Today, internet of things (IoT) has emerged as one of the leading digital transformation technologies. IoT re­fers to a network of physical objects em­bedded with sensors, software and network connectivity, which enables them to collect and exchange data. This data can be used to improve efficiency, optimise operations and enhance customer experience. Telecom companies are capitalising on the growth of IoT by developing solutions for connecting a wide range of devices, from smart meters and industrial sensors to wearables and connected cars. These solutions enable telecom companies to create massive ecosystems of interconnected devices that can communicate seamlessly with each other.

A look at how IoT fits into “Industry 4.0”, and how telcos are leveraging opportunities in this space…

Role of IoT in Industry 4.0

Industry 4.0 is a paradigm shift that is transforming the way business is conducted across various sectors. IoT is now considered to be an integral part of Industry 4.0. This is expected to have a profound impact on the Indian telecom sector, whi­ch is already undergoing a digital tra­ns­formation. Industry 4.0 will enable Indian telecom companies to achieve the highest levels of efficiency and productivity, while reducing wastage and downtime, and improving quality control.

Use of eSIMs

IoT devices are powered by embedded SIMs (eSIMs). eSIM tools provide a more flexible and scalable way to provision and manage eSIM-enabled IoT devices. As per a report by Juniper Research, the number of IoT connections via eSIM technology worldwide will reach 195 million by 2026, up from just 22 million in 2023.

However, the report predicts that the increased adoption of eSIM IoT manager tools will drive the growth of eSIM IoT connections by 6 per cent in 2026. Going forward, the growth of eSIMs in the IoT market is expected to continue owing to the increasing demand for flexibility, scalability and security in IoT applications.

Telco initiatives

Telcos across the globe have been trying to stay up to date on the latest trends and technologies in the IoT space, to be able to adapt and offer new services as the market evolves. Indian telecom operators, too, ha­ve been eyeing opportunities in this space.

Bharti Airtel

Bharti Airtel (Airtel) is seeking to become a leading digital service provider by forging multiple partnerships to bring its digital offerings to the forefront. Airtel has cor­nered around 52.8 per cent of the Indian IoT market, with nearly 19 million devices connected to its Airtel IoT platform. The smart utilities (smart meter) se­gment is among the top three largest IoT use cases for Airtel, along with the fintech and automotive segments.

A key partnership for Airtel has been that with energy efficiency solutions provider Secure Meters to deploy 1.3 mi­llion smart meters across the state of Bihar. The smart meters will be connected us­ing narrowband IoT (NB-IoT) technology, which is based on a subset of 4G/ long term evolution (LTE) technology. Airtel claims that NB-IoT will be deploy­ed in India for the first time on a dedicated narrow band of the spectrum with the fallback option of being connected to regular 2G and 4G networks, ensuring real-time connectivity and uninterrupted transfer of critical data.

Airtel has also introduced the Always On offering, which uses its regular cellular spectrum and guarantees constant connectivity for IoT devices over predetermined time slots for the devices being connected. Moreover, Airtel has won a contract to po­wer 200,000 smart meters in India with its proprietary IoT platform, Airtel IoT Hub.

In addition, Airtel is collaborating with Tata Power Western Odisha Distribution Limited to power 200,000 smart meters with IoT solutions, of which 70,000 will be connected in the first phase. Matter Motor Works has also announced a strategic partnership with the telco to deploy IoT solutions in its Matter AERA geared electric motorbike. Airtel will enable advanced automotive-grade eSIMs on all Matter AERA bikes as part of the partnership, covering over 60,000 Matter bikes in the first phase itself.

Reliance Jio

Reliance Jio has made significant inroads into the IoT market through its recent partnerships with Energy Efficiency Ser­vices Limited (EESL) and Morris Garages Motor India (MG Motor India). The Jio­Things Smart Utility Platform, the flag­ship IoT solution of JioThings, has partnered with EESL to deploy 1 million prepaid smart meters in Bihar. The platform is an NB-IoT-enabled solution from Jio Platforms, backed by 4G/LTE technology. It aims to drive digital transformation of the power utility sector and assist the Ministry of Power and the Government of India in installing 250 million smart me­te­rs. Jio has also partnered with MG Motor India to power its range of sport utility vehicles with IoT solutions. The partnership will see Jio using its IoT solutions to improve the performance and connectivity of MG Motor’s vehicles.

Vodafone Idea

Vodafone Idea Limited (Vi) Business has successfully implemented smart mobility, smart infrastructure and smart utility IoT solutions across use cases such as logistics and transportation, energy and utility, and manufacturing. The company is focused on leveraging the growing use of IoT in smart metering, connected car solutions and electric vehicle battery management.

Additionally, the company has partnered with EESL to install 5 million smart meters across Uttar Pradesh and Haryana. To date, Vi has deployed 1.67 million IoT-enabled smart meters in these two states, which has led to a significant increase in revenue for discoms in these regions.

Previously, Vi and the Centre for Development of Telematics (C-DOT) had signed a memorandum of understanding to enable both organisations to leverage each other’s expertise in their respective domai­ns in order to develop and deploy IoT/ma­chi­ne-to-machine (M2M) solutions in India. To address the challenges of device net­work compatibility, over-the-air firm­ware upgrades, remote device configurati­on, security vulnerabilities and siloed im­p­le­mentation with proprietary protocols th­at prevent businesses from utilising IoT, Vi and C-DOT agreed to collaborate and wo­rk jointly on a non-exclusive basis to evaluate applications and devices from various solution providers against a single M2M specification, and offer joint certificates.

Challenges in deploying IoT

While telcos have been accelerating effor­ts to scale up their IoT offerings, they have also been facing challenges. For instance, telecom operators such as Jio and Airtel have expressed their discontent with the use of unlicensed spectrum for IoT and Wi-Fi services. This is because the telcos have expended significant sums of money on acquiring spectrum to offer IoT services, while non-telcos are able to utilise unlicensed airwaves to provide the same services. This creates an uneven playing field for the operators.

Further, the proliferation of IoT de­vices has created new and complex security challenges for enterprises as well. IoT devices are often lightweight and resour­ce-constrained, making it difficult to implement traditional security measures. Additionally, IoT devices are often dep­loy­ed in uncontrolled environments, whi­ch makes it difficult to monitor and manage them effectively.

The scale of IoT deployments also contributes to the security risk. The more IoT devices are deployed, the greater the attack surface becomes. Further, the diversity of IoT devices used by businesses and consumers increases the risk of attack, as each device may have its own unique vulnerabilities.

To address the security aspect associated with IoT deployments, the Department of Telecommunications (DoT) recently issued an advisory to secure the IoT ecosystem in the country. DoT has advised that all IoT devices should have unique passwords that cannot be reset to a universal default value. Further, the advisory states that web services associated with IoT devices should also use multifactor authentication. Addi­tionally, any password reset process should only be possible after the user has been au­thenticated appropriately.

The road ahead

Rapid advancements in technology have positioned the telecom industry to deliver IoT infrastructure, which will enable th­em, in turn, to provide a superior end-to-end customer experience by reshaping bu­si­ness models, providing better data processing capabilities and increasing bandwidth. This will also change the competitive landscape and create new opportunities in sectors outside telecommunications. As IoT technology continues to evolve, the telecom industry is poised to play an even greater role in this space.