Can IOT Revive The Connected Homes Opportunity?

In 2011, I authored the Intellect (now TechUK) report on Connected Homes, for the UK. Among the key findings were (1) that while this is a massive opportunity, the inherent cross-industry environment creates a number of challenges, from standards, to service optimisation, to ownership; (2) that the infrastructure in most homes will need to be upgraded – with challenges to networks, physical infrastructure, and home equipment; and finally (3) a more pervasive level of connectivity may be required for essential services such as healthcare and education, so as not to exacerbate the digital divide. 

What did surprise me during the course of that research was the complete absence of any kind of linkage between property prices / value and home technology or connected services. Whether it was real estate brokers, property portals, or architects and developers, there were no real incentive to put in better infrastructure or technology, as there was no perceived value (i.e. reflected in a correspondingly higher price). 

As the population ages, and with a bigger challenge of care for the elderly, I fully expect this link to get established in future, and was happy to see at least one article commenting on the lack of connectivity in high value properties. Arguably, this is just anecdotal, and a one-off, but it’s a start! 

More excitingly, we are seeing a re-emergence of connected services with the rapid evolution of the sensor economy and the Internet of Things. 

At the Mobile World Congress in Barcelona, in February, it was noteworthy that Telcos, especially the Asian ones, were deeply committed to the sensor economy. Having lost out on OTT services in the last spurt of innovation, Telcos seem to have recognised that expecting to get paid because of their structural role in the ecosystem is a bad strategy (notwithstanding the recent Netflix deal). This time around, elcos are participating more wholeheartedly in the service delivery. From smart t-shirts to track your heartbeat to birthing systems for farm animals, and from home-automation to education, a slew of services are now being provided from telcos which put the user at the core and keep the technology under the hood. NTT Docomo reported that they are now making over $10bn per year from non-traditional (Voice/ Text) services.

Cow BirthingIt’s not just telecoms, but a number of other businesses are now eyeing the home for connected services. Insurance companies, utility firms and technology majors such as Google (Nest, TV), Apple (TV) and others have their eye on your home. The Internet of Things has the potential to democratise a lot of these services, so that small, 3rd party companies can build simple and innovative solutions with access to devices and data. 

Personal and home technology will be the next battleground, therefore, and may be the connected home will finally become a reality. 

 

 

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