Trends in Telecommunications
Connecting the IoT(Internet of Things)
Cloud Computing
Communications
providers are facing some great challenges and opportunities in cloud
computing. They can potentially use the cloud to deliver higher quality, more
flexible and more scalable enterprise IT services at lower cost than on-premise
solutions. On the consumer side, there’s a big opportunity for communications
providers to offer more cloud-based services that can be accessed, updated, and
purchased from anywhere.
Carrier-Grade WiFi
Remember
how we said the communications industry will be going big in IoT? Well, that’s
not going to happen if constant broadband connectivity is not available.
When
it comes to wireless connectivity over short distances, WiFi is hard to beat.
Theoretically, it’s faster than the leading alternative, 4G LTE, and can handle
bandwidth-hogging services like mobile video for a fraction of the cost. But in
practice, today’s WiFi hotspots are notoriously slow and fickle. That’s about
to change.
The
next generation of WiFi will have the same or better reliability as cellular,
hence its carrier-grade moniker. By 2020, more than 90% of wireless hotspots
will be carrier grade, according to a 2015 WiFi industry survey.
5G Wireless
The
pressures of IoT on top of our insatiable desire for streaming video will
absolutely decimate 4G LTE. (Seriously, 3.25 BILLION hours of video is watched
every month on YouTube alone. That’s about 400,000 years, in case you
were wondering). And according to Gartner, 20.8 billion devices will be connected to the internet by
2020. That’s a lot of YouTube-ing, Netflix-ing, and IoT-ing, and the fifth
generation (sixth, if you’re counting LTE) of wireless is being built to handle
it. 5G is projected to be about 10x faster than 4G, with download speeds around
10 GBPS.
So
how exactly does building all this new infrastructure benefit carriers? Well,
all the IoT services they are banking on will not work without it, for one. The
consumer revolt that is going to occur when 4G inevitably falls flat would be
rather unpleasant as well.
Testing
of 5G has just begun and it won’t be available until 2020, so hopefully WiFi
will help fill in the gaps until then.
Integration with Content
It
has been said more than once, “one or more communication service providers will
be acquired by content providers by 2020.” Well, it is 2016 and it is starting
to seem like the CSPs are the ones doing the acquiring. AT&T bought DirecTV
in 2014, Verizon has
absorbed both AOL and Yahoo!, Comcast bought NBC, and Time Warner just bought a 10% stake
in one-time arch enemy of the cable company, Hulu. With the Amazons, Rokus, and
Netflixes of the world snatching up more and more cable customers by the day,
it only makes sense that CSPs get into the content game themselves. The
strategy of most CSPs seems to be owning the content, so however it is
consumed, they still derive revenue from it (and user data). Verizon’s strategy
is a bit different, in that its acquisitions seem to be even more focused
massive amount of user data it provides and the ad network that can be built
from it.
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