IoT & M2M: Revenue Opportunities for MNOs
2015.07.06   |   21 pages   |   Convergence & M2M

Author:
Robert Harrison


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In a world of declining voice revenues, many MNOs are exploring IoT services that will help to maintain, or even increase, spend from existing customers. However many of these services or connected products generate low levels of traffic and are anyway supplied by other businesses that simply use operator services to transport data. Operators must therefore try to identify IoT services that they can supply and add value to, so they will generate useful ARPUs for them.

The key is recognising which types of services have a high value to a wide range of users and designing services that will meet their needs and which can be offered by the operator itself, rather than by a third party. This report looks at examples of services offered by MNOs that generate, or offer the prospect of generating, revenues of a magnitude sufficient to replace a good part of the lost revenues and that will also take them towards Telco 2.0.

Any MNO seeking to generate significant revenues and margins while maximising its Telco 2.0 opportunities and at the same time retaining a close relationship with its current customers, needs to take into consideration Mobile Market Development's recommendations for essential actions set out in this report.

Companies: AT&T, Verizon, Telefonica, SK Telekom, NTT DoCoMo, FiLIP, Delphi, Xanboo, Samsung, UDtech, KIa Motors, iRevo, Winix, KyungDong Navien, Time Valve

Countries: Japan, South Korea, UK, USA

Keywords: Digital Life, Connected Home Space, Pet Fit, AT&T Drive, value chain, Conected CE Devices, Connected Cars, Health and Fitness Monitoring, T-Pet, Monitoring and Tracking,

Table of Contents
1 Overview 1
2 Introduction 2
2.1 Background to the Report 2
2.2 Report Content 2
2.3 Currency and Conversions 3
2.4 Further Questions and Feedback 3
3 IoT Business Models for MNOs 4
3.1 Introduction 4
3.2 Business Models 4
3.2.1 Connected Cars 5
3.2.2 Connected CE Devices 5
3.2.3 Connected Home Space 6
3.2.4 Tracking and Security 6
3.2.5 M2M Health Market Drivers & Deployment Strategies 6
3.3 Position in Value Chain and Monetisation 6
4 MNO Consumer IoT Services - Examples 7
4.1 Introduction 7
4.2 AT&T - Digital Life 7
4.2.1 Integrating Digital Life with AT&T Drive 8
4.2.2 Other Developments 8
4.2.3 Promotion 8
4.3 AT&T - FiLIP 8
4.4 NTT DoCoMo - Pet Fit 9
4.4.1 Pets in Japan 9
4.4.2 Pet Fit 10
4.4.3 Pet Fit Functionality 11
4.4.4 Price and Promotion 12
4.5 SK Telecom 13
4.5.1 Smart Home 13
4.5.2 T Pet 14
4.5.3 Promotion of Services - T Pet 15
4.6 Telefonica 16
4.7 Verizon - Delphi 16
5 Key Findings: Lessons and Conclusions 18
5.1 Options - Choices for MNOs 18
5.2 Complete Product & Service 18
5.3 B2B2C 19
5.4 Sale of Devices 19
5.5 Prepayment and Continuity of Service 19
5.6 Sale Outside Network Area 19
5.7 Main Conclusions 20
6 Recommendations 21
  Appendix - Feedback Questions 22

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