Prianca Ravichander, CMO & CCO, Tecnotree writes that telcos must pivot to platform orchestrators to monetise IoT
Remember when IoT was the ‘next big thing’ … back in 2010? Fast forward 15 years, and while billions of devices are indeed connected, most telcos are still asking the same question: where’s the money?
The irony is hard to miss. Smart cities, remote monitoring, predictive insights —they’re no longer science fiction. Yet for most telecom operators, IoT revenue is still stuck in first gear, tied to SIM activations and data bundles. According to GSMA Intelligence, connectivity accounts for less than 5% of the total IoT value chain. In other words, telcos are providing the plumbing while someone else sells the luxury bathroom.
It’s time to change that equation.
From pipe to platform
For decades, telcos built their empires on reliability: wide coverage, robust infrastructure, and regulatory trust. But in the IoT world, those strengths are just the entry ticket. Enterprises today want more than ‘bars on a phone’. They want platforms that blend connectivity with data analytics, automation, and business logic designed for their industries.
IDC projects that global IoT spending will exceed $1.1 trillion by 2026, with software and services capturing more than 60% of that pie. Connectivity? Just a small slice. Unless telcos move up the stack, they’ll keep fighting for crumbs while Cloud platforms and SaaS players eat the cake.
The pivot is clear: telcos must evolve from pipe providers to platform orchestrators. That means building modular systems where device makers, app developers, and analytics vendors can plug in easily—and where telcos capture value from the entire ecosystem.
Moving beyond the SIM
Let’s be honest—the SIM card had a good run. But in the age of embedded SIMs (eSIMs), private networks, and virtualised identities, it’s no longer the hero. What matters now is lifecycle management: provisioning, device onboarding, data orchestration, SLA guarantees, and real-time billing.
McKinsey notes that outcome-based pricing in IoT can boost operator revenues by up to 30%, compared to flat-rate data plans. Imagine charging a smart factory for uptime improvements, not megabytes used. Or pricing connected ambulances based on response times saved, not gigabytes consumed. It’s monetisation that actually reflects business outcomes—and customers love that alignment.
Tiered service levels also open new revenue pools: think ultra-low latency for remote surgery versus battery-optimised plans for agricultural sensors. When value is tied to performance, not just usage, margins grow.
Why verticalisation matters
Here’s the reality: a connected coffee machine, a connected car, and a connected city all walk into a telco… and need completely different solutions. One-size-fits-all doesn’t work in IoT.
Verticalisation is the way forward. Telcos don’t need to reinvent every wheel—they just need to curate the right wheels, fit them together, and offer them as sector-specific bundles. Agriculture packages that combine soil sensors, analytics dashboards, and water usage optimisation. Logistics offerings that bundle asset tracking, route optimisation, and compliance reporting.
Some operators are already moving here with IoT marketplaces—essentially app stores for enterprises. Done right, these platforms let partners plug in, enterprises self-serve, and telcos monetise orchestration. It’s not just faster to market; it makes the telco the go-to entry point for enterprise innovation.
Real-time monetisation or bust
Here’s where many telcos hit a wall: legacy billing. Static, monthly, inflexible. Great for voice minutes. Terrible for IoT.
IoT demands monetisation platforms that are real-time, Cloud-native, and outcome-aware. Pay-per-use, subscription, SLA-driven, or even ‘as-a-service’—enterprises expect flexibility. According to Analysys Mason, 70% of enterprises cite flexible commercial models as a top criterion when choosing IoT providers.
And this isn’t just about charging smarter. With real-time systems, telcos can offer usage alerts, predictive maintenance, or automated issue resolution—creating stickier, more trusted customer relationships.
Winning the B2B2X game
IoT is no longer B2C or B2B. It’s B2B2X: telcos enabling enterprises to serve their end-users better. Consider a utility company offering customers real-time energy dashboards powered by telco IoT, or a hospital using connected wearables to improve patient outcomes. The telco may never face the end-customer directly, but their platform is the hidden enabler of value.
The winners in this game won’t be those who try to ‘own’ everything. They’ll be those who enable everyone else. Think less empire-builder, more orchestra conductor.
The road ahead
The future of IoT isn’t about ‘more connected devices’. It’s about more valuable connections. Telcos already have the trust, reach, and infrastructure. What they need is the courage to let go of old revenue models and embrace their role as ecosystem orchestrators.
Yes, IoT has been ‘on the cusp’ for years. But if telcos play it right, that cusp finally becomes a cliff—one worth jumping off into a trillion-dollar opportunity.
Prianca Ravichander, Chief Commercial Officer (CCO) and Chief Marketing Officer (CMO) at Tecnotree OYJ, leads the company’s global growth strategy, driving both revenue and brand leadership across digital business ecosystems. She also heads Tecnotree’s B2B2X revenue monetisation programmes for CSPs and DSPs through the award-winning Tecnotree Moments platform.
There’s plenty of other editorial on our sister site, Electronic Specifier! Or you can always join in the conversation by visiting our LinkedIn page.
