Show me the Money! Telco IoT monetization in 2015?

Big Question #3 for 2015 – Will operators develop an all-embracing IoT monetization strategy?

Will Telcos figure out the way to realize IoT revenues?

Show me the Money! IoT Monetization in 2015?

There are plenty of use cases and monetization examples out there….  Check out this slideshow from Aria Systems that shows Ten Cool Companies That Are Monetizing IoT (here).

This article by Goldman Sachs in the HBR talks up the opportunity for IoT Monetization

  • The Internet of Things is emerging as the third wave in the development of the internet. While the fixed internet that grew up in the 1990s connected 1 billion users via PCs, and the mobile internet of the 2000s connected 2 billion users via smartphones (on its way to 6 billion), the IoT is expected to connect 28 billion “things” to the internet by 2020, ranging from wearable devices such as smartwatches to automobiles, appliances, and industrial equipment. The repercussions span industries and regions.
  • With several infrastructure booms coming to an end and rising cross-border competition, industrial companies are looking for new sources of growth. Fixed investment is moving away from traditional capital goods equipment, creating new business models that more seamlessly integrate hardware and software, which support recurring revenue streams and greater customer stickiness.

OK, but you can hear the operators screaming “sounds great, but what’s in it for me?”  The most obvious opportunity for operators here is selling data and mobility/location services.  But as someone smart once said, you’re always going to get more money selling a cake than flour and eggs.  To successfully monetize the IoT opportunity, operators are going to have to move beyond their traditional hunting grounds and mindset and start thinking about vertical opportunities.

Telcos need to form strategic partnerships in verticals that will enable them to deliver a complete segment solution.  Connected Health, Wearable Devices, Connected Cars, Connected Homes, Connected Cities, etc…  the real value and monetization opportunity for Telcos is to delve into industry-specific challenges for each vertical.  The opportunity will move Telcos beyond their traditional B2B or B2C relationships into the B2B2C realm.

The IoT monetization opportunity is truly nascent and there are many challenges and complexities for Telcos to deal with.  With the higher purpose of searching for new revenues opportunities, that shouldn’t stop you!


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