness, and attacks on telecoms networks are increasingly considered a national security concern. Encryption of communications intended to improve privacy for users also had the effect of increasing security risks. Many governments are responding with cybersecurity policies and regulations, which will put increased requirements on the telecoms and IT industries to protect networks, data and subscribers, and mitigate geopolitical risks in the provision of services. Likewise, enterprises have increased their own investments in cybersecurity, and are placing higher expectations on their telecom suppliers.
Growing data demand
Telecom networks are in the midst of migrating to new generation systems to handle continued data traffic growth, driven by video consumption which is particularly demanding indoors where the majority of all data is consumed. As new revenue streams have not yet materialized from these new investments, operators are focusing on profitability, and that’s where Enea’s software can play a role. It could be, for example, handling data and video traffic with increased efficiency, or off-loading to Wi-Fi to cost-effectively manage high demands at entertainment venues and indoors for example. Some operators have been able to raise mobile broadband prices based on differentiated network speed packages, and create new offers to cater to the growing gaming market.
Artificial intelligence and automation
The telecom and cybersecurity sectors have been early adopters of the latest artificial intelligence technology. Uses include improving customer service, as well as automating the complex tasks of running networks to improve network performance and efficiency. Enea’s products include AI technologies for tasks such as predicting and managing network congestion and for identifying and classifying different types of traffic on a large scale. Since all AI and automation is dependent on relevant and high-quality data, these trends should increase demand for specialized software products that help operators and software vendors collect, manage and apply different types of data in real-time in critical networks.
Cloud
Another clear trend is the use of cloud-based solutions. This includes both public and private cloud platforms, with the latter still dominating among mobile operators. This trend has implications for both technology choices and business models. Technically, it is about building software REPORTS ADDITIONAL INFORMATION for cloud-based environments and having an underlying software architecture that provides increased flexibility and scalability. Cloud services also enable new business models, such as subscription and usage-based pricing and licensing models.
Enea is well positioned
People, businesses and societal functions all over the world are increasingly dependent on secure and reliable digital communication. The trend towards higher traffic and corporate networks. Technology shifts towards cloud solutions, AI and the fifth generation mobile networks (5G) are changing the dynamics of markets that were previously volumes and more connected devices is expected to continue, which creates driving forces for new investments in technology that protect and make communication more efficient. Our business idea is to develop and sell software that protects and streamlines communication in mobile dominated by a few companies. Traditional solutions, often based on components from a single supplier, are increasingly being replaced by open, cloud-based systems where different companies contribute specialized software. As a leading software supplier, we are well positioned to benefit from this development.