Key Challenges of Telecommunications Industry in 2024
In 2024, the Russian telecommunications industry faces several significant challenges that could greatly impact its development and stability.
- Problems with Import Substitution and Equipment Shortages
One of the primary challenges has been the shortage of telecommunications equipment, as the exit of Western suppliers has left operators with issues related to both hardware and software. This complicates the support and modernization of existing networks. It is expected that import substitution problems will intensify, especially in the second half of 2024, when existing base stations may struggle to cope with increasing traffic.
- Price Increases and Changes in Tariffs
Amid the equipment shortages, operators have already begun raising prices for their services by 10-15%. This could increase the financial burden on users, likely leading to dissatisfaction and customer churn. However, experts have noted that so far, the price increases have not resulted in a mass exodus of subscribers, as demand remains high.
- Quality of Connection and Internet Speed
Analytics show that the average mobile internet speed in Russia has started to decline, indicating insufficient modernization of network infrastructure. Given the increasing traffic, operators may face serious difficulties in providing quality connectivity if new base stations are not deployed and existing ones are not optimized.
- Implementation of New Technologies
Telecommunications companies are actively developing Internet of Things (IoT) technologies and corporate services such as cloud solutions and cybersecurity. However, successfully implementing these initiatives requires overcoming current issues with equipment and software. Operators are also working on optimizing their networks to enhance efficiency and the quality of services provided.
- Development of 5G Networks
Commercial deployment of 5G networks is not expected to begin until at least 2025, but necessary preparations are already underway. In 2024, development priorities will focus on enhancing the required equipment and infrastructure. Fifth-generation (5G) networks promise numerous advantages over previous standards:
1. Maximum Data Transfer Speed: 5G can provide speeds of up to 10 Gbps, which is several times faster than 4G.
2. Minimal Latency: The network response time is just 1 millisecond, which is critical for applications such as virtual reality and autonomous vehicles.
3. High Connection Density: 5G allows for connecting up to a million devices per square kilometer, opening new possibilities for the Internet of Things.
- Regulatory Changes
Considering changes in legislation and the cancellation of roaming in Crimea and other new territories of Russia, operators will need to adapt to new conditions in these markets. This may create additional difficulties in managing tariffs and services for subscribers.
Thus, 2024 will be a decisive year for the Russian telecommunications sector. The main issues revolve around import substitution, rising service prices, quality of connectivity, and the need to implement new technologies. The success of operators will depend on their ability to adapt to emerging challenges and effectively address them.
In terms of human resource management within the telecommunications sector, several significant trends related to digital transformation and process automation can be highlighted, along with changing approaches to HR. The main directions are as follows:
1. Digitalization of HR Processes: Digital technologies are gradually becoming central to human resource management. The implementation of electronic document management systems and automation of routine tasks is expected to simplify HR departments' work, allowing for faster document processing and better interaction with employees.
2. Role of Artificial Intelligence: Artificial intelligence technologies are already being actively integrated into HR processes. AI will assist in automating recruitment processes and personalizing training programs, enhancing employee skills and satisfaction.
3. Talent Retention: In light of labor shortages, companies have focused on retaining qualified specialists through flexible motivation programs and the use of HR analytics.
4. Innovative Technologies in Training: New educational platforms and gamification of training processes increase employee engagement.
HR trends in 2024 aim to create a more effective, adaptive, and technology-driven personnel management environment. Companies that successfully integrate innovative approaches and technologies will be able not only to attract but also retain talent, which becomes a key factor for their successful development in a competitive market.
Ekaterina Petrova, Head of Retail & HoReCa, ANCOR Recruitment