Intensifying Competition Between Telecom Providers Could Lead to Growth

FinancialBuzz.Com News Commentary

Telecommunication services have expanded dramatically due to the growing demand among consumers as many businesses require telecommunication services in order to help their business expand. Now, telecom operators are tasked with providing optimal services for their customers. However, due to the competitive nature of the market, there is an increasing pressure being put on telecom service providers. According to data compiled by Transparency Market Research, the global telecommunication services market was valued at USD 800 Million and is expected to reach USD 1.4 Billion by 2025. Additionally, the market is projected to grow at a CAGR of 6.6% throughout the forecast period from 2016 to 2025. The market is also expected to continue its acceleration due to new service launches, as well as continuous mergers and acquisition, which could further intensify the competition in the industry. Simlatus Corporation (OTC: SIML), Verizon Communications Inc. (NYSE: VZ), T-Mobile US, Inc. (NASDAQ: TMUS), Comcast Corporation (NASDAQ: CMCSA), AT&T Inc. (NYSE: T)

The telecommunication market is split primarily into two segments: commercial and residential. Of the two, the residential segment controls up to 61.8% of the telecommunications market. However, the commercial segment could grow at a much faster CAGR as opposed to the residential segment. Factors such as rising population, increasing penetration of the internet and rising adoption of mobile devices are causing the two segments to grow rapidly. Many telecom firms are capitalizing on the growing market by integrating emerging technologies such as artificial intelligence and Internet of Things into their services. “Telecoms will have to adopt new business models based around data,” said Dan Bieler, Principal Analyst for Forrester Research. “The data they will have access to is enormous as more devices become connected. Telecoms are in a very good position to leverage this data for the benefit of their customers.”

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Simlatus Corporation (OTC: SIML) is a supplier of DIRECTV™ and High Speed Internet to high rise buildings including: Businesses, Apartments, Condominiums, and Residential Communities in the metropolitan San Francisco Bay Area, and a manufacturer of proprietary commercial audio/video products to networks with Major Broadcast Studios. Earlier today, the Company announced that, “Satel Group is accelerating its ongoing expansion into additional high rise residential buildings in San Francisco.

Richard Hylen, the CEO, stated, “Since our merger, the company has allocated resources for expanding its revenue base. We have recently contracted two more high-rise residential complexes and are finalizing the negotiations with a third complex. Accumulatively, these buildings represent approximately 500 residential units which will generate another $50,000 per year. Our growth potential for 2019 is to take our existing average revenue of $1M per year and increase it to $2M per year. Our plans for 2019-2021 are to expand our services into the Silicon Valley and Sacramento, with additional services which allow a potential revenue target of $12M per year by the end of 2023.”

Satel Group currently provides DIRECTV™ services to 170 Residential Buildings and 48 Commercial Buildings in the San Francisco Bay Area consisting of over 19,000 residential units in one of the most vibrant economic regions of the world where Satel Group is also becoming a fast growing service provider of High Speed Internet services. The company plans to add additional over-the-top (OTT) services for its existing customer base, as well as new potential customers and to manufacture proprietary equipment to enhance services. This equipment will also be sold to competitors to be used for their customers.”

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Verizon Communications Inc. (NYSE: VZ) delivers the promise of the digital world by enhancing the ability of humans, businesses and society to do more new and do more good. Recently, Verizon – in partnership with Motorola (NYSE: MSI), Samsung Electronics America, Inc. and Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated (NASDAQ: QCOM) – completed the world’s first 5G data transmission on a smartphone on a commercial 3GPP 5G New Radio (NR) network. This successful test was completed with a moto z3 paired with a 5G moto modtm, the world’s first 5G-upgradeable smartphone, in Providence, RI. This is the same 5G-upgradeable smartphone device consumers will use on Verizon’s 5G mobile network when commercial service begins in 2019. This is the latest in a series of 5G milestones Verizon and its technology partners have achieved in recent months. The companies performed several tests over the 5G connection, including browsing the internet and placing a video call. The transmissions were completed over Verizon’s 28 GHz spectrum and Samsung 5G New Radio (NR) solutions. The moto z3 with 5G moto mod is powered by the Qualcomm® Snapdragon™ X50 5G modem, along with the groundbreaking QTM052 mmWave antenna modules. “In the past two years, we have consistently led the world in 5G, including launching the world’s first commercial 5G service last month. This successful test, using an actual smartphone, widens our lead,” said Bill Stone, Vice President, Technology Development and Planning for Verizon. “We will be the first to offer a 5G upgradeable smartphone on our network in 2019.”

