CO - Techinnovation

The Future of Indoors with Digital Indoor Systems

The Future of Indoors with Digital Indoor Systems

Digital Transformation, 5G, and COVID-19 have triggered further growth in indoor traffic

Digital transformation is underway regionally and globally. A recent survey by IDG found that 68% of respondents in Australia and Singapore were either undergoing or have completed their digital transformation journey with the majority of these respondents having plans for artificial intelligence (AI) and robotic process automation (RPA) deployments within 12 months of completion. Indeed, we live in interesting times where emerging technology is driving economies and change. 

Funding change is getting more and more challenging. Investors look for ideas that can strategically meet their needs, are scalable, and are flexible enough to cut across multiple vertical industries. The launch of 5G in the region in April 2019 brought about interesting new concepts that sparked the interest of investors. COVID-19 has played a key part in putting some of these new concepts in place to meet critical needs. It has not only disrupted our lives but has triggered the urgent need to enhance and upgrade digital infrastructure and expedite the deployment of 5G networks, especially indoors.

While most of Asia-Pacific was under lockdown and indoors in 1H 2020, concepts were tested to ensure that life as we knew it went on. Staying indoors and needing remote support has triggered the further growth of network traffic originating from indoors. Traffic was already over 80% before COVID-19, with an estimated 60% of customers dissatisfied with indoor coverage. This growth of indoor concepts to meet needs and corresponding indoor traffic are triggering innovation in and transformation of next-generation indoor solutions, including digital indoor systems (DIS). 

DIS technology is evolving rapidly, but not all markets have developed at the same rate 

China and South Korea both have a high domestic demand for 5G, along with an early government push and market-driven initiatives. In these countries, the governments have facilitated 5G, with China aiming to become the leading digital country, while South Korea aims to build a creative economy. With the encouraging numbers for 5G adoption, governments are putting in a final push to further drive the momentum for 5G.

For South Korea, in addition to funding public sector projects and fostering greater private-public cooperation, the government is actively removing potential barriers to commercialization of 5G by providing tax incentives of 1%-3% for mobile operators to reduce the CAPEX burden; offering financial support, e.g., loans and funds for innovative 5G start-ups and developers; and amending the laws and regulations where necessary.  

In China, a government mandate issued in February 2020 for China Telecom, China Unicom, and China Broadcasting Network to share spectrum at 3.3-3.4 GHz for indoor coverage is leading to co-development and co-sharing of indoor solutions that will result in lower costs and better solution efficiencies.

At the other end, Myanmar wants to achieve a fully connected digital society within the settings of an emerging market. The government has addressed 5G network infrastructure, facilities, and site policies and has announced its intention to focus on improving the indoor user experience, even though it is not yet clear when 5G deployments will commence in the country. By fully understanding the local context, the government is creating a favorable environment for innovation and investment when 5G arrives. By that time, investors will see the potential of indoor solutions and invest through mobile operators or as neutral hosts. 

Healthcare has shown how DIS can help address needs

Healthcare, being the first vertical to be tested by COVID-19, has shown that there is some basic understanding of needs. Case studies in China and Thailand show how DIS can help to address those needs. 

In China, the release of the 5G hospital network standard in 2H 2019 through industry collaboration helped hospitals cope with COVID-19 in 1H 2020. As a result, 300+ 5G hospitals were able to connect to the National Telemedicine and Connected Health Centre, which has expedited the commercialization of 18 telehealth applications for remote assistance, diagnosis, and monitoring. 

In Thailand, its e-Health Strategy (2017-2026) supports the use of ICT technologies to increase access to healthcare and reduce geographical/relative gaps between patients and their caregivers. Since obtaining the spectrum in February 2020, AIS has deployed 5G and telemedicine robots at 20 hospitals treating COVID-19 patients. A further 110 hospitals in Bangkok and eight more in major provinces will soon benefit from 5G technology. With DIS as an enabler, the transformation of healthcare in Thailand is now underway.

Scalability and flexibility across verticals are promising developments for DIS investment

To scale, there needs to be co-creation of solutions that can be used across verticals. These solutions can leverage emerging technologies such as edge and artificial intelligence and partner with system integrators (SI) or cloud providers. To be successful, viable business models for partnerships are necessary. 

In South Korea, KT has diversified its business models for indoors by enabling high value-add services, e.g., smart office/building applications with security and asset management systems. 

In Switzerland, Sunrise has employed the “Anything as a Service” or XaaS concept to network infrastructure, calling it the “5G Indoor Coverage as a Service” business model. 

XaaS concepts are not new in Asia-Pacific and with private 5G networks on the horizon, beginning with Japan, Network as a Service could bring an interesting new spin to the region.

With elements favorable for investors, the incentive is high for companies to invest in DIS

From a financing perspective, the conversion of private 5G network solution costs from CAPEX to OPEX is a key development. OPEX-based business models open up a potential market, not just for mobile operators, but also for neutral hosts and financiers. 

