Increasing rates of mobile and fixed-line penetration are pushing Communication Service Providers (CSPs) across the globe to achieve scale. In fact, there’s a call to maximise services’ growth and sustainability while taking full advantage of 5G. However, the average number of text messages and voice calls has decreased. This is due to the proliferation of OTT service providers, which use the internet to provide services and deliver content.
As a result, CSPs are currently facing broader competition. On one hand, customers are being dissuaded from using standard Telco services and absorbing a significant slice of revenue. On the other hand, there’s network overloading due to Internet and data traffic increases. In this context, CSPs are encouraged to look for new revenue streams that harness connectivity ownership advantage and telco-related skills. The aim is to recover lost ground in their core mobile and fixed markets.
An opportunity has arisen in the shape of the Internet of Things (IoT), motivating CSPs to rethink their strategies and embed digital into their business models. Focused on the B2B segment, they’re looking to capitalise on the access of large data volumes flowing through their infrastructure. Since CSPs yield the expertise and resources to manage and connect IoT devices in their network, they’ve got the upper hand over competitors.
Tapping into the IoT opportunity
The “always-on” lifestyle of digital natives is pushing the demand for connected devices, already exceeding 20 billion worldwide. As a result of the Industry 4.0 evolution, and the drive to digitalisation and automation, the B2B side is adopting smart solutions. With a more expressive positive evolution in the B2B segment, the number of global IoT connections will more than double between 2019 and 2025, reaching almost 25 billion. The global IoT revenue will more than triple to $1.1 trillion within the same timeframe .
While connectivity is likely to account for the bulk of current IoT revenues, steady growth in the IoT market will increasingly rely on vertically-focused models that provide specialised end-to-end (E2E) solutions and integrate additional IoT capabilities such as platforms, security and analytics .
As enhanced mobile broadband, 5G is believed to enable massive IoT, boosting network capacity with high data rates and performance in multiple applications (as it supports a higher number of devices at the same time). The expectation is that, first, there’ll be a shift towards more data-hungry projects (such as traffic monitoring for self-driving cars). Then, that 5G’ll create the conditions for a more IoT-friendly ecosystem with vast improvements over the current capabilities of 4G.
The opportunity is real and predictions are promising: the IoT business case for CSPs is the ultimate chance to monetise data these companies have and venture into new industries. This allows to offer solutions beyond network connectivity. Still, the IoT business is complex due to technological diversity; the exponential growth of devices; and the lack of mature standards, so CSPs cannot walk alone.
Building alliances for greater success
By joining forces with partners in the IoT ecosystem, CSPs can explore new opportunities and IoT use cases. Hence, they’ll develop a more extensive array of services based on their unique assets. To win in the IoT space, it’s critical for CSPs to rely on internal capabilities and external partners to supply know-how and experience.
Celfocus offers a comprehensive approach to the IoT domain. The purpose is to create a roadmap for a holistic and integrated view of IoT applications. This happens at multiple levels, from strategy and architecture to hybrid development teams.
In this White Paper, we’ll go through CSPs’ IoT journey – including Managed Connectivity, Value Added Services and Vertical Solutions – and present Celfocus’s offer and experience.
Learn more about Celfocus IoT Offer here.
 GSMA Mobile Economy 2020
 GSMA Intelligence