Operators' broadband infrastructures and long-time relationships could forge the foundation for long-term Industrial Internet of Things trusted advisor status -- and profitability.
The stakes are high: Global IIoT is expected to reach $91.4 billion by 2023, versus $64 billion this year, a new report by MarketsandMarkets finds. SMBs will drive much of that growth as they seek new automation solutions to reduce overhead and production costs, the researcher said.
SMBs already spend a lot with cable and telco operators, with some of that budget going to IIoT. Additional fiber deployments plus the arrival of 5G, fixed mobile's potential reduction of the digital divide in rural and low-income urban areas, increased use of Gfast to deliver high-speed broadband across multi-dwelling units in urban areas and continued development of alternate broadband technologies only further advance business and residential connectivity and complement IoT and IIoT standards and communications efforts.
At the end of last year, US wireline cable and telecom generated $325 billion in revenue, according to a May 2018 report by Independence Research. Of that, about $98 billion came from businesses of all sizes, the report said. Last year, combined US mobile business and consumer totaled $213 billion; $101 billion came from business, Independence Research said.
In particular, operators should benefit from midsized organizations' use of IoT and IIoT -- particularly given their extensive, often long-time, relationships with service providers. Small businesses (those spending less than $2,000 monthly on communications) spent about $26 billion on wireline in 2017, while so-called "national enterprises" (typically a midsized regional or national company with multiple locations in the US) spent $27.5 billion. For their part, wholesalers bought about $24 billion worth of services and US consumers spent $20.5 billion in 2017, reported Independence Research.
Shaking Up Healthcare
IIoT is expected to disrupt many aspects of medicine, from telehealth to on-site practices ranging from hospital surgeries to solo practitioners.
IIoT is of interest to organizations across many verticals but is doing particularly well in segments such as healthcare, manufacturing, automotive, construction and education -- verticals in which operators have experience and several are focusing even more resources.
Cox Business, for example, hired long-time telehealth evangelist Mike Braham as vice president and general manager of Trapollo, which it acquired in 2015. The company, which provides nationwide, remote patient monitoring and telehealth services, uses a combination of DOCSIS 3.0 and 3.1, Metro Ethernet, HFC, optical Internet and fiber to build resilience into local communities in order to support services -- including IIoT offerings such as telehealth, Braham told Broadband World News earlier this year. (See Cox Business Health GM: No More Evangelist.)
"We're trying to be sure we can provide improved clinical outcomes, to be sure hospitals can use resources more efficiently and effectively, and financially it makes sense both for the individual patient, the caregiver and/or the payers themselves to be sure the dollar spent is most effectively used," he said.
On Jan. 23, Broadband World News hosts a Calix-sponsored webinar that explores several ways CSPs can enhance customer experience and find new business opportunities to avoid devolving into a speed race where nobody wins, not even the customer.
As the pool of savvy, fiber-rich operators across the US rural and regional landscape wanes, the financial community will grow even more interested in acquiring or investing in them, a CoBank report says.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.