From a perspective of managing fixed costs, reductions in labor, and associated insurance costs are a necessity. For example, China Unicom was able to support Shanxi HuoZhou Coal Group in China with a fully automated underground station. The cost-savings would come from remote control of mining equipment and sensor-based environmental monitoring with 5G technology.

Innovation by vendors is further helping to justify the business 

Innovations by vendors include offering the necessary key attributes, i.e., speed, location, capacity, and reliability capabilities, as required based on scenarios since they vary by vertical industry. For example, in healthcare, critical processing tasks to produce real-time analytics are needed to predict and respond to health emergencies; in manufacturing, reliable real-time filtering of meaningful data is necessary to reduce the amount of data sent to a central server. 

As scenarios vary, the future will see DIS solutions eventually settling at the right cost structures for performance requirements or, more explicitly, what people will pay to address the differing needs of vertical industries while improving mobile operator return on investment (ROI). 

In closing, with the new normal brought about by COVID-19, new perspectives on what people need and want will emerge. It is clear that with the global launch of 5G, investments in indoor solutions will shift to DIS solutions for new sites. Developments in policy, business models, and innovation enablers are helping to tip the scales. 

However, the bigger question now is, when will the massive number of existing sites with DAS solutions migrate to DIS and how much will developments with millimeter-wave and massive MIMO affect the timing of the transition? 

It is known from a past industry analysis that if there is a need, the investments necessary will come through. Governments laying the groundwork early will only crystalize the future of indoors sooner. In an industry where a need has never been well understood, innovation and transformation in this area could become a catalyst for future growth.

The future of indoors is with DIS

For businesses and mobile operators, indoors is where your future revenue streams will come from; for consumers, this is where your new normal begins. 

  • Quah Mei Lee
    Quah Mei Lee
    Associate Director with the Frost & Sullivan ICT

    Quah Mei Lee is an Associate Director with the Frost & Sullivan ICT practice. She leads Mobile & Wireless Research for Asia-Pacific and focuses on telecoms and payments strategy. Supported by her expert team, she drives thought leadership in telecoms and payments strategy and mobile digital services research.

You May Also Like

Install These Free Security Tools Now!
Install These Free Security Tools Now!

Have you heard of intrusion detection systems? Also known as IDS, this software is often used to det...

Crowdfunding drives  unprecedented efficiency
Crowdfunding drives unprecedented efficiency

Crowdfunding has become the center of attention in the field of financing. It is also an increasingl...

Everything As a Service
Everything As a Service

Transition from Capex economy to Opex Economy World is in a transition from Macro to Micro. Granula...

IoT in Malaysia – 2019 Predictions
IoT in Malaysia – 2019 Predictions

The year 2014 is when Malaysians started to Google the term “IoT” and ever since, the hy...

The business case for 5G
The business case for 5G

As of 2018 ,33 MNOs have been involved in 5G trials within Asia Pacific, accounting for 44% of 77 tr...

A New Face On Digital Transformation: Engagement Innovation
A New Face On Digital Transformation: Engagement Innovation

Whether we believe it or not we are in the fourth industrial revolution – The Digital Revoluti...

Technology & Competitive Data Analysis More Money – More Competition; everyone wins
Technology & Competitive Data Analysis More Money – More Competition; everyone wins

Technology & Competition – More Money, Better Deal for Consumers & Companies – H...

Anatomy of Fintechs that’s redefining Financial services business models.
Anatomy of Fintechs that’s redefining Financial services business models.

On a weekend in 2013 during monsoon I invited my friend and his family for a dinner at my place. It ...

Blockchain Taxation
Blockchain Taxation

World has paid a heavy price for trust, transparency, controls and accountability. Globally there i...

Why Is CDR / CDNR So Important?
Why Is CDR / CDNR So Important?

Addressing the Fundamental Deficiency in Today’s Mainstream Cyber Security Strategies From Det...

CIO Business leadership - shifting from tech to business leadership
CIO Business leadership - shifting from tech to business leadership

CIOs are no longer technocrats, they are business enablers and crucial part of organisation. CIOs sh...

Ideas and Opinions | 5G as an Enabler of Smart Cities
Ideas and Opinions | 5G as an Enabler of Smart Cities

When 5G comes to mind these days, we think of “is this REALLY it?” and “have we re...

Lessons in Machine Learning
Lessons in Machine Learning

More organizations are using machine learning for competitive reasons, but their results are mixed. ...

Digital Indoor System: Critical Infrastructure for Digital Economic Transformation
Digital Indoor System: Critical Infrastructure for Digital Economic Transformation

Digital Indoor System: Critical Infrastructure for Digital Economic Transformation   Developme...

The Changing DNA of the CIO CIO as Business Enabler
The Changing DNA of the CIO CIO as Business Enabler

The idea that the role of the CIO has now gone beyond technology and innovation related issues, and ...

Today's Digital Miners
Today's Digital Miners

Today's Digital Miners I guess by now everyone of us who have read an article or two on digital...

