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Telcos warm up to internet of things to shore up revenues

“There’s a need for an immediate focus to be able to participate in this IoT opportunity. From the experience on OTT (over-the-top, or app) wherein, telcos were late in participating, telcos realize that they have to be aggressive and need to invest now rather than wait for the ecosystem to mature,” 

By Danish Khan

Reliance Industries’ (RIL) acquisition of US telecom software firm Radisys underlines the necessity and revenue opportunities for carriers in nextgen services such as Internet of Things (IoT), amarket which could be worth well over $9 billion by 2020 in India.

The telcos are keeping in mind that data tariffs have dropped 90% while voice tariff by about 60% in the past couple of years, resulting in gross revenue falling 8% on-year to Rs 2.6 lakh crore in 2017, and are thus shifting focus from core telecom services to emerging technologies and have begun tapping areas such as IoT and Machine-to-Machine (M2M) more aggressively.

Rohan Dhamija, head, India and the Middle East for consultancy firm Analysys Mason, said that telcos will need to go beyond their comfort zone of offering services beyond connectivity which only forms 20 to 25% of the IoT value chain in terms of revenue. 

“There’s a need for an immediate focus to be able to participate in this IoT opportunity. From the experience on OTT (over-the-top, or app) wherein, telcos were late in participating, telcos realize that they have to be aggressive and need to invest now rather than wait for the ecosystem to mature," he said.

He explained that the requirement for investment and the addressable revenue opportunity will increase as telcos move from connectivity to end-to-end solution provider.

Read the full article at: //economictimes.indiatimes.com/articleshow/64819427