Towerco business model evolving with 5G. Will IoT and Data Analytics ease evolution?
The exponential rise of mobile phone users especially smartphones and the new 5G rollout in numerous countries are some of the reasons behind the imminent evolution of towerco business model. The critical requirement of global connectivity amongst consumers individually as well as on an enterprise level is why 5G technology is one of the biggest things countries are waiting for to ease the ever-increasing data traffic. Spurred by the current need for social distancing and increased reliance on connectivity, the need for both densification and infills will see massive growth.
Human advancement is witnessing users becoming more dependent on technology and the internet. The world has shrunk but the consumption of mobile applications, messaging services, location-based services, gaming, video and voice calling, social media as well as music streaming has surged with greater connectivity. By 2021, the numbers are only going to rise, the forecast predicts 8.1 billion cell phone users out of which 72% will be smartphones. The new era of high-speed internet and mobile connectivity will see 5G deployment all across the globe over the next decade and the ones that can make the most profit with this rollout are the Tower companies.
The Role of IoT and Data Anlytics
IoT, Artificial Intelligence, Data Analytics, Machine Learning considered to be nothing more than industry jargons will be the major catalysts in the transition of Towercos enabling the creation of smarter cities through a closely integrated ecosystem.
Apart from transforming for the future, such integration will also support Towercos in cost-saving. Solutions which are a combination of IoT and data analytics such as Infozech’s iTower product suite will help organizations during the 5G boom to optimize operations and business processes, empower human assets and gain more visibility and control across a vast number of sites spread across multiple geographies.
The global expansion of remote work culture and growing popularity of voice controlled devices especially during and after the pandemic is going to generate a higher data traffic load in places where 5G is deployed. Since a lot of data is going to be consumed, analyzed as well as generated, a monitoring system to gain visibility throughout and ensure smart decision making for seamless operation will be required. Infozech’s iAnalytics can analyze a substantial proportion of data collected from multiple connected devices and provide business insights which will enable tower companies to make informed and data based decisions in their daily process. The speedy generation of reports will save employee time, reduce the likelihood of errors, improve decision making and promote business success.
Mitigating the Lease Challenges
The evolving 5G tower business model will also focus on leasing out space on cell towers even more than usual, as it unlocks promising financial opportunities for the cellular tower owners. Though the construction demands massive CAPEX initially, over time it proves to be a significant investment for the infrastructure providers as the monthly rental payment through leasing can bring in heavy profit with the 5G rollout.
The migration to the new network is going to introduce unfamiliar trends and intensify the need to adapt new technologies faster. With 5G densification infrastructure leasing will spiral upward and tower companies can struggle with the multi tenancy rates across thousands of sites. As a result? They can lose out on significant revenue through inefficient management of lease invoices. It’s more important than ever for towercos to seek to strengthen their existing lease maintenance solution and automate it at the earliest. iLease from Infozech digitizes leases by defining lease contract and lease attributes. The user defined out-of-the-box reports provide businesses with more visibility and insights helping towercos and telcos efficiently manage their upgraded and growing sites to support the 5G network.
The rollout of 5G will introduce a change in existing towerco and telco architecture – IoT, machine learning and big data analytics will drive machine to machine communication at a breakneck speed. By relying on such advancements companies will be able to offer a more realistic experience without communication lag. While the deployment may take years to occur on a global scale, it’s only wise to realise the positive outcome it’s going to have and adapt without any delay.