As the worldwide telecom sector fights a competitive market amidst frequent geopolitical and economic upheavals, operators have few choices but to make the most out of the rapidly transforming ICT market.
The integration of 5G rollouts and the subsequent utilization of the Internet of Things (IoT) has revolutionized the way in which we connect and interact with the world around us. As the demand for faster, more reliable and ubiquitous connectivity grows, the convergence of these cutting-edge technologies is paving the way for a truly connected future.
Moreover, machine to machine (M2M) and IoT-embedded “smart objects” are becoming increasingly capable of responding to their environment, regardless of the complexities. This sense-and-control system can optimize valuable natural, financial, and human resources, reducing waste in various areas such as agriculture, inventory management, and manufacturing. In every case, it enhances productivity and quality.
Similarly, residential home-grid applications are another area where IoT/M2M is expected to make substantial contributions, combining applications from multimedia entertainment to energy sectors. In addition, there is no doubt that the strong influence of digital transformation catalysts such as generative AI (GenAI), large language models (LLMs), machine learning (ML), cloud and software applications are constantly challenging the telco landscape. However, the communication infrastructure provided by the operators remains vital for the proliferation of such technologies and ultimately for economic growth.
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Digital Fuels
While the 5th generation of wireless technology promises higher speed and lower latency with its ability to handle massive amounts of data in real-time, IoT is utilizing the vast network of interconnected devices, sensors and objects to communicate and exchange data with each other, giving way to the Economy of Things (EoT), which presents a new environment to share data across ecosystems, unlocking new monetization opportunities.
EoT signals the move beyond context-aware connected IoT devices to one where IoT devices have themselves become digital assets, capable of real-time discoverability, indexing and autonomous transactions. For example, a vehicle equipped with an EoT-secure identity and wallet can pay for its fuel at an EoT-enabled fuel pump automatically, without the need for human intervention.
The potential for growth and innovation in EoT can be attributed to the following three factors:
- An ecosystem of hyper-connected, collective, value-based devices that can solve complex persona-based challenges and drive the next reinvention of the industry.
- A new value chain of common, interoperable infrastructure and service platforms that facilitate services and data exchange solutions.
- Incentivizing data owners to share data while maintaining privacy, driving collective value for all participants.
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Smart Possibilities
The range of potential EoT applications is rapidly expanding. For example, tech-advanced cities like Japan and Korea are utilizing smart billboards capable of stealthily analyzing the shopping habits of passers-by to showcase relevant display messages. In other instances, smart farming can analyze parts of a field under cultivation and adjust fertilizer spread according to prevailing conditions. Similarly, manufacturers can make on-the-fly changes to product details by making their production lines and products smarter with smart sensors and actuators.
Moreover, consulting company, McKinsey, has previously highlighted two broad categories of EoT application: information and analysis, and automation and control. Within these categories, the company has identified six broad applications:
- Behavior tracking to understand how people use products
- Enhanced awareness for monitoring environmental and other events
- Decision analytics in resource exploration
- Process optimization
- Resource consumption control with smart metering
- Complex autonomous systems that enable vehicles to have 'autopilot' capabilities.
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Enabling and Fostering EoT
Telcos play a central role in spearheading the transition from IoT to EoT as both technology enablers and facilitators of ecosystems and collective value creation.
The widespread adoption of EoT necessitates a quantum-secure IoT network encompassing sensors, edge devices, core systems, or cloud infrastructure based on the zero-trust principle of "never trust, always verify." Telcos can extend secure enterprise data and AI capabilities to the network edge, facilitating real-time discovery, utilization, and monetization of compliant EoT data and use cases.
Telcos can act as data providers as well as data marketplace and brokerage operators within the ecosystem. Telcos currently operate vertical data platforms tailored to specific industries like automotive, agriculture, or financial services. By integrating EoT platforms with these vertical data platforms, telcos can efficiently unlock industry-specific EoT use cases, creating new revenue streams that complement their core offerings.
Moreover, telcos play an important role in establishing viable EoT ecosystems to serve the enterprise and IoT customer and consumer segments. Mobile devices have become a key component in EoT as digital extensions of consumers and users. Consumer ownership and control over their identity and personal data are crucial factors that enhance and enable the value of the EoT ecosystem. This empowerment facilitates the implementation of innovative business models such as B2B2C and B2C2B, where businesses interact directly with consumers and facilitate partnerships between businesses.
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Telco-EoT Convergence in Action
Telcos are increasingly leveraging their technological capabilities to drive the transformation towards an Economy of Things (EoT), where interconnected devices, data, and services create new value ecosystems across various sectors.
Ericsson, for instance, is at the forefront of this technological evolution and is collaborating with various partners to test high-speed internet connectivity on trains over a 10-kilometer rail track. This initiative aims to enhance passenger experience and operational efficiency through seamless connectivity, laying the groundwork for advanced EoT applications in transportation. Similarly, in the transportation sector, du launched du Smart Car, which utilizes data-heavy subsets, integrations and analysis, to create a seamless, intelligent driving experience.
In the agricultural sector, du and Gracia Group have launched a pioneering agritech platform, marking a significant step towards modernizing the sector. This platform integrates IoT solutions to optimize farming processes, improve crop yield, and ensure sustainable agricultural practices, paving the way for EoT convergence.
Meanwhile, Dubai's Ministry of Finance has successfully implemented Robotic Process Automation (RPA) across its operations, automating 1.8 million transactions with an impressive 98 percent accuracy. This deployment underscores the transformative power of EoT and automation in streamlining administrative tasks and enhancing operational efficiency.
In the realm of fintech, Ooredoo has introduced 'walletii', a cutting-edge financial solution in Oman. This platform integrates mobile payments, digital wallets, and secure transaction capabilities, catering to the evolving needs of consumers and businesses alike while utilizing EoT capabilities as a backbone.
In the healthcare sector, various EoT-based models are in development. du is providing strategic cloud support to the Dubai Health Authority (DHA), enabling secure storage and efficient management of sensitive medical data. Similarly, the Kuwait Ministry of Health has embraced AI for diagnosis and treatment, leveraging advanced analytics to improve medical outcomes and patient care. Moreover, Etisalat has launched its Business Edge Healthcare platform, offering a range of services designed to empower hospitals and medical practitioners with secure and seamless communication tools. In tandem, Etisalat Digital has introduced the Cloud Electronic Medical Record, a groundbreaking solution that facilitates real-time data sharing among healthcare facilities in the UAE.
Addressing cybersecurity challenges using an EoT philosophy, CrowdStrike has collaborated with telecom sectors in the Middle East to implement an identity-centric, zero-trust architecture. Furthermore, Cloudbrink is delivering high-performance enterprise networking through pSASE (Secure Access Service Edge) capabilities, providing businesses with integrated security and networking.
Final Thoughts
The UAE is evolving into a truly global digital hub that is attracting the world’s wealthiest investors in diverse sectors. The seamless operations of EoT functions will warrant the most innovative market-ready solutions, implemented by telecom operators, to match the pace of global trade for companies to produce economies of scale.
ICT stakeholders should prioritize advancing the EoT vision through appropriate regulatory policies, fostering talent development, and adopting effective investment models. Telecom operators must recognize that their potential extends beyond traditional SIM card sales, offering opportunities for diversified business growth.
Market studies forecast that the EoT market will reach an inflection point within the next few years with over 10% of IoT devices being EoT-enabled by 2030. Telcos need to understand that they are the entities transforming sectors such as finance, education, health, manufacturing, oil and gas, and so on. The industry’s resilience and innovative approach will determine the future course of economic growth.
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