The Internet of Things (IoT) is poised to become the next major battleground for technology and telecommunications companies, largely because it is expected to be a primary revenue driver of the fourth industrial revolution. Yet Ericsson’s Exploring IoT strategies indicates many telecom operators still do not fully understand the opportunity, prompting questions about whether telcos are prepared to monetize the full range of IoT possibilities.
The dawn of IoT
Companies across industries are exploring ways to integrate IoT services into their business models to expand offerings and boost revenue. Telecom operators should do the same. Providing communications and connectivity is at the heart of what telcos do, placing them in a strong position to deliver new connectivity solutions tailored for IoT deployments. By partnering with businesses that are adopting connected technologies, telcos can create new monetization pathways. In a fast-moving telecoms market with growing competition, operators must broaden their services and reach new customers to remain relevant and ensure long-term sustainability.
Opportunities in the IoT marketplace
Telcos have multiple opportunities to benefit from the IoT transition. By packaging and monetizing services for businesses, they can unlock new revenue streams and extend their customer base beyond traditional telecoms clients.
The evolving media value chain: IoT will reshape digital content delivery, enabling content providers to move beyond conventional distribution methods. Telcos can supply IoT connectivity that allows content companies to distribute media to millions of connected devices simultaneously across diverse digital channels. Media firms will evaluate IoT’s potential to enhance and transform their delivery strategies, and telcos can capitalize on that demand.
Security and customer care: Security is a top priority for businesses operating IoT networks. Connecting millions of devices generates enormous volumes of data, making it challenging to detect and block suspicious traffic. Telecom operators already offer security services to customers, which positions them well to protect IoT deployments. By providing data encryption, anti-phishing solutions, and adaptive security measures, telcos can monetize security offerings and strengthen their reputation as trusted partners.
Data and analytics management: Massive volumes of data produced by IoT devices are extremely valuable when analyzed effectively. Telcos have the infrastructure and expertise to perform real-time analytics on this data to evaluate product performance, enhance customer experiences, and forecast network capacity. By offering analytics-as-a-service and insights to businesses, telcos can help clients optimize operations and uncover new revenue opportunities while creating additional income streams for themselves.
Device management: IoT networks connect potentially millions of devices across wide regions, enabling remote and centralized management regardless of device location. Many organizations have historically struggled with device maintenance, as hardware can be prone to failure or degradation. Through partnerships with businesses, telcos can provide lifecycle management services for connected devices—covering diagnostics, fault detection, troubleshooting, restoration, and upgrades. Managing fleets of devices on behalf of customers allows telcos to generate recurring revenue, improve device resiliency, and help companies reduce operational costs.
Conclusion
There are clear and compelling opportunities for telecom operators that move to capture the potential of IoT. By expanding service offerings to include connectivity, security, analytics, and device lifecycle management, telcos can support organizations across sectors that are embedding IoT into their business models. Embracing these capabilities will enable operators to participate more fully in the IoT-driven digital transformation and secure new, sustainable revenue streams.