Telecoms: internet of things to transform industry and consumer behaviors

Telecoms: internet of things to transform industry and consumer behaviors


The telecommunications industry is in a curious place right now. Mobile phone usage, internet traffic and data consumption has exploded and is only set to accelerate as far as most can see, yet telecoms companies that provide the facility to do any of these things, are struggling to grow at present. There are multiple issues but principally it is not obvious what business model telecoms companies should adopt in order to secure their futures.

Furthermore all kinds of large new disruptive events in the industry are looming over the next decade, from the emergence of new technology that might disrupt the main players, the building of the 5G network, trying to realize the dream of the internet of things and colossal M&A activity. There are some good opportunities present in the industry, but without careful planning and redesigning of the traditional telecommunications business model, it is entirely possible some of the world’s biggest carriers might struggle to stay independent over the next few years.

Key highlights

  • The amount of information generated by industrial companies seeking to exploit big data analytics for the purposes of finding efficiencies in business models is vast, placing pressure on the reliability and speed of services carrying data to its destination. Most companies are heavily dependent upon good data collection and analytics to understand what is happening within the business.
  • Telecoms firms have been forced to one side to a considerable extent by leading companies and businesses in general, gaining confidence in using the cloud as an essential business tool. Now companies such as BT are becoming much more involved in the industrial side of the Internet of Things, but so are new players - presenting significant threats to the established brands. French based SigFox picked the Bay Area of San Francisco in 2014 to setup a dedicated network for machine to machine communications.
  • Compared to traditional cellular networks the SigFox designed system is slower but supported more devices than was previously possible. The SigFox example demonstrates the new role of telcos in the industrial internet of things can open opportunities for new entrants. New companies can gain a slice of the market by thriving in an area not normally focused upon by the major players. The SigFox network currently covers over one million square kilometers. Whilst this section of the market remains quite fragmented, the risk to established players being moved aside rises.
  • The challenge for designers of the factory of the future is harmonization of sophisticated machinery, advanced analytics and interaction with human labor. Managing the vast flow of information and utilizing it to improve product manufacture, erase errors and develop the ideas of tomorrow are the key tasks needed to be fulfilled by the IIoT.
  • Much centers on the possibilities that result from the ability to generate data and to analyze accordingly. Doing so on an industrial scale takes considerable computing power, as does achieving what makes the biggest impact - predictive capabilities. Managing this aspect of business through the internet is set to become commonplace once the costs of doing so drop to a sufficiently low level. Principally the leading problem has been cost; yet the financial demands of accessing the required level of computing power are becoming much more
  • Examine the business landscape in the telecoms industry and how the big players are coping
  • See just how the environment is difficult and new business strategies need to evolve
  • Explore some of the biggest M&A deals, why they happened and how they are fairing
  • Prepare for the new 5G and Internet of thing environments and how they might effect the big carriers
Reasons to buy
  • What are the big players doing in the telecoms industry to cope with static revenue problems?
  • Why is the industry suffering from issues of static revenues?
  • Will 5G and the internet of things give the industry a boost?
  • What players have a successful strategy at present?

Internet of Things to transform industry and consumer behaviors
Initially sidestepped, telcos are finding relevance in IoT development
Industrial Internet of Things will provide opportunities for telecommunications in industry of tomorrow
Automotive market is first industry to bring mass market appeal to IoT
Everyday life is expected to be a natural home for Internet of Things, attracting telecoms firms, but progress has been slow
Further Reading
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List of Figures
Figure 1: Amazon Web Services revenues 2013 to 2017 ($bn)
Figure 2: BP
Figure 3: Model of a ‘connected power station’
Figure 4: Huawei and Groupe PSA, DS 7 Crossback artists impression
Figure 5: Internet of Things home

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