The Role of Smart Cities in Global Economy

With the introduction of Internet of Things (IoT), smart city technologies have made a dramatic impact on the prosperity of a region. Based on a global estimation by Cisco, we estimated roughly for Australia that the value of having an IoT infrastructure is worth around $5 trillion dollars to the smart cities. The potential revenue of smart cities depends upon increased efficiency and productivity, as well as reduces costs through the deployment of new technologies.

Smart city plays a vital role in global economy. In order for the societies to maintain the standard of their living and in order to raise the standard of those who have not reached it yet, it is essential to take significant amount of outlay out of the public sector structures that have built over the last 50-70 years, without losing the value that has already been obtained from them.  An over view of smart city verticals distribution in global market is illustrated below in Figure 1.

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 From the economic perspective “smart city” is cost efficient, productive and reliable. With the deployment of IoT, smart cities can get new revenue opportunities but in general they are only a fraction of the overall that can be made. With IoT we can go much farther into such cost savings.

How revenue streams can be generated through smart cities verticals?

Smart cities will be more attractive to people, businesses and investors based upon the potential revenue generated by the smart cities. These cities will be more transparent and responsive towards the needs and requirements of smart businesses and investors. Consequently, in the emerging connected, sharing, digital economy, only smart cities will allow for the creation of new value-added jobs and businesses. From time to time huge number of people moves towards cities. In order to maintain their position among the competitors, cities have to compete with each other for people, businesses and investments. As a result, the truly smart cities will be winners and will be able to attract more investors and businesses.

In regard of smart city industry, no city in the world can claim to be the leading city in this domain. Probably there are thousands of examples in the leading cities around the globe. Specifically in Australia, it has very impressive scores on the board. Most cities around the globe have realized the potential of smart cities in economy, they are now developing strategic smart city plans in order to make economically viable smart city projects, a solid business reality.

What is City-as-a-Service model?

It has been concluded by considering the way people are adapting to smart phones, internet and apps that people are more than ready to live in smart cities. Smart city industry can help in generating commendable gains when we find the right investment and business models that allows us to generate potential revenue streams in a collaborative way between industry and public sector. The foundation of these models should be laid on city-as-a-service models, whereby cities will have to operate their smart city services based on an Operational Expenditure (OPEX) rather than Capital Expenditure (CAPEX) model.

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About Author:

Dr. Hafiz Yasar Lateef – one of the founding members of TelXperts – has several years of experience on Smart Cities and Internet of Things (IoT). He is a Member of IEEE Communications Society and frequently features as a keynote speaker at various international conferences and workshops. His expertise encompass Internet of Things, Big Data Analytics, LTE radio network planning and optimization, Small cells & DAS planning & Optimization, Self-Organizing Networks (SON) and Green cellular networks. Dr. Hafiz Yasar Lateef’s Biography has been featured on Bristol Who’s Who famous personalities registry for his excellent research work in the field of Telecommunication. His work on the areas of MIMO techniques for wireless networks, Green Cellular Networks and Self-Organizing cellular networks have already found their way into telecommunication standards. He has authored and co-authored numerous international journals and conference papers in the field of LTE/LTE-Advanced wireless networks.

Dr. Yasar holds a Doctorate degree in the field of Telecommunications from University of Leeds, UK. He has participated in various international projects on future wireless networks in collaboration with ZTE Corporation, Texas A&M, Politecnico Di Torino Italy, King’s College London, CTTC Spain and CCSR University of Surrey. In the past, he held various roles at ZTE Corporation, University of Leeds, UK, University of Bedfordshire, UK, Qatar University, QMIC and Texas A&M, Curtin University, Australia.