Companies quick to adapt to enhanced regulation can avoid penalties and become industry leaders.
Telecommunications industry outlook key takeaways
Low Earth orbit satellites represent the majority of satellites launched into orbit.
The rise of LEOs is driven by lower latency, lower costs and better coverage.
Telecommunications trend #1: Abundant regulation reshapes the landscape
Outlook
Abundant regulation is reshaping the telecommunications landscape
Telecom companies must be nimble to comply with rapidly evolving regulations in cybersecurity, connectivity, transparency and more.
Regulation tends to be more reactive than proactive. With connectivity to almost everything increasing, the telecommunications industry is ripe for more regulation. Over the last year, new compliance standards have largely focused on three broad categories: cybersecurity, reliable connectivity and consumer transparency. Companies need to be nimble to comply with the shifting regulatory landscape and avoid potential penalties—and they need to stay informed on multiple fronts, as significant regulation can come from local, state, federal or even international bodies.
Telecommunications trend #2: The rise of LEO's
Outlook
Telecom’s final frontier is creating a mega constellation—and mega space junk?
Middle market companies can capitalize on the rise of satellite launches, but they must be aware of regulatory and overcrowding concerns.
Since 2000, over 9,600 satellites have launched into orbit, with LEOs accounting for over 88%. Their popularity stems from lower costs and better coverage, but concerns about space junk and regulatory oversight are growing.
Companies navigating this space must balance innovation with regulatory compliance and environmental responsibility to capitalize on the potential of LEO constellations while mitigating risks.
Telecommunications trend #3: BEAD funding
The Broadband Equity Access and Deployment Program (BEAD) allocates $42.5 billion to bring high-speed internet to underserved Americans. Focusing on unserved areas first, the initiative prioritizes affordability and aims to bridge the digital divide, which disproportionately affects lower-income and minority populations.
Outlook
U.S. broadband access to expand to underserved via $42.5 billion BEAD funding
The United States’ $42.5 billion BEAD program to extend high-speed internet access will benefit communities, as well as providers and manufacturers.
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