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Service Providers monetizing IoE

  • 1.  Service Providers monetizing IoE

    Posted Jan 30, 2017 15:24
    Edited by System Oct 30, 2018 15:01
    How does a Service Provider make money out of IoT/IoE and not just end being the “bit pipe” for other companies cool innovations?

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    George Glass
    Chief Systems Architect
    BT Group plc
    Belfast
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  • 2.  RE: Service Providers monetizing IoE

    Posted Jan 31, 2017 06:53
    Edited by System Oct 30, 2018 15:01
    Without sounding cliché, Telecoms already possess the foundations to start the innovation wheel.  It is leveraging and harnessing the infrastructure that already exists in a clever way; to reach as many people as possible.

    This is something I am personally very interested in, having been a child of the 70s and 80s - the way technology has evolved is far more than I imagined in such a short space of time. 



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    Pearl Neveling
    Technical Account Manager
    Torry Harris Business Solutions Pvt Ltd
    Bristol
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  • 3.  RE: Service Providers monetizing IoE

    Posted Feb 01, 2017 05:01
    I think Telcos could play a very important role in the IoT/IoE landscape and be able of reaping large benefits.

    First of all, they should become the lead providers of the network infrastructure through which all this large amount of data will be exchanged between the various devices, gateways and platforms. And here I am talking about leveraging the existing network infrastructure by deploying and enabling cellular LPWAN technologies like NB-IoT and CAT-M1; which are designed (as per 3GPP) to have a larger coverage and support extended battery life.

    Then comes the platform. Telcos should own the platforms that bridge between the devices and network from one side and the set of applications and IoT/IoE services from the other side. These platforms could be able of device registration, management, configuration and doing collect/aggregate/store of data as few examples. Then, all these capabilities could be provided as a service to external parties through APIs. In my humble opinion, IoE applications and service owners would like to avoid managing devices, networks and data and focus on using the available data depending on the use-cases or service they provide. In that sense, buying such a service from a Telco might look more appealing than doing the "low-level" work themselves.

    And if I want to push that further, Telcos could even own the devices in some specific use-cases like smart metering and smart parking as few examples and offer to sell the data to 3rd parties.

    All of the above makes Telcos interfacing with application/service owners and not directly with end-consumers. But, this is not to say that Telcos couldn't come up with new and innovative services that can be offered to their end-consumers directly. Today, I was reading about Telenor Group which announced the pilot of Telenor Connect, a new IoT app enabling drivers to keep track of their cars. This will allow a comprehensive overview of vehicle status and car owners will also have access to a complete ecosystem of car-related and tailored services within the app. A network of trusted partners will offer personalized and timely offers to the customer, ensuring a seamless experience for the car owners.

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    Jihad Khairallah
    Solution Architect - Ericsson
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  • 4.  RE: Service Providers monetizing IoE

    Posted Jan 31, 2017 08:18

    While many vendors enter the IoT space by selling a thing for a one-time revenue usually providing a service free of charge, I guess you are looking for business models with e.g. monthly renevues.

    In my humble oppionion, you can only create recurring revenues in the IoT if you sell a service not only a device.

    I think there are at least 3 options for IoT business models:
    1) Value Added IoT Service Provider: A sustainable model on both sides - for the provider and for the end user - the service you sell needs to have an added value that should NOT be "essentially" for the "thing" (you sell). For example, nobody would buy a thermostat where the user needs to pay for a monthly subscription fee for the basic functionality like controlling the heating to hold a certain temparature. However, if you have a special service that optimizes the user experience, users will likely accept a (low) fee e.g. for having an intelligent thermostat with an connection to an A.I. system that predicts when the heating can lower the energy input because the sun is shining in the next 15 minutes, or predicting that you will come 23 minutes later from work this day because of traffic.
    2) Sharing Things Provider : The thing you sell is soo expensive that nobody can own it or resp. there is a benefit to share it with others. In this case, managing the thing is a service you can sell on a monthly basis or on demand. For example, a provider manages as a fleet of driverless cars on demand.
    3) Platform Provider: You provide a platform for things and other parties pay you when they sell their services or goods using the platform. For example, vendors share revenue with Amazon when the user hits the Dash Button.

    Do you have identified another IoT/IoE business model? please share it in this thread



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    Tom Dinkelaker
    Software Developer
    Ericsson Inc.
    Frankfurt
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  • 5.  RE: Service Providers monetizing IoE

    Posted Feb 01, 2017 05:00

    Hi,

     

    Tom, mentioned some interesting options. To this I would like to add – the Operators becomes a "Business Store"

     

    "Business Store" – The operator brings together offerings from partners and sells them thru their Sales channels – "One Stop Shop"

    Eg: I want my home to be secured. I reach out to my operators sales channel, the Sales channel gives me options – covering connectivity, equipment, monitoring tools etc.

    One complete package.

    The operator, in turn gets to be the one stop shop, earn thru monthly, yearly subscriptions/commissions. Add extra toppings with "insurance", "O&M" etc.

    Regards,

    Alexander Wilson
    Sales Specialist

    Ericsson






  • 6.  RE: Service Providers monetizing IoE

    Posted Feb 01, 2017 10:03
    Edited by System Oct 30, 2018 15:01

    Delivering the scale, reliability, performance and security necessary to monetize IoE will take foundational business changes and a solid operational strategy. Neither operators nor enterprises can hope to stumble upon a successful approach to profiting from IoE.

    http://www.ictintuition.com/blog/uncategorized/dont-assume-a-business-model/

     

     

     

    Nancee Ruzicka

    ICT intuition

    +1 720.981.5755 office

    +1 920.216.6379 mobile

    nruzicka@ictintuition.com

     

    www.ictintuition.com

     

     

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  • 7.  RE: Service Providers monetizing IoE

    Posted Feb 01, 2017 05:00
    I think Service providers can do that by coming up with Innovative Apps or Products based on IoT, which the consumers will be willing to pay for. For ex: if a service provider gives me a app which will monitor the tap water quality in my home and sound an alert when it goes bad, I will be willing to pay for it. Or if some app runs my car engine diagnostics once a month and gives a report, i will pay for it.

