MSPs Eye UnTelco Opportunity
October 1, 2018
cities is one of the main verticals where Mobile Service Providers (MSPs)
can use their strength and expertise to move up the value chain to
target revenues beyond the connectivity-only space and generate
substantial “UnTelco” revenues. ABI Research forecasts that by 2023 the
smart cities market will be a US$7.6 billion UnTelco opportunity for
MSPs and network vendors.
All MSPs are interested in this market, which shows how crucial is the
smart cities segment for the future of MSPs. “Smart cities is a huge and
complex market, where a traditional vertical focus is now co-existing
with a cross-vertical trend that is gaining momentum. The size of the
market, with all its different sub-verticals, means that MSPs can target
and assume various roles from system integrators to platform providers,”
said Pablo Tomasi, Senior Analyst at ABI Research. “While the
opportunity is huge, competition is mounting, as proven by network
vendors’ aggressive activities in the platform space. MSPs need to
balance coopetition and prioritize innovative business models, for
instance, based on advertising or performance-based revenues, rather
than waiting and fostering the marketing trend centered on the role and
potential of 5G in smart cities,” Tomasi explained.
than in any other vertical, MSPs are using innovative tactics to become
key market players; their challenge is now to scale these offerings. For
example, Verizon has a smart city strategy backed by strong M&A activity
(Sensity System and LQD), AT&T is amassing a wide range of partners to
deliver spotlight cities solutions, BT is betting on analytics
capabilities, and Deutsche Telekom is leveraging aggressive NB-IoT
deployments and innovative business models.
“MSPs success in smart cities will be defined by their ability to act -
owning a wide ecosystem of partners and improving customer relations
while aligning various interests, assets, and innovative monetization
options. MSPs’ success and activities will be shaped by their ability to
innovate and not by 5G”.