Telecommunications industry outlook

OUTLOOK | June 01, 2023

Authored by RSM US LLP


Spring 2023

5G-supported edge computing is an opportunity and a challenge for all telecoms

With 5G-supported edge computing, telecom companies are working to satisfy the appetite for more high-speed connectivity.

Though still far from perfect, generative AI technologies have the potential to revolutionize many industries, including media and entertainment. Already this industry has quickly adopted these technologies, deploying them in creative processes ranging from generating first drafts of TV scripts to helping customize digital content for individual users.

The new required tax treatment of R&D expenses is also affecting M&A by worsening the tax posture of targets. Transaction planning that includes R&D cost analyses may enable deals to proceed by reducing the cash tax rate. However, the utilization of favorable tax attributes, such as net operating losses, may be limited by a change in ownership, which must be taken into account.

Read more about the challenges and opportunities facing the telecommunications industry

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This article was written by Davis Nordell and originally appeared on 2023-06-01. Reprinted with permission from RSM US LLP.
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