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Wednesday, June 03, 2015

Future of IoT Depends on Growth in Connectivity

Connectivity is the backbone of the IoT and the enabler of the connected lifestyle. IoT growth in many countries around the world is dependent upon continued investment in connectivity to fund access and sufficient performance, whether that is fixed broadband or mobile broadband.

Fixed line broadband services remain a core element of global connected living. Broadband’s ability to enable new communications, entertainment, information, and utility services and features has produced disruption and revolution across multiple industries. Worldwide, innovation follows closely in the wake of increasing broadband penetration, benefitting consumers but forcing change among product manufacturers and service providers.

Three global broadband trends are common across many global markets and will impact the connected home in 2015.

  • “Very high speed” broadband services will proliferate – While speed-based competition is nothing new, both the hype and deployment of actual services will intensify in 2015. Operators that can potentially compete at these speeds will be quick to unveil plans for very high-speed services in an effort to prevent consumer switching. Those that are unable to offer such services will be quick to adopt alternatives to facilitate retention, including value-added services, loyalty programs, or other strategies.
  • In-home broadband performance will prove to be as critical as to-home broadband performance – Wi-Fi access within the home remains a highly-desired feature by consumers and will continue to drive broadband service and customer premise equipment (CPE) uptake across global markets. However, Wi-Fi coverage issues remain, particularly in markets with home construction materials that interfere with Wi-Fi signals
  • Wi-Fi hotspots will become a hot area for operator competition – For consumers, the Wi-Fi hotspot network provides a way to offload mobile traffic and minimize mobile data costs. For operators, Wi-Fi hotspots provide a value-added benefit for subscribers and an opportunity for incremental revenues for per-use customers. Hotspots can also be an effective tool for retention. As a result, operator competition for the best hotspot locations is likely to heat up over the next year.

In 2015, as the in-home broadband experience continues to impact all aspects of the connected lifestyle for consumers, focus will increase on CPE, gateways, support systems, and quality-of-service within the home.

On the mobile side, ever-faster mobile broadband connectivity and a growing use of smartphones are leading to a dramatic increase of computing power for people who enjoy a mobile-centric lifestyle. The smartphone has gradually become the first computing and communications choice in their life; that phenomenon has inspired technology and business innovations that will disrupt many traditional industry verticals.

Parks Associates explores the trends and technologies shaping the Internet of Things and the growing connected consumer lifestyle in the report Global Connected Living Outlook: The Era of IoT. Click here for more information.

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