For Telecom companies IoT is a blessing in Disguise
Mobile operators around the world is seeing decreasing revenue and increasing competition.Earnings before interest, tax, depreciation and amortization (EBITDA) margin has been down from 25% to 17% and the markets are getting saturated (Singapore has 150% mobile peneration).
The traditional revenue sources like messaging business and voice is being challenged by opening up of new mediums of communication like whatsapp. Telecom operators are struggling to grow their revenue and find new markets.
Now taste this:- there will be 28 billion devices connected to the Internet by 2020, out of which 15 billion will be consumer electronics or machine-to-machine (M2M).
Digitization together with being a threat to Telecom companies is a blessing in disguise. As consumers’ data and connectivity requirements are changed by IoT and digitization.
To support this next generation technology the fundamental for telecom companies are defined strategy. They need to reimagine their business around Internet of Things (IoT) and focus on providing key offerings around it.
The telecom providers have started developing a strategy around the same and defining their offerings, Where Telecom Companies should focus.
In the complete IoT value chain telecom providers are the only players which have strong position in terms of developing and managing analytics at the edge of the network.
Life cycle of millions of devices and managing extensive directories , capability to deliver carrier-grade network, data security and a trusted status with end customers. This uniquely positions then to facilitate the delivery of IoT solutions.
Telecom operators start moving up the IoT value chain and start offering services in few areas. Vertical solutions are Providing vertical industry specific solutions through partnerships or directly. Telecom operators in Singapore like Singtel, StarHub, M1 have already started deploying their network to cater to IoT apart from Unabiz which is deploying SIGFOX.
Telecom companies can create vast data lakes of information which can be used for predictive analytics and building industry specific vertical solution With deep amount of data received from billions of IoT devices.
IoT specific Connectivity build specialized price plans focussing on IoT use cases, and provide connectivity as per desired quality of service.