With IoT landscape shifting quickly, regulators need to up their game in IoT Regulations & IoT Policies.
IOT POLICIES & IOT REGULATIONS are critical for the success of the IoT ecosystem.
The Internet of Things (IoT) is one of the most talked about topics in the tech and telecommunications industries. Many of those conversations debate how telecom operators can best tap into IoT’s revenue potential. Earlier this year Ericsson canvassed 20 multinational telcos to understand their attitude to IoT and how they were positioning themselves in the IoT value chain. According to the subsequent report, Exploring IoT Strategies, more than two thirds of respondents lacked a clearly-defined IoT strategy. Most operators are currently involved in testing various approaches. Telecoms operators globally are being required to re-strategize and redefine their business models as they explore ways to capture more of IoT’s promised returns. The Ericsson study offers a clue to why. With 80% of the telcos interviewed saying they wanted to create value ‘beyond connectivity’. This highlights what is becoming a widely-held conviction: in the IoT value chain telcos continuing to rely on connectivity-based revenues will miss out.
The IoT ecosystem is intricate. It needs many partners to supply hardware, software, connectivity, and apps that work together. Because so many players sit along the value chain, no one clearly owns the customer relationship. Global product and platform providers add another layer of confusion when they differ from local service operators.
To capture value beyond connectivity, telcos must cut through this complexity. They should move up and down the IoT chain, launch new ventures, and forge strategic partnerships.
A range of new business models is available to such operators, depending on the business’s appetite and strategic objectives. As commented in Synergy Consulting Group’s new white paper, Enabling the IoT Ecosystem With Policy and Regulation: ‘Operators that have made a strategic decision, as part of their digital transformation efforts, to be an enabler in the IoT ecosystem can launch IoT platforms that can be bundled with their connectivity.’
Multi-sided IoT markets let telcos link third-party app developers with businesses and consumers already on their networks. Ambitious carriers can craft sharper vertical offers for target industries. They may supply custom IoT apps or deliver a full, end-to-end “one-stop shop.”
Most skills required for this shift lie outside today’s telco core. To move beyond connectivity, operators must build, partner, or acquire talent in app development, IoT-platform management, and systems integration.
Finding the right IoT business model takes trial and error, as Ericsson notes. Telcos need room to test ideas, yet strict national rules often box them in. Regulators designed these limits for traditional connectivity, where competition was scarce.
When telcos move into IoT services, the line between network access and higher-level value blurs. Regulators then struggle to decide which rules apply. Data-privacy laws, switching mandates, and security standards add more friction. As telcos push beyond pure connectivity, they must juggle innovation with complex compliance, while NRAs race to keep up.
Will NRAs push strict connectivity rules into non-connectivity IoT services? No one knows yet. Local carriers often bundle network access with new IoT platforms to stand out from global rivals. Regulators may label that bundle “connectivity” and impose old limits. Such action would choke fresh business models and weaken national telcos.
Small regional operators face the biggest risk. They already enter IoT on thin margins. Extra red tape could finish them. Regulators must level the field. They can revise rules themselves or press competition and consumer-protection agencies to act. Either way, NRAs need to give local players room to compete with global IoT giants.
With the IoT landscape shifting so quickly, NRAs need to up their game to ensure they can accurately assess the connectivity regulations for IoT. This will necessitate a deep understanding of the emerging IoT business models, as well as non-connectivity regulatory issues such as data privacy, security, and competition regulation in multi-sided markets. Telcos, for their part, need to ensure that their Regulatory Affairs Management is upgraded. A proactive approach to engaging NRAs will help ensure that the regulations are not hampering telcos’ IoT-beyond-connectivity ambitions.
OTT apps and shifting market forces disrupt telecoms. The most digital-savvy carriers reacted by refocusing their business plans and chasing new opportunities. IoT proves they still play a vital role. Yet real success demands a fresh partnership with NRAs. Both sides must trade rigid habits for open, hands-on collaboration. With smart regulation, telcos can innovate without excess red tape, while regulators still protect fair competition. This balance keeps the economy healthy and invites new investment.
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For more information about our insight on IoT policies and regulation, download Synergy Consulting Group’s White Paper: Enabling the IoT Ecosystem with Policy and Regulation
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