Internet of Things (IoT) is ranked high on the list of revenue generating opportunities for most Telecom Companies. It is expected to become an enormous market with devices from all over the world connected to the IoT network.
There is no doubt that it would become the next big thing. The real questions are about monetisation and the business model that would run the system. Where exactly do telecom operators expect to make money from IoT services?
According to Jan Karlsson, Vice President & General Manager Digital at Ericsson, Telecom companies make the overwhelming portion of their income through existing networks and services. Around 96% of income is generated through traditional telecom services.
However, these risk becoming obsolete in a few years. IoT, the next big thing, makes a very small portion of the income for Telecom companies today.
It is essential for the business sustainability of Telcos that they find ways to monetise their IoT services. Karlsson believes that operators have both an opportunity and obligation to do more and move towards monetisation of their services.
That begs the questions; why are the telecom companies so slow in finding ways to monetise their IoT services?
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