Telecommunication Technology Innovation Leads to Robot Market Growth

Technological innovations, such as the network service transformation from LTE to 5G, the development of enhanced 6G technology, remote network connection through cloud servers, and many others, are taking place in the telecommunications industry. Telecommunications and tech companies are seeking new business opportunities connected to these technological innovations. One notable emerging business opportunity is a robotic solution converged with the connectivity and scalability of telecommunications technology innovations.

Thriving Robot Solutions in the Telecommunications Industry

Naver, a major Korean internet company, is not a telecommunications service operator. However, it is using the technological innovation in the telecommunications industry by combining the innovation with Naver's robotics business. Naver Lab, Naver's innovative research subsidiary, is developing robots that can be connected through the cloud server via the 5G network. This concept is expected to reduce the robot's price and enhance its capability because the advanced cloud server and 5G network will replace individual robots' brain function.

In 2021, Verizon, a US telecommunications company, announced plans to form a new Robotics Business Technology unit to expand solutions for drones and ground robotics. Its new business division is focused on providing software solutions that incorporate 5G network and mobile edge computing capabilities to help customers efficiently control fleets of robots in industrial, manufacturing, warehousing, power and utilities, and other sectors.

Operating and managing data centers that control vast amounts of data is a core business for a telecommunication company. NTT, the national telecommunications provider of Japan, is developing robots to become data center managers. Improving large data center operation by using automated processes through robotics can be a new, innovative solution to continuously provide the highest level of client service. NTT started a Robotizing Data Centers project with other partner companies. The pilot test of this robot solution is being done at NTT’s Frankfurt, Germany, data center and requires collaboration in various technical segments, such as machine learning, sensors, and cabling technologies. NTT is collaborating with 10 partner companies.

Continued Technology Innovation and Business Structure Development

Technology innovations and business cases are quickly evolving in this emerging robotics market. Therefore, Guidehouse Insights recommends the following to players in the telecommunications and robotics tech industries: 

• Build partnerships or invest in new technology: In this fast-growing new market, it is almost impossible to develop all technologies in-house. Quick pathways to commercialization are key and can be developed via mergers and acquisitions or through investment and technology development in cooperation with partners. For example, in 2021, Verizon announced the acquisition of incubed IT, a software platform company providing autonomous navigation tools to control fleets of robots in industrial settings. In 2022, KT Corporation, South Korea's major telecom operator, announced a partnership with a Russian tech company, Yandex, to jointly develop delivery robotics solutions.

• Organize and structure a profitable business: Organizing a profitable business structure is done in parallel with technology development. There are many approaches to structuring, such as establishing a robot business subsidiary or incubating an in-house business division. For instance, SoftBank Group, which has SoftBank Corporation as Japan's third-largest telecom operator, established its subsidiary SoftBank Robotics in 2012 to expand its robot business and is developing various robot solution businesses. KT Corporation, which established a robot business division, is also dynamically developing the robot business in various applications for hotels and restaurants.