Skip to main content

Mobile Service Providers Adapt to IoT and M2M Demand

Given the current saturation in many of the mobile communication markets across the globe, it's not surprising that Machine-to-Machine (M2M) and the Internet of Things (IoT) technologies are now a high priority for telecom service providers who seek ways to create new revenue streams.

According to the latest market study by IDC, the global installed base of IoT will reach 28.1 billion devices in 2020, generating a forecast revenue of $1.7 trillion -- with cellular M2M being an important subset of this new growth.

Though mobile connectivity provisioning has historically been the telecom service provider's primary value proposition in M2M, their strategies are now evolving to embrace other parts of the value chain -- particularly those with higher margins, such as software and services.

IDC believes that telecom network operators will continue to play a key role in building the M2M IoT market. According to the IDC assessment, telecom providers should act as hubs for innovation and keep educating the market about the benefits of their M2M solutions.

This transition is most essential in developing markets that are still in the very early stages of maturity -- such as those within the Central and Eastern Europe (CEE) region.

"With the telecommunications services revenues from core voice and messaging services declining, telcos are on the lookout for new growth opportunities. M2M is certainly one of them," said Ina Malatinska, research analyst at IDC.

IDC believes that mobile connectivity represents only about 10-15 percent of the total M2M revenue pie. It has become a commodity and we expect connectivity ARPUs to continue falling dramatically.

Telecom providers are expected to place more emphasis on developing critical data analytics capabilities. As the market evolves from remote monitoring and control to business processes optimization and identification of new business models, data analytics will become essential.

IDC says that in the near future, data will represent the most important enterprise asset, and companies will need capable software tools to extract relevant information from their big data storage.

This is where data analytics delivers value -- enabling enterprises to develop new business models, deploy innovative services, get closer to their customers and generate new revenue streams.

Popular posts from this blog

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Conversational Commerce Advances with AI Innovations

The global eCommerce market gained new momentum as the COVID-19 pandemic transformed many legacy business sectors. As an example, conversational commerce enables end-users of smart devices to leverage them for commercial purposes -- including retail transactions and online banking. The ecosystem for conversational commerce has evolved with many communication service providers acting as the primary point of connection between the end-users of these devices and the brands, enterprises, and financial institutions that use them. According to the latest worldwide market study by Juniper Research, the global conversational commerce spend over rich communication services (RCS) messaging will reach $27 billion by 2025 -- that's rising from less than $10 million in 2021. Conversational Commerce Market Development This phenomenal growth will be driven by increasing RCS support from telecom network operators and growing interest from business leaders wishing to capitalize on this emerging eCo