The IoT Ecosystem and Telcos' Roles
Because IoT is a broad, diverse and dynamic ecosystem that includes a wide spectrum of continuously evolving use cases, it would be helpful to break it down to horizontal layers and vertical segments.
The horizontal layers in the figure above are common across all verticals. Vertical segments (e.g. connected vehicles, e-health) are sometimes described as ecosystems in their own context. The application services layer is where differences appear between different verticals.
Business opportunities across this matrix can be tapped through integrated value chains, but what roles can telcos play in these new value chains?
1) The Orchestrator
Provide technology, professional services, security and pre-packaged solutions with applications in different verticals - vehicle solutions, smart cities, asset management, healthcare.
2) The Integrator
Host multi-IoT platforms under one roof often called cloud. Interpret and distribute, by collecting data from a variety of aggregators, then routing it through gateways to the respective platform for processing.
3) The Connector
Build dedicated IoT networks using technologies like NB-IoT and LoRaWAN to address distant coverage, long battery life, and enable a large number of connected devices. Those networks can also be created dynamically using technologies like NFV and SDN.
4) Managed M2M Services
Provide a connectivity platform that gives visibility and control of devices, track the location of any SIM installed in an asset, alert users to unusual activity, produce reports on performance and data usage and activate new SIMs, all in real time.
5) Edge Computing
Push processing, storage, and services to the edge, to reside closer to the Things. Telcos have the high-bandwidth fiber infrastructure necessary to support this new cloud (sometimes called fog) model. That does not only bring new revenue possibilities but also provides better service by reducing latency. Think, for example, of the ultra-low latency requirements in a connection between a connected vehicle and the infrastructure across a smart city.
Before looking at enabling technologies and digital platforms, telcos should build the business model and crystalize the role they would play in this value chain.