Telco stand in IoT value chain!

Why IoT has a bright future ahead?

 The Internet of Things (IoT) has the potential to change the world, and we are just at the initial stage now. When we think of IoT, we tend to think of its potential to affect consumers and enterprises and that is mind-boggling. It is changing how we work, how we live, how we get value from our belongings and assets, and even how government and society function. The potential of this new market for service providers is exciting. At the same time, the businesses are equally benefiting from the IoT. In fact, most IoT market potential will be found in enterprises as companies use it to drive operational efficiency and introduce new connected products.

Where does Telco stand in the IoT value chain?

The second level relates to the network and connectivity. This level deals with how devices communicate and how they are connected; it is also where the device and network data is collected by service providers and uploaded to the cloud. The competition is happening within the IoT ecosystem itself, that is, X percent of service providers are looking to move up the chain beyond the networks and connectivity to grow revenue, but (X–10) percent are not having a well-defined strategy to do it. Instead they are testing alternative roles within the IoT value chain.

Why IoT is one of the strongest forces for reimagining long-held beliefs into the telecommunication industry?

As we understood from the above, the connectivity layer for the IoT is provided by the telecommunications system, which means it will consequently become part of an ecosystem. 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. Over the next decade, the expansion of IoT into consumer markets will bring about a dramatic shift in how people manage their daily lives, at home and in their leisure time.

How companies like Telco will succeed with IoT?

In the emerging IoT-enabled world, companies will succeed by working in partnership with customers to generate value for both parties by thinking about all the issues like long-term, cost, control, convenience, and co-creation. With this, it will take a leap from revenue generation to the value-generation model. Then, it is easy enough to predict moves from selling products to selling services. The closer collaboration, cooperation, and integration will be vital in telecoms across industries like the convergence between the IoT industry and the telecom ecosystem.

Where should we focus in order to become a game changer in IoT?

The cellular IoT, new 5G technologies, and dedicated IoT SIMS (to consumer telecom markets) have the potential to be a game changer in IoT.

What should we do from a revenue growth perspective?

The revenue growth is the key driver for telecom service providers entering the IoT market. The telecoms are pursuing multiple paths to achieve revenue growth. Considering IoT as a new type of business, service providers are largely investing in new technologies and establishing new business models for revenue sharing and increased use of indirect channels. They are also creating new delivery models for as-a-service and driving innovation with partners and customers. Another way to see the revenue like GTM (with other players) is having a partnership with another Telco giant in other countries to bringing their existing services to our country and vice-versa.


The use of the IoT will require everyone, including telecoms operators, to adopt a fail fast and learn and sooner rather than latermindset that accepts and embraces the importance of experimentation. As the IoT market becomes mature, the higher a service provider is on the IoT value chain, the more is the potential for revenue growth. Those willing to invest the time and resources to move up the IoT value chain will stand to gain the most.