Among the reasons many observers and industry executives hope internet of things actually will produce many big new use cases and revenue streams is that most consumer lines of business are declining, saturated or perhaps nearing saturation. Even video services, perhaps the newest area connectivity providers have entered (after voice, messaging, internt access and mobility), might be closer to maturity than is commonly supposed.
Researchers at PwC believe the highest connectivity provider growth rates will come in the over-the-top video subscription business, which is a classic “new market” being created. But some observers believe some markets--such as the United States--already are well along the product life cycle.
Growth rates remain high in the mobile internet access space but low in fixed network internet access.
Traditional linear TV services have negative to zero growth rates.
The strategy implications are pretty clear. Subscription TV services really involve harvesting revenue from a flat to declining business. Fixed network broadband is mostly a “take market share” exercise.
Mobile service providers will likely find growth from a combination of market share gains and average revenue per user growth. And over-the-top video streaming will be an opportunity for some tier-one service providers, almost entirely based on segment growth, though market share issues will become important as the new market matures.
One reason many are hoping internet of things does lead to big new enterprise markets is that there are few candidates for big new revenue streams in the consumer segment of the mobile or fixed markets.
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