STOCKHOLM – While most telecom service providers believe in the potential of Internet of Things (IoT) and describe new cellular IoT technologies as game changers, 70% do not have a well-defined strategy, according to a new study by Ericsson.
Exploring IoT Strategies provides unique insights on IoT value chain positioning from 20 leading telecom service providers globally as they engage with, and position themselves in, the IoT market. Specifically, the study identifies an IoT positioning framework, which captures service providers’ roles and sub-roles in the IoT value chain, plus provides commercial insights, key capabilities required and case studies for each role.
Ericsson said that it selected 10 of the world’s 30 fastest-growing mobile broadband service providers deemed the most mature in the area of IoT for the study. In addition, it tapped ten IoT leaders worldwide, in terms of number of connections, offerings, and their ambition to scale.
The four service provider role categories identified by the study are: Network Provider, Connectivity Provider, Service Enabler and Service Creator. While the network provider and connectivity provider roles are seen by the interviewees as foundational roles, driving most of their IoT revenues, 80% of study participants also plan to create value beyond connectivity. Service providers see that additional value can be created either by providing differentiating services through sub-roles within the four roles, or by progressively offering end-to-end solutions as service enablers or service creators.
“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”, said Ericsson’s Head of IoT Jeff Travers, in the study’s news release. “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.”
