A new report highlights some of the innovative ways companies are bidding to become leading smart providers
By 2023, the smart cities market will be a $7.6 billion “UnTelco” opportunity for mobile service providers (MSPs) and network vendors if they innovate now, according to a report by ABI Research. UnTelco is the term used by ABI to define those activities, strategies, and opportunities that MSPs should pursue beyond their traditional offerings to foster their revenue growth.
The research company identifies smart cities as one of the main verticals where MSPs can use their strength and expertise to move up the value chain to target revenues beyond the connectivity-only space.
The findings are from ABI’s UnTelco in Smart Cities: Telco Opportunities and Market Activities report, which is part of its Telco Digitisation research service, which features company profiles on Cisco, Ericsson, Nokia, Singtel and SmIght as well as case studies on Verizon and Sacramento and AT&T’s Spotlight Cities.
Pablo Tomasi, senior analyst at ABI Research, says 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. He said: “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.
“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 prioritise innovative business models, for instance, based on advertising or performance-based revenues, rather than waiting and fostering the marketing trend centred on the role and potential of 5G in smart cities.”
“MSPs success in smart cities will be defined by their ability to act, owning a wide ecosystem of partners and improving customer relations”
The study looks at some of the innovative tactics MSPs are using to become leading market players and cities Verizon’s smart city strategy backed by strong merger and acquisition activity (Sensity System and LQD).
Meanwhile, 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.
Tomasi added: “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 monetisation options. MSPs’ success and activities will be shaped by their ability to innovate and not by 5G”.
If you like this, you might be interested in reading the following:
Smart city tech market will reach $994.6m
By size, the market will be led by North America, with an anticipated 2023 value of $419m
Smart city enabling tech spending to reach $80bn
Intelligent transportation, data-driven public safety and resilient energy and infrastructure will see most spending in 2018
LA bids to become America’s smartest city
AT&T and LA are exploring a public-private partnership to drive improvements in traffic, public safety and disaster preparedness