How Mobile Operators Can Monetize IoT Traffic Into Lucrative New Revenue Streams
The internet of things (IoT) has emerged as a transformative force, connecting billions of devices and generating massive amounts of data. While IoT offers numerous benefits in terms of efficiency, automation, and improved decision-making, it also presents a wealth of opportunities for monetization.
Mobile network operators (MNOs) and the enterprise businesses they support can harness the power of IoT to unlock new revenue streams and create innovative business models. They can achieve this using a few tools, examining specific business use cases, and the consideration of key factors
The Growth Potential of IoT Roaming Traffic:
IoT devices are increasingly being deployed globally, transcending borders and operating on various cellular networks. These devices include smart meters, connected vehicles, and industrial sensors. They generate vast amounts of data that need to be transmitted across networks. From connecting smart cities to IoT manufacturing, monetization has many opportunities to increase revenue.
Telecom operators can tap into this growth by facilitating IoT roaming. They can enable devices to seamlessly connect and transmit data across borders. As the number of IoT devices continues to skyrocket, the monetization potential of roaming traffic becomes increasingly evident.
Identifying Those Devices to Enhance Profitability:
MNOs can leverage IoT roaming solutions to improve customer experience. At the same time, they can watch new revenue flow in. IoT traffic differs greatly from standard consumer data and roaming is no different for IoT monetization.
Service customization is absolutely critical for charging models and usage patterns. This helps optimize customer experience and gain greater control over cost management and profit generation. Achieving this boils down to a few simple things that operators need to do, including:
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Offering differentiated IoT services that are uniquely tailored and highly customized toward customer needs.
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Stimulating increased usage from low spend and silent roamers.
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Providing data usage transparency to subscribers and managing volumes to reduce wholesale costs.
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Monitoring roaming usage in real time.
Tailored IoT Roaming Plans:
To monetize IoT roaming traffic effectively, telecom operators need to develop specialized IoT roaming plans. These plans should cater specifically to the unique requirements of IoT devices. Such requirements include:
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low data consumption
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consistent connectivity
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cost efficiency
By offering customized plans, operators can attract IoT service providers, businesses seeking global connectivity, and other operator partners for their devices. Pricing models can be designed based on factors like:
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data volume
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device type
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the number of connected devices
Operators can capture value from IoT roaming traffic with this IoT monetization model
Value-added Services:
In addition to connectivity, MNOs can differentiate themselves by offering value-added services for IoT roaming. These services may include enhanced security measures, real-time device monitoring, or data analytics capabilities.
MNOs can provide end-to-end solutions to address the pain points of IoT service providers and businesses. This adds value to their IoT deployments. Value-added services increase customer satisfaction. They also create additional revenue streams for operators in the form of service subscriptions or usage-based fees.
Partnering with IoT Service Providers:
Collaborating with IoT service providers can be a mutually beneficial strategy for telecom operators. MNOs can partner with established players in the IoT ecosystem. They can leverage their partner’s expertise and customer base to expand the reach of IoT roaming services.
Mobile operators can offer preferential rates or revenue-sharing models. This incentivizes IoT service providers to choose their network for IoT roaming. This collaboration strengthens the overall IoT value chain and allows operators to tap into new markets and verticals.
Developing IoT Roaming Aggregators:
To streamline IoT roaming traffic monetization, MNOs can develop IoT roaming aggregators. These platforms act as intermediaries between IoT service providers and operators, providing a centralized hub for managing connectivity, billing, and service provisioning. IoT roaming aggregators simplify the complexities associated with managing multiple operator relationships and provide a seamless experience for IoT service providers. By operating such platforms, MNOs can monetize IoT roaming traffic efficiently while reducing operational overheads.
Exploring New Revenue Models:
Beyond traditional connectivity-based revenue models, MNOs can explore innovative approaches for IoT data monetization for roaming traffic. For instance, MNOs can establish revenue-sharing agreements with IoT service providers. MNOs can receive a percentage of the revenue generated from IoT services enabled by their network.
Additionally, operators can explore partnerships with data analytics firms to extract insights from roaming traffic with IoT data monetization. They can offer valuable analytics reports to customers for a fee. Exploring these new revenue models expands the potential for revenue generation in the IoT roaming space.
Making the Transition From TAP to BCE To Build an IoT Monetization Strategy Now
IoT networking monetization for roaming traffic presents a significant opportunity for MNOs. They can diversify their revenue streams and capitalize on the growth of emerging technologies such as:
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IoT
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MIoT
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NB-IoT
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and others
But the old way of doing business is no longer suitable. Therefore, it’s imperative MNOs begin the transition from Transferred Account Procedures (TAP) to Billing & Charging Evolution (BCE) now. We’ve talked a lot about opportunity, but what does that opportunity for IoT monetization actually look like?
First, MNOs have neglected identifying, monetizing, and categorizing untapped revenue streams for too long. Instead, MNOs need to understand what is happening on their networks. They need to know how to turn insights into future activities.
They also need to create financial win-win situations with their wholesale roaming partners. MNOs should implement wholesale charging strategies that support retail to create this two-way avenue.
With this IoT monetization model, retail usage drives wholesale and wholesale enables retail. Lastly, MNOs and their partners need to automate operational processes from transaction to settlement. This is necessary to scale their business.
Only then will MNOs become more successful in earning a piece of the pie when it comes to monetizing IoT. Otherwise, they will be playing catch-up when it’s already too late.
