Data-driven smart cities promise to increase the efficiency with which public services are delivered to citizens, improving nearly every aspect of city life – from public safety to parking to waste management. The role of CSPs is to supply the infrastructure that intelligent cities need to power their initiatives.
Smart cities feature countless sensors and connected things that continuously generate data about city life. Service providers have already built infrastructure that connects all of these sensors with data platforms, and the relevant applications with end users. The data that’s generated is used by the local government to improve public services, while citizens can use their applications to access real-time information that enables better decision-making. For example, a resident may learn of an auto accident affecting his commute to work via a traffic application, allowing him to choose a different, less congested route in advance.
Promote Growth With These IoT Monetization Strategies
Because service providers are at the heart of all smart cities, these companies face a massive opportunity for growth and increased prominence in the industry – but only if they can figure out a sustainable way to monetize their offerings. With that said, here are a few creative ways for service providers to monetize IoT for smart cities:
- Offer endpoint security as an add-on service
- Charge cities for traffic that’s transmitted over the network
- Charge for valuable smart city services, like intelligent traffic control
- Sell data, demographics data, and analytics generated by smart city projects
The ideal approach for service providers may be a hybrid that combines many of the above IoT monetization strategies. For example, charging for smart city services or IoT security on a monthly or annual basis can create a recurring revenue stream, while selling demographics data as the opportunity arises can offer a substantial, though possibly less frequent boost in income.
To drive smart city initiatives, service providers first must get the local government on board. Start by talking to decision makers about your company’s capabilities and how your services can create value in an intelligent city environment. From there, form strategic partnerships with tech companies for access to new government connections and continuously look for opportunities to open up your revenue streams in creative ways.