How Telcos can rise to the occasion
IoT, 5G and AI are ushering in a new era of customer and citizen engagement. This is a monumental data revolution that is driven by the smartest of solutions to make consumer lives better, improve people-to-people connect and enable enterprises to grow.
According to Gartner, 66% of organizations plan to deploy 5G by 20201. Meanwhile, 59% say they will include IoT communications in the use case for 5G1. IHS Markit estimates that the number of IoT devices will rise from 27 billion in 2017 to 73 billion in 20251. All of this will result in a massive increase in data volume.
IoT is pervasive and controllable, which has added a new dimension to information collection. The application of IoT data is virtually limitless. Combined with AI, IoT data will help uncover new avenues for revenue and increase the net value for Telcos, banks, and other enterprises. IoT with AI will also help government agencies to engage better with citizens.
Globally, IoT monetization is expected to reach USD $542.92 billion by 2023, at a CAGR of 52.95%2 5G is up to 100 times faster than 4G speed3 and this enables improved IoT connectivity and usage. The introduction of 5G will cause the Telco data volume to increase manifold. This presents a tremendous opportunity to derive insights out of data for enterprise collaboration and monetization.
Telcos: At the helm of the connected insights space
5G investments by Telecommunications carriers will power the IoT revolution. With the predictive capabilities of AI, Telcos will now be able to connect, monitor and monetize in real time - personal devices, autonomous cars, static sensors, cameras, kiosks and more - to give a unified positive customer experience to subscribers. Telcos can now be the focal points of campaigns, not just to offer better Telco services but also to become the hub to offer products and services across industries. Some use case options include:
Conventional Telco customer experience drivers - network experience, device experience, product experience and location, will be augmented by a digital touchpoint experience including App experience, and IoT-enabled multi-touchpoint experience. This means that not only will the customer engage the Telco on the Telco products, but Telco will be central to the subscriber’s lifestyle including smart personal devices.
Monetization of smart data will benefit subscribers, (by getting better home or health insurance, vouchers from Telcos), Industry (banks, insurance, retail) and of course the Telco itself.
Hurdles in the data monetization journey
Winning with a solution built on IoT data pipeline and AI-driven decision engine
Telcos can leverage Wipro’s Data Discovery Platform (DDP) to unlock greater potential across the IoT value chain. DDP’s High Performance Event Processing and Deep Learning platforms come with pre-built Data Science applications. The Data Science Framework in DDP allows Data Scientists to leverage rich IoT data to generate potential revenue generating insights (See Figure 1 & 2).
Figure 1 - Data Discovery Platform – Building analytics apps
Figure 2 - Data Discovery Platform - IoT with 5G analytics reference architecture
Wipro has partnered with leading institutes of excellence in India - Indian Institute of Science, Bengaluru – for Advanced Research and Innovation in autonomous systems and robotics in 5G; and Indian Institute of Technology, Kharagpur – for Advanced Research on 5G and AI. Telcos can leverage their expertise to build innovative capabilities to enable better monetization of 5G data and offer greater customer experiences.
5G networks powered by AI will revolutionize the revenue-making opportunities for Telcos. If operators pursue new business models to improve data monetization and unlock business opportunities, global revenues will grow at a CAGR of 2.5% during the 5G era to $1.3 Trillion in 2025.4
Majority of monetization opportunities will be in the B2B space, and Telcos can market and campaign on behalf of other enterprises (B2B2X) using the insights generated from data. Current data analytics and AI capabilities of Telcos will be put to severe strain due to the extremely high volume of data involved, and the need for real time insights and capability to generate deep insights from the data. It is crucial for Telcos to reinvent themselves by building apt capabilities to maximize value from 5G.
Regional Practice Director – Data, Analytics and AI – ASEAN, Wipro
Mahesh is responsible for delivering analytics solutions and consulting to businesses, managing solution sales and partner relationships, and analytics skills development for teams in ASEAN. Wipro has transformed the analytics landscape for large clients in the region, delivering desired business outcomes. Mahesh brings in over 17 years of experience in Sales, Consulting and Program Management.