The combination of 5G and edge computing has the potential to be a catalyst for innovation across numerous industries. In particular, the growing trend of processing and storing data closer to the edge of the network and away from centralized data centers could have a huge impact on the future of telecommunications. Telecom edge computing offers operators a strategic opportunity to enhance operations and leverage their technology expertise to generate more revenue and move further up the value chain.
What is edge computing?
Edge computing is a distributed computing architecture framework that brings computer processing from a distant data center closer to the source of data generation and consumption. The reason for doing this is to reduce latency by moving away from completely centralized operations. This can enable new innovations and services while improving the end-user experience. Edge coupled with 5G's higher connectivity speeds, for example, can support advanced robotics, artificial intelligence (AI) and autonomous technology, massive Internet of Things (IoT) and augmented and assisted reality (AR).
What are edge computing use cases in telecom?
Telecommunications companies can use edge computing in a number of ways to improve the efficiency of their operations.
Telecom edge computing and IoT
The telecommunications industry is one of many that can benefit from IoT technology, devices and sensors. IoT use cases for the industry include better insights into their supply chain and near real-time information on the performance of their assets. This is particularly useful (and cost-effective) for equipment in remote or hard-to-reach locations. This data can also be used for preventative maintenance, to predict and mitigate faults in networks and equipment before they even occur, which can further reduce costs.
Augmented reality
Data sourced from IoT sensors monitoring the performance of assets could be made available to onsite technicians and remote experts through AR for more effective hardware inspections and troubleshooting. This helps to keep these assets reliably operating while reducing the amount of time and money spent on inspections and maintenance.
Reliability
The future of telecommunications will likely involve managing a combination of central and decentralized processing requirements and telcos can benefit from modernizing and preparing their infrastructure for edge cloud applications. With the right security systems in place, moving to a more decentralized approach, including sharing network capabilities with third parties through MEC, can create another layer of resiliency in the network making a failure at one site even less likely to affect another.
What are the benefits of telecom edge computing for the industry?
Edge computing holds much promise for the future of telecommunications. It is an opportunity for telecoms to drive revenue by using their expertise and infrastructure to be a part of the future computing and connectivity infrastructure and to move higher up the value chain.
As KPMG LLP notes, telecom providers' traditional strengths in network design and management, as well as communications and security, put them in a strong position to assume market leadership in 5G networks and edge computing.1 They are also well-placed to help companies manage the complexities of edge computing infrastructure.
What's next with edge computing and the future of telecommunications?
According to BCG, there are three broad approaches to telecom edge computing that a provider could adopt to expand revenue streams through edge computing.
1. Horizontal platforms
Telecom providers could use edge computing to build horizontal B2B and B2C platforms with three layers: connectivity, hardware and value-added services. BCG estimates value-added services could account for approximately two-thirds (64%) of future growth, with the leading contributors being IoT application software as well as IT installation and ongoing services.
2. End-to-end vertical solutions
By building on horizontal platforms, telecoms could develop full vertical solutions in markets such as construction, smart cities and logistics. This would combine edge computing with private networks and security and other managed services.
3. Edge partnerships
Telcos could leverage their existing relationships and partnerships to support technological transformation, providing vital service to their partners and other technology providers who want to reap the opportunities presented by 5G.
A group known as hyperscalers build robust and scalable cloud platforms and offer a range of solutions, including Software as a Service and Infrastructure as a Service that can be used for a variety of purposes, including analytics and data storage. These companies are keen to partner with telecoms to utilize their existing infrastructure and offer more solutions to customers at the Edge without needing to make huge upfront investments alone. This can create opportunities for telecoms that are both experts in what they do and well-trusted within the industry. Hyperscalers and telcos shared expertise and knowledge base could hugely benefit the end user with improved technology and services. Together, they could foster a thriving edge ecosystem.
Verizon and 5G Edge
Verizon has partnered with Amazon Web Services (AWS), Microsoft Azure and Google Cloud to combine the best capabilities of each company with Verizon's 5G Edge. These edge-computing partnerships can use either a public or private network.
Verizon's 5G Ultra Wideband can move data substantially faster than 4G. By improving response times and performance, companies can use 5G Edge to collect, process and analyze data rapidly. Verizon also offers a range of pre-integrated 5G Edge solutions that can drive efficiencies, optimize costs and improve customer experience.
Learn more about Verizon's 5G Edge and how fast, secure cloud computing at the network edge can help provide the Enterprise Intelligence needed for real innovation in near real-time.
The author of this content is a paid contributor for Verizon.
1 KPMG LLP, Edge computing boosting telecom opportunities.