Internet of Things (IoT) is a collection of networks of smart devices, sensors, and actuators that can interconnect with each other. The Internet of Things creates a huge technology ecosystem that empowers telecom companies in their quest to productize and build new revenue streams.
The IoT ecosystem is comprised of an entity (smartphone, tablet, sensors, etc) that functions as a simple hand-held remote control to send a command or request for information over the network to an IoT device. The device will then perform the command or send information back over the network to be analyzed and displayed on the remote control itself.
Often times, the IoT ecosystem is like a community that consists of data and monetary flows that helps in connecting enterprises and vendors together. This new chain of development is the best way to connect companies together. Even in the future, the companies will be offering the IoT ecosystem similar to cybersecurity and risk management.
Ways Internet of Things (IoT) is Shaping the Telecom Ecosystem
The Internet of Things (IoT) is changing how we work, how we live, how we get value from our belongings and assets, and even how government and society function. And telecommunication system provides the connectivity layer for the IoT, which means it will consequently become part of an ecosystem.
When we talk about the telecoms ecosystem, many people may still be thinking about operators, infrastructure providers, and customers. However, the data generated from mobile devices and wearables connected to mobile and other telecom networks have huge potential in other sectors, which some operators have started to explore. The impacts of IoT on telecom sector are as follows:
1. Cost-effective Data-Driven Networks
Reliable network service delivery requires a rapid assessment of the situation and effective decision making, followed by action. Consequently, telecoms operators will need to improve their analytics capacity to generate insights into network issues faster. This will enable predictive maintenance, improve network quality, and keep costs down. Automation and real-time analytics capabilities are key success factors especially with new technologies such as 5G, SDN, and NFV. These sets of latest technologies require quality and dynamic intelligent capacity allocation for services like autonomous cars, diabetes pumps, heart rate surveillance, and more.
2. A Move from Revenue Generation to Value Generation
This may sound like playing with words, but I think there is a genuine difference. It is about focus and philosophy. Hitherto, the telecoms industry has, as a whole, focused on making money out of its customers. It has not been thinking long-term, or about cost, control, convenience, and co-creation. In the emerging IoT-enabled world, companies will succeed by working in partnership with customers. Doing so will help them generate value for both parties by thinking about all these issues, or rather possibilities. This requires a change in revenue generation mindset to a value creation one.
3. The need for integration and collaboration amongst key sector players
Wherever you look in telecoms, people are talking about the value of integration, cooperation, and collaboration. There is no question that increase in cooperation and breaking down of silos are essential parts of value generation. Whether it is the value of an integrated enterprise analytics platform, improved collaboration across industries like telecoms and insurance, or convergence between the IoT industry and the telecoms ecosystem, The Internet of Things (IoT) ecosystem provides huge opportunities for players in the telecom industry. To maximize the inherent benefits, collaboration at the enterprise level is important.