https://www.engineeringnews.co.za

Telco infrastructure still relevant in IoT world, but models are changing

15th December 2017

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

Font size: - +

The changes being brought about by Internet of Things (IoT) technologies, including the need for collaboration and sharing across various portions of commercial supply chains, are forcing companies to change their business models, says digital security multinational Gemalto IoT senior VP for the Commonwealth of Independent States, the Middle East and Africa Sherry Zameer.

Telecommunications infrastructure will remain relevant to connect IoT devices and sensors, but network operators are similarly being forced to review their business models, he adds.

“The need to ensure connectivity for all the new connected devices entering the market, regardless of the territory the device is sold in, is driving collaboration along the supply chain and opening new revenue opportunities for network operators.

“However, standardisation will also increase as a result of this trend, and will drive a change in demand and a change in pricing models worldwide, including pricing based on the value and latency of the data, rather than just the volume of data. The Global System for Mobile Communications Association (GSMA) is developing standards for improved interoperability and use of cellular networks for IoT data transmission.”

Connectivity is one of the pillars on which IoT systems rest. The technologies in place will facilitate the growing use of IoT systems for the next three to four years. However, work is being done on the newer 5G technologies aimed at accommodating the much larger number of connections expected, as more connected devices are produced and adopted.

“Infrastructure is, obviously, an important element of the delivery cycle, but specifically for the scalability of services and solutions. However, the way connectivity is used, for example, 2G telecommunications for IoT systems like fleet management, is changing the business models of the infrastructure. Hence, the way infrastructure is developed, [so] infrastructure funding and business models associated with infrastructure use are changing,” says Zameer.

The volume of new connections, estimated at between 1.5-billion to 6-billion new connected devices by 2020, will require new forms of infrastructure and will also require new models to fund maintenance.

Further, a global problem is how to phase out existing infrastructure that is no longer cost efficient and/or effective, introduce new infrastructure and reuse spectrum in new, typically more efficient, technologies while maintaining continuity for clients, adds Zameer.

“Fierce competition and users’ willingness to move to new service providers, resulting in significant churn volumes, are also driving changes to business models, specifically as data tariffs are typically low and voice traffic volumes and tariffs are eroded under the competitive pressures.”

The pressures are pushing income-to-cost ratio levels in various telecommunications businesses close to nonsustainable levels. Improving the ratios is difficult and injecting value to increase tariffs is key, emphasises Zameer.

Network operators and service providers can diversify into enterprise IoT services, but must be aware of the pressures on tariffs. Lowering costs, through various business models and the increased use of standardisation and interoperability, is, therefore, key.

The GSM community can leverage best practices as established in the data centre industry. Deploying technologies and architectures to manage networks better, and using technologies like network function virtualisation, software-defined networking and mobile edge computing, enable service providers to pool resources, make them available and orchestrate their use, including switching and reconfiguring their networks to cater for the specific demands of clients, including temporary higher capacity services.

Additionally, layering services, including cybersecurity services, onto smart, virtualised networks will help service providers and operators to create value and enable the companies to maintain their cost bases more effectively.

“The key role network service providers and operators play in the transformation of business processes provides them with potential new revenue streams, but the viability and sustainability of these services are premised on cost management and providing secure digital channels for business processes,” he concludes.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.079 0.142s - 164pq - 2rq
Subscribe Now