How to Monetize IoT Device Traffic
The Internet of Things (IoT) has transformed everyday objects into a network of data-sharing devices. As the adoption of IoT devices accelerates globally, so does the potential to monetize its connectivity.
IoT data monetization includes leveraging the data created from mobile devices. When intelligently analyzed and applied, IoT devices can optimize customer experiences. It can enhance your service offerings and open new revenue streams.
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This blog will explore IoT monetization, including the latest in charging and billing technologies for profitable IoT service models.
Identifying Devices to Drive Revenue
To monetize Internet of Things traffic, mobile network operators (MNOs) need to identify and understand the usage and requirements of wireless devices. This IoT traffic includes diverse behaviors and usage patterns influenced by device type and application intent.
MNOs must comprehend the usage patterns and behavior of devices and applications to create revenue from IOT devices. This could be anything from industrial sensors to smart home products including asset management, autonomous vehicles, freight monitoring, smart cities, and agriculture. Creating new revenue streams requires a move away from one-size-fits-all solutions towards highly customized service offerings.
By customizing service offerings, telecom operators can create differentiated 5G IoT monetization services based on the specific needs of the device and customer expectations. Customization at this level improves customer experience, increasing the added value of the service.
Syniverse’s intelligent solutions can analyze roaming IoT traffic and implement effective monetization strategies. Utilizing applications like Syniverse's Mobile Profile Management, MNOs can understand the traffic segments from IoT devices and how those devices use their services and network resources as well as the revenue contribution. Couple those insights with Syniverse’s Universal Commerce which is a strategic enabler that allows MNOs to securely validate and monetize transactions across any industry within the mobile ecosystem.
IoT Data Monetization and Roaming
IoT devices can operate across multiple cellular networks, often crossing borders as they become more popular. Telecom operators enable IoT roaming, so IoT devices (For example imported vehicles, wearables, medical devices, etc., that require connectivity to a mobile network and hence are roaming) can connect and transmit data reliably, regardless of location.
However, traditional roaming plans are unsuitable for the unique demands of IoT devices. IoT devices may require consistent connectivity but use lower volumes of data compared to typical consumer devices. From an MNOs view, though the volume of the individual IoT device is lower than that of a consumer it will still cause significant usage of their network as a collective. Therefore, there is an urgent need for MNOs to develop specialized IoT roaming plans that cater to these needs. Such plans should consider low data consumption, consistent connectivity, and infrastructure costs.
Telecom Operators and IoT Roaming
Traditional roaming charging plans do not fit the unique needs of IoT devices. IoT devices often use small amounts of data but need a constant connection. To address this, MNOs need to develop specialized IoT roaming plans. These pricing plans should focus on low data usage and consistent connection.
When setting prices for IoT roaming MNOs should consider:
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The intent of the device
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The amount of data the devices are expected to use
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The types of devices
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The number of devices
By understanding these factors, MNOs can create pricing models that are fair and appealing to businesses using IoT devices that will also enable the MNO to grow as their customer does.
Advancements in Clearing and Settlement Technology
MNOs have traditionally relied on Transferred Account Procedures (TAP) for their roaming agreements and clearing processes. TAP was well-suited for voice and basic data services, enabling operator record exchange. However, as the volume and complexity of data transactions increase with IoT and 5G, TAP's limitations within a charging model capacity have become apparent.
It’s inefficient when handling large volumes of data-intensive services typical in IoT device deployments. A flexible settlement method, Billing and Charging Evolution (BCE) was designed for future wholesale roaming settlement needs of operators and is better equipped to overcome these hurdles.
BCE supports modern telecommunications, including 5G roaming and IoT device services. It is flexible and handles real-time data to manage IoT device use cases and the high data usage of 5G.
Universal Commerce, Syniverse's BCE-compliant application offers several advantages over traditional billing systems:
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Flexible pricing models: Universal Commerce allows operators to implement more dynamic charging models for IoT and 5G services. This flexibility supports customized plans catering to many IoT applications' low-volume but high-connectivity demands.
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Enhanced roaming agreements: Universal Commerce enables advanced agreements for IoT devices crossing borders. These agreements ensure seamless service and cost-efficiency, which are vital for successful global IoT solutions.
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Security: Backed by blockchain technology at the smart contract level, aggregated data and contract management are managed securely, giving a greater level of security than typical BSS applications.
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Real-Time Data Processing: Universal Commerce’s flexible processing allows almost any input format and then aggregates it in real-time, which is a major advantage for 5G and IoT/M2M traffic which tends to be small and bursty, giving the ability to rate and exchange much more than traditional clearing.
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Scalability and adaptability: BCE's scalable architecture allows telecom operators to manage an increasing number of devices and data transactions without compromising performance or accuracy.
Futureproof Your IoT Monetization Model
From creating customized service models to implementing innovative pricing strategies, the IoT monetization opportunities are boundless. MNOs are uniquely positioned to provide global connectivity for IoT devices and start servicing their enterprise customers with a unique offering and partnership that allows them to operate across borders and networks seamlessly.
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