If you believe the content and distribution businesses are merging because ecosystem participants are moving across the value chain or up and down the function stack, the coming wave of mergers, initially pioneered by Comcast, will make sense.
That is because business model disruption is forcing some participants to seek new roles, while strategic advantage accrues to others who can vertically integrate their core operations. Access providers struggling with maturation and decline of their core revenue streams is an example of the former; Google integrating devices, transport and access is an example of the latter.
And what happens in media is a precursor of what will happen in other areas, such as internet of things. Simply put, there will not be enough gross revenue or profit in providing access for IoT services and devices.
Perhaps 75 percent of those connections will use fixed or untethered connections that drive no incremental revenue, many would argue. Others believe mobile and low power wide area networks will have a larger role.
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