Mobile Network Operators look to new market niches, such as Security to fight commoditization
With the emergence of new competition from existing players such as cable providers and MVNOs, and new entrants such as internet and tech giants, Mobile Network Operators are experiencing a negative impact on business growth. Companies such as Amazon, Google, Microsoft, Samsung, Cisco, Huawei, and IBM are also introducing innovations that are in direct competition with their products and services.
One of the largest Mobile Network Operators in Austria collaborated with Angelcam to add integrated security camera and sensor functionality to their router product for domestic users. By doing so, they substantially reduced the time to market; eliminating the need to develop its own solution from the ground up; and gain a significant competitive advantage over other Mobile Network Operators and competitors.
Implementation of the EU’s wide roaming rules has taken a sizeable chunk out of Mobile Network Operators’ juicy cash cow. Pushing them into a more ferociously-competitive and rapidly-commoditized market. Predictions by McKinsey recently suggested that Mobile Network Operators in Western Europe and Central/Eastern Europe were facing average “growth” rates of -1.5% and minus -1.3% respectively.
That same report highlighted two ways for them to respond to their hazardous trading environment.
1) Make their core business super-slim, agile, and cost-efficient
2) Identify growth areas that combine great potential for digitization and Mobile Network Operators core competencies
One of those growth areas is home and business security. Now household routers, once solely for Wi-Fi and ADSL, can connect seamlessly to security cameras. Some of those cameras are now less than $100. Those routers let you connect remotely to those respective camera feeds, letting owners monitor activity and respond quickly.
Furthermore, for “smart” security systems additional cameras and sensors are required, necessitating the need for those devices to be connected to the internet as well. Cameras need speed (via LTE/5G networks) and sensors need new, low-powered networks and Mobile Network Operators have (or will have) both of those. Smart security is the only application utilizing both. And not just that - as smart security becomes more streamlined and affordable, Mobile Network Operators are well-positioned to take advantage.
For those who like it a little more technical, MNOs have typically utilized just down-link while up-link is not being used much, this means security video is the way to monetize this existing free capacity. Also, almost every MNO will shutdown 2G (and later there are even retirement plans for 3G and CDMS) because these old technologies are using very expensive frequencies non-efficiently. Basically,
→ All alarms using these technologies will stop work and has to be replaced
→ Available frequencies are typically being used for new technologies complementary to fast LTE = low powered networks NB-IoT or LTE-Cat 0 allowing sensors to be working on batteries months/years:
So, they can aim at their huge customer databases and sell security as a package, introduce motion detection and alarm functionality handled by one central box. Also, providing recordings and the ability to look back at them, all of this creates more need for bandwidth and more need for reliance on the MNO. And it’s happening. Companies wrapping these services with other intelligent devices in packages for their clients.
All alarms using these technologies will stop work and has to be replaced
Available frequencies are typically being used for new technologies complementary to fast LTE = low powered networks NB-IoT or LTE-Cat 0 allowing sensors to be working on batteries months/years:
When looking at that growth opportunity and how Angelcam is positioned to partner and collaborate with Mobile Network Operators, we’re in an ideal position already having the cloud infrastructure and connection technology to provide quick, efficient, and knowledgeable support. We work directly with the Mobile Network Operator to fully enable their products to offer transmission and recording to the cloud. The core technology in use, our Angelcam connector, is currently being used by tens of thousands of our customers today and we’re ready and willing to bring that solution to our future Mobile Network Operator partners as well.
In conclusion, Mobile Network Operators benefit from a rapidly-growing home security market and customers benefit from additional valuable services from a brand they know. It’s a win-win situation where value deepens and margins grow.