Major telecommunications companies continue to explore new entrepreneurial initiatives as a way to combat market commoditization. Despite this, total shareholder return has only grown by 28% over the past seven years. The business-to-business (B2B) sector offers many growth opportunities for advanced telecommunications companies, but market differentiation is key to success. The Internet of Things (IoT) therefore rises to the top for telecom operators looking to differentiate themselves from the competition and improve their business models.

By creating a network of advanced analytics, automation capabilities and real-time information, the Internet of Things has the potential to deliver new operational benefits to businesses across all industries. However, many companies investing in IoT technology are struggling to deliver the promised dividends. Communication is one of the main obstacles to achieving this potential. All industries need IoT solutions that are quick and easy to implement. As 2023 approaches, many operators are already switching to 5G. This puts them in a leadership position next year to offer ready-to-market mobile and roaming IoT solutions that work “out of the box” by connecting a device point to a network.

Now is the time for telcos to invest in the future of the Internet of Things

IoT technology enables telecom operators to take on new roles as service providers, which in turn will help improve recurring revenue margins and reduce customer disruption. This is in line with customers needing to increase OPEX spending compared to capital spending. From smart hospitals and smart factories to fleet management and autonomous vehicles, there are countless examples of B2B applications that require low latency, high bandwidth, and high reliability while on the go or on the go in real time Operators have a unique opportunity to offer solutions that support these use cases to help customers quickly realize the value of the Internet of Things.

For this reason, strong mobile network coverage is critical to future IoT adoption, and operators are ready to help them deliver essential services. Telecommunications companies can take advantage of a wide range of core communication services that elevates them from selling "conduct" to selling tangible "business results." In this way, telecommunications companies have a strategic way to increase market fit. For example, the IoT market in Australia and New Zealand is expected to reach $2 billion by 2026. Vendors that can help businesses achieve their digital transformation goals and provide essential connectivity will be able to demonstrate true value of their services. This story is compounded by the lack of a global market leader in providing IoT services. Here, the market is so divided that analysts predict this will create significant uncertainty, Michelle McKenzie and Tom Rebeck of Analysys Mason note: "A company that wants to add connectivity to its devices is going to have a tough time. And it's tough. Just add that Qualcomm and others have units that provide NB-IoT and LTE-M connectivity, but that adds complexity and cost, which is exactly what the industry hopes to avoid with solutions, now to take steps to capture the Internet of Things for the telecommunications operators in the market, will have first-mover advantages, but with the realization that Verizon, Telefónica, Claro Brasil and NTT Docomo are already moving in this direction, the race has begun to solve the current supply chain challenges.

Simplify IoT delivery

The Internet of Things promises to revolutionize the way we live, work and play. The technology relies on a network of physical objects permanently connected to the Internet to send real-time updates back and forth, creating a rich flow of data from peripheral devices to central servers. The ability to deliver a seamless digital self-service experience to B2B customers depends on a strong supply chain, and this is where the key opportunities lie. IoT service delivery consists of many interrelated layers that must be taken apart if supply chain issues are to be resolved.

How partner networks are changing the future of IoT

When it comes to the future of the Internet of Things, telcos have an ace up their sleeve. With the availability of stable 5G connectivity, telecom operators face a huge market challenge for all channel operators who are excited to tap into the potential of IoT. But accelerating IoT adoption in B2B markets is not and should not be a separate journey. Trying to solve each challenge individually not only increases the scope of the project, but also shortens the critical time to market. Together, this could cost carriers a first-mover advantage. Alternatively, operators can collaborate with other channel operators to address end-to-end supply chain issues. An authorized distributor will have logistics, inventory and contracts covering multiple sellers and vendors, meaning new products and services can be added quickly. Some vendors may have their own IoT divisions with expertise in building technology stacks for different use cases while ensuring interoperability.