Telecoms Tech – Opinion: IoT as a share of operator revenues will increase three-fold, at least for some
In essence, the Internet of Things (IoT) is an extension of the digitalisation trend that has been going on for years. In addition to regular digitalization procedures, such as automating processes or creating web-enabled platforms for services, companies are also equipping their machines, products, and factories with sensors and connectivity modules. We’ve seen similar trends in the past, however, this time the communications industry will play a far more vital role.
Leading operators can expect to make 3-5% of their revenues from IoT in the next few years. While this may seem small given the level of hype surrounding IoT, it’s worth considering that today, these same large operators are making around 1% of their revenues from IoT. In that context, 5% represents considerable growth for the sector and a return on the investments they have been making.