The telco aims to deploy 8,000 NB-IoT base stations in Q2 2018
Taiwan’s third-largest telecom operator Far EasTone Telecommunications has activated its Narrowband-Internet of Things (NB-IoT) network, Asian press reported.
The telco said it expects to reach 7,000 enterprise subscribers with this new offering within the next three years. By 2020, Far EasTone expects NB-IoT technology to contribute more than $40 million in revenue, according to the reports.
Far EasTone president Yvonne Li said the telco has been working to find the right business model for NB-IoT over the last two years. The executive said the telco will provide its IoT services primarily on the NB-IoT network.
Far EasTone is the nation’s first telco to launch NB-IoT services. Other operators in Taiwan include Chunghwa Telecom, Taiwan Mobile and Asia Pacific Telecom.
The company’s NB-IoT network will initially cover the greater Taipei area and the industrial area in Taoyuan. However, the telco aims to accelerate NB-IoT deployment with the installation of 8,000 base stations in the second quarter of next year. Far EasTone expects total investment to deploy the NB-IoT network to reach $10 million.
The telco said it will initially focus on government-related NB-IoT applications such as traffic safety control and smart lighting systems. The company also said the new technology will allow the provision of smart manufacturing solutions.
Swedish vendor Ericsson, electric scooter manufacturer Gogoro and power management unit supplier Delta Electronics are among the firm’s partners in the NB-IoT space, according to the reports.
Worldwide spending on the IoT is forecast to reach $772.5 billion in 2018, an increase of 14.6% over the $674 billion that will be spent in 2017, according to a new study by International Data Corporation (IDC).
IoT spending is forecast to expand at a compound annual growth rate (CAGR) of 14.4% through the 2017-2021 forecast period surpassing the $1 trillion mark in 2020 and reaching $1.1 trillion in 2021.
According to the study, IoT hardware will be the largest technology category in 2018 with $239 billion going largely toward modules and sensors along with some spending on infrastructure and security. Services will be the second largest technology category, followed by software and connectivity.
“By 2021, more than 55% of spending on IoT projects will be for software and services,” said Carrie MacGillivray, vice president, Internet of Things and Mobility at IDC. “Software creates the foundation upon which IoT applications and use cases can be realized. However, it is the services that help bring all the technology elements together to create a comprehensive solution that will benefit organizations and help them achieve a quicker time to value.”
The industries that are expected to spend the most on IoT solutions in 2018 are manufacturing ($189 billion), transportation ($85 billion), and utilities ($73 billion). IoT spending among manufacturers will be largely focused on solutions that support manufacturing operations and production asset management.
