Trends in Telecommunications




Connecting the IoT(Internet of Things)

It has already been established that being successful in the IoT market is going to take way more than neat devices, and that IoT is going to be more than just a way to flip on the A/C from an iPhone. The IoT will become a complete ecosystem that connects everything we do, from the home to the car, to the workplace to the electrical grid. Telecoms seem keenly aware of the potential—in 2015 the industry ranked 4th in IoT spending, committing nearly $111 million to IoT pursuits. Telecoms are not going to sit back, build the infrastructure for it and watch the world ride piggyback with all the profits like they have in the past 10 years when more agile digital service providers ran roughshod over their business.   
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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