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Founder62562
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Founder62562,
User Rank: Light Beer
1/31/2016 | 5:15:52 PM
Re: 3 avenues of growth with radically different revenue prospects
To nasimson I've provided details in my ETSI speech (see link in my original post). To summarize, mobile operators are targeting low-power devices (which were previously not addressable by traditional mobile) via the GSMA's NB-IoT initiative and partnerships with proprietary network providers. Pricing expectations for low-power connectivity has been set by SigFox at about EUR1.2/year per device (+/-). The average mobile connected device contributes revenues of about EUR24/year, hence the 0.05x factor.
nasimson
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nasimson,
User Rank: Light Sabre
1/31/2016 | 5:01:32 PM
Re: 3 avenues of growth with radically different revenue prospects
@Ken: > they can expand the base of addressable > devices (adding revenue at 0.05x the rate of > existing devices on average). How to increase the base of addressable devices? Why 0.05X?
DannyDicks
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DannyDicks,
User Rank: Blogger
1/29/2016 | 9:03:34 AM
Re: 3 avenues of growth with radically different revenue prospects
Hi Ken - good to hear from you!

Thanks for adding the financial analysis to the options for carriers - a useful contribution to the debate.

Danny
DannyDicks
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DannyDicks,
User Rank: Blogger
1/29/2016 | 9:01:16 AM
Re: There is more than what meets the eye
Hi CoFounde03033

Thanks for your comment - I largely agree with all your points :-)

Danny
CoFounde03033
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CoFounde03033,
User Rank: Light Beer
1/27/2016 | 8:29:54 AM
There is more than what meets the eye
Thanks for an excellent article Danny.  I think your story is somewhat incomplete I believe.  Here's why.

1.  IoT is a stretch in terms of a service for a telecom operator.  You rightly pointed out that their sweet spot is 'connectivity', which too is under severe threat from NFCs and other emerging protocols.  Similarly, I believe wired telecom services such as MPLS/VPNs are significantly more critical in IoT than what most people tend to believe.  There is a huge embedded base of such wired connectivity in the enterprise space and most telecoms are ignoring it - granted for several reasons.  The simplest way I explain this is the following:  Telecoms job is to ensure packets are transported from point A to point Z in the fastest, cheapest, and most efficient way.  They deal with 'packets' and do not see or know/understand the contents of the packet.  On the other hand, IoT has to do with the content of the package.

2.  Once again your point re: acquisition of Hughes Telematics by Verizon is right on.  If telecoms want to be successful in IoT, they must acquire domain knowledge, which obviosly they do not have.  As a side note, anecdotal evidence suggests the Verizon-Hughes Telematics marriage isn't a very happy one.

3.  I believe integrating with Jaspers/PTCs of the world is more beneficial to those companies rather than their host telecoms companies - depending upon their agreements of course.  Without real revenue generating IoT solutions sitting on them, such platforms are suboptimal in value.  One of the short comings of connectivity platforms is that they only cater to wireless and ignore the wired communications.

Telecoms operators can be a huge benefit to the overall implementation of IoT, but there are several aspects that need to radically change for them to be effective and successful.  As a first step, telecoms need to revisit their value propositions, accept their limitations and reorganize better.
Founder62562
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Founder62562,
User Rank: Light Beer
1/26/2016 | 2:20:56 PM
3 avenues of growth with radically different revenue prospects
In ther near term, mobile operators have 3 ways to grow. Firstly, they can move up the value chain (platforms and applications) which boosts revenues by up to 20x over connectivity.

Secondly, they can expand the base of addressable devices (adding revenue at 0.05x the rate of existing devices on average).

Or, thirdly, they can tackle inter-operability opportunites closer to the data and applicaiton interaction layers of the value chain (potential for a 1.4x revenue boost).

https://docbox.etsi.org/Workshop/2015/201512_M2MWORKSHOP/S02_RECENTIoTDEVandSTRATEGIES/MOREWITHMOBILE_figueredo.pdf

Longer term, operators will have to deal with the converegence between IoT and 'Digital' services (which implies the need for platforms to support multi-party business models). Consider examaples of consumer devices (Smartphones/tablets on Telco #1's network) interacting with connected, enterprise devices (on Telco #2's network).

Ken Figueredo
DannyDicks
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DannyDicks,
User Rank: Blogger
1/25/2016 | 6:41:04 AM
Re: 4 way forwards
Sure. Here are examples in each category:

Acquiring / developing vertical specialist IoT businesses - Verizon acquired Hughes Telematics to develop an automotive telematics IoT business; Telefonica developed logistics IoT services with Masternaut

Partnering to extend capability - Swisscom, Deutsche Telekom, Orange, TeliaSonera, TIM, Bell Canada, SoftBank (collectively members of the Global M2M Association)

Reselling global IoT enablement services - Reliance Communications in India resells IoT enablement from global platform provider Jasper

Deploying more capable service enablement platforms - NTT DoCoMo deploying PTC's ThingWorx platform.

Danny

 
ContentD77453
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ContentD77453,
User Rank: Light Beer
1/25/2016 | 5:07:15 AM
More Need For Research
Wireless carriers are very important and integral part of the IoT infrastructure. If they want to reap profits from Internet Of Things boom they need to address some security challenges first.
Executiv37157
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Executiv37157,
User Rank: Light Beer
1/24/2016 | 9:00:35 PM
Good
Prospects are good so long as they invest in research, personnel and partnerships.

Jason Lebrecht
Joe Stanganelli
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Joe Stanganelli,
User Rank: Light Sabre
1/24/2016 | 2:02:54 PM
5G $$$
I am of the understanding that companies view 5G as a far too expensive option.

Conversely, mesh holds a great deal of promise -- but can be difficult to deploy.
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