Tuesday, November 10, 2015

Internet of Things = Growth for Mobile Operators

In a word, the Internet of Things is strategic for the mobile industry because it represents “growth.”

Once every human being who wants to use a mobile phone is doing so, after every phone is equipped for Internet access, after nearly every customer uses the Internet, after usage-driven charges have grown, what could possibly drive the next big wave of revenue growth?

Emphasize the word “big.” In a business where revenue is measured in hundreds of billions of dollars, modest new markets do not move the needle. Only revenue sources driven by big new markets will have the scale to matter.

Assuming such concerns are correct, IoT is big enough to move the needle.

Mor than 50 billion IoT devices are expected to be connected with as much as US$8.9 trillion in annual revenue by the year 2020.

According to GSMA studies and forecasts, mobile  IoT communications are predicted to account for over 10 percent of the global market by 2020. That should represent about $45 billion in service revenue annually.

source: GSMA

source: GSMA

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