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Telecommunication Industry &
Internet of Things
November 20, 2015
Overview
Impact of Internet
of things(IoT) on
telecommunication
industry: Threat or
Opportunity
Image source https://www.fiware.org/2015/05/26/the-battle-over-the-internet-of-things/
What is the IoT ?
"Things" embedded with
electronics, software, sensors,
and network connectivity,
which enables these objects to
collect and exchange data.
Cisco estimates the
IoT will consist of 50
billion devices
connected to the
Internet by 2020.
GE estimates that IoT
technology for
industry has the
potential to add $10-
$15 trillion
As Deloitte showed in a
study, nearly 75% of
executives affirms that
their companies were
exploring or adopting
some form of IoT
solutions.
High Level IoT stack
Things/Device
Data processing and Platform
Application
Device management
Subscription
management
Understanding the problem - IoT point of view
Scalability
More data generated by
machines than by
people.
Security
Protecting users'
privacy and
manufacturers' IP
Detecting and blocking
malicious activity
Complexity
Ever evolving
ecosystem with
multiple platforms
numerous protocols
large numbers of APIs
Protocol Uniformity
source: http://edition.cnn.com/TECH/space/9909/30/mars.metric.02/
Telecom helping IoT
Understanding the problem - Solution
Scalability
Extend Telecom-grade
reliability and scale to
infrastructure
Invest in emerging IoT
technologies
Evolve SDN & NFV for
use-cases
Security
Providers can validate
the controller or
gateway
Provider verify sensor
information sources
and locations.
(3G/4G/5G)
Complexity
The Service providers
can harmonize the
information format
Newer evolving
technologies would be
standardized to
interoperate with
legacy system.
Reverse: IoT helping Telecom
Challenges in Telecom
Over-the-top (OTT)
players
Customer retention
Declining ARPUs.
Legacy Technical
infrastructure
source Informa Telecoms & Media report 2014
How IoT will help Telcos
Leverage Big Data
Proactively manage customer relationships, Reform service center operations.
Focus on innovation.
Forge new partner relationships.
How Telecom will do all this
Offerings
Options:
1. End-to-end Solution for some verticals
2. Horizontal solutions for IoT to support a range of vertical markets
3. Mix of 1 & 2
Options:
1. End-to-end Solution for some verticals
a. Have to decide on the vertical
b. Need the vertical knowledge
c. Use data from one sensor for other sensor usage
d. Example Fleet System, PoS
2. Horizontal solutions for IoT to support a range of vertical markets
3. Flexible approach
Offerings
Offerings
Options:
1. End-to-end Solution for some verticals
2. Horizontal solutions for IoT to support a range of vertical markets
a. Partner with IoT providers
b. Re-sell the solutions
c. With horizontal model there will be rapid growth and innovation as different providers can work
within common framework. Scaling on cloud with NFV can aid in horizontal model.
3. Flexible approach
Offerings
Options:
1. End-to-end Solution for some verticals
2. Horizontal solutions for IoT to support a range of vertical markets
3. Flexible approach
a. Partner with IoT providers, Operator provider common elements for multiple verticals
b. End-to-end solutions for particular verticals
Icing on the cake
Telecom industry already have :
Professional Services
Billing
Hosting
Network of Stores
Millions of existing customers
As 30% more gadgets
are added to the
Internet of Things (IoT)
every year the global
spending on support
services is forecasted to
soar, jumping 22% to
$235bn by 2016.
Architecture: Dump pipes into smart pipes
Unified
Management
Platform
Gateway
M2M
devices
M2M
devices
HTTP
Mobile
Network
Http &
Mobile
network
Billing CRM
Business Model
Change in Business model is required:
IoT allows vendors to divorce the business model of the device from that of the data
that are generated by that device.
For example: Shift from an environment in which they charge based on volume of
traffic(monthly access fees + data plans) and connections to one in which they charge
based on level of performance.
Questions?

