By: Avi Kachlon

Machine-to-machine billing is an essential component in the expansion and the monetization of the M2M and Internet of Things (IoT) domains. Service providers need to be able to manage and monetize the complicated relationships that are part and parcel of IoT in order to generate revenues from what are frequently low value, high volume transactions.  

Managing complexity and monetization in an ever-changing environment

BSS (Business Support Systems) are an essential component in the expansion of Internet of Things. Every player within the IoT ecosystem, whether they are CSP, MVNO, IoT service or platform provider, must be able to offer new deals, services and pricing models quickly and easily to keep pace with this fast-growing sector, especially when it is estimated that it has the potential to generate about $19 trillion of value over the next few years₁.

One of the biggest issues facing the IoT sector is how to monetize it effectively. Whilst 96% of companies in a recent survey have said that they would be using IoT in some way in the next three years and 68% are already investing budgets in IoT₂, there is a significant stumbling block. Most organizations are struggling to develop significant commercial value from IoT: 70% of organizations do not generate service revenues from their IoT solutions₃.

Capgemini has explored the key monetization challenges facing IoT and its research has found that only 13% of organizations offer IoT solutions that integrate with third-party products and services₃, which in turn is preventing companies from tapping into a larger ecosystem of products and services; and which, in turn, is significantly restricting revenue enhancement opportunities.

Managing revenues

Whether it’s telematics, smart grids and other utilities, security, entertainment, industrial or any of the other burgeoning IoT sectors, service providers need a revenue management solution that can handle a complex range of business formations for the myriad of diverse industry verticals involving numerous partners in highly intricate value chains.They must also be able to go beyond billing for connectivity only, and also be able to implement suitable billing models for the services that are on offer too.