How Smart City Development is Driving Innovation in VSaaS and Beyond

In an era of rapid technological advancements, smart city development is transforming urban landscapes. From intelligent infrastructure to cutting-edge security solutions, smart cities leverage technology to enhance the quality of life for residents and businesses alike. One of the key innovations driving this transformation is VSaaS (Video Surveillance as a Service).

To gain deeper insights into the role of smart city development in fostering technological growth, we turn to Lado Tetruashvili. With extensive experience in digital transformation and city planning, he provides valuable perspectives on how emerging technologies.

You’ve explored how progressive countries develop smart cities. What are the essential components of an innovative smart city from your expertise?

From my perspective, it starts with a robust digital infrastructure—high-speed internet, data centers, and wireless networks like 5G. Then you’ve got IoT devices—sensors, cameras—collecting data, paired with AI to analyze it and turn it into actionable solutions, like managing traffic or energy use. It’s all about interconnectedness, where infrastructure, services, and residents work in sync. That’s the foundation I see for innovative smart cities.

We can highlight 6 key components of smart cities:

• Smart Economy is all about innovation, efficiency, and staying competitive. It blends e-business, ICT, and sustainability to drive growth and job creation. 
• Smart Government relies on tech, regulations, and public participation to improve governance. 
• Smart Citizens are key—education, open-mindedness, and collaboration shape better communities. Smart planning must ensure inclusivity, privacy, and quality of life. 
• Smart Infrastructure / Mobility / Transport tackle urban challenges like traffic and pollution. 
• Smart Life / Living / Safety & Health enhances daily life with eco-friendly homes, safer neighborhoods, and advanced healthcare. From smart buildings to VSaaS security and digital health tech, innovation makes cities more livable and resilient.
• Smart Environment / Sustainability focuses on sustainability, leveraging AI, IoT, and Big Data to manage waste, monitor air quality, and promote clean energy. Governments support green initiatives to ensure future urban resilience.

Can you share examples of successful smart city projects and what made them effective?

Sure. Take Singapore’s “Smart Nation” initiative—since 2014, they’ve woven technology into transport, payments, and city management. For instance, 7.5 million public transport users tap into contactless payments daily. Copenhagen’s another great case, using sensors to adjust street lighting and cut energy use, while traffic systems improve air quality. In the U.S., Dallas deployed AI cameras and LED lights to reduce crime, adding public Wi-Fi and air quality monitoring. What makes them work? Strong government backing, seamless tech integration into daily life, and a focus on sustainability. Singapore’s cut emissions, Dallas lowered crime rates, and Copenhagen’s made streets smarter—success comes from tailoring tech to local needs.

What emerging technologies are driving smart city initiatives today?

Right now, it’s all about 5G, AI, and edge computing. 5G brings low latency and high bandwidth, perfect for connecting thousands of devices in real time. AI takes raw data, like street video feeds, and delivers insights: where’s the congestion, how do we tweak traffic lights? Edge computing processes that data closer to the source, slashing delays and costs. IoT ties it all together, linking devices citywide. The real magic happens when these technologies converge, creating smart districts where decisions are fast and effective.

How crucial are telecom operators and ISPs in building the foundational infrastructure for smart cities?

Telecom operators and ISPs are indispensable in constructing the foundational infrastructure of smart cities. Their networks—encompassing fiber optics, 5G, and other wireless technologies—serve as the backbone. It supports the vast array of interconnected devices and systems integral to smart city functionalities.

For instance, in the UK, cities like Sunderland have transformed into smart cities by upgrading their digital infrastructure. It includs the rollout of free ultra-fast public Wi-Fi, surpassing the capabilities of early 5G cities. This enhanced connectivity enables the integration of technologies such as the Internet of Things (IoT). They facilitate services like telecare systems for the elderly and intelligent road systems, thereby improving the quality of life for residents.

Moreover, companies like Cellnex Telecom exemplify the critical role telecom operators play in smart city development. As a leading provider of wireless telecommunications infrastructure, Cellnex offers services that include the intelligent management of urban infrastructures and services, such as smart cities and IoT solutions.

Their extensive network infrastructure supports various smart city applications, from security and emergency networks to solutions for intelligent urban management.

No matter how advanced your ideas are, without that connectivity, they’re stuck on the drawing board.

What specific telecom technologies (e.g., 5G, fiber optics) are most relevant to smart city initiatives?

5G and fiber optics stand out. 5G’s speed and low latency let you connect thousands of devices in a single district—ideal for real-time traffic control or emergency response. Fiber optics, meanwhile, offers unmatched reliability and bandwidth, forming the backbone for things like video surveillance or energy management. It depends on the goal: 5G shines for mobility and flexibility, while fiber’s your go-to for stability and heavy data loads. Both are vital, just applied to different pieces of the smart city puzzle.

