Key considerations for operators investing in IoT

Over the past years, operators have seen IoT as a growth opportunity, which has led them to increase focus on IoT strategy and make investments in developing and acquiring necessary capabilities. After a few years of targeted efforts, many operators are evaluating the results achieved in IoT revenue and connections growth and looking to understand the future potential and trends that will shape the IoT value chain.

The client, a European operator with a fast growing IoT business, engaged Northstream to conduct outside-in analysis on the factors that will influence the role of operators in IoT in the next 3-5 years as well as resulting considerations and implications for the client’s IoT business. The analysis included strategic aspects such as:

  • Operators’ current state in IoT – connections and revenue growth achieved by operators and conclusions on expected future growth for various tiers of operators.
  • Key factors that will shape operators’ role and opportunities in IoT in the next 3-5 years. The analysis included looking into key trends related to ARPC development, new network technologies such as LPWA and 5G, evolving enterprise needs as well as services extending beyond managed connectivity.
  • Considerations and impact for the client’s IoT business.

The engagement was based on Northstream research and industry knowledge and experience and complemented with insights from interviews. It was delivered to the CEO and provided an outside-in perspective on the operator’s IoT positioning and strategy.