The Telcos industry is adapting to the digital revolution at a rapid rate. They moved from being a connectivity provider to a pivotal player in enabling digital services across industries. However, factors such as increasing competition, growing customer needs and expectations, and a decline in voice and SMS revenue pose a significant challenge to this transformation.
To navigate these complexities, Telcos need to embrace advanced technologies like Edge AI solutions. They can bring data closer to the source i.e., on edge devices or local servers. This helps to reduce latency, minimise data transfer, enhance privacy, and lower bandwidth requirements.
This makes Edge AI solutions an ideal fit for the telcos industry for making additional revenue streams. According to a report, the telcos industry can achieve a revenue growth of $250 billion (Souce: Mckinsey) when they use AI technologies appropriately. This underscores the critical need for Telcos to strategically leverage AI, particularly Edge AI, to thrive in this digital landscape with an additional revenue stream.
Role of Edge AI Solutions in TELCOs
Edge AI solutions leverage artificial intelligence to store and process data closer to the source without relying on centralised cloud data centres. Unlike cloud-based solutions which transmit data to and from the cloud, edge AI solutions process the data at the network’s edge. This decentralised approach of processing data closer to devices, sensors, and end-users can work faster, enhance privacy, and lower bandwidth consumption.
Edge AI solutions are crucial in the Telcom industry where millions of users generate a vast amount of data. Cloud struggles to handle such big data with limited bandwidth which often leads to latency issues and energy inefficiencies.
The Telcos industry can navigate these limitations with Edge AI solutions and use them for various applications.
- Network optimisation
The intelligent routing algorithms in edge AI solutions can adapt to real-time network conditions dynamically. This helps to minimise data congestion in the server and ensures a smooth flow of data across networks. The network optimisation feature of edge AI is crucial for applications like video streaming and online gaming that require minimum latency.
- Real-Time Analytics
Edge AI solutions can analyse real-time data from sensors to predict equipment failures and network anomalies. This helps to minimise downtime and repair costs. Telcos can also use real-time analytics to identify and prevent security breaches in real-time.
- 5G Enablement
5G network deployment requires efficient slicing and customised network configuration. Edge AI solutions can identify and allocate network resources based on an application’s need. This helps the Telcos industry to optimise resource utilisation for applications like autonomous vehicles, smart factories, and telemedicine.
- IoT integration for Smart Cities
Edge AI solutions enable the creation of connected ecosystems with their real-time data processing and analysis capabilities. It can integrate with IoT devices and process data from millions of devices in real-time. This helps in enhancing smart city applications like traffic management and energy optimisation.
Exploring New Revenue Streams with Edge AI Solutions
The unique features of Edge AI solutions not only improve the operational efficiency of Telcom companies but also can unlock a new stream of revenue for them. With real-time data processing at the network edge, Edge AI offers telcos the ability to deliver ultra-responsive, personalised, and intelligent services.
This feature of Edge AI is crucial in the creation and working of various applications. Here’s how they can be monetised:
1. 5G monetisation
The Telcos industry can combine 5G technology with edge AI solutions to capitalise on the potential of ultra-low latency and high-speed connectivity.
They can provide high-speed connectivity and customised solutions to industries such as industrial automation and smart cities. For example, edge AI and 5G together can optimise the operations of a manufacturing company with predictive maintenance and real-time analytics. Similarly, smart city applications can use them for traffic management, smart parking, and environmental monitoring.
2. AI-as-a-Service (AIaaS)
The Telcos industry can use their infrastructure combined with Edge AI solutions to create recurring revenue models. They can deploy pre-configured AI models and tools to provide industry-specific solutions quickly. For example, a telecom company can provide tools for deploying AI-powered video analytics on edge devices for retail chains.
Telco companies can also help a business handle deployment, maintenance, and updates for Edge AI solutions. This allows the business to focus on its core operations.
3. Industry-Specific Solutions
Customising edge AI solutions for specific industries enables telco companies to enter into niche markets. In healthcare, edge AI solutions integrated into IoT devices can help in identifying health issues at an early stage.
The manufacturing industry can use it for predictive maintenance. Similarly, edge AI solutions can power agricultural robots to perform precision tasks like autonomous weeding and sensor-based irrigation.
4. Data monetisation
The vast amounts of data processed by edge AI solutions are a valuable asset for telcos companies. They can anonymise and aggregate data collected from edge devices to generate insights into customer behaviour, industry trends, and market dynamics.
Telcos can develop and sell these insights to businesses, generating new revenue streams from data monetisation. This also makes Telcom companies a strategic partner of a business.
5. Consumer and Enterprise Applications
Edge AI solutions are not only useful for creating industry-specific solutions but also for meeting the needs of individuals and enterprises. Telcos can use it in consumer applications like smart home devices and voice assistants.
Enterprises can utilise it to improve their operational efficiency through inventory management, employee monitoring, or energy optimisation.
Bottom Line
The telcos industry, with edge AI solutions, can unlock various possibilities to create new revenue streams, improve their operational efficiency, and enhance customer satisfaction. Looking into the future, it will be crucial to shape the telecom industry with increasing adoption of 5G, IoT devices, and real-time applications.
Moreover, telco companies can collaborate with various industries to deliver smarter networks and personalised services using edge AI solutions. This transformative technology can enable them to unlock growth opportunities and stay competitive while expanding their revenue stream.
Explore how Tata Elxsi’s edge AI solutions can help to create a smarter and more connected future while unlocking new revenue streams.