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T-Mobile US, Inc. (NASDAQ: TMUS), as America’s Un-carrier, is redefining the way consumers and businesses buy wireless services through leading product and service innovation. In yet another first, T-Mobile recently launched its Narrowband Internet of Things (NB-IoT) service nationwide. T-Mobile is the first to launch NB-IoT in the U.S. and first in the world to launch NB-IoT in the guard bands for optimal efficiency. The Un-carrier also announced its new partner program, T-Mobile CONNECT, to help IoT solution providers collaborate and bring their products and services to market on T-Mobile’s network — and into the hands of customers — more quickly. Built on the 3GPP standard, NB-IoT is a low power, wide area network (LPWAN) LTE-Advanced technology that provides a pathway to 5G IoT and offers many comparable benefits like low power usage, long battery life and low device cost. T-Mobile was also first to trial NB-IoT in the U.S. last year. “We’re always innovating to bring customers the latest technology, and NB-IoT is the globally-preferred standard to power the rapidly expanding world of IoT applications,” said Neville Ray, Chief Technology Officer at T-Mobile. “So of course, T-Mobile is the first to bring NB-IoT to the U.S., lighting up new capabilities to connect massive numbers of devices at low cost.”

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Comcast Corporation (NASDAQ: CMCSA) creates incredible technology and entertainment that connects millions of people to the moments and experiences that matter most. Comcast recently announced the national launch of Xfinity xFi Advanced Security, a new artificial-intelligence-powered service that monitors, blocks and informs customers of online threats to connected devices, and provides seamless digital protection for those devices when connected to their home network. xFi Advanced Security was developed to protect devices in this new hyper-connected reality. It uses AI and machine learning technology to monitor and analyze WiFi traffic in the home, and will automatically block identified suspicious activity in real time. Using a simple, intuitive user interface, the technology informs customers of blocked threats, and when necessary, provides instructions on how to further secure affected devices. “As the digital world gets more complex, we wanted to make it simple and easy for our customers to protect their home networks. That’s why we developed xFi Advanced Security,” said Fraser Stirling, Senior Vice President of Digital Home, Devices and AI, Comcast Cable. “We want to give customers digital peace of mind for the devices they already own and the confidence to expand and evolve their connected homes knowing that every new camera, voice-assisted speaker or smart thermostat they add will be protected.”

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AT&T Inc. (NYSE: T) recently launched ultra-fast internet in parts of 12 new metro areas. The Company’s 100% fiber network powered by AT&T Fiber℠ is now in parts of these new metros such as Amarillo, Texas; Beaumont, Texas; Bowling Green, Ky.; Florence, S.C.; Gainesville, Fla. An ultra-fast internet connection powered by AT&T Fiber lets users quickly access and stream the latest online movies, music and games. Customers can easily telecommute, video-conference, upload and download photos and videos, and connect faster to the cloud. AT&T has millions of miles of fiber and this expansion furthers the Company’s lead as the largest provider of fiber across the 21 states where it offers home internet service. The success of mobile 5G relies on a quality fiber connection to the wireless towers or small cells, which then translate the fiber connection into an ultra-fast wireless signal for customers. By putting fiber at the core of AT&T’s wired and wireless networks, it has been laying the foundation for its 5G wireless connectivity.

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