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Twilio highlights the threat to operators’ IoT connectivity business

Tom Rebbeck Research Director, Operator business services and IoT

"Twilio built its core CPaaS offering by filling a gap that telecoms operators had failed to fill. Its IoT offering could do the same."

Most operators with a focus on IoT are exploring ways to move into the provision of other services, from hardware to applications, despite earning 90% of IoT revenue from connectivity. The launch of Twilio’s IoT connectivity offer, in April 2018, shows the threat to the basic connectivity business. If operators fail to address the threat of companies like Twilio, they may lose connectivity business without ever gaining traction in other parts of the value chain.