While revenue growth is the key driver for telecom service providers entering the Internet of Things (IoT) market, new research from Ericsson (opens in new tab) has revealed that telecoms are pursuing multiple paths to achieve revenue growth though 70 per cent of those surveyed have no well-defined strategy.
The company's new study, 'Exploring IoT strategies (opens in new tab)' offers unique insights on the IoT value chain with perspectives from 20 of the leading global telecom service providers as they look to position themselves in the IoT market. The study also explored service providers' roles and sub-roles in the IoT value chain.
Of the service providers surveyed, many believe that cellular IoT and new 5G technologies (opens in new tab) have the potential to be a real game changer in IoT.
Ericsson's survey identified four service provider role categories: Network Provider, Connectivity Provider, Service Enable and Service Creator. The Network provider and connectivity provider roles were viewed by the participants as foundational roles which will help drive their IoT revenues though 80 per cent of service providers are also planning to create value beyond connectivity.
By providing differentiating services through sub-roles within the four roles or by offering end-to-end solutions as service enablers or service creators, service providers see a path to create additional value.
Ericsson's Head of IoT, Jeff Travers offered further insight on the results of the study saying:
“The report confirms the importance of IoT to the current and future business of leading service providers, no matter where they operate in the world. Regarding IoT as a new type of business, service providers are investing in new technologies and establishing new business models for revenue sharing and increased use of indirect channels. They are also creating new delivery models for as-a-service and online services and driving innovation with partners and customers.”
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