Telecom, Technology & Media

  • Exploiting the Internet of Things

    The rapid development of mobile communication and the Internet facilitates the approach of a “global village”.In some developed countries and regions, the mobile communication penetration rate has already reached or surpassed 100%. In the coming two years, the number of mobile subscribers will reach 5 billion, and the network will cover over 80% of the global population, resulting in stagnating growth of human subscribers.

    However society today is facing new challenges. Energy shortages coexist with massive wastes of energy. According to research from the United States Department of Energy, electrical energy loss accounts for 67% of the total electrical energy produced. Science and technology improve our lives, yet on the other hand it results in serious environmental pollution. Statistics from the Asian Development Bank show 20% of the global population lacks access to safe drinking water and 50% of the population does not have adequate health care.

    The Internet of Things emerges in this background. The essence of the Internet of Things is to apply information and communication technology (ICT) to different industries, thus realizing “Intelligent Perception and Intelligent Control” via the adoption of ICT. You also achieve the objective of “efficiency improvement, scientific decision making, energy saving and environmental protection, as well as cost savings” to promote the upgrade and development of human society from an electronic society (E society) to a ubiquitous society (U society). The smart grid (described in the Utility Section) is a great example of this.

    The Internet of Things will be the driver for growth for the telecom and IT industries. It is predicted that by 2020, the ratio of machine type communications to human type communications will reach 30:1, which will allow operators to expand their subscriber base from 6 billion people to 50 billion, or even over a trillion, machines and objects. This opens a new door and serves as the basis for unparalleled new growth for the telecoms industry.

  • The Digital Consumer

    The revenue for voice services has saturated or even gradually declined with the developments of mobile communication in the past decade.In the past five years, the revenue for fixed voice services was reduced by 15%, and the growth rate of mobile voice services decreased from 17.5% in 2004 to 1% in 2009 in a country like Spain. At the same time, mobile broadband is entering a golden age of development, bringing human society to a new height of ubiquity. However, we still have not fully utilized mobile broadband, which depends on the joint efforts of the entire industry chain, including “terminal, network, and service”. Although new network technologies are capable of supporting the cost effectiveness of mobile broadband development, there are many challenges ahead in facing the  traffic increase on mobile broadband in the next decade.

    Consumers are changing the way they consume information and interact, enabled by broadband mobile and home networking. The “home network” includes more and more components: an audiovisual entertainment network dominated by a “TV screen”, a communication network dominated by PCs and mobile phones, and the “second and third screen”. “On-line and On-demand” will bring consumers a brand new service experience. Consumers can freely select content. Traditional media will disappear within 10 years, being replaced by Internet-based content. EU pointed out in “Internet of 2020” that by then, TV channels will be distributed as other Internet services, and will not need terrestrial or satellite broadcasting anymore, except in isolated areas. If the past decade witnessed the convergence of telecom and the Internet, the next decade will witness the convergence of broadcast, TV, and the Internet.

  • Cloud based business models

    The popularity of broadband provides a basis for cloud computing.Cloud computing appears in the form of an “information power plant”, and is overturning the traditional business mode of software, hardware, and media. That is, users are moving from “buying products” to “buying services”.

    This change in business model is redefining the industry structure. By changing the distribution mode of software to “terminal (iPod/iPhone) + application (iTunes/Appstore)”, Apple has surpassed Wal-Mart and become the largest music distribution channel; Google is incubating a larger revolution to achieve development, deployment, and operation of software and services through its APP engine, with flexible expansion based on traffic through a cloud computing platform and cloud storage platform beneath it. In this case, there is no need for software vendors and users to buy any hardware or software platform.

    The development of cloud computing also brings opportunities for operators. On the one hand, cloud computing has shown the significance of networks and thus promotes network development. On the other hand, cloud computing services rely on “secure and reliable” service providers, and “secure and reliable” are exactly the advantages that operators have. If operators enter the cloud computing market, they can form new services and experiences based on secure and reliable mass computing storage by integrating industry content and applications in the digital supermarket mode, provide customers with new values, and give full play to operators’ networks and subscriber advantages. In addition, by utilizing reliable and enormous user assets obtained through customer locations and user experience, operators can employ new business models and cultivate new revenue streams through building data mining and advertisement platforms.

    The market for cloud computing will move into a rapid development phase, with the market size exceeding 200 billion USD in the next five years. Cloud computing will be the key for business development for operators, to realize “extending network value by surpassing the pipeline”.

    1 – Huawei, Telecom industry trends in the next decade

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