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Telecoms firms looking to IoT for future success

(Image credit: Image source: Shutterstock/everything possible)

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.”   

Image Credit: Everything Possible / Shutterstock

Anthony Spadafora
Anthony Spadafora

After getting his start at ITProPortal and then working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches to how to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.