Chapter 2: Make Internet Great Again

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Last year around Christmas, I took a day trip with my cousin to the Blue Mountain, north of the 6ix. The journey took us through a picturesque highway with beautiful landscapes of vast farmlands, forests, and mountains. Given our unfamiliarity with the area and the sparsely populated route, we relied on Google Maps to navigate. For the first time in a very long time, I appreciated that my mobile had network and my service provider had put up their network along a relatively remote tourist destination.

For sometime now, I'd been reading about the ongoing discussion about Telecom pricing, and the Government mandating a price reduction. Often a comparison is made between Telecom pricing of US and Canada which is probably not a fair comparison given that the US population is 10 times the size of the Canadian population. Being a marketer, I wondered what could be done to address the pricing concerns.

One of the reasons cited is that there is limited competition in the Canadian Telecom industry, but the major reason is that the contribution of household mobile subscribers in a Telco's (Telecom Operator) revenue is significant.

Increased mobile internet speeds have led to innovation in the mobile-based B2C services but not so much for B2B services

Higher mobile internet speeds have given us Video platforms like YouTube and Netflix, Social Media platforms like Facebook, Instagram, and TikTok, E-commerce platforms like Amazon and Ali Express amongst others. Innovation in B2B services, however, have happened majorly through platform improvements complemented by fixed-line internet services.

In order to reduce their dependence on household mobile revenue, Telcos need to create a new line of B2B and B2C services apart from the current avenues. Let’s look at three such services that can create enough revenue opportunities, using the current technology as well as the upcoming 5G technology.

Home Automation

Way back in 1911, Radio Rex was the first voice-activated toy to be sold commercially. The journey from Radio Rex to the modern-day Siri has been groundbreaking in providing Home Automation through smart applications and virtual assistants.

Growing at 18% pa, the Canadian consumer automation market was worth ~$108Bn in 2019. There are multiple services available for home automation and security solutions from tech giants like Google, Amazon, and Apple as well as other smaller organizations.

The biggest challenge is to provide a single customized interface with integration of multiple automation services

Telcos can maximize a household’s potential by integrating its services – mobile, home internet, cable, home security, automation, etc. through a single interface. With 3x household penetration expected by 2025, there is a tremendous long term growth potential for automation services.

5G + IoT for Industries

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Just like home automation, industrial automation also requires various processes and device/machine integration. In a home scenario, the connectivity of all IoT devices through Wi-Fi is feasible.

But for an industrial IoT solution covering all devices/sensors across a large geographical spread is not feasible through Wi-Fi. This is where 4G/5G connectivity comes into the picture, capturing, recording, and sharing data in real-time, allowing the creation of smart automated solutions for businesses. Launch of 5G network will further the advancements in Industrial IoT as it’ll provide the fastest wireless connectivity yet.

From data through various sensors to tracking of activity, location, performance, etc., 5G will enable businesses to fully utilize the potential of AI and cloud computing. IoT innovations will impact industries like Utilities, Construction, Automotive (connected cars), Healthcare, Logistics, and Retail amongst others.

Latency with 5G will be 30%-65% lower compared to the current 4G network

The worldwide spending on IoT was forecast to reach ~$745Bn in 2019 and $1 trillion by 2022. Leveraging this potential, Telcos can maximize the economic value of these services by customizing the 5G network deployment in partnership with potential sectors.

Digital Payments

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Retail commerce is the backbone of every economy. From buying groceries, paying utility bills, entertainment subscriptions, transportation, etc., people use various offline and online instruments to pay for their daily needs. Over time, digital payments have surpassed offline commerce, promoting innovation. Advancements in the mobile ecosystem has allowed for the development of a new digital payment instrument, a ‘mobile wallet’.

So what opportunity do the Telcos have? Irrespective of the device make, there are no software restrictions to build a robust Digital Wallet. Telcos reach therefore is immense, putting them in an equal footing with competition to tap into this segment.

Apple, Google, and Samsung are leading investments development of integrated digital payment platforms

Apart from Google Pay, Apple Pay, and Samsung Pay, there are multiple global success stories in this segment like Telecom Operator Vodafone’s M-Pesa, E-commerce giant Alibaba’s Alipay, and Digital Payments Platforms like PayPal and PayTM. This year in Canada, digital payments are forecast to reach US$66.95B. Through digital wallets of their own, Telcos have the opportunity to reach their customers at multiple retails touchpoints, providing long term value through loyalty rewards.

Technological advancements in communications will enable innovation and job creation in many other sectors

As Canada continues to embrace multiculturalism, we have an influx of young professionals with rich global experience. It’s therefore beneficial for us to support the newcomers so that they can quickly start contributing to the local economy.

As a newcomer myself, I’ve experienced this support system first hand. Do watch this space as I share my experience in the third and final chapter, ‘You scratch my back, I’ll scratch yours’.