For Infrastructure & Operations Professionals

M2M Connectivity Helps Telcos Offset Declining Traditional Services

But They Are Poorly Positioned For The Larger Value-Added Service Opportunity

    Why Read This Report

    Telcos face increasing pressure on traditional voice revenues and seek new revenues from services leveraging existing assets. Machine-to-machine (M2M) technologies, including radio frequency identification (RFID) tags, ZigBee sensors, and actuators, have been available for more than a decade. Lower device costs, IP network deployment, and opportunities to improve business operations in many vertical markets are driving telecom service provider investment in M2M technologies to capture new revenues from M2M service deployments. In 2016, Forrester forecasts approximately 450 million connected M2M devices globally will generate nearly $17 billion in connectivity revenues, growing at a 34% compound annual growth rate (CAGR) between 2010 and 2016. To capture these M2M revenues, telecom providers must sharpen their vertical market focus; make changes in their strategic, billing, and operational activities; and expand partnerships. However, connectivity revenues alone will not fill the gap left by declining revenues from legacy telecom services. Long-term success requires telcos to capture value-added service revenues beyond M2M connectivity.
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    • Telecom Carriers Face Declining Traditional Markets
    • Changing Market Dynamics Catalyze Demand For M2M Services
    • M2M Encompasses A Wide Range Of Devices
    • Emerging M2M Connectivity Revenues Appeal To Telcos
    • Telcos Must Make Strategic And Operational Shifts To Capture M2M Revenues
    • Telcos Will Capture M2M Connectivity But Likely Miss The Bigger Opportunity

      Telcos Must Continue To Make Strategic Changes For M2M Market Success
    • Supplemental Material
    • Related Research Documents