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

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C