Telecom & IOT

Telecommunication Industry & Internet of

ThingsNovember 20, 2015

Overview

Impact of Internet of things(IoT) on telecommunication industry: Threat or Opportunity

Image source https://www.fiware.org/2015/05/26/the-battle-over-the-internet-of-things/

What is the IoT ?

"Things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.

Cisco estimates the IoT will consist of 50 billion devices connected to the Internet by 2020.

GE estimates that IoT technology for industry has the potential to add $10-$15 trillion

As Deloitte showed in a study, nearly 75% of executives affirms that their companies were exploring or adopting some form of IoT solutions.

High Level IoT stack

Things/Device

Data processing and Platform

Application

Device management

Subscription management

Understanding the problem - IoT point of view

Scalability

More data generated by machines than by people.

Security

Protecting users' privacy and manufacturers' IP

Detecting and blocking malicious activity

Complexity

Ever evolving ecosystem with multiple platforms numerous protocols large numbers of APIs

Protocol Uniformity

source: http://edition.cnn.com/TECH/space/9909/30/mars.metric.02/

Telecom helping IoT

Understanding the problem - SolutionScalability

Extend Telecom-grade reliability and scale to infrastructure

Invest in emerging IoT technologies

Evolve SDN & NFV for use-cases

Security

Providers can validate the controller or gateway

Provider verify sensor information sources and locations. (3G/4G/5G)

Complexity

The Service providers can harmonize the information format

Newer evolving technologies would be standardized to interoperate with legacy system.

Reverse: IoT helping Telecom

Challenges in TelecomOver-the-top (OTT)

players

Customer retention

Declining ARPUs.

Legacy Technical infrastructure

source Informa Telecoms & Media report 2014

How IoT will help TelcosLeverage Big Data

Proactively manage customer relationships, Reform service center operations.

Focus on innovation.

Forge new partner relationships.

How Telecom will do all this

OfferingsOptions:

1.End-to-end Solution for some verticals

2.Horizontal solutions for IoT to support a range of vertical markets

3.Mix of 1 & 2

Options:

1.End-to-end Solution for some verticalsa. Have to decide on the vertical

b. Need the vertical knowledge

c. Use data from one sensor for other sensor usage

d. Example Fleet System, PoS

2.Horizontal solutions for IoT to support a range of vertical markets

3.Flexible approach

Offerings

OfferingsOptions:

1.End-to-end Solution for some verticals

2.Horizontal solutions for IoT to support a range of vertical marketsa. Partner with IoT providers

b. Re-sell the solutions

c. With horizontal model there will be rapid growth and innovation as different providers can work within common framework. Scaling on cloud with NFV can aid in horizontal model.

3.Flexible approach

OfferingsOptions:

1.End-to-end Solution for some verticals

2.Horizontal solutions for IoT to support a range of vertical markets

3.Flexible approacha. Partner with IoT providers, Operator provider common elements for multiple

verticals

b. End-to-end solutions for particular verticals

Icing on the cake Telecom industry already have :

Professional Services

Billing

Hosting

Network of Stores

Millions of existing customers

As 30% more gadgets are added to the Internet of Things (IoT) every year the global spending on support services is forecasted to soar, jumping 22% to $235bn by 2016.

Architecture: Dump pipes into smart pipes

Unified Management

PlatformGateway

M2M devices

M2M devices

HTTPMobile Network

Http & Mobile network

Billing CRM

Business ModelChange in Business model is required:

IoT allows vendors to divorce the business model of the device from that of the data that are generated by that device.

For example: Shift from an environment in which they charge based on volume of traffic(monthly access fees + data plans) and connections to one in which they charge based on level of performance.

Questions?