Operators can utilize their LTE and 5G networks to minimize and justify the investments for NB-IoT and LTE-M
Service revenue growth for the carriers is no longer growing at the high single-digit or double-digit pace of the past. The Dell’Oro Group Telecom Capex report suggests that worldwide carrier revenue was flat in nominal USD terms for the first half of 2018, recording a fourth consecutive year of stable, low single-digit growth. So it is no surprise that operators feel a tremendous sense of urgency to identify the next growth engine. With the near-term drivers for 5G NR focusing on capacity improvements and improved spectral and cost efficiencies for mobile broadband applications, operators are increasingly excited about the revenue upside with IoT.
We remain optimistic about the IoT opportunity and continue to forecast
cellular IoT revenues for both the carriers and the infrastructure radio vendors to grow rapidly over the next five years – our baseline estimates assume carrier IoT revenues will grow ~2.5x over the forecast period, accounting for about 3% of total mobile operator revenues by 2022.
To read the full article I wrote, please click here to download the full Telecom Asia magazine December issue (8MB PDF)