In 2020, IoT Will Not Be Sufficient to "Move the Needle" for Telecom Suppliers, Globally

With the caveat that suppliers and customers always can be wrong, potential solution providers and customers believe as much as $470 billion will, by about 2020, be generated, with $60 billion in profits. About 40 percent of that revenue will be generated by purchases of devices, perhaps $15 billion by connectivity services, some $20 billion in apps, analytics and hosting services and about $20 billion in system integration and implementation services.

If correct, it is fair to note that the biggest potential changes in service provider business model cannot be driven by IoT services and revenues. In an industry with annual revenues in the nearly $2 trillion range, $15 billion simply is not going to move the needle.

The big changes therefore will come in other existing parts of the business (existing revenue sources and existing cost structures, plus "growth by acquisition").

source: Bain
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