As demand for advanced telecommunication technologies continues to rise around the world, the global telecommunications industry is expected to witness a stronger growth in the near future. Meanwhile, these top telecommunication companies, also known as Telcos, are also projected to achieve higher revenues by developing new telecom technologies, launching new products & services, and gaining new customers. Many leading telecom companies or mobile operators are already investing heavily on improving mobile and fixed broadband infrastructures, while some telecom services providers are also looking at the vertical markets offered by developments in Internet, TV and video-streaming to boost revenue streams and others are expanding regionally or internationally.
Mobile and network connectivity services are largely commoditized, yet they constitute the core of the telecommunications providers’ service offering. Telecommunications services are relatively indistinguishable from those offered by the competition, the only difference being the price. Thus, high commoditization makes telecoms slash prices in order to remain competitive, which leads to low ARPU. Another problem faced by telecoms is high customer churn – a survey suggests that about 20% of Americans have switched to a different phone, internet or telecom service provider in the past 24 months.
I’m convinced that with the further development of IoT, the telecom industry gets an opportunity to solve their customer retention and revenue generation problems and create new revenue streams. By 2026, telecoms can get $1.8 trillion in revenue by tapping in the IoT services market. Below, I explain how IoT technology helps telecoms generate value and share how to approach the implementation of IoT initiatives in the telecommunications industry.
Telecoms may amplify a service portfolio with a range of IoT-enabled services in such areas as smart manufacturing, smart retail, smart city, smart home, vehicle and asset tracking, and others.
To realize these IoT capabilities, I recommend telecom companies to build an IoT platform for their customers to connect end-point devices and their centralized control and run desired IoT applications. The IoT platform for telecoms should be built upon an open, modular architecture featuring reliable APIs between the modules.
A modular approach to the architecture design allows offering IoT solutions and services with a different degree of involvement in the solution and service provisioning,
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