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80% of telcos see the value beyond connectivity in IoT


A new study from leading Swedish multinational telecommunications company Ericsson has revealed that four in five telecommunications companies see the potential value in IoT beyond the market for connectivity solutions.

“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 Jeff Travers, Head of IoT, Ericsson.

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Of the 20 multinational telcos surveyed, 80% stated that they were aiming to create value beyond connectivity in relation to IoT, either becoming IoT service enablers or service creators.

Four positions in the market are identified including networks providers; providers of connectivity infrastructure; IoT management and provision services; and service creators.

According to Ericsson, most telcos view becoming connectivity and network providers as a logical channel to pursue in driving IoT revenues, whilst the majority also recognise that value could be achieved by broadening their offerings into the service provider and service creator roles.

“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,” Travers continued. “They are also creating new delivery models for as-a-service and online services and driving innovation with partners and customers.”

Further, the whitepaper reveals that companies are exploring a range of different methods in achieving this diversification, with 70% of those interviewed not having a well-defined strategy, instead choosing to view the potential of IoT with a broad mindset, exploring multiple avenues.


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