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.
Viral rumors about a “Tesla Pi Phone” a new phone, being developed by Elon Musk, CEO and largest shareholder of Tesla and SpaceX, are entirely fake.
AI Generated Tesla Pi Phone and Elon Musk
Instead, the tech giant said on Monday it has filed an application with the US Federal Communications Commission for permission to deploy the constellation by 2028.
It said the system would provide voice, messaging, data and emergency services.
A quick fact-check revealed that Tesla Inc. has never manufactured, developed, or released a smartphone.
Videos and articles claiming a release (often priced between $150 and $800 with solar charging or satellite-only connections) rely on AI-generated concept art and recycled internet hoaxes dating back to 2021.
Musk has only mentioned a phone in hypothetical remarks, stating Tesla would build one only if major app stores completely blocked or censored essential apps like X (formerly Twitter).
On Monday however, his company said that “Amazon looks forward to delivering on the promise of D2D [direct-to-device] connectivity, including to the millions of people living, travelling and working in places beyond the reach of existing networks today,”
The filing is the first step from Amazon into satellite mobile connections, which has until now been dominated by SpaceX’s Starlink service.
Musk’s group has signed partnerships with existing operators such as T-Mobile US and the UK’s Virgin Media O2 to provide phone services for customers where their conventional networks do not reach.
Starlink operates across more than 150 countries, offering high-speed internet connections through its constellation of satellites.
Association of Licensed Telecommunications Operators of Nigeria (ALTON) has attributed rising mobile data consumption to increased use of smartphone applications, cloud services and emerging digital technologies.
Mr Gbenga Adebayo, chairman, ALTON
Mr Gbenga Adebayo, chairman, ALTON, disclosed this on Tuesday at the Lagos Chamber of Commerce and Industry (LCCI) conference in Lagos.
Adebayo said smartphones had transformed access to digital services, with many applications consuming data continuously, even when users were not actively browsing the internet.
He explained that automatic software updates, cloud backups, application synchronisation, video streaming, social media autoplay and location services significantly increased data consumption.
According to him, internet usage had changed considerably from a decade ago when consumers mainly relied on direct browsing with fewer digital applications running simultaneously.
He said growing adoption of artificial intelligence, cloud computing and other emerging technologies would further increase demand for reliable connectivity and greater network capacity.
“The evolution of smartphones has fundamentally changed how consumers access digital services, with many applications now consuming data continuously,” Adebayo said.
He stressed that digital literacy had become increasingly important because consumers needed to understand how their devices and applications consumed mobile data.
He advised subscribers to monitor application activity, adjust device settings and use built-in data management tools to better control their data consumption.
Adebayo said greater understanding of digital tools would help dispel misconceptions about data usage and strengthen public confidence in Nigeria’s telecommunications industry.
Responding to allegations that operators deliberately depleted customers’ data, Adebayo dismissed the claims, insisting telecommunications companies had no commercial incentive to engage in such practices.
He said every megabyte consumed on telecom networks was recorded through internationally standardised billing systems supplied by recognised technology vendors and regulated by authorities.
“Such a practice would be unlawful, unethical, commercially self-defeating and subject to stringent regulatory oversight by the Nigerian Communications Commission,” he said.
Adebayo explained that operators’ billing systems were designed to guarantee accuracy, transparency and verification, while genuine consumer complaints were investigated through established protection channels.
He added that the Nigerian Communications Commission’s complaint resolution mechanisms and technical audits provided consumers with credible avenues for seeking redress over billing concerns.
According to him, trust remains essential to expanding Nigeria’s digital economy because telecommunications infrastructure supported banking, healthcare, education, commerce and government services.
He said the telecommunications sector had evolved beyond basic communication services into a critical driver of productivity, investment, innovation and national economic growth.
Adebayo noted that emerging technologies, including artificial intelligence, financial technology, smart manufacturing and digital agriculture, depended on resilient telecommunications infrastructure.
He said Nigeria could only maximise these opportunities through sustained collaboration among government, regulators, telecommunications operators and consumers.
Adebayo reaffirmed operators’ commitment to improving customer experience, strengthening network resilience and promoting transparency in telecommunications service delivery.
He urged stakeholders to encourage evidence-based discussions on digital services, stressing that public trust remained indispensable for the sustained growth of Nigeria’s digital economy.
(NAN)
Telecom
Galaxy Backbone Soft Launches Government Service Portal to Simplify Access to Public Services
Galaxy Backbone (GBB), in partnership with the Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) and the Korea International Cooperation Agency (KOICA), officially conducted the soft launch of the Government Service Portal (GSP), a groundbreaking digital platform designed to transform how citizens, businesses and government institutions interact.
The event, held at the Galaxy Backbone National Shared Services Centre (NSSC) Headquarters in Abuja, brought together senior government officials, development partners, technology stakeholders and members of the media to unveil services.gov.ng—Nigeria’s new one-stop digital gateway for accessing government services.
The Government Service Portal is designed to provide a single, trusted platform through which Nigerians can easily discover, access and interact with digital services offered by Ministries, Departments and Agencies (MDAs). By consolidating government services into one unified portal, the initiative aims to improve accessibility, enhance service delivery and create a more seamless citizen experience.
Speaking at the event, the Managing Director/Chief Executive Officer of Galaxy Backbone. Professor Ibrahim Adeyanju, stated that the launch represents another significant milestone in Nigeria’s digital transformation journey and reflects the Federal Government’s commitment to building a more connected, efficient, transparent and citizen-centred public service.
He emphasized that the Portal is more than a website; it is the foundation of a unified digital gateway that places the needs of citizens and businesses at the centre of government service delivery.
He further noted that while the event marks the beginning of the Portal’s journey, the soft launch provides an opportunity to onboard pioneer MDAs, gather user feedback, strengthen system integrations and continuously improve the platform ahead of a wider national rollout.
Representing key stakeholder institutions at the launch were the Deputy Director of KOICA Nigeria, Mr. Ki Yun Baik; the Permanent Secretary of the Federal Ministry of Communications, Innovation & Digital Economy, represented by Mr. Joseph Bareiye, Director of e-Government; the Permanent Secretary, State House, represented by Mr. Oguntuyi Olusegun, Head of ICT; and the Executive Director, Digital Exploration and Technical Services, Galaxy Backbone, Olumbe Akinkugbe.
The Government Service Portal aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, and supports Nigeria’s broader Digital Public Infrastructure (DPI) agenda by creating a citizen-facing gateway that complements existing investments in digital identity, secure infrastructure, cloud services, cybersecurity and digital government platforms. It can be accessed using the link: services.gov.ng . The initiative is expected to strengthen public service delivery, increase transparency, improve operational efficiency and foster greater trust between government and citizens.
Galaxy Backbone reaffirmed its commitment to supporting all Ministries, Departments and Agencies in integrating their digital services into the Portal, noting that collaboration across government will be critical to building an inclusive, interoperable and efficient digital ecosystem that benefits every Nigerian.
The Government Service Portal is expected to evolve into Nigeria’s central digital gateway for public services, making government services simpler, faster and more accessible for citizens and businesses alike.
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