Internet of things or IoT is the leading reason for the fourth industrial revolution. The speed at which adaption of IoT has been increasing it is not far when all the devices will be connected to the internet. IoT services find their applications in various industries be it telecom, healthcare, manufacturing or transport. All these industries are rushing forward to integrate IoT into their various products to enhance productivity.
Telecommunication sector is one of the major investors in the IoT services. A market study by Cisco suggests that the global market of IoT enabled devices in the telecom sector is likely to reach 50 billion dollars by 2020.
This exceptional growth of IoT in the telecom sector has driven executives to utilize the complete business value that IoT has to provide. The IoT services can also enhance the business-customer relationship in telecom companies by enhancing the customer experience. The enterprises must fine-tune their data services and strategies to be in sync with the demands of the consumer. Moreover, the network provider should revisit their infrastructures and business models to easily integrate IoT in their conventional systems.
How Can Telcos Use IoT Services to Create Business Value?
Telecom industry encounters many big data problems due to the high velocity of the data flow. However, with the implementation of IoT data sources service providers can provide rapid action to events related to security and reliability. IoT services help the enterprises to profit from the data gathered by improving customer experience, optimizing network usage and security.
One of the best IoT services comprises a distributed message system, a type of IoT data source that allows telcos to transfer important data between processing centres, cell towers and users. The distribution is necessary to maintain the bulk amount of data created; it allows prediction of heavy network period that prevents congestion. This can also prevent churn or deflection of customers to other operators or service providers. With the enablement of IoT, customers will never have to face problems in billing or payments recovery.
IoT services also help in predicting consumer’s action and behaviour in a continuous pattern by discovering data and creating a model, analyzation their past data, identifying new data usage source, co-relating it to the previous usage and applying proper algorithms to make predictions using retrieved data.
How will IoT Service Impact Telco’s customers?
With the help of IoT, there will be higher efficiency, sustainability and safety in the telecom services offered to the customers. Most of the applications today are enhanced by IoT services to provide better benefits to users. The changing behaviours of customers require a fast and efficient solution for the service providers end.
The advancements in IoT have boosted customer’s demand for better connectivity. Therefore, it has become imperative for operators to find an approach that can garner to the next generation devices. With operators developing their services every moment, customers will receive the best of services with options to tailor them according to their needs.
Challenges in IoT Adaption for Telcos
The telecommunications industry association (TIA) states that with the dramatic increase of IoT services in telecom enterprises has enhanced the importance of continuity of connectivity. Operators will have to focus on providing consistent services as the network demands will only increase in the future.
Privacy and security will be another challenge that telcos will face due to the increasing number of devices. TIA says that amongst the four major challenges for the telecom industry; cyber threat, security and privacy are the top three. The data of customers regarding their health and finances will be the topmost priority amongst the data to be secured. Stats from Adweek reports suggest that 53 per cent of consumers are highly concerned about their data security. So, before the incorporation of IoT in business functionalities, telcos will need to find secure methods to utilize and protect the customer’s data.
In a nutshell, one can say that the telecom operators cannot wait in this agile environment. The impact of the internet of things is real and is on the course to change the core of conventional operator approaches. Enterprises that will successfully monetize IoT services while increasing the number of devices will be leading this paradigm shift. While those who wait will be left way behind to even catch up in this cut-throat market.