Q. From your experience, what have been operators’ biggest concerns regarding IoT, specifically with:
Building out the infrastructure?
Operators have invested millions and even billions of dollars on their existing 2G, 3G and 4G infrastructures. Should they just continue on in their connectivity businesses, or enter into solutions businesses which are not their traditional areas of strength.
The value of IoT is no longer at the connectivity layer, since only about
10% of IoT devices require a SIM card. 90% of IoT devices don’t require an operator’s network. However, operators are not comfortable in selling IoT solutions, especially in the enterprise segment because of the different domain expertise it requires.
Using it as an entry point to sell higher margin services?
It has been predicted that billions of devices will soon be connected to the internet.
Connectivity will be the “basic” requirement, and once operators acquire customers with their connectivity, they can begin to offer more value-added IoT applications such as Smart Homes solutions.
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