Wednesday, October 4, 2017

How Much Can Mobile Operators Earn from IoT Connections?

Just how much revenue might mobile operators earn from connecting internet of things devices? It all hinges on volume. Mobile connections might generate monthly revenue of perhaps $1.50, while connections to specialized low power wide area networks might generate about 15 cents from each connection, per month, according to Analysys Mason.

Perhaps among the optimists, Analysys Mason believes mobile operator connectivity revenue could amount to as much as US$28 billion in 2025, about 14 percent of total potential IoT revenues.

By way of comparison, application revenue will constitute 61 percent of total value chain revenue and hardware will generate 25 percent. So up to 86 percent of IoT revenue will be earned by app and device/infrastructure suppliers.

LPWA networks (such as LoRa, NB-IoT and Sigfox) might reach US$22 billion in total value by 2025. Connectivity revenue might generate eight percent of the total revenue from the LPWA value chain.

source: ABI Research

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