SYDNEY: The “new era” of the Internet of Things will require networks to undergo a subtle shift towards quantity of connections, rather than quality, to accommodate these changes.
Though Telstra, Australia’s biggest telco provider, is only just launching 4G voice calls – known as Voice over LTE, or VoLTE – next month, it’s already looking to 5G to soak up the extra data use.
In as little as five years, internet-enabled devices such as smart wearables and appliances will be chewing up more data on Telstra’s mobile and broadband networks than people using the web will, according to Telstra’s chief technology officer, Vish Nandlall.
“Wearables are really the next smartphone,” he told Fairfax Media, describing the next five to 10 years as a “Cambrian explosion” in connected devices.
“That’s where we’re going to see a lot more industries start to come in, and then you’re going to see much more penetration of these services across the population.”
US tech giant Cisco Systems believes there could be as many as 50 billion objects connected to the internet by 2020.
Consumers’ hunger for high bandwidth on mobile networks shows no sign of slowing either – and that means unless telcos dramatically change the way they operate, the only thing set to explode is phone bills.
It seems like a natural evolution following the $112 million revamp of its flagship “Discovery Store” in Sydney’s George Street, which features interactive experiences and customer service staff milling about on the shop floor.
It’s no longer about just selling phones and plans, but about maintaining a holistic presence in the connected future.
However, he questioned whether the margins in products without their own SIM cards would be attractive enough for telco retailers.
“They might not see it as a business imperative but more as a marketing need or a vendor push, particularly from Android partners who are a lot more accommodating around Telstra’s needs rather than their own,” Mr Fadaghi said.
Apple is likely to maintain tight control over which third-party retailers stock its much-anticipated Apple Watch – due for Australian release next month – to ensure customers get the right service around the product.
But more SIM-enabled devices are expected to come onto the market as the category matures – and that’s where the big opportunity lies for telco providers.
“We believe there will be a lot more smartwatches in the future that utilise LTE or other connectivity,” Mr Fadaghi said.
“There’s definitely consumer demand for those kinds of products, given they provide an always-on connectivity.”
Smartwatches from Apple’s rivals such as the Samsung Gear S and the forthcoming LG Watch Urbane LTE are already SIM-enabled so can operate without the need of a smartphone.
