The Internet of Things continues to expand, and several telecommunications companies are working to make it easier to adopt these products and integrate the IoT into daily business operations. However, the success of the IoT products and services will depend on value that is offered.

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IoT Networks
Should Emphasize
Value
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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IoT Networks Should Emphasize Value
© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
The Internet of Things continues to expand, and several telecommunications companies
are working to make it easier to adopt these products and integrate the IoT into daily
business operations. As the MIT Technology Review discussed, many countries around
the world are creating nationwide wireless IoT networks. Recently, the Dutch company
KPN finished constructing its network in the Netherlands. This IoT structure has lower
operational costs and energy requirements than cellular networks and connects sensors
from numerous public institutions, such as the Port of Rotterdam and Schiphol Airport.
One of KPN’s biggest concerns, according to MIT Technology Review, is the cost of
building such an extensive infrastructure. A company executive told MIT Technology
Review that KPN has contracts to link 1.5 million IoT devices, although not all of them
are currently connected. KPN plans to use a subscription billing model to charge for each
connected device based on its data requirements.
Other companies face similar issues. The French startup SigFox has an IoT network that
spans 22 countries, covering 340 million people. According to SigFox’s vice president of
communications, the company plans to cut its subscription billing prices as low as
possible as fast as it can. This would bring early IoT adopters to its infrastructure and
encourage new users to purchase IoT devices.

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Many telecom companies are invested in creating IoT networks.

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Businesses say IoT is crucial for success
Thankfully for these and other telecommunications companies, businesses realize the
benefits of IoT. If these telecom organizations can keep the cost of subscriptions low,
they’ll likely see more enterprises join their networks.
To understand exactly how businesses view the world of IoT, Vodafone conducted and
released its fourth annual IoT Barometer Report. The survey compiles data and opinions
from companies around the world, including Brazil, South Africa, South Korea, Japan,
India and the U.S. One of the most notable statistics from the survey was that 76 percent
of enterprises believe IoT is a key component that will lead companies to success in the
future. Sixty-three percent expect to have IoT projects in place by the end of 2017.
Early adopters of IoT devices are happy with their results, using the technology to
automate their supply chains, monitor machines remotely, lessen the costs of operations,
build new products and more. These companies note that IoT devices improve the
company experience, and more than half use the technology for large-scale business
transformations. Corporations also noted that IoT improves the customer experience. In
fact, this was the most commonly reported benefit, with better productivity falling in
second place.

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On average, companies that currently use IoT products saw a 20 percent improvement
in cost and asset utilization, system uptime and revenue. This could be why businesses
spend, on average, a quarter of their information technology budgets on IoT.
If telecom companies want to encourage more businesses to adopt IoT technology, they
should assert how many current businesses find value in this service. IoT provides real-
time feedback and information, allowing companies to remain competitive on a global
scale.

6. 6© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.
About the Author: Bryta Schulz
Bryta joined Vindicia in 2013 and serves as Senior Vice
President of Marketing. She is responsible for building brand
awareness, creating go-to-market strategy and promotion, and
driving growth. With over a decade of executive level marketing,
product management and PR experience, Bryta has led
marketing teams in enterprise technology and SaaS companies.
Her experience includes heading product marketing at GoGrid,
PGP, RSA and Symantec and business development and
product management positions at Xcert, Thales, and
Persistence Software. Bryta holds a MA in Translation from the
Johannes Gutenberg University Mainz and an MBA from the
University of Reutlingen.
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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.