Categories: News

Digital Indoor Systems is a Key Critical Infrastructure for National Digital Economic Transformation, says Frost & Sullivan

KUALA LUMPUR, MALAYSIA�- Media OutReach - 23 January 2019 - Developments
in technologies such as connectivity, digital services, augmented/virtual
reality, big data and artificial intelligence, are revolutionizing the way
consumers interact and the way enterprises compete. Across of ASEAN, it is
certain that technology is growing in importance as it transforms industries and
contributes to greater digital economic efficiency.

 

“Digital solutions and services contribute up to 10% of GDP among
ASEAN economies. While embracing the digital economy is important for local
governments, equally important is enabling enterprises to address the evolving needs
of the consumer,” said Mei Lee Quah, Principal Industry Analayst, ICT, Frost
& Sullivan Asia-Pacific.

 

The majority of transformative technologies and activities under
these government-driven initiatives happen indoors for example at homes,
offices, transportation hub, shopping centres, and even manufacturing plants. As
of today, over 80% of network traffic originates from indoors, and this number
is set to increase to 96% with the onset of 5G. As a result, the indoor
experience will become increasingly important going forward.

 

“The inability of Distributed Antenna System (DAS) as the current
indoor architecture to facilitate the much higher data rates needed to satisfy
demand and maximum efficiency required presents a bottleneck, especially for
local government agendas,” said Quah.

 

She continued, “Digital
Indoor System (DIS)
will play a vital role as key infrastructure. Data
driven marketing and data centric innovation are key industry trends where mobile
network operators (MNOs) are uniquely positioned regionally as custodian of DIS
data that can enable a diversity of smart solutions and services to address
varying and evolving needs, particularly in regional highly dense areas such as
stadiums, airports and transportation hubs.”

 

Regional DIS deployments include the Shatin to Central Link (SCL) of
Hong Kong’s Mass Transit by HKT and in airports with high passenger flow in
Indonesia, Singapore and Philippines. Airport DIS implementations in the region
emulate Turkey’s new airport in Istanbul, which is the largest airport in the
world with a DIS deployment. Malaysia Airports Holdings Berhad (MAHB) is
working on its Airports 4.0 digital initiative to make Malaysia’s airports
smart and in doing so, stay competitive in the airline business. Within these
deployments, DIS helps MNOs manage the scalability of capacity needed on short
notice to ensure all relevant data is captured.

 

“For governments, DIS with its higher spectrum efficiency as
compared to DAS and ability to operate at 5G frequency bands can help to drive
the digital economy more intelligently and efficiently. Local governments need
to plan for indoor solutions as essential for national ICT roadmaps,” said
Quah.

 

With the rise of smart cities across the region, DIS enablement can
be considered as part of construction standards to ensure the solid foundation
to realizing true intelligent buildings and reaping the benefits of it.

 

Quah added, “It is essential that regulators drive incorporation of standards
and policy that support adoption of DIS into national level plans. Specifically
in Malaysia, government agencies need to consider amending the Uniform Building
By-Laws 1984 (UBBL) to ensure readiness of digital indoor architecture infrastructure
in new buildings. A similar enabling policy is already in place in Singapore
under the code of practice for info-communication facilities in buildings
‘COPIF’.”

 

Regulators also need to work towards reducing DIS deployment
difficulties with site access and infrastructure sharing, ensure compatibility
of DIS by verticals by country and help enterprises to cultivate more digital
business through understanding and removing bottlenecks.

 

For MNOs, the incentive to consider DIS is driven by their need to
maintain profitability and even more so with the upcoming 5G technology
requiring more sites. Longer term investment horizons for indoor sites and site
acquisition/management difficulties will drive adoption of DIS, especially
through infrastructure sharing. DIS can create new opportunities for
monetization while reducing total cost of ownership and ROI. Industry case
studies have shown that MNOs can look forward to reducing ROI to less than four
years[i]
with DIS.

 

For Building owners, DIS can enable monetization of new digital
services and operational efficiency improvements. Recent surveys show a high
correlation between lack of reliable internet connectivity and rental decision,
lease terms and pricing. Within this context, joint investment in DIS or rent
free space like rooftop can be seen as a small price to pay to ensure future monetization
of digital services and rental income.

 

“DIS looks set to play a vital role as key infrastructure for now
and into the future. Through enabling the direct linkages and contribution to
the digital economy, local government and regulators will be able to achieve significant
improvement to people’s lives. Through new opportunities for monetization, MNOs
will be able to stay innovative, relevant and 5G ready,” said Quah.

 

To access the full article, please visit: https://ww2.frost.com/frost-perspectives/dis-critical-infrastructure-national-digital-economic-transformation/

 

About Frost & Sullivan

 

For over five decades, Frost & Sullivan
has become world-renowned for its role in helping investors, corporate leaders
and governments navigate economic changes and identify disruptive technologies,
Mega Trends, new business models and companies to action, resulting in a
continuous flow of growth opportunities to drive future success. 
Contact us: Start the discussion.



[i] http://www.telcotransformation.com/author.asp?section_id=688&doc_id=741462

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