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.
In a flurry of activity throughout the week, Donald (DJ) LaVoy, Deputy Under Secretary for Rural Development at the US Department of Agriculture, and his team spent about $145.8 million in the non-urban or suburban areas of seven states.
Calix reported revenue of $120.19 million – up 4% – in Q4 2019, putting a bounce in the step of company president and CEO Carl Russo and a shine to Calix's ongoing transition from hardware vendor to a provider of platforms enabled by cloud, APIs and subscriber experience.
Looking to curtail e-waste and improve the bottom line, BT will require customers to return routers and set-top boxes, although subscribers will not have to pay a fee when they receive regular broadband equipment.
Deploying DOCSIS 3.1 across its entire footprint gave Rogers Communications the ability to offer speeds of up to 1 Gbit/s,
contributing to a broadband segement that generated about 60% of the Canadian operator's $3.05 billion (US) in Q4 cable earnings.
Over the next two years, approximately 60% of service providers (both large and small) will adopt virtualization on a wide scale across their networks, according to the latest survey report from Ovum. Why are providers making these moves? Is there an easy way to start?
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Benefits and challenges of network virtualization
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