A new year has barely settled in, and already, the IoT (Internet of Things) is fueling changes in the telco industry. According to Gartner, the 8.4 Billion connected "Things" in use today will balloon to an unprecedented 20.4 billion by 2020. The largely consumer-fueled growth will be driven by three regions: North America, Western Europe, and mainland China.
Now that we understand the challenges for today's telcos, we understand that, in order to succeed, telcos need to embrace the changes and challenges within their market. Yes, consumers want different solutions and services than they did a decade ago. Yes, voice calls and SMS messaging will no longer be the core component of increasing ARPU. Yes, the Over-The-Top (OTT) players have changed the game with their innovative eye and quick-to-market solutions.
Advances in technology are changing the world, and the telecoms industry is no exception. The growth of the Internet of Things (IoT), 4G, and even 5G, as well as changes in consumer behavior and expectation, have turned the traditional telecom business model on its head.
As use of over-the-top (OTT) communications services continues to grow, demand for wireless data has soared. Today’s mobile network operators, while making infrastructure investments to meet this demand, also face declining messaging volumes and revenue due to the popularity of these third-party OTT alternatives.
Network Operators Face growing pressure to maintain average revenue per user (ARPU) in the face of increased data demands and competition from new, “over-the-top” (OTT) service providers such as Skype ad WhatsApp…