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.
Kirsten Rundberget, open strategy lead at Fujitsu Network, discusses the industry's advances — and challenges — in the complex yet beneficial area of open technologies, and why service providers should get involved, even if they don't yet plan to deploy.
Dusty Johnson, VP of consulting at Vantage Point in South Dakota, will soon head to DC as the state's sole member of the House of Representatives, bringing with him knowledge of the digital divide, rural America and broadband.
Tune in to Broadband World News Radio on Thursday, November 1 at 8 a.m. PT, 11 a.m. ET, 3 p.m. UK as Ronan Kelly, CTO, EMEA & APAC Regions at ADTRAN, explores the five pillars of network integrity -- a topic he discussed during his recent Broadband World Forum keynote. Register now!
Fast, reliable broadband is essential to how we live, work and play today – and the upcoming arrival of 5G will only further increase demand and reliance on fiber infrastructure. Already viewed by consumers as intolerable, delays, outages or the regular maintenance difficulties associated with operating a network will become further exacerbated when residential subscribers further rely on connected devices for day-to-day life. Just as providers deploy network automation tools to reduce operational issues, they must take similar care to manage consumer expectations when they roll out fiber or new services. This webinar features leaders who will discuss how to manage marketing and consumer expectations at every stage of the network lifecycle. Marketing professionals, c-level executives and policymakers interested in drumming up fiber envy should attend.