What innovative business models or partnerships can telecom operators adopt to remain competitive in this space?

To stay competitive, telecom operators must move beyond simply providing bandwidth and position themselves as key enablers of digital transformation. One of the most effective strategies is forming partnerships with third-party technology providers, particularly White-Label solutions. They allow telecom companies to offer value-added services (VAS) under their own brand without the need for in-house development.

Today, telecom companies are actively expanding beyond traditional connectivity into sectors like finance, media, and smart city infrastructure. They are creating comprehensive digital ecosystems. Many operators have launched their own mobile banking and fintech services. While others are investing in streaming platforms, cloud services, and AI-driven solutions to diversify revenue streams and enhance customer retention.

For example:

• Orange (France) has evolved into a digital services provider, offering mobile banking through Orange Bank and smart city solutions. For example, Orange Smart Energies, which helps cities manage energy consumption.
• Singtel (Singapore) has expanded into cloud computing and cybersecurity. It positioned itself as a technology enabler rather than just a telecom provider.
• Verizon (USA) has moved into media, owning Yahoo and several content platforms while also investing in 5G-powered smart city applications.
• Telefonica (Spain) has integrated AI, IoT, and big data into its services, launching smart city initiatives like Madrid’s intelligent traffic management system.

Partnering with third-party White-Label solutions is a natural next step in this transformation. For instance, VSaaS (Video Surveillance as a Service) is an ideal White-Label offering for telecom operators. By integrating cloud-based video surveillance into their portfolio, they can provide municipalities, businesses, and residential communities. All with scalable security solutions, enhancing their role in smart city development.

Another business model is platform-as-a-service (PaaS) partnerships. Telecom operators collaborate with IoT and AI solution providers to create comprehensive smart city ecosystems. Some telecom operators bundle smart traffic management or smart lighting solutions with their connectivity packages. They help cities improve efficiency while monetizing their network infrastructure.

Co-investment and revenue-sharing models are also gaining traction. Instead of funding entire smart city projects independently, telecom companies can partner with city governments, infrastructure providers, and technology firms to share costs and profits. This allows them to deploy advanced solutions such as AI-driven surveillance, edge computing, and predictive analytics without bearing the full financial risk.

Additionally, telecom operators are creating Smart City-as-a-Service (SCaaS) models, where they provide end-to-end solutions for urban development, including connectivity, surveillance, and data analytics. This model enables cities to access cutting-edge technologies without large upfront investments, making it easier for municipalities to adopt smart initiatives.

In short, telecom companies are no longer just network providers—they are becoming key players in digital transformation across multiple industries. Collaborating with third-party providers, particularly through White-Label VAS solutions, allows them to move faster, reduce costs, and deliver high-quality services that align with the evolving demands of urban development.

How does VSaaS integrate with other smart city technologies, such as IoT and AI?

Video Surveillance as a Service (VSaaS) integrates seamlessly with Internet of Things (IoT) devices and Artificial Intelligence (AI), creating a robust framework that enhances the efficiency and responsiveness of smart cities. IoT devices, including cameras and sensors, continuously generate vast amounts of data, such as video footage and motion detection patterns. VSaaS offers a cloud-based platform to store, manage, and process this data, eliminating the need for extensive on-site infrastructure. AI algorithms then analyze the collected data to extract actionable insights, facilitating applications like traffic optimization and anomaly detection.

The integration of AI and IoT is transforming VSaaS solutions by enabling intelligent video analytics, such as facial recognition, behavior detection, and anomaly alerts. These advancements enhance threat detection and provide actionable insights. For example, in Singapore, the city uses AI-powered VSaaS systems to monitor public spaces and detect unusual behaviors in real time, contributing to crime prevention. Similarly, Dubai’s Smart City initiative employs AI-driven surveillance to monitor traffic violations and optimize road safety, significantly reducing congestion and accident response times.

The global VSaaS market has been experiencing significant growth, driven by the increasing adoption of these integrated technologies. In 2024, the market was valued at approximately USD 5.0 billion and is projected to reach USD 10.7 billion by 2029, reflecting a compound annual growth rate (CAGR) of 16.1% during the forecast period. Another report indicates that the market is expected to grow from USD 5.59 billion in 2024 to USD 19.57 billion by 2032, exhibiting a CAGR of 17.0% during this period.

