COVID -19 impact on the telco electronics manufacturing sector

Date of publication: 20.07.2020

The telco electronics sector is one of the most dynamically growing industries to have made major investments in broadband and internet services in recent years. The need for high capacity has been increasing steadily for years and the COVID-19 epidemic has accelerated global digitization. It is estimated that humankind “leapfrogged” some ten years forward over the past six months.

Telecommunication  - the “mission-critical” sector in the time of COVID-19

The COVID-19 pandemic has shown, perhaps more than any event in human history, how important the Information and Communications Technology (ICT) infrastructure is to maintaining communication and keeping businesses, governments, and societies going. The ICT sector has become the most critical to maintaining the continuity of the economy and many countries in the following aspects:

  • Organizing work from home. Working from home has become commonplace for many employees who can do their jobs this way. However, organizing work from home has become a major challenge for employers. Live streaming from the management to a group of 40 or 50 people may result in considerable lags or even completely overload the Virtual Private Network (VPN). 
  • Business operations. Many companies have begun to rely on the internet more not only to organize their employees’ in-house work but also in their business operations. There has been an upsurge in online training, live-chats, and webinars. As in the bullet point above, online events with a dozen or a few dozen people necessitate the need to have access to an efficient Internet.
  • Maintaining communications, access to information, and entertainment in lockdown. ICT network loads have become much higher because users spend more time online. They are more active on social media, download more Gb of data, and shop online. Online video game services, including Steam or streaming services such as Netflix, are experiencing a massive surge. The operators try to accommodate the needs of people who spend an overwhelming majority of their time at home. They have introduced new products such as free access to video content or extra internet plans. The use of such services puts a burden on the ICT infrastructure. 

global digital growth 2020 vs 2019: unique mobile users, internet users, active social media users
Global digital growth

What about investing in the Information and Communications Technology infrastructure?

In contrast to many other industries, the Information and Communications Technology sector has not been particularly hit by the economic effects of COVID-19. The greatly heightened demand for digital services caused companies in this sector to meet their business plans for 2020 over the last few weeks.

The prospects for the ICT industry are also promising. Presumably, many online behaviors that have become especially important during the COVID-19 outbreak will be here to stay after the epidemic ends. This is suggested by the increased value placed on the digital experience and it is anticipated that this will be a permanent change in how people work, communicate, shop or spend their free time. 

Given the industry’s critical importance to the operation of businesses and societies in lockdown, many operators have decided to continue their scheduled investment in ICT infrastructure. 

The macroeconomic situation caused by the global economic crisis has also led to a greater availability of workforce. This, in turn, is one more factor to stimulate and facilitate investment in ICT network infrastructure.

COVID-19’s impact on the electronic production of telecommunications equipment 

Does the demand for professional ICT equipment translate onto the electronics manufacturing business? Everything points that way. According to an IHS survey, semiconductor manufacturers say that the market for components used to manufacture electronic devices for the ICT industry has grown significantly. It is estimated that the growth in this segment may even exceed the pre-COVID-19 forecasts for both 2020 and 2021.

an increase in semiconductor demand in the industry of manufacturing electronic devices for telco sector
Semiconductors market revenues in electronic manufacturing for the wire communication sector

The local point in the electronics supply chain

Many providers of technological solutions see this crisis as a reason to rethink and restructure their existing supply chain strategies. They are beginning to see the potential of local electronic device manufacturers, for example in Europe. Such an approach can be very reasonable as it ensures the security and flexibility of the overall supply chain. Due to our location in the heart of Europe and our very flexible supply chain management, which is based on local suppliers, we become an important link in this chain.

In line with global trends, we can see an interest in electronics manufacturing services from manufacturers of ICT devices. Our advantage is our extensive experience in delivering various projects for bothsmall and global providers of ICT solutions. We have an experienced team of experts in a variety of communications technologies on board. Our portfolio of delivered projects includes a very diverse set of devices:  from those implemented in headends, mounted in the net or at the subscriber's. 

 portfolio of design and manufacturing  projects for the telco sector
Selected products that we have designed and manufactured for suppliers of technological solutions for the telco industry

If you are looking for a partner to design atelecommunications device or plan to diversify your supply chain with a European partner in electronics manufacturing services, make sure to get in touch with us by filling in the form below.

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