Iot Monetization by Telcos: Hype or Hope?: Four Ways For A Telco To Play A Role in Iot

IoT monetization by telcos: Hype or hope? - IBM Telecom, Media... https://www.ibm.com/blogs/insights-on-business/telecom-media-e...
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IoT monetization by
telcos: Hype or
hope?
• October 27, 2017 | Written by: Rob van den Dam
Categorized: Industry Insights | Telecommunications
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  
When we talk to telcos about where they’re going to generate new revenue, almost all of them have t
their list. IoT is going to be huge after all, with billions of connected devices worldwide. Many telco C
about how much revenue they’re going to generate from it. But, the big questions are: How will they
models?
Four ways for a telco to play a role in IOT
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1. Network
Many operators are already active with IoT sensors, devices and network connectivity. ‘Connecting e
of their core business of ‘connecting people’.
The question, however, is how much connectivity will be realized through licensed spectrum? And ho
through alternative methods like WiFi or low power networks in unlicensed spectrum? The economic
dramatically as companies like Sigfox (a French wireless company) understand that the IoT market is
low-power network in unlicensed spectrum, competing directly with the telcos.
2. Platform
Many telcos, unsatisfied with a SIM-only business, are looking to extend their machine-to-machine p
and to offer IoT platform capabilities via application program interfaces (APIs) to ecosystem particip
turn build IoT applications more quickly and efficiently.
It seems that most telcos are interested in the IoT platform business. A recent IBM study on ecosyst
operators surveyed want their organization to become a platform provider. Meanwhile, companies lik
already adopting IoT platform architectures, and see orchestration, analytics and policy managemen
3. Applications
Some telcos are offering IoT applications and services themselves. One way they’re doing this is by b
market. Vodafone, for example, bought Cobra Automotive (now Vodafone Automotive) to accelerate
are developing domain or industry expertise in-house to build tailor-made IoT applications.
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4. Operations
Some telcos (not many, we expect) might even have the ambition to run a full operation service to m
agreements (SLA) of IoT services themselves.
The data dilemma

Despite the many paths telcos can choose, one point of focus remains consistent across them all: da
custodians of the network and typically enjoy a highly trusted position with their customers, in many
level of financial institutions and governments (see: The trust factor in the cognitive era).
Meanwhile, the growth of IoT means hackers have a bigger playing field, and protecting consumers’
devices is more urgent than ever. A huge amount of personal information at stake, and hackers can c
abusing this data. Brand and reputational damage could end up being more of an issue than any fina
it in most cases).
Security must be the bedrock of IoT development and deployment. Securing multiple points of vulnera
healthcare devices or home smart devices – is critical to IoT success.
IoT security is a cooperative initiative in the IoT ecosystem and telcos can play a central role here. Th
develop initiatives and services focusing on increased trust and security, but only if they adopt the rig
private and secure environments such as:
blockchain – which could be a foundational building block in the IoT ecosystem;
cloud-secure technology – to provide optimal security in the cloud; and
artificial intelligence – cognitive security systems that identify security threats and provide reco
Rob van den Dam

Global Telecommunications Industry Leader at the IBM Institute for Business Va
digital ecosystem Internet of Things Monetization platform
Trust
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IoT monetization by telcos: Hype or hope? - IBM Telecom, Media... https://www.ibm.com/blogs/insights-on-business/telecom-media-e...

IBM Telecom, Media and About Contributors

Categorized: Industry Insights | Telecommunications

Share this post:

Four ways for a telco to play a role in IOT

The data dilemma

blockchain – which could be a foundational building block in the IoT ecosystem;

cloud-secure technology – to provide optimal security in the cloud; and

Rob van den Dam

digital ecosystem Internet of Things Monetization platform

founder and CEO of Pymetrics, Inc.

Victorious or vanquished? Why digital r

The future of video is here — and it’s driven by artificial intelligence

If automation is the end game, then machine-enabled automation is a winning hand

AI: Here Now and Delivering

More Telecommunications stories

Failure Taught Us How to Succeed

Agile Lifecycle Management

Creating a Cognitive Network

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