T-Mobile Czech Republic Debuts IoT Portal

T-Mobile Czech Republic has launched a new web portal having to do with the Internet of Things, called TEO. In its initial phase, the portal will include examples of existing solutions deployed by customers as well as examples of applications of the technology in business. The portal also introduces the members of T-Mobile’s TEO team.

In addition to its catalogue of existing customer solutions, TEO will also allow companies to submit direct requests for IoT solutions, and the team will subsequently prepare specific proposals for their deployment. Eventually, a blog on news on the IoT will be added, as well as an e-shop that will offer individualized products and complete solutions, running on the network Sigfox, according to Ondrej Kozina, Manager of Innovations at T-Mobile.

As we have written previously, the Internet of Things represents a huge opportunity for mobile operators. Of course the potential revenue from connectivity is significant, as IoT-enabled devices proliferate and require networks on which to operate. The market is expanding rapidly; spending on IoT systems is expected to grow by 16.7 percent to over US $800 billion in the coming year and to US $1.4 trillion by 2021, according to an analysts’ report. Manufacturing, freight monitoring and asset management will account for the lion’s share of this spending, while airport monitoring, smart home systems, electric vehicle charging and in-store marketing will experience the fastest growth.

Beyond the question of connectivity revenue, the IoT is an excellent venue for exactly the kind of non-traditional services that MNOs are looking for as they diversify in an effort to remain relevant in an age of declining ARPU from traditional mobile services.

This latter, larger purpose will be best served if operators take matters into their own hands instead of waiting for IoT developers and other technology companies to create applications. Being the “dumb pipe” of the emerging IoT will not serve operators particularly well, as far as long-term growth is concerned. To avoid that trap, operators should take a page out of T-Mobile Czech Republic’s book and become active partners in developing actual systems. Inviting the submission of ideas for applications is an excellent first step, in our view. Creating or co-creating solutions that are genuinely desired in the marketplace will be the next step, and this will enable the operator to aggressively insert its brand into the emerging IoT sphere and to sell solutions as well as network connectivity. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

To learn more about Tarifica, please visit www.tarifica.com 

Mobile Data Consumption in Mexico Up 69 Percent

The number of Mexican mobile lines in use rose to 112.4 million at the end of the first quarter of 2017, up from 109.0 million in the previous year, according to a report by Mexico City-based analytic firm The Competitive Intelligence Unit. The growing availability of affordable plans and of flat-rate mobile broadband offers with zero-rated social media access have contributed to the 69 percent year-over-year growth in mobile data consumption, to an average of 528 MB per user at the end of the first quarter. However, mobile ARPU continued to decline, dipping 4.3 percent year-over-year to just under US $7.00 per month, according to the same report.

There is a clear lesson in this dramatic figure, and it is not a very reassuring one despite the impressive growth in data use.

Certainly, it is true that in Mexico, uptake in use of data services is very rapid, and the quantities of data per user are getting quite large. That is also true of many markets, and not only those that are still developing and have not reached saturation. A report just released by Ericsson anticipates that mobile broadband subscribers worldwide will double by 2022, and that mobile broadband subscriptions should increase at a rate of 1 million per day, from 4.39 billion at the end of 2016 to 8.28 billion in 2022. Ericsson also found that 4G/LTE will overtake GSM in 2018, having grown faster than any mobile technology ever.

Nonetheless, we should take note of the fact that in a period in which mobile data consumption rose by 69 percent, ARPU from such services declined. That is due in part to the necessity of zero-rating data and offering flat-rate plans in order to promote data use, but it is also an expression of the industry-wide trend toward declining ARPU from mobile services and the movement of these services toward commodity status.

The results from the Mexican market, then, are a timely reminder of the need for operators to find new revenue streams via new uses for the data that is being consumed so avidly. The demand for data-driven services and products is there; the question is how to make it pay. As we have written on previous occasions, creative branding and engaging in partnerships for technological innovation are very important components of this ongoing effort.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

To learn more about Tarifica, please visit www.tarifica.com 

Faster Broadband to Help Agriculture in New Zealand

The mayor of Kaikoura, New Zealand, Winston Gray, welcomed the announcement by operator Spark New Zealand to accelerate the rollout of high-speed mobile services across rural areas in the Canterbury region, according to a media report. Fast 4G/LTE broadband will mean efficient irrigation ahead of hot and dry summers, Gray said. According to the mayor, digital data and communications are needed on farms to ensure the most efficient use of water. “We also need it to manage nutrients, stock and the business of farming, including keeping our farm workers safe and getting emergency help to them quickly if there is an accident,” he added. Even as traditional mobile services—voice, SMS and data—are in decline as sources of ARPU, mobile networks continue to be essential to all societies in both old and new ways. This example from rural New Zealand shows specifically how that can work. The farming sector there is directly dependent on a strong, fast mobile broadband. Of course communications are essential, enabling farmers to get rapid access to the latest climate and weather data as well as to stay in touch with each other and with vendors and customers. In addition, though, it appears that Spark’s rollout of 4G/LTE will also enable the operation of M2M devices and systems that manage agricultural resources and farming mechanisms. By strengthening their networks, telecom operators like Spark can play a vital role in driving many sectors of the economy and, in so doing, increase revenue.    Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com