Increasing mobile and fixed-line penetration rates across the globe are putting pressure on Communication Service Providers (CSPs) to achieve scale if they want to maximise the growth and sustainability of their services and take full advantage of 5G. However, the average number of text messages and voice calls has shrunk due to the proliferation of Over-The-Top (OTT) messaging apps and VoIP service providers, which use the internet to provide their services and deliver content.
As a result, CSPs currently face broader competition, which isn’t only dissuading customers from using standard Telco services and absorbing a significant slice of revenue, but also overloading the network due to Internet and data traffic increases. In this context, they are encouraged to look for new revenue streams that harness their connectivity ownership advantage and telco-related skills, aiming 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, especially with regards to the B2B segment, to capitalise on their access to vast volumes of data flowing through their infrastructure - plus holding an upper hand over competitors, as they yield the expertise and resources to manage and connect IoT devices in their network.