The Internet of Things (IoT) market is expanding rapidly, as enterprises prioritise digital transformation, writes Christina Patsioura, the lead analyst for IoT & Enterprise Research at GSMA Intelligence, in this report which has been authored by GSMA Intelligence with support from floLIVE. However, mobile operators are struggling to translate this growth into sustainable revenue, as IoT connectivity alone is becoming increasingly commoditised
Challenges for mobile operators include the following:
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- Declining connectivity revenues. Intense competition from mobile virtual network operators (MVNOs), hyperscalers and IoT service providers is driving down margins, making it difficult for mobile operators to differentiate their offerings.
- Enterprise churn and value creation. Operators must evolve beyond basic connectivity as enterprises demand security, integration and multi-country network consistency.
- Complexity of global coverage. With 38% of enterprises requiring IoT deployments across multiple continents, traditional roaming models are insufficient, requiring new connectivity frameworks.
- An investment dilemma around 5G RedCap and legacy support. While enterprises seek future-proof, low- power IoT solutions, many existing IoT connections still rely on legacy 4G, LPWA and even 2G/3G networks.
- Enterprise IoT adoption barriers. Cost of implementation, security concerns and technology integration challenges remain key obstacles hindering IoT deployments at scale.
Read more: iot-now.com
