By Arpit Sharma, Senior Manager, Technology Research and Advisory, Aranca
Recently, the world has posted a massive shift toward digitalization. As businesses are increasingly embracing the digital landscape, the need for reliable and efficient telecom solutions is paramount. Telecom solutions have become the backbone of digitalisation, enabling businesses to seamlessly communicate and collaborate with customers, partners, and employees. From cloud-based software to mobile apps, telecom solutions transformed business operations, and their impact on the digital landscape cannot be overstated.
There are several use cases of digitalisation encompassing needs at home or at work. It is facilitating enterprise automation and industrial production, building efficiencies in logistics, enhancing human capabilities through machine integration, enhancing knowledge and skills, and implementing law and governance. Moreover, it supports healthcare through early diagnosis of chronic diseases. Finally, it has helped in the efficient delivery of public welfare services. Telecom is essential in enabling these services.
Most front-end or customer-facing telecom players worldwide offer five main solutions:
1) Data and voice connectivity
2) IoT connectivity and platforms
3) Cloud and edge computing
4) Big Data Analytics
5) Cybersecurity
Other products and services offered by the telecom players include network management services for businesses, OTT content services, and other value adds for B2C customers – such as insurance, microfinance, etc.
These varied offerings by the telecom players have a role in enabling digitalisation:
Connectivity: Global telecom players offer connectivity solutions around 2G, 3G, 4G, and 5G. This has aided in the growth of the fintech sector and payment schemes like UPI, and wallet transfer. The enhancement of network footprint across India after the launch of 4G networks supported this initiative.
IoT connectivity and platforms: To connect IoT devices, the telecom sector came up with two low-power connectivity technologies – NB-IOT and LTE-M.
NB-IOT would be used to connect static or slow-moving devices, generating data at low rate, and non-frequent connectivity, such as utility meters, fire alarms, animal trackers, parking indicators, and street lighting, whereas LTE-M is used for connecting high-speed, and high data generation devices, such as trains, and cars.
Cloud storage, big data analytics, and edge computing: Billions of connected IOT devices, autonomous cars, and drones are expected to generate terabytes of data per second. Transmitting, storing, and processing these data at distant locations would require huge power, cost, and IT infrastructure.
Hence, it makes sense to store and process such bulk data at the network edge. Telecom companies offer cloud storage and edge computing solutions, which will bring another revenue stream to them.
Cybersecurity: IoT devices and IT infrastructure are vulnerable to cyber-attacks. Hacking of critical assets, such as power grids, gas pipelines, vehicles, financial systems, and healthcare devices, can cause heavy personnel, financial, and social damages. Along with hacks, denial of IT services, or connectivity could be damaging in certain situations. Therefore, providing cyber security at the network end is equally important for enabling and sustaining digitalization.
Managed services: Telecom players offer the deployment of private 4G and 5G networks to enterprises and industries such as stadiums, malls, factories, grids, seaports, and bus terminals. Private networks are dedicated networks with no or minimal shared IT resources. A private network offers sustained connectivity, customized speed based on the requirement, has low latency (delay), is less vulnerable to attacks, and is fully scalable as per enterprise requirements.
Despite playing an essential role in enabling digitalisation, telecom companies often face challenges and push from the perspective of competitive pricing, competitive technologies such as WiFi6 and satellite-based networks, frequent changes at policy levels, depletion of the spectrum, and pressure of decarbonisation of network resources.
Proactive participation of telecom players, use-case developers, favorable network and competitive business policies, and political willingness could help boost digitalisation in any country.