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Covid-19 has had many side effects and one of them has been to rejuvenate the smart home. A market that was previously in decline is now revving up and operators have a springboard into its heart.

Analysts predict the value of the global smart home market will soar to between $138.9 billion (Markets and Markets 2021) and $622.59 billion (Fortune Business Insights 2021) by 2026 as connectivity is introduced across a wider range of home devices from security cameras to utility meters, and thermostats. The pandemic has already amplified demand for smart appliances for security, climate control, lighting and health alongside smart TVs. Connectivity is likely to become so pervasive to the extent of being embedded in every household device in the coming years (GFK 2021). The exponential growth in working from home and the urgent need for energy-saving and low carbon emission solutions are also driving demand.

Yet the weaknesses that stalled mass adoption remain. That’s because, while connected home devices are designed to make the consumer’s life easier, the market remains fragmented and complex.

This is precisely where forward-thinking broadband operators can strike.

At the centre of the Smart Home

Telcos hold the keys to a prize asset already ubiquitous in the home. The humble broadband router is established as a securely managed edge of network device. Its transformation from a fixed-function terminal into a smart router has the potential to deliver a competitive advantage for operators keen to innovate value-added services and stem churn.

The smart broadband router has a number of unique advantages ready for the operator to exploit:

  • Simplified customer experience

The proliferation of gateway boxes stacked next to the broadband router is not only unappealing but increasingly complex to set up, secure, update and control. Each comes with its own smart phone application controlling just part of the system.

Gateway boxes – such as Hive, Nest or Hue – can be replaced by microservices running on the router. Fewer boxes mean less clutter, less power, less cost and less landfill

The operator’s established position as a trusted provider of broadband connectivity is a strength to be leaned into. By working with multiple providers, the operator can offer the customer a wide choice from key brands and provide a common point (in the cloud) ensuring products interoperate and can be controlled centrally.

Securing the smart home is a challenge. IoT devices can and do get hacked but the router already plays a vital role in securing the home as a firewall from external threats. Operators can build on this by using the smart router to protect the network from internal threats. Once a compromised device is detected the router can quarantine it to prevent attack.

Customers want companies to treat their personal data correctly, and the adverse publicity from privacy breaches can seriously damage brands. Processing data (including biometric and image data) locally on the router, so that it never leaves the home, reduces the privacy risk, simplifies regulatory compliance and gives customers peace of mind.

Most operators are currently stuck with a fragmented device estate where updates are challenging to implement and may even necessitate truck roles. Creating an agile platform and standardizing the deployment and management of third-party software within a containerized environment will break the break the cycle of legacy cost and low margin and usher in a new business model.

Prime mover advantage</…….

Source: https://www.broadbandtvnews.com/2021/11/16/why-smart-home-is-a-smart-play-for-operators/

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