Operators are leveraging technological partnerships to have a much broader role in the IoT smart home value chain

15 March 2016

Multiple Internet-of-Things (IoT) solutions for the residential market were presented by leading telcos at the Mobile World Congress (MWC) this year, each boasting partnerships that enable telcos to develop local ecosystems to fulfill all of the components of the value chain.

Telefonica announced its partnership with Huawei to leverage its Smart Home cloud-based platform to deploy an end-to-end smart home solution in multiple Latin America countries starting this year.  Orange also showcased its smart home solutions leveraging technological partnerships with Éolane, for a live intercom and Omwave for “My Plug”, an intelligent outlet, controlled remotely by SMS.

These announcements show that Telcos are starting to have a much broader role in the IoT smart home value chain, covering the connectivity, devices, platforms, applications and services. These technological partnerships can help Telcos accelerate the time-to-market process, increase revenues and prevent churn.

Pyramid Research believes that embracing these technological partnerships requires the breakdown of some paradigms that telcos had carried from their long years of dominance in the telecom market space:

  • Profitability pools will need to be shared among all value chain participants, e.g. devices and platforms manufacturers, applications developers and service integrators
  • Channel approach will need to shift from a human centric to self-provisioning model via online marketplaces to allow massive distribution of IoT services.
  • Telcos have to avoid the temptation to develop all their smart-home competencies in-house. They should rely heavily on technological partnership to cost-effectively deliver IoT services to the residential segment
  • Telcos will need to bring down the walls between telecom and IoT PLM functions in order to successfully introduce new telecom and IoT bundle services that will allow residential users to benefit from service bundling

- Daniel Ramos, Senior Analyst, Enterprise Cloud & M2M Practice Leader


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