Internet of things connectivity services--though an important growth area for mobile operators, likely will likely remain a relatively small source of revenue. Estimates of IoT market revenue often are quite large, but that includes devices, software and hardware, plus connectivity of several types. A reasonable assumption is that connectivity revenue will eventually range from three percent up to five percent of total IoT ecosystem revenue.
IoT services accounted for around one percent of total revenues for most mobile operators in 2020, according to Berg Insight. Despite growing deployment volumes, revenue per device remains low and prices are dropping.
Global IoT connectivity revenues increased by around six percent during 2020, while the monthly average revenue per device dropped by 16 percent to € 0.39 ($0.46).
The top ten mobile operators reported a combined active base of 1.49 billion cellular IoT connections at the end of 2020, accounting for 86 percent of total mobile-supplied connections, Berg Insight says.
China Mobile is the world’s largest provider of cellular IoT connectivity services with an estimated 658 million cellular IoT connections. China Unicom and China Telecom ranked second and third with 240 million and 238 million connections respectively.
Vodafone had 118 million connections, followed by AT&T with 81 million. Verizon, Deutsche Telekom and Telefónica had in the range 26 million to 48 million cellular IoT connections. Orange and Telenor were the last players in the top ten with about 18 million and 17 million connections respectively.
Except for Deutsche Telekom, year-over-year growth rates for the Western operators were in the range of eight percent to 22 percent.
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