Digital Transformation Readiness Test for Banks
Digital Transformation Readiness Test for Banks

Digital Transformation Readiness Test for Banks The questions banks need to try to answer to test ...

What is Machine Learning
What is Machine Learning

What is Machine Learning? According to Tom Mitchell, a professor at Carnegie Mellon University has d...

Transformation of industry verticals through 5G – Focus and Look Indoors 
Transformation of industry verticals through 5G – Focus and Look Indoors 

Transformation of industry verticals through 5G – Focus and Look Indoors  Now that 5G is...

Humanize Technology - back to the basics of serving human needs, humanly
Humanize Technology - back to the basics of serving human needs, humanly

Humanize Technology - back to the basics of serving human needs, humanly The subjects of Digital Tr...

Creating the foundation for Sustainable Innovation
Creating the foundation for Sustainable Innovation

Creating the foundation for Sustainable Innovation In 2011, Marc Andreessen famously proclaimed tha...

About Tech Data Diversity And Inclusion
About Tech Data Diversity And Inclusion

About Tech Data Diversity And Inclusion I am excited about attending the Hispanic IT Executive Coun...

Digital Transformation: Customer Centricity & Intimacy
Digital Transformation: Customer Centricity & Intimacy

Digital Transformation: Customer Centricity & Intimacy It was inspiring listening to IMD Profess...

Is Industry 5.0 putting humans back in the center
Is Industry 5.0 putting humans back in the center

Industry 4.0 focused on the machines. Is Industry 5.0 putting humans back in the center? I was on a...

Importance of IT Resilience
Importance of IT Resilience

Importance of IT Resilience Disclaimer: The posting written here is solely of my own comment and ...

Implementing a SaaS Solution – The 3 Major Technical Challenges
Implementing a SaaS Solution – The 3 Major Technical Challenges

So when are you planning to implement a SaaS (Software as a Service) solution? Very soon, if not alr...

So you want an #Innovation Hub?
So you want an #Innovation Hub?

Innovation, Design Thinking, Digital, Disruption, Agile, Transformation - these are new buzz words t...

The Unsung Hero; The Data Scientist
The Unsung Hero; The Data Scientist

It is quite likely you are wondering ‘what on earth’ am I on - for cooking up such a tit...

How POC projects made me a better Project Manager
How POC projects made me a better Project Manager

How did I get here? Project Management is a tough job. We need to keep a track on budgets, timeline...

How Data and AI can help in COVID-19 crisis
How Data and AI can help in COVID-19 crisis

Since the first report of coronavirus (COVID-19) in Wuhan, China, it has spread to at least 100 othe...

Building thriving business partnerships with Open API
Building thriving business partnerships with Open API

Apple and Google recently collaborated to assist in enabling contact tracing and reducing the spread...

Seizing Opportunities in the ICT Sector
Seizing Opportunities in the ICT Sector

The Increased Pace of Digital Transformation Automation, digitalisation, artificial intelligence (A...

CoVID19, Digital, ML
CoVID19, Digital, ML

CoVid19 hit us and has now created the “new Normal” in terms WFH, Video conferences, bal...

Do we really need CEOs, CFOs, and CIOs?
Do we really need CEOs, CFOs, and CIOs?

Why CMOs and CTOs are all you need to succeed in today's world This is my first article in a se...

Cinématographe by the Lumière Brothers & History of AI
Cinématographe by the Lumière Brothers & History of AI

The Lumière brothers, Auguste and Louis, French inventors and the pioneer manufacturers...

Avenues To Expedite The Incorporation Of 5G Into Industry
Avenues To Expedite The Incorporation Of 5G Into Industry

5G has been launched in Asia Pacific. South Korea, China, the Philippines and other countries have b...

4G/5G Fixed Wireless Access: A Critical Revenue Growth Engine 
4G/5G Fixed Wireless Access: A Critical Revenue Growth Engine 

In studying key success factors of solutions, it can almost always be shown that the underlying conc...

Big Data Machine Learning IoT and PI
Big Data Machine Learning IoT and PI

In the era of the Internet of Things (IoT), an enormous amount of sensing devices collect and genera...

Asia’s Plan To Leverage 5G Is Missing A Regional Strategy
Asia’s Plan To Leverage 5G Is Missing A Regional Strategy

The day the world’s first commercial 5G services promised a “great leap” is still ...

Learning from #COVID19…Would remote working be the new normal?
Learning from #COVID19…Would remote working be the new normal?

Musings of a Technology Evangelist In the past few months, we have all learnt many new terms&hellip...

Principles of Sustainable Cybersecurity
Principles of Sustainable Cybersecurity

In past few years the annual rate of cybersecurity breaches has almost been doubled, and as a result...

Data Governance a key element for Digital Transformation
Data Governance a key element for Digital Transformation

For the last few years, corporate environment, used to speak and hear lots of financial/management t...

Seven Traits of a Millennial CEO
Seven Traits of a Millennial CEO

With a staff strength and annual turnover in the order of billions and trillions respectively, Chris...

Stay Connected With Us