Addressing the Internet of Things
Device/Service Subsidy: CSPs are wise to lower the barrier to entry into new digital services. AT&T offers Digital Life with no up-front costs; Orange’s My Plug comes with 3 years of free service.
Partnerships: The early bird gets the worm, and partnering often accelerates time to market. Further, global platforms are very compelling to enterprise customers, which could require network partnerships.
Security and Data Privacy: In the healthcare, financial services, and utilities domains, security and data privacy are paramount.
Connectivity Agnostic: The most compelling IoT solutions can connect to a multitude of operator networks over varying wireless protocol, and easily communicate with other connected devices.
Multiple Payment Methods: Use cases vary wildly in IoT, and a one-size-fits-all approach to billing is a fail. IoT solutions must support multiple types of payment (periodically, one-time, subscription), and enable customers to make changes during the service life of their devices. In the case of AT&T Digital Life, there are numerous ways for a customer to structure a plan and pay for service.
Tap Incremental Revenue Opportunities: For CSPs, the most significant long-term revenue opportunities in IoT exist beyond the pipe and the device and in the layers in between and surrounding the IoT ecosystem. A smart refrigerator is more than a connected device—it is a window into the home, a portal into the digital lifestyle. Numerous opportunities exist to extract incremental value from the ecosystem with big data analytics, open interoperable platforms, and interconnected service bundles.
An entirely new way of life is being developed, one that is always connected, seamless, and easily managed. It is driven by M2M and IoT, and will transform cities, cars, utilities, education, healthcare, manufacturing, finance, and daily life. Although there are challenges, CSPs are well positioned to profit from IoT if they leverage their key strengths, partner with key players to exploit emerging revenue opportunities, and continue to move with the speed of innovation.