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    Anirban Konar
    Cognizant Technology Solutions
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  • 8.  RE: Service Providers monetizing IoE

    Posted Feb 02, 2017 09:21
    A good example I can think of is : Comcast XFinity, in particular Comcast XFinity Home Security Solutions. Here is a cable based Services provider, who have extended their product capability by offering IoE solutions, and are continuously adding more.

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    Anirban Konar
    Cognizant Technology Solutions
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  • 9.  RE: Service Providers monetizing IoE

    Posted Feb 01, 2017 17:24
    @George, my view is that IoT/IoE will be essentially around services for which an ecosystem of players is needed to be able to deliver the service and integrate with the company's current processes and systems (some may not exist as in the case of new ventures). Communications Service Providers can make money by being a player in more than just the telecommunications bit.

    Pedro PAIVA
    Clos Devant 21
    CH-1163 Etoy (Switzerland)
    Tel.     +41 21 807 38 40
    Mobile  +41 79 373 93 41
    pedro.paiva@a3.epfl.ch

    My profile: 
     pphawkeye






  • 10.  RE: Service Providers monetizing IoE

    Posted Feb 02, 2017 07:33
    One additional thing to consider is that CSPs operate in a saturated market and as such churn is extremely important. CSPs can take advantage of building a complete ecosystem (not only acting as quad-play service providers) in order to reduce customer churn.

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    Omar Al Qweider
    Talk Talk Group PLC
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  • 11.  RE: Service Providers monetizing IoE

    Posted Feb 02, 2017 09:21
    HI,

    My 2 cents in this topic. Monetizing the IOT/IOE has basically 2 market segments, being IOT/IOE for industry or for the mass market consumers. I 'd like to share my view with the for the mass market consumers.

    Challenges for consumer for IOE/IOT adoption is the Price/value. Majority of the device/service is bundled with the supplier, there is very little possibility to leverage the device/service value by orchestrate a  more advanced use case. Thus mass adoption for smart devices are slow. 

    Challenge for the telco service provider is amount of connectivity, in the era of IOT/IOE, the amount of connectivity is 100, 1000 time more for the connected devices, however the ARPU/connection for LoRa end points maybe 1/10, 1/100  of existing mobile broadband endpoint. Thus scale with the connectivity would not be a good business model. Instead, provide a solution to the customer's challenge for IOT/IOE would provide good potential revenue growth.

    That is a IOT/IOE platform model, provide advanced customer use cases by orchestrate the product and services within the platform, gain insight of the IOT/IOE data payload, enable the value transfer between the endpoints, enable smart contract for devices and services. 


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    shengfan Hou
    Business Analyst
    Qvantel Oy
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  • 12.  RE: Service Providers monetizing IoE

    Posted Feb 02, 2017 07:32

    CSPs need to play to their traditional strengths and experience. If you can ensure secure connectivity, including backup access, and provide device management for the newly connected devices, then you are creating something of value for a customer. This needs to be in partnership with device manufacturers, as creating such things isn’t a CSP’s strong point. CSPs already bring together different types of network devices, managing them consistently and defining some kind of standardisation in the way that you control them. If you can do that for these new range of devices, then a customer who has a large number and wide variety to manage should see that you can offer them a worthwhile service.



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    Chris Hughes
    Torry Harris Business Solutions Pvt Ltd
    United Kingdom

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  • 13.  RE: Service Providers monetizing IoE

    Posted Feb 02, 2017 10:56
    Hi George,

    In the CEM work stream of TMForum we worked on the concept of Experience Integrator. I have linked the document IG1149 which we developed.
    We have covered the monetization aspects of IoE and also given the back ground how business model has evolved with digitization and possible model for future.

    The document is already published by TMForum, your feedback will be very useful for us.

    IG1149 Guide to Customer Experience Integrator R16.5.0 - TM Forum
    TM Forum remove preview
    IG1149 Guide to Customer Experience Integrator R16.5.0 - TM Forum
    Internet of Everything (IoE) is almost a reality. The Communications and related IT industries are moving fast to implement the ideas developed in labs to the real world. The communications technology evolution that embraces SDN/NFV, 5G and other new media will create the backbone of the connected world to meet the technology and cost challenges involved in realizing the dream of IoE.
    View this on TM Forum >


    Thanks and Regards,
    Abinash Vishwakarma 

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    Abinash Vishwakarma
    Netcracker Technology
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  • 14.  RE: Service Providers monetizing IoE

    Posted Feb 14, 2017 13:45
    One of my favorite sayings is "Do not be the gold-miner, be the person selling blue jeans to the gold miners".  The IOE represents an amazing opportunity to re-imagine infrastructure at scale.  Nothing we have today is going to be able to handle the new world order.  Everything to date is predicated on human interactions and implicitly considers humans to be the gatekeepers.

    IOE, on the other hand, thinks of humans as optional participants and runs very well with no humans in sight.  To this end, IOE is the ultimate is system automation and yet these solutions reside on human-centric infrastructure.  From security, management, and operations to on-demand networking, new communications protocols and even basic architectures, everything needs to change.

    The companies that figure this paradigm shift out first and can provide solutions as a service will be the next generation blue jean providers (moon pants...wait that has already be done...).  This is where innovation can translate into massive revenues and where - regardless of what cool gadget or software comes onto the market - revenues will prevail long term.

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    Ken Tola
    Bear Systems
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