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Connected Home A Key Segment in Operators' Quintuple-Play Business, Cloud-based Apps and Integrated Platforms Major Push Factors

Connected Home A Key Segment in Operators' Quintuple-Play Business, Cloud-based Apps and Integrated Platforms Major Push Factors Image Credit: QIVICON

Often dubbed as the '5th Play', Operators' Internet-of-Things(IoT)/Machine-to-Machine(M2M) services are taking shape as a key business vertical, with the segment expected to continue increasing in terms of its share of Mobile Operators' revenue, across both retail and enterprise market segments. Much of the growth within the IoT/M2M is coming from the deployment of 'connected' machines/appliances which fulfill two major functionalities - one, to collect and deliver information in real-time as in the case of connected surveillance cameras, temperature sensors, smart trackers in vehicles and security alarms and second - to enable users to control and manage their machines/appliances remotely, in the case of controlling the temperature in a room, turning on a machine in a plant, adjusting the settings on an equipment control panel or changing the directions provided in a self-driving car, from virtually anywhere in the world.  

By combining wireless connectivity and M2M modules that can transmit and receive information remotely over wireless technologies such as Zigbee, Wi-Fi or Bluetooth, and merging these with cloud-based digital platforms that can collect, process and share the data onto end-user devices, namely smartphones, tablets and other digital screens, almost any 'machine' or 'appliance' that is used or managed by humans can now join in the queue to be 'smart-ized', ie be managed remotely and which can self-manage via rules that are configured to enable these 'things' to respond automatically to information collected via their own sensors as well as information received from other sensors. 

These capabilities and the promise of new value created within home, commercial and industrial use are what driving Mobile Operators to roll out their own suite of IoT/M2M services. As one of their newest business verticals, a number of Operator brands (for example, AT&T's Digital Life, AT&T Drive, Orange's Homealive, Deutsche Telekom's QIVICON platform and Rogers Communications(Rogers) Smart Home Monitoring Service) have made their debut and are building their brand presence in the marketplace.

Although Mobile Operators have been offering IoT/M2M connectivity and managed services for enterprise customers such as auto-makers and fleet management companies for more than 10 years now, the advent of cloud-based applications and integrated digital platforms as well as the widespread app culture among mobile users is transforming their IoT/M2M services in a big way, expanding their growth opportunities to newer areas, especially in the retail market. In the past, access to real-time information and the control of M2M connected machines/appliances were limited to a few users, usually the service providers themselves, with end-users receiving scheduled reports/updates and in cases of emergencies, alerts and follow-up assistance.

Today, the proliferation of Mobile Apps and the amount of data that Mobile Operators and their digital platforms can collect, store, process and deliver in real-time via these Apps, in addition to the ease of downloading and installing them on most smart devices, has launched a new phase in the Mobile Operators' IoT/M2M business with most Operators now touting their IoT/M2M applications and digital platforms as a complete solution that brings the control and management of all the connected 'things' to the users' fingertips, and to as many end users as required.  

The Connected Home market, in particular, is seeing the most traction from Mobile Operators next to the Connected Car market. The Connected Home or Smart Home market, according to a report release by MarketsandMarkets, is expected to reach US$58.68 billion by 2020, growing at a CAGR of 17% from now till then. Juniper Research, in a similar report last year, expected the global market value of Connected Home services to reach US$71 billion by 2018, growing phenomenally from US$33 billion in 2013. The Connected Home market is expected to take off in a major way this year and next as more household devices start featuring M2M modules and as more Smart Home Apps become available. The connected TV for example, is part of the Connected Home ecosystem, and is seeing a steady growth in its market as more and more people shift their video and TV consumption to online content, to the likes of YouTube and other subscription based services from OTT providers such as Netflix and Vudu, as well as from Operators' own mobile TV and Video Services offerings. Apart from infotainment, energy management, security and access control and HVAC (heating, ventilation and air-conditioning) are the other major segments within the Connected Home market, said MarketsandMarkets. ( Read more Smart Metering: Mobile Apps to Drive Mass Scale M2M Opportunities for Operators)

Rogers, being a quad-play operator based in Canada, shared results from a recent national survey, that found that more than 65% of British Columbians want to live in a connected home, and said that the national average is just 5% less. At the same time, 79% of respondents of the survey agreed that a Connected Home will make their life easier. Just last week, Rogers expanded its Smart Home Monitoring service, which it introduced in 2011, to Vancouver and Lower Mainland, offering subscribers 3 different packages that allow users to connect to night vision cameras, lighting, door locks, appliances, thermostats, door and window sensors, and monitor for intruders, motion detection, water leaks, carbon monoxide, smoke and fire. All the features can be customized and controlled via a mobile app, added Rogers. As a fully fledged service, Rogers' Smart Home Monitoring service features Rogers Central Monitoring Station which monitors 24/7 for emergency conditions with local police, fire and ambulance dispatch, and which sends real time text and email alerts to a customer's mobile, tablet or computer.

Earlier this month, at the MWC2015, AT&T, the second largest Mobile Operator in US, announced the integration of its AT&T Digital Life app onto its AT&T Drive Platform, its platform for Connected Car services, allowing drivers to keep tab of their home from the digital touch screen on their car's dashboard, using the internet connection provided in the vehicle. This is the first time an Operator's Connected Car and Connected Home platforms are offered together. Last September, the Telefonica group announced that it is trialing AT&T's Digital Life platform in Europe to offer similar services for its subscribers in Spain and other countries where it operates.. 

Author

Executive Editor and Telecoms Strategist at The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Service Innovations 

Tara Neal heads the strategy & editorial unit at The Fast Mode, focusing on latest technologies such as gigabit broadband, 5G, cloud-native networking, edge computing, virtualization, software-defined networking and network automation as well as broader telco segments such as IoT/M2M, CX, OTT services and network security. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 22 years of experience in technology and business strategy, and has earlier served as project director for technology and economic development projects in various management consulting firms.

Follow Tara Neal on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at tara.neal@thefastmode.com.

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