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IoT monetisation platforms: CSPs need new systems for effectively monetising emerging use cases

John Abraham Principal Analyst, Research

"IoT represents an immediate opportunity for CSPs, and CSPs are best placed to capitalise on this opportunity if they adopt new platforms that provide them greater flexibility to effectively monetise IoT use cases."


Many communication service providers (CSPs) are considering, or actively engaging with, Internet of Things (IoT) use cases. This focus is driven both by the growing clarity on IoT business models and the strong headwinds faced by CSPs in growing their consumer business. Across industry verticals, IoT adoption continues to grow and is expected to reach 5.1 billion connections by 2026 (including traditional cellular networks and low-power wide-area networks (LPWA)). The total revenue from the value chain for mobile IoT and LPWA connections is expected to be around USD201 billion by 2025. IoT represents an immediate opportunity for CSPs. Consequently, CSPs want to improve their capabilities to effectively monetise these emerging IoT use cases (Figure 1). However, given the current state of most CSPs’ support system infrastructure, there is much that needs to be done to ensure CSPs remain an integral part of the IoT monetisation value chain.

To begin with, the complexity of CSPs’ existing legacy systems impedes their ability to rapidly monetise emerging IoT services. CSPs have two options to overcome this challenge: extend existing systems to support specific IoT requirements, or deploy modern, all-new platforms. While extending existing platforms may appear to be a cheaper and faster option, this approach can, in the long term, become complex and expensive to maintain. CSPs are best placed if they adopt new platforms to support IoT monetisation since it provides them greater flexibility to address new use cases.

Figure: Essential characteristics of IoT monetisation platforms of the future [Source: Analysys Mason, 2019]

This white paper provides an overview of the current state of existing CSP systems and discusses the key system-transformation strategies that CSPs may adopt for the effective monetisation of emerging IoT use cases.