The market potential for the connected home is massive. Device sales in this sector are expected to reach a staggering $490 billion by 2019 according to Business Insider, and few companies are better poised than telecom service providers to take advantage of this growth and become major players at the forefront of this emerging industry.
The infrastructure is already in place to roll out smart home features
Service providers are well prepared to introduce new smart home features to consumers since the infrastructure is already established. While other companies would have to create and standardize these elements, service providers have systemized sales, successful subscription models, technical support, and access to customers, in addition to broadband gateway, 3G, and big data analytics. To leverage the IoT opportunity, service providers can reconfigure existing infrastructure for connected home offerings.
Customers already know and trust service providers
Trust is an invaluable element when it comes to connected homes, where privacy concerns abound. With telecom companies offering well-known brands that have been around for years, customers know that they can count on them for reliable devices, readily available technical support, and integrity. Consumers already have established relationships with service providers and according to McKinsey’s connected home report “75% of connected-home devices are purchased through service providers today, due to strong go-to-market access.”
Mobile enterprises are well positioned to play a leading role in the innovation of new technologies
Just as telecom companies were at the forefront of the mobile revolution, they are well positioned to lead the connected home industry as well. Thanks to stable revenue streams, they can invest and innovate in ways that are out of reach to less established companies. In addition, their unparalleled access to customers allows them to introduce new devices, test features, and offer fresh services to a wide audience.
As the connected home industry continues to grow, so will the opportunities for wireless service providers to expand their offerings, remain competitive in a changing world, and establish themselves as leaders in this emerging industry.