Since this industry owns the wireless and wireline infrastructure through which data travels, it takes up the primary position in the value chain. This position will eventually translate into major IoT opportunities for the telecommunications sector.
Among the 13 industries surveyed, the telecom sector ranks fourth as far as spending on IoT technology is concerned. Telecom companies have spent approximately $110.7 million on IoT in 2015, and this budget will substantially increase to $169.5 million in 2018. Tracking products will account for 33.4% of the IoT budget of telecom companies. 30% of IoT budgets in 2015 are allocated for monitoring customers.
Approximately 60% of the companies surveyed use digital devices to monitor their customers while 16% use wearables.
Making software-based updates to their products and services has been rated as the top business process improvement by telecom companies. Other business improvements are providing customized marketing campaigns, improving customer segmentation, and providing better service.
Telecom companies believe cultural issues are important for the success of IoT projects. These cultural issues include building internal capabilities such as skilled analysts, encouraging managers and staff to change the way they think, and accelerating the pace of decision making based on IoT data.