Juniper Research: Cellco revenues to fall by $50B over next 5 years
Juniper Research has identified a series of new revenue opportunities and cost savings which collectively could enable operators to sustain, or even increase, margins. Here are two of them:
The study claimed that the opportunities afforded by the IoT (Internet of Things) should enable operators to increase revenues from that sector by over $8 billion by 2022. It also argued that A2P messaging adoption across a number of key verticals including marketing, banking and healthcare should result in a similar uplift in revenues from that source.
Meanwhile, the report highlighted a series of measures by which costs could be reduced, including network virtualization, the implementation of next-generation firewalls and improving customer relationship management.
The research also assessed the extent to which 15 leading operators across Europe and North America were in a position to implement innovation strategies. The Juniper Operator Innovation Index identified 2 main players, AT&T and BT, as “Leaders” in this space.
According to research author Dr Windsor Holden, “AT&T is a market leader in terms of IoT implementations and adoptions, while both AT&T and BT are at the forefront of research into (and deployment of) virtualizsation of the network.”
For more insights, download Juniper’s complimentary whitepaper, ‘Mobile Operators ~ 5 Mission Critical Strategies to Future-proof Your Business.’
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Intriguing claim: Cellco IoT revenue grows fast, but not fast enough
Operators’ enterprise reporting is poor and reporting on IoT is even worse. We are aware of only four operators (Telstra, Telefónica, Verizon and Vodafone) that regularly report IoT revenue, and only 11 that report connection numbers. For a segment that is supposedly key to future growth, operators are remarkably shy about providing progress updates.
The operators that do provide information are, by definition, atypical. That they are providing data at all probably skews the sample. We can, however, still glean some useful insights by exploring the data that is available.