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Operator strategies for IoT connectivity: reducing costs

29 June 2021 | Research

Michele Mackenzie

Strategy report | PPTX and PDF (5 pages)

"Operators are increasingly focusing on IoT connectivity profitability because IoT revenue growth has slowed and margins are being squeezed."


Operator IoT revenue growth has slowed, even though the number of IoT connections continues to experience double-digit growth. This decrease in revenue per connection (ARPC) is significantly affecting profitability. Competition from connectivity disruptors and the new business models introduced by these disruptors are partly responsible for the lower-than-anticipated IoT revenue. Operators are starting to pay more attention to their cost base as a result.

This report provides:

  • analysis of the different approaches that operators have adopted to digitise their sales processes and lower the cost of delivering IoT connectivity
  • examples of operator initiatives to lower sales and platform costs
  • insights for operators that wish to address their cost base and defend their connectivity margins.


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