Diana Varga (Marketing Manager Europe)
Service and Access Providers’ need to monetize IoT technology introduces lower ARPU and complex business models that call for flexible systems, capable of supporting complex relationships.
Machine to Machine (M2M) is expanding into Internet of Things (IoT), becoming the cornerstone of many organizations’ digital transformation. With IoT and the mobility of devices more widely deployed, the number of connected things is expected to reach 25 billion by 2021 (Gartner, Top 10 Strategic IoT Tech and Trends). This rapid growth is driving innovation for traditional Service Providers and Access Providers that are looking to expand their offering portfolio and generate new revenue opportunities.
Are you ready?
1) Scaling to Support Green-fielders to Large Enterprises
Regardless of the rapidly evolving ecosystem and the high number of companies adopting an IoT initiative, the IoT market is still in its early stages. Many IoT solutions require a great number of connected devices that potentially bring lower ARPU per connection and new margin pressures, as support and provisioning costs are higher for connected devices. IoT Service Providers are challenged by the complexity of the adopted business and pricing models, and the variety and volume of their partner settlements.
Serving green-fielders to large enterprises requires scalable and reliable solutions that are capable of managing all operational elements in one consolidated view.
Key characteristics of comprehensive IoT billing platforms:
- Easy configuration of cross domain products
- Complete partner life cycle management
- Hassle-free new partner additions including media, utilities, smart homes, transport, automotive and smart cities
- Quick adoption of partner settlements
2) Emerging IoT Business Models, Partnerships, & Settlements
IoT introduces new types of product offerings that demand the adoption of new partnering agreements and systems that are capable of supporting transactions with a wide range of industries, verticals and business models including B2B, B2B2B, and B2B2X environments.
These partnerships result in a number of different charging models involving distinct pricing models with different sources of data and policies. The growth in IoT brings new use cases and a great range of connected devices and applications that are using cellular technology. It is expected that 70% of wide-area IoT devices are to use mobile technology in 2022 (Ericsson, IoT Forecast). This complex IoT landscape has created an increased need for enhanced billing solutions that are able to support dynamic and granular billing models.
Emerging IoT Business Models
Connected industries like manufacturing, retail, automotive and transportation, and smart homes and cities have distinct business requirements that go beyond billing for basic subscription models. For example, as end users increasingly demand greater flexibility from their services the adoption of usage-based billing is growing.
While utility companies and their customers were among the first to pioneer the usage-based approach, this trend is growing into other industries such as healthcare and insurance that affect end users’ expectations from IoT-related services.
The IoT ecosystem can include partners ranging from OTT, M-Commerce, M2M, Media, and more. They demand specific and tailored contracts with each partner in the ecosystem, partner on boarding, and self-care for autonomous partner management.
Settlement Management for Complex Pricing Models
IoT revenue streams are generated by a wide variety of use cases, pricing models, and partner agreements. Individual SIMs with unique tariffs, bundles and rates each require specialized system support to process and bill. IoT devices with connection fees, usage fees and recurring charges with different invoice intervals and multiple partner settlements are all common IoT scenarios that need to be factored and provided for.
3) Digital Transformation in Line with IoT Business Needs
When your Service or Access Provider business is pursuing an IoT business strategy, identifying and implementing strategic solutions that are capable of combining traditional wholesale elements with IoT settlements can be challenging. This requires a digital transformation at the operational level, meant to revamp the capacity of the Business Support Systems (BSS) in line with IoT business needs.
Choosing an IoT billing platform can be a complex yet necessary endeavour to meet the IoT Monetization demand now and into the future. Service Providers need to evaluate and look for key product modules across seven major areas, such as the product catalogue and pricing, device and subscription management, and built-in analytics.
All of these functionalities should be easily integrated with internal and external systems. This can be achieved by partnering with reliable telecom technology providers that are committed to providing the technology and services needed for IoT-led initiatives.
Wholesale Revenue Management Solutions for IoT
The Enghouse Networks Wholesale Revenue Management IoT Billing Platform offers reliable convergent billing and IoT monetization support and enablement for traditional B2B settlement elements, as well as emerging IoT business models, relations, and settlements.