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Growth Opportunities for Telcos in IoT
New Business Models and Emerging IoT Applications Create Competitive Intensity
14-Jul-2022
Global
Market Research
K7A3-01-00-00-00
IT04546-GL-MT_26706
The key challenge for telecom operators (telcos) is to go beyond connectivity and provide business solutions to enterprise customers, as well as connected home and digital lifestyle services to consumers. A solid ecosystem strategy and effective execution by operators are key requisites to address this challenge.
The IoT space is still in flux. Unlike more mature Information and communications technology (ICT) markets, the IoT space also has significant overlap with other industries, such as automotive, energy, and transportation. To accurately observe and measure IoT-related economic activity, Frost & Sullivan uses the definition above to determine if a technology product, application, or service is to be considered part of the IoT.
Until recently, IoT was a competitive advantage, while now it is a competitive requirement. For traditional telcos, the ecosystem has evolved and now they must either evolve or perish.
About 60 LTE-M and 110 NB-IoT networks were in operation worldwide as of February 2022. With commercial launches of long-term evolution machine-type communication (LTE-M), NB-IoT, and private LTE networks, in addition to the launch of 5G in different regions, traditional mobile operators have started launching more affordable and attractive connectivity offerings. Stretching beyond their role as connectivity providers, telecom operators are acquiring end-to-end IoT capabilities with new business and operational models that promote greater agility and flexibility.
A total of 4 companies—Verizon, Telefónica, Claro Brasil, and NTT Docomo—were selected and profiled for the purpose of this research to identify trends in the industry across different regions and track how the ecosystem is evolving around them. This study outlines each company’s portfolio, value proposition, emerging use cases by verticals, and success stories. Recent developments are also included to provide an overall view of each company’s strategy and direction.
Research Scope
This study analyzes how the global IoT ecosystem of operators is configured, in addition to providing details about strategy, business models, verticals of focus, case studies, and other relevant information about the market and its participants. To be considered a component of the IoT, any product, application, or service must be part of a larger solution that comprises these 4 elements:
- Objects that are virtualized and imbued with data measurement capabilities
- The ability to grant identities to physical and virtual objects
- Interconnections between these objects for monitoring and interaction
- The ability to generate real-time insights from data and incorporate them into existing business processes
Author: Renato Pasquini
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Telco IoT Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Definition of the IoT
Growth Drivers and Restraints
Key Competitors
Telcos’ Evolutionary Digital Services Strategy
The IoT is the Catalyst Driving the Digital Transformation Journey
Multiple IoT Components in End-to-End Systems
Hardware
Connectivity
Connectivity (continued)
Data Management
UI
Benefits of End-to-End Systems
Risks of End-to-End Systems
IoT Telco Strategies
Ecosystem Development
Business Models
Infrastructure Strategy
Growth Strategies
Emerging Use Cases by Vertical
IoT Application Use Case Categories
New Mobility Opportunities
New Manufacturing Opportunities
New Utilities Opportunities
New Retail Opportunities
Top 4 Growth Opportunities in the Telco IoT Market
Success Factors for Growth
Telefónica—IoT Portfolio
Telefónica—IoT Value Proposition
Telefónica—Emerging IoT Use Cases by Vertical
Telefónica—IoT Success Story
Verizon—IoT Portfolio
Verizon—IoT Value Proposition
Verizon—Emerging IoT Use Cases by Vertical
Verizon—IoT Success Story
Claro Brasil—IoT Portfolio
Claro Brasil—IoT Value Proposition
Claro Brasil—Emerging IoT Use Cases by Vertical
Claro Brasil—IoT Success Story
NTT Docomo—IoT Portfolio
NTT Docomo—IoT Value Proposition
NTT Docomo—Emerging IoT Use Cases by Vertical
NTT Docomo—IoT Success Story
Growth Opportunity 1: Internet of Cars (IoC) for Mobility Improvement
Growth Opportunity 1: Internet of Cars (IoC) for Mobility Improvement (continued)
Growth Opportunity 2: Industrial IoT (IIoT) for Manufacturing Process Automation
Growth Opportunity 2: Industrial IoT (IIoT) for Manufacturing Process Automation (continued)
Growth Opportunity 3: Smart Metering for Advanced Measurement Infrastructure
Growth Opportunity 3: Smart Metering for Advanced Measurement Infrastructure (continued)
Growth Opportunity 4: In- and Off-store Tracking Solutions for Hyper-personalized Retail Experience
Growth Opportunity 4: In- and Off-store Tracking Solutions for Hyper-personalized Retail Experience (continued)
List of Exhibits
Legal Disclaimer
List of Figures
- IoT Telco Strategies: Telecommunications Market Evolution, Global, 2021–2026
- IoT Telco Strategies: Ecosystem Components, Global, 2022
- IoT Telco Strategies: Benefits of End-to-end Systems, Global, 2022
- IoT Telco Strategies: Risks of End-to-end Systems, Global, 2022
- IoT Telco Strategies: Areas of Focus, Global, 2022
- IoT Telco Strategies: Ecosystem Development, Global, 2022
- IoT Telco Strategies: New Business Models, Global, 2022
- IoT Telco Strategies: Infrastructure Development, Global, 2022
- IoT Telco Strategies: Growth Strategies, Global, 2022
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