Prague, September 7, 2015 – Given the tremendous industry growth, machine-to-Machine (M2M)/ Internet of Things (IoT) has become one of top business drivers for leading telecom operators across the globe, and the market in Central and Eastern Europe (CEE) is no exception. IDC forecasts the global installed base of IoT to hit 28.1 billion devices in 2020, generating revenue of $7.1 trillion, with cellular M2M being a subset. Though mobile connectivity provision has historically represented telecom service providers‘ core proposition in M2M, their strategies are evolving to embrace other parts of the value chain, particularly those with higher margins. (TZ)
„With the telecommunications services revenues from core voice and messaging services declining, telcos are on the lookout for new growth opportunities. M2M is certainly one of them,“ says IDC analyst Ina Malatinska. „Connectivity represents only about 10-15% of the total M2M revenue pie. It has become a commodity and we expect connectivity ARPUs to continue falling dramatically.”
Leading telcos understand they have to expand beyond selling SIM cards to capitalize on the M2M opportunity – they are offering comprehensive end-to-end solutions (such as fleet management), including related services with higher margins, enabling M2M application development (providing platforms), and bringing consulting and integration capabilities to M2M projects.
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