By enhancing home WiFi networks and accelerating the rollout of new services, operators can build on the strong foundation they've already created with residential customers.
It's already a large opportunity and it's only getting bigger: By 2022, smart homes will generate revenue of $112.8 billion worldwide, increasing at a 25% compound annual growth rate (CAGR) from $46.3 billion in 2018, Statista reported. Although only 7.5% of global households currently use IoT devices, by 2022 almost a quarter of residences will contain one smart-home technology, the researcher found. Today, the average revenue per installed smart home totals just under $131, with most revenue generated in the US, Statista said.
Growth is expected across the globe, via the spectrum of service providers. And today's smart homes are only the start: They may well evolve into connected health and other applications in the not-so-distant future. In other words, today's service providers have a window of opportunity and should act quickly to leverage their existing relationships, infrastructure and deployment plans along with consumers' anticipated IoT investments to retain their leadership position as homeowners' WiFi go-to source.
In a webinar -- "Changing the Game: How Service Providers Can Move from Connectivity Provider to Experience Provider" -- on January 30 at 8 a.m. PST/11 a.m. EST, Calix Inc. (NYSE: CALX) Product Marketing Director Greg Owens and Broadband World News Editor Alison Diana will discuss the challenges service providers face today as competitors across a variety of markets -- such as consumer electronics, security and utilities -- flood to meet residential customers' smart-home needs.
But since the home WiFi network is the central hub for many Internet of Things (IoT) devices that make up smart homes, service providers are the natural trusted advisers for everything from deployment to post-sales support, says Owens.
"With their expertise in home WiFi networks, pay-TV, content and related solutions such as security, service providers are uniquely -- and well -- positioned to leverage the fast-growing smart home market," he tells Broadband World News. "Service providers must move from defense to offense and turn web-scale competitors into partners, not continue as their de facto, unpaid, tech support."
Managed WiFi, mesh networks, voice, cross-protocol connectivity and architectural advances empower service providers to control any and all IoT devices via powerful home networks, using software-defined networking, to alleviate support costs, Owens says. Calix has many examples of service providers that use its technologies and services to successfully operate smart home offerings, he adds. The webinar will include a detailed look at some of these use cases. (See ITS Telecom Wraps Smart Homes in Mesh)
Learn about these service providers, smart home opportunities, service provider challenges and how to overcome them by joining us on January 30 at 8 a.m. PST/11 a.m. EST. Click here to register. There will be a Q&A, so bring your questions for Owens.
— Alison Diana, Editor, Broadband World News. Follow us on Twitter or @alisoncdiana.