Impact of COVID-19 on cloud telephony services market

The global outbreak of the COVID-19 has led to discontinuity and chaos. Not only has the pandemic created havoc in the lives of people, but it has also disrupted the functioning of businesses to a large extent.

With the lockdown being imposed all across the globe, there has been a rise in remote working capabilities. Many companies and industries have adopted cloud-hosted services to ensure their business continuity.

Due to this, there has been a sudden rise in the demand for telecommuting services, creating an immediate need for video conferencing, mobile network equipment, VPN's, and cloud telephony. Small and medium-sized enterprises (SME's) are increasingly adopting cloud telephony services mainly due to cost efficiency as well as the limited capital investment required for deploying the setup.

Cloud Telephony refers to the technology where telephony switching and storage equipment is hosted over the service provider’s premises and are made accessible to the customers through the internet.

According to a market report by Transparency Market Research, the global cloud telephony services market is expected to reach a value of US$ 41,768.3 million by 2026 on account of cost reductions compared to traditional telephony systems.

The market is projected to expand at a Compound Annual Growth Rate (CAGR) of 17.2% during the forecast period from 2018 to 2026. Multiple benefits offered by cloud telephony, mobile workforce, and increasing demand for business mobility are some of the factors that have led to the adoption of cloud telephony services by businesses.

Global Cloud Telephony Services Market Dynamics

The growth in the global cloud telephony services market is mainly driven by the migration of companies from traditional to IP networks. Europe is anticipated to be a rapidly expanding region for the cloud telephony market, followed by the Asia Pacific during the forecast period.

• Telecom operators have planned to phase outIntegrated Services Digital Network (ISDN) in countries like the UK, France, and Germany, which again opens up lucrative opportunities for the cloud telephony market. Developments in network infrastructure and a rise in investments are said to favor the growth of cloud telephony services in countries like India, China, and the Philippines.
• Also, the rise in the number of contact and call centers in America has favored the adoption of cloud services.

Let's Take A Look At The Potential Impact Of COVID 19 On The Telecom Industry

1.Network Usage and Resiliency

There has been an exponential rise in the usage of cloud services networks owing to the rapid migration of companies to the cloud. Many countries have also reported a hike in the call volume as demand for call center and helpline services has increased.

However, network reliability has become an area of concern. For instance, Europe is witnessing a decline in network infrastructure due to connection drop rates, lower audio quality, and a drop in connection rates.

2.New Ways To Enhance Customer Experience

Telecom companies across the globe are adopting new measures to improve customer experience. Companies in the UK have increased the capacity of networking services and are offering unlimited minutes.

Telcos are also offering remote working applications at a considerably reduced cost as 'work from home' has seen a significant rise. Similarly, the work productivity platforms are offering promotional discounts as more and more people are remote working.

3.Financial Impacts

Telecom companies are one of the few industries that have been less affected by the spread of Coronavirus. However, some telcos may still face recession and shortage of cash flow, just like other impacted sectors.

Since the pandemic has caused the cancellation of major sports, tech, and media events, such media telcos may face the negative impact of advertising-driven revenues. Many companies are also looking forward to investing in a 5G mobile network.

4.Use Of Customer Data To Track COVID 19

Poor communication can lead to misinformation among people. Various government organizations are deploying cloud telephony services to track the spread of COVID 19 by using customer data. In countries with a vast landscape and highly mobile population, Cloud Telephony offers a perfect solution for the people to stay connected. It ensures business communication and business continuity in these times of crisis.

Telecom companies’ subscribers are receiving warnings and updates in their preferred language when they are about to place a call. The auto-response updates them about any new cases in their locality and also informs about the precautionary measures.

5.Enable Workforce Operations

Cloud platforms like Skype enable remote workers to connect anytime and from anywhere. Cloud solutions also promote collaboration among distributed workforces; this way, workflows stay efficient.

Managers and supervisors can connect with their teams through voice calls, video calls, and instant messaging. Cloud Telephony can play a pivotal role, especially in delivering essential services like health care.

The global economy is facing a recession and switching to Cloud Infrastructure is one of the best ways for businesses to cut down the expenses. The cloud telephony services are flexible, allowing enterprises to scale up and down according to the business requirements.

By Vinay Chhabra, CEO, Real Time Data Service