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The future of connected homes: evolution and challenges

Service providers recognize the importance of going beyond reliable connectivity, integrating services such as advanced parental controls, guest Wi-Fi access, and IoT cybersecurity. These applications are considered essential to enrich the overall broadband experience. However, continuous evolution and regular updates are crucial to maintaining relevance and consumer interest.


The research highlights TV and video as significant revenue sources, but increasing competition in the online video market requires providers to offer services that go beyond what is already available. Traffic prioritization and visual quality assurance can be strategic tools to stand out in this competitive environment.


Broadband speed testing is becoming vital for service providers, integrating into consumer-oriented Wi-Fi management tools. This approach ensures quality of experience and could become a key element in future service level agreements (SLAs).


The emerging connectivity landscape

Potential areas for future investment, application prioritization and smart home technology integration are relevant aspects addressed in the study. Matter sensing and Wi-Fi, along with use cases such as energy management, healthcare and home security, are seen as interesting areas for revenue growth.


The rise of gigabit broadband services highlights the rapid evolution of broadband networks, with predictions that 44% of all consumer subscriptions globally will offer speeds of 1 Gbps or more by 2030. The transition to fibre-based technologies is driving this growth, with 67% of broadband subscriptions delivered over fibre in 2022 and an estimated 77% by the end of the decade.


Despite the significant increase in broadband speed, providers are faced with the challenge of maintaining ARPU (Average Revenue Per User). Consistent investment in speed must be balanced with strategies that deliver quality service. The pandemic has highlighted the essentiality of broadband in daily life, and providers must shift their focus to leverage this perceived importance and increase their ARPUs.


Broadband service attributes go beyond speed. Low latency, reliable connectivity throughout the home, and efficient customer service are critical. Consumers value service stability and the ability to manage their experience through value-added applications. Providers that excel in these areas can differentiate their brand and increase revenue.


Wi-Fi coverage and speed remain challenges, with 47% of respondents identifying poor coverage and 37% poor speed as top issues. Investment in advanced Wi-Fi hardware, such as Wi-Fi 6 and Wi-Fi Mesh devices, is essential. Additionally, Wi-Fi management and diagnostic software, supported by AI data analytics, becomes a key tool to ensure quality Wi-Fi service at home.


In short, the future of connected homes is shaped by the constant evolution of broadband technology, the integration of value-added services, and a focus on quality beyond speed. Providers must adapt to growing consumer demands and pursue innovation through platforms based on open standards. With connectivity at the heart of modern life, the path to the future of connected homes is marked by quality, adaptability, and the continued pursuit of delivering exceptional experiences.

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