Telecom
How Telcos Can Benefit from $7.1tr Cellular M2M, IoT Industry
Given the tremendous industry growth, machine-to-Machine (M2M)/ Internet of Things (IoT) has become one of top business drivers for leading telecom operators across the globe, and the market in Central and Eastern Europe (CEE) is no exception.
IDC forecasts the global installed base of IoT to hit 28.1 billion devices in 2020, generating revenue of $7.1 trillion, with cellular M2M being a subset.
Though mobile connectivity provision has historically represented telecom service providers’ core proposition in M2M, their strategies are evolving to embrace other parts of the value chain, particularly those with higher margins.
“With the telecommunications services revenues from core voice and messaging services declining, telcos are on the lookout for new growth opportunities. M2M is certainly one of them,” said IDC analyst Ina Malatinska. “Connectivity represents only about 10-15% of the total M2M revenue pie. It has become a commodity and we expect connectivity ARPUs to continue falling dramatically.”
Leading telcos understand they have to expand beyond selling SIM cards to capitalize on the M2M opportunity – they are offering comprehensive end-to-end solutions (such as fleet management), including related services with higher margins, enabling M2M application development (providing platforms), and bringing consulting and integration capabilities to M2M projects.
Some telecom operators are even acquiring companies to gain a strong position on selected markets.
One example is Vodafone’s acquisition of Cobra, which was intended to help the operator become a full service provider for the automotive industry.
Others are putting a strong emphasis on in-house R&D to drive innovation, such as Deutsche Telekom with T-Labs and T-Systems Innovation Center and Orange with Orange Labs. “In a nutshell, telecom operators want to be key players in the M2M/IoT game.
Whenever you see high-end cars streaming entertainment content on the road or a remote patient monitoring solution, you can be sure that a telecom operator is involved,” notes Malatinska.
Innovative services built on collected M2M/IoT data will transform industries.
Gradually, telcos will put more emphasis on developing critical data analytics capabilities. As market demand is shifting from simple remote monitoring and control to business processes optimization and identification of new business models, data analytics will become essential to success.
Data will represent the most important enterprise asset, and companies will need a tool to extract relevant information from large volumes.
This is where data analytics comes in: enabling enterprises to deliver innovative services, get closer to their customers, and explore new revenue streams, among other benefits.
Telcos in the CEE region have multiple ways to differentiate themselves competitively in the M2M area.
Local telcos that are part of an international group (such as Deutsche Telekom, Vodafone, and Orange) can greatly benefit from a technology and know-how transfer, as well as broad geographical coverage, which is relevant especially in industries such as manufacturing.
That said, local market specifics including access to corporate customers, marketing and product strategy, partnership with local vendors and systems integrators, and go-to-market strategy are still of key importance.
IDC believes that telecom operators will continue to play a principal role in building the M2M/IoT market.
Beyond strengthening their own proposition, demonstrating a clear business case for M2M/IoT solutions across verticals, building strong partnerships, enabling application development, developing new services and analytics capabilities, and more — telcos should act as hubs for innovation and keep educating the market about the benefits of M2M solutions.
This is most essential in markets that are still in the early stages of maturity, such as those in the CEE region.
At the recently concluded NextNow Business Forum in Victoria Island, MTN Nigeria electrified the business community with a live demonstration of its forthcoming Communication Platform as a Service (CPaaS), a solution engineered to redefine how Nigerian enterprises connect with their customers.
Unlike traditional communication systems, MTN’s CPaaS is built for the realities of a mobile-first market. The platform unifies SMS, voice, WhatsApp, email, and more into a single, intuitive interface. This approach is especially significant in Nigeria, with over 107 million internet users, 45.4% of the total population, according to Data Report. This figure underscores the necessity for businesses to meet customers where they are.
During the demo, attendees witnessed how CPaaS enables two-way, real-time conversations between brands and customers. The platform’s support for rich media, instant analytics, and seamless integration with business workflows drew particular attention. These features are designed to empower businesses with data-driven insights and the agility to personalise every interaction, whether it’s a service notification, marketing campaign, or customer support exchange.