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Telecom & IOT

  • 1. Telecommunication Industry & Internet of Things November 20, 2015
  • 2. Overview Impact of Internet of things(IoT) on telecommunication industry: Threat or Opportunity Image source https://www.fiware.org/2015/05/26/the-battle-over-the-internet-of-things/
  • 3. What is the IoT ? "Things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data. Cisco estimates the IoT will consist of 50 billion devices connected to the Internet by 2020. GE estimates that IoT technology for industry has the potential to add $10- $15 trillion As Deloitte showed in a study, nearly 75% of executives affirms that their companies were exploring or adopting some form of IoT solutions.
  • 4. High Level IoT stack Things/Device Data processing and Platform Application Device management Subscription management
  • 5. Understanding the problem - IoT point of view Scalability More data generated by machines than by people. Security Protecting users' privacy and manufacturers' IP Detecting and blocking malicious activity Complexity Ever evolving ecosystem with multiple platforms numerous protocols large numbers of APIs
  • 8. Understanding the problem - Solution Scalability Extend Telecom-grade reliability and scale to infrastructure Invest in emerging IoT technologies Evolve SDN & NFV for use-cases Security Providers can validate the controller or gateway Provider verify sensor information sources and locations. (3G/4G/5G) Complexity The Service providers can harmonize the information format Newer evolving technologies would be standardized to interoperate with legacy system.
  • 10. Challenges in Telecom Over-the-top (OTT) players Customer retention Declining ARPUs. Legacy Technical infrastructure source Informa Telecoms & Media report 2014
  • 11. How IoT will help Telcos Leverage Big Data Proactively manage customer relationships, Reform service center operations. Focus on innovation. Forge new partner relationships.
  • 12. How Telecom will do all this
  • 13. Offerings Options: 1. End-to-end Solution for some verticals 2. Horizontal solutions for IoT to support a range of vertical markets 3. Mix of 1 & 2
  • 14. Options: 1. End-to-end Solution for some verticals a. Have to decide on the vertical b. Need the vertical knowledge c. Use data from one sensor for other sensor usage d. Example Fleet System, PoS 2. Horizontal solutions for IoT to support a range of vertical markets 3. Flexible approach Offerings
  • 15. Offerings Options: 1. End-to-end Solution for some verticals 2. Horizontal solutions for IoT to support a range of vertical markets a. Partner with IoT providers b. Re-sell the solutions c. With horizontal model there will be rapid growth and innovation as different providers can work within common framework. Scaling on cloud with NFV can aid in horizontal model. 3. Flexible approach
  • 16. Offerings Options: 1. End-to-end Solution for some verticals 2. Horizontal solutions for IoT to support a range of vertical markets 3. Flexible approach a. Partner with IoT providers, Operator provider common elements for multiple verticals b. End-to-end solutions for particular verticals
  • 17. Icing on the cake Telecom industry already have : Professional Services Billing Hosting Network of Stores Millions of existing customers As 30% more gadgets are added to the Internet of Things (IoT) every year the global spending on support services is forecasted to soar, jumping 22% to $235bn by 2016.
  • 18. Architecture: Dump pipes into smart pipes Unified Management Platform Gateway M2M devices M2M devices HTTP Mobile Network Http & Mobile network Billing CRM
  • 19. Business Model Change in Business model is required: IoT allows vendors to divorce the business model of the device from that of the data that are generated by that device. For example: Shift from an environment in which they charge based on volume of traffic(monthly access fees + data plans) and connections to one in which they charge based on level of performance.

Editor's Notes

  1. Devices are low cost, so can not have security rules
  2. Security Service providers can ensure that devices and IoT sensors are securely connected to network controllers, data sent and received via gateway will go through rigorous encryption and the controller will enforce processes to block Denial of Service (DOS) attacks. Policy control will be strictly enforced along with deep packet inspection to enable the right service with right security. Connected devices will use 3G, 4G or 5G wireless technology. However 5G will make IoT dream come true. Security has to be hierarchical , some at device level, some at gateway level
  3. In a survey conducted by IDC (2013 cited in PwC Communication Review December 2014,p.1 ), the respondents indicated that while on their mobiles they spend a mere 16% of their time on phone calls and the other 84% on activities like browsing the web, communicating by email, using social apps, watching videos or TV, gaming, etc.
  4. Network function virtualization can be used in vertical industry applications. NFV infrastructure can be scaled up and down to provide virtual network function resources for vertical markets.