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The Coronavirus’ Effect on the Telecommunications Industry, Business and Industry Trends Analysis

The outbreak of the Coronavirus pandemic was a boon to the entire telecommunications industry.  Hundreds of millions of workers around the world began working at home, along with students of all ages studying at home, all of whom rely on telecom to communicate with clients, coworkers and teachers more than ever before.  The telepresence app Zoom especially benefitted, reporting about 265,400 customers that employ more than 10 workers in the February through April 2020 quarter, up 354% over the previous quarter.
In addition, Zoom reported usage of up to 300 million meeting participants per day, compared to 10 million per day in December 2019.  The firm’s phenomenal success has been shared to a lesser extent by competitors including Microsoft Teams, Google Classroom and Google Hangouts, Cisco Webex Meetings, Blackboard Collaborate and BlueJeans Meetings among others.

The Coronavirus pandemic’s effects on the telecommunications industry include:
=         Increased use of mobile phones and devices as more people work/study remotely
=         Increased use of/demand for high-speed internet for everything from ecommerce shopping to streaming entertainment and video conferencing
=         Increased demand for cloud-based services of all types

     There are some negative effects on the industry as well.  Mobile phones and internet access are among the last expenses that consumers cut during economic downturns.  Nonetheless, there are millions of consumers in less-developed nations who have seen dramatic drops in income due to the virus.  No doubt, some of them are no longer able to support their telecommunications expenses.  Likewise, large numbers of businesses, particularly small businesses, have been forced to close as a result of the virus-related economic downturn, which means that millions of business telecommunications accounts have been closed worldwide.

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