New Delhi: Software major Tech Mahindra on Friday announced the setting up of a new business unit to leverage cutting-edge technology and solutions to cater to the expected heavy demand of video services in the 5G ecosystem.
With the establishment of the new "Video Integration and Engineering" (VIE) platform, Tech Mahindra said it would aim to improve its strategic position with several video distribution companies in the US.
"The strategic establishment of the VIE platform will help us increase our expertise in developing niche applications and services as well as cater to the exponentially growing digital video services market," CP Gurnani, Managing Director and CEO of Tech Mahindra said in a statement.
According to industry reports, video will account for 90 per cent of all 5G traffic mainly on account of mobile video and Over The Top (OTT) streaming services.
5G is expected to grow the global mobile media market over cellular networks from $170 billion in 2018 to $420 billion in 2028.
Consumer spend for video, music, and games on mobile is expected to nearly double by 2028 to reach almost $150 billion globally.
"Our endeavour is to speed up the digital transformation of video for our clients and help reduce the costs and open up other revenue generation avenues for our clients and partners," said Manish Vyas, President, Communications, Media and Entertainment Business, and the CEO, Network Services at Tech Mahindra.