Arthur D. Little Urges Network Operators to Prepare for Next-Generation Internet of the GigaWorld
In its new report, “Unlocking GigaWorld Innovation: GigaApps in a GigaWorld,” Arthur D. Little (ADL) outlines the investment and monetization opportunities available to network operators ready to embrace the “GigaWorld”, the emerging third cycle of the internet. Defined by continuous and intelligent collaboration between individuals, devices and the built environment – and driven by applications in the areas of augmented reality, virtual telepresence and automated living – the GigaWorld has the potential to both power our economy and change the way we live. However, for it to be fully realized, network operators need to deliver improved Quality of Experience (QoE) for consumers and new Quality of Service (QoS) features for content and service providers.
While operators have focused on delivering sufficient bandwidth and coverage to drive the current iteration of the internet, the GigaWorld demands additional QoE and QoS advancements in areas including instantaneity of content, assurance of security and guarantee of service continuity. In order to benefit from a potential virtuous cycle of innovation and enable the mass-market adoption of new applications, it is vital that operators raise their game and make the necessary upgrades to their networks. By improving the reliability, security and resilience of their infrastructure, and being able to offer next-generation QoE and QoS features to content and service providers, operators will more quickly enjoy the fruits of new monetization models.
If supported fully by market players, policy makers and regulators, the GigaWorld innovation cycle has the potential to unlock a market of €250–660 billion per year by 2025 in Europe, while at a global level, its value is predicted to be €1.3–3.5 trillion per year. For the GigaWorld cycle to be successful, there will need to be incentivized network investment, as well as predictability and clarity of public policy to encourage all players to invest in the GigaWorld and experiment with new business models.
Gregory Pankert, Partner in ADL’s Technology, Information, Media, and Electronics (TIME) Practice, said, “Networks are central enablers of the GigaWorld, yet a significant number of operators are only partially committed. We are at an inflection point with a huge value at stake."
The report can be downloaded here: www.adl.com/UnlockingGigaWorldInnovation
Arthur D. Little
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