Incorporating VSaaS with IoT and AI not only enhances security measures but also contributes to the overall quality of life in smart cities by enabling efficient resource management, reducing operational costs, and improving public services. For instance, Mexico City has implemented a cloud-based VSaaS system with over 15,000 cameras to enhance public safety, traffic monitoring, and emergency response. Meanwhile, London’s extensive CCTV network, integrated with AI analytics, has proven effective in crime prevention and crowd management.

As urban areas continue to evolve, the synergy between VSaaS, IoT, and AI will play a pivotal role in shaping the future of urban living. These real-world applications demonstrate how VSaaS is revolutionizing city infrastructure, making metropolitan areas smarter, safer, and more efficient.

What are the most common use cases of VSaaS in a smart city context (e.g., traffic management, public safety)?

Public safety leads the pack—real-time monitoring to catch incidents like crime or vandalism. New York City’s Domain Awareness System uses cloud-integrated cameras for safety across 18,000+ points. Traffic management is another biggie: VSaaS cuts congestion and optimizes flow. Los Angeles adjusts signals with video surveillance, increasingly cloud-based, to ease commutes. Environmental monitoring tackles issues like pollution—Seoul’s smart cameras flag air quality hotspots in real time. Retail zones benefit too; Barcelona uses video to track pedestrian patterns, tweaking lighting and services. Dubai ties it all together, using VSaaS for safety and traffic control citywide. It’s a flexible tool, proven by these cities to solve urban headaches.

How scalable is VSaaS for large-scale smart city deployments?

VSaaS is incredibly scalable because it’s cloud-based. Unlike old-school setups needing pricey on-site hardware, you can start small—say, one neighborhood—and grow to cover a whole city. The cloud adjusts dynamically: add more cameras, and it scales up. The catch is a solid network to keep data flowing smoothly. Mexico City rolled out cloud-based surveillance in 2020, proving it works even at a massive scale. That flexibility makes VSaaS a perfect fit for expanding smart cities.

What do you think will be the next major innovation in smart city development?

I’d put my money on hyper-integrated AI platforms. Imagine a system that pulls together all a city’s data—video, IoT, energy use—into one decision-making engine. It spots a traffic jam, tweaks signals, reroutes buses, and pings commuters, all in seconds. Singapore’s already playing with digital twins to model cities for planning. Sustainability will fuel it too—tech that adapts to real-time urban needs while cutting carbon footprints. That’s the leap I see toward truly smart ecosystems.

What role will VSaaS play in shaping the future of urban security and management?

VSaaS will be a cornerstone of future urban security and city management. As cities become more interconnected and data-driven, cloud-based surveillance will transition from being just a security tool to an essential part of smart city operations. Beyond preventing crime, it will optimize traffic flow, enhance emergency response times, and support environmental monitoring—all in real time.

Looking ahead, I believe telecom operators will increasingly integrate VSaaS into their service offerings. With smart city development investments projected to reach $1.3 trillion by 2029, many telecom companies will recognize the opportunity to bundle cloud surveillance, AI-driven analytics, and IoT connectivity as part of their VAS portfolio. By 2030, I anticipate that a significant portion—possibly over 50% of major telecom operators worldwide—will offer VSaaS as part of their smart city and enterprise solutions.

Several factors will drive this shift:

• 5G and Fiber Expansion: With ultra-low latency and high bandwidth, telecom networks are perfectly suited to support large-scale cloud surveillance deployments.
• White-Label VSaaS Partnerships: Instead of developing solutions from scratch, many telecom operators will collaborate with third-party VSaaS providers to offer branded services tailored to municipal and enterprise needs.
• New Revenue Models: VSaaS will allow telecom operators to move beyond selling connectivity and into subscription-based security solutions, creating recurring revenue streams.
• Government and Enterprise Demand: As cities worldwide seek to enhance public safety and operational efficiency, telecom operators will step in as key enablers of cloud surveillance infrastructure.

In the next five to ten years, I expect to see VSaaS become as common for telecom companies as IoT connectivity, cloud computing, and cybersecurity services. Cities will increasingly rely on real-time AI-powered video analytics to predict and prevent urban challenges, from traffic congestion to environmental hazards.

Ultimately, VSaaS will be more than just a security solution—it will be a foundation for the smart cities of the future. Telecom operators that embrace it early will not only enhance urban safety but also secure their position as leaders in digital transformation.

Aipix enables providers of telecom services to launch innovative value-added services tailored to the diverse needs of the region. By taking into account many nuances, Aipix ensures its solutions are accessible and adaptable, fostering digital transformation. With a focus on seamless integration, user-friendly interfaces, and advanced analytics, Aipix is not only helping telecoms drive customer engagement but also shaping a more connected, secure, and innovative future.