Mobile operator revenues from IoT reached €11bn in 2016, says new Berg Insight report

Tobias Ryberg, senior analyst, Berg Insight

According to a new research report from the Gothenburg, Sweden-based analyst firm, Berg Insight, mobile operator revenues from the Internet of Things (IoT) reached € 11 billion(US$ 11.42 billion) in 2016.

During the year, some of the leading global telecom groups have reported IoT revenues on a regular basis. In Q3-2016, Vodafone and Verizon generated around € 200 million(US$ 207.62 million) each in direct sales from IoT connectivity, solutions and applications. Next year, Berg Insight predicts that a handful of operator groups will generate more than € 1 billion(US$ 1.04 billion) each from the Internet of Things.

“Until recently, the principal financial metrics for IoT has been projected, not actual, revenues. Now the market has entered a new phase in which hard business facts take precedent over lofty projections”, said Tobias Ryberg, senior analyst, Berg Insight and author of the report. “Wireless connectivity is now near ubiquitous and there will be half a billion cellular IoT connections in 2017, but revenues are still relatively small”.

Berg Insight estimates that the global monthly ARPU for cellular IoT devices was € 1.40(US$ 1.45) in 2016. There were significant variations between different regions, from less than € 0.30(US$ 0.31) in some emerging economies to over € 3.00(US$ 3.11) in less competitive developed markets.

Identifying and implementing successful strategies for moving up in the value-chain is widely recognised as the biggest challenge ahead for mobile operators in IoT. For large mobile operators in vehicle producing countries, the automotive market has been a natural starting point.berginsight

Leading players like AT&T, Vodafone, Verizon and Deutsche Telekom have established dedicated practices to support automotive OEMs in the development of connected car solutions for the global market. Verizon and Vodafone made strategic acquisitions of telematics businesses to accelerate their strategies, while AT&T and Deutsche Telekom developed their platforms in close cooperation with customers.

An alternative strategy better suited for smaller mobile operators is to develop a broad ecosystem and sell IoT solutions from preferred partners through existing B2B channels. By partnering with leading solution providers, the operators can make sure that they offer the best products available to their enterprise customers without having to invest in product development.

Pre-packaged solutions from ecosystem partners fit well into a product portfolio that range from wholesale network connectivity for application developers to bespoke solutions that meet more complex and customer-specific application needs.

Download the report brochure: The Global M2M/IoT Communications Market

Comment on this article below or via Twitter: @IoTNow_ OR @jcIoTnow

FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, iot home automation is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more
RECENT ARTICLES

Vertiv Research defines standard models for deploying edge infrastructure

Posted on: October 19, 2021

Vertiv, a global provider of critical digital infrastructure and continuity solutions, released the results of an in-depth research project to identify edge infrastructure models to help organisations move toward a more standardised approach to edge computing deployments, with the intent to improve costs and deployment times.

Read more

Nuuday infuses AI into customer experience with the Avaya OneCloud experience platform

Posted on: October 19, 2021

Nuuday, Denmark’s provider of broadband, communication and entertainment services, has launched “Josefine,” an AI-powered voicebot capable of delivering dynamic, immediate and personalised experiences for customers interacting through its Avaya OneCloud communications and collaboration platform.

Read more