Akinbulejo Onabolu, Head of Enterprise Segment at MTN Nigeria, articulated the vision: “CPaaS gives enterprises the flexibility to interact with their customers on their preferred platforms; whether it’s chat, voice, or messaging, in a way that feels personal and immediate. We’re looking forward to the value this will unlock for businesses across industries once it launches.”
The fireside chat added depth to the conversation, with Omowunmi Olatunbosun, Head of SME Segment at MTN Nigeria, and Stephen Agbi of Bayobab, highlighting how digital engagement bridges the gap between businesses and audiences.
They emphasised that today’s consumers demand immediacy, relevance, and ease, qualities that CPaaS is built to deliver.
The stakes for digital transformation in Nigeria are high. In a report by Punch, the country’s enterprise tech market is projected to reach $22 billion by 2027, reflecting a surge in demand for scalable, cloud-based solutions that drive efficiency and customer loyalty.
The CPAAS Acceleration Alliance have estimated that globally, the CPaaS market is expected to grow from $14.7 billion in 2025 to $72.4 billion by 2035, at a compound annual growth rate of 18.4%, a testament to the platform’s transformative potential.
The event’s closing keynote from META’s Korhan Yunak reinforced the strategic value of digital channels like WhatsApp, which are now indispensable for business communication and engagement at scale.
As MTN Nigeria prepares for the Q3 2025 launch, the anticipation is unmistakable. With its promise of flexibility, intelligence, and seamless integration, MTN’s CPaaS platform is set to become the backbone of next-generation business-customer engagement in Nigeria, enabling enterprises to not just communicate but to connect, adapt, and grow in a digital-first era.
MTN Uganda is seeking input from stakeholders on a plan to structurally separate its mobile money service, MoMo, from its core telecoms business.
According to the company, the proposed change will be discussed at the upcoming extraordinary general meeting on July 2.
If approved, the telco’s fintech business will be run by a new company controlled by MTN Group Fintech Holdings B.V. and a trust benefiting minority shareholders following a merger.
Additionally, the restructuring also aligns with MTN Group’s ambition 2025 strategy which aims to unlock value, attract new investors, and strengthen regulatory compliance by creating standalone fintech entities in Uganda, Ghana, and Nigeria.
The company’s fintech division has over 13 million customers, with an 18.4% revenue increase in the first quarter of 2025, driven by 19.0% growth in mobile money services, 19.8% growth in transaction volumes, and a 31.4% increase in transaction value.
Reports say the decision is part of the telco’s compliance with the National Payment Systems Act 2020, which mandates mobile money businesses to operate as standalone entities, and to align with MTN Group’s regional fintech strategy.
MTN Uganda, which is led by CEO Sylvia Mulinge, highlighted that the implementation of the proposed transaction will be subjected to a number of conditions and regulatory procedures.
“The implementation of the proposed transaction shall be subject to a number of conditions, including the company and MTN MoMo receiving all required regulatory approvals and no-objections and complying with any regulatory conditions,” said MTN Uganda in notice.
Netflix has announced plans to invest more than €1 billion in Spanish film and television productions over the next four years, reinforcing its commitment to Spain as a key creative hub in Europe.
The announcement was made by co-chief executive Ted Sarandos at an event held at Netflix’s production studios near Madrid, celebrating the company’s 10-year presence in the country.
Sarandos emphasized that the investment would contribute significantly to Spain’s economy, create jobs, and enable the streaming platform to produce more local content. He was joined by Spanish Prime Minister Pedro Sánchez in unveiling the initiative.
Netflix first established its international production studios in Madrid in 2019, following the success of the Spanish-language hit series Money Heist.
Since then, its 22,000-square-meter facility has become one of Netflix’s major production centers within the European Union.
The company currently supports over 20,000 jobs in Spain, highlighting the nation’s growing influence in global entertainment.
The investment reflects Netflix’s ongoing strategy to expand its presence in European markets through original content and local talent.
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