Telecom
How Telcos Can Benefit from $7.1tr Cellular M2M, IoT Industry
Given the tremendous industry growth, machine-to-Machine (M2M)/ Internet of Things (IoT) has become one of top business drivers for leading telecom operators across the globe, and the market in Central and Eastern Europe (CEE) is no exception.
IDC forecasts the global installed base of IoT to hit 28.1 billion devices in 2020, generating revenue of $7.1 trillion, with cellular M2M being a subset.
Though mobile connectivity provision has historically represented telecom service providers’ core proposition in M2M, their strategies are evolving to embrace other parts of the value chain, particularly those with higher margins.
“With the telecommunications services revenues from core voice and messaging services declining, telcos are on the lookout for new growth opportunities. M2M is certainly one of them,” said IDC analyst Ina Malatinska. “Connectivity represents only about 10-15% of the total M2M revenue pie. It has become a commodity and we expect connectivity ARPUs to continue falling dramatically.”
Leading telcos understand they have to expand beyond selling SIM cards to capitalize on the M2M opportunity – they are offering comprehensive end-to-end solutions (such as fleet management), including related services with higher margins, enabling M2M application development (providing platforms), and bringing consulting and integration capabilities to M2M projects.
Some telecom operators are even acquiring companies to gain a strong position on selected markets.
One example is Vodafone’s acquisition of Cobra, which was intended to help the operator become a full service provider for the automotive industry.
Others are putting a strong emphasis on in-house R&D to drive innovation, such as Deutsche Telekom with T-Labs and T-Systems Innovation Center and Orange with Orange Labs. “In a nutshell, telecom operators want to be key players in the M2M/IoT game.
Whenever you see high-end cars streaming entertainment content on the road or a remote patient monitoring solution, you can be sure that a telecom operator is involved,” notes Malatinska.
Innovative services built on collected M2M/IoT data will transform industries.
Gradually, telcos will put more emphasis on developing critical data analytics capabilities. As market demand is shifting from simple remote monitoring and control to business processes optimization and identification of new business models, data analytics will become essential to success.
Data will represent the most important enterprise asset, and companies will need a tool to extract relevant information from large volumes.
This is where data analytics comes in: enabling enterprises to deliver innovative services, get closer to their customers, and explore new revenue streams, among other benefits.
Telcos in the CEE region have multiple ways to differentiate themselves competitively in the M2M area.
Local telcos that are part of an international group (such as Deutsche Telekom, Vodafone, and Orange) can greatly benefit from a technology and know-how transfer, as well as broad geographical coverage, which is relevant especially in industries such as manufacturing.
That said, local market specifics including access to corporate customers, marketing and product strategy, partnership with local vendors and systems integrators, and go-to-market strategy are still of key importance.
IDC believes that telecom operators will continue to play a principal role in building the M2M/IoT market.
Beyond strengthening their own proposition, demonstrating a clear business case for M2M/IoT solutions across verticals, building strong partnerships, enabling application development, developing new services and analytics capabilities, and more — telcos should act as hubs for innovation and keep educating the market about the benefits of M2M solutions.
This is most essential in markets that are still in the early stages of maturity, such as those in the CEE region.
Telecom
Galaxy Backbone Deploys Fibre Optic Network in Lagos, Ibadan and Ilorin
Galaxy Backbone (GBB), the information technology and shared services provider of the Federal Government of Nigeria, has announced the successful expansion of its state-of-the-art fibre optic network to Lagos, Ibadan, the capital of Oyo State in southwestern Nigeria, and Ilorin, capital of Kwara State in the north-central region.
What is described as a remarkable milestone is part of Phase II of the country’s National Information and Communication Technology Infrastructure Backbone (NICTIB) project.
With a robust cross-country optical fibre backbone now extending over 5,000 kilometres and across 27 state capitals, GBB says it has solidified its role as the digital backbone of Nigeria. This development seamlessly integrates the nation’s six geopolitical zones.
The newly completed Abuja-to-Lagos route, traversing key cities such as Minna, Bida, Mokwa, ilorin, Ogbomoso, Oyo, Ibadan and Lagos, is a strategic enhancement designed to strengthen network reliability. By establishing a closed network ring linking Lagos – the nation’s economic hub – to Abuja, the capital city, GBB says it ensures service redundancy and minimises potential downtime.
Professor Ibrahim A Adeyanju, managing director/CEO of Galaxy Backbone, says: “The expansion of our fibre optic network to Lagos, Ibadan and Ilorin is a significant step forward in our mission to bridge the digital divide and position Nigeria as a leader in the global digital economy. This advanced infrastructure empowers us to deliver innovative, customer-centric solutions that serve the needs of both the public and private sectors.”
He adds: “This expansion not only supports the government’s digital economy agenda but also sets the stage for meaningful collaboration with private sector organisations seeking to leverage our infrastructure.”
Telecom
NBS Says 25m Phones Stolen in Nigeria in 12 Months
National Bureau of Statistics (NBS) has reported that over 25 million phone thefts between March 2023 and April 2024, according to its Crime Experience and Security Perception Survey 2024.
The Crime Experience and Security Perception Survey 2024, indicated that an estimated 17,965,741 people had their phones stolen during the reference period
Phone theft, which is a common individual crime in the country, shows that seven out of every 10 stolen phones happened at home or public places, with a mere 11.7% of people who reported to the police expressing satisfaction with their response.
Less than 10% of the victims of phone theft reported the case to the police, while over 90% failed to report to the police for various reasons.
“At the individual level, 21.4 per cent of Nigerians reported being victims of crime, and the most common crime was phone theft (13.8%),” the report read in part.
Telecom
Airtel Once Again Wins Partnership of the Year Award at SERAS 2024
Airtel Nigeria has once again been recognized for its commitment to sustainable development, carting away the Partnership of the Year award at the 18th edition of the Sustainability, Enterprise, and Responsibility Awards (SERAS) held at the Oriental Hotel, Victoria Island, Lagos, on Saturday, 14th December, 2024.
The award celebrates Airtel’s continued success with its Re-imagine Education Initiative, a ground-breaking collaboration with the United Nations Children’s Fund (UNICEF) aimed at transforming education in Nigeria through technology.
Airtel’s consistent focus on creating social value through strategic partnerships reflects its position as a key enabler of progress in the Nigerian education sector.
Commenting on the award, Femi Adeniran, Director, Corporate Communications and CSR, highlighted the significance of the winning the Partnership of the Year award for the second time with the Airtel collaboration with UNICEF to provide digital access to quality educational resources for more than 1,200 schools in Nigeria.
“Winning this award for the second consecutive year is a reflection of our enduring belief in the transformative power of technology in education. We are deeply committed to making a meaningful difference in the lives of Nigerians, and this recognition fuels our resolve to do even more,” he said.
The SERAS Awards, widely regarded as Africa’s most prestigious platform for celebrating sustainability and corporate social responsibility, brought together leaders from various industries to honour organizations driving impactful change.
Airtel Nigeria remains steadfast in its mission to foster inclusive growth, empower communities, and champion a sustainable future for its stakeholders and the environment.
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