12 Points to Explain the Verizon Internet of Things Story
12 Points to Explain the Verizon Internet of Things Story
- Competition from AT&T, Sprint, T-mobile, Facebook, and Google is pushing Verizon to diversify and focus on their IoT solutions.
- Verizon's IoT Segment recorded over $200 Million in revenue in Q3 (a 24% gain from the same period in the previous year). This might seem like a drop in the bucket compared to their $30.9 Billion however this will grow in 2017. Acquisitions, internal development, and the acceleration of the connectivity trend will feed the growth.
- Verizon expect IoT spending to grow from $592 Billion in 2014 to $1.3 Trillion in 2019. They are already seeing rapid IoT data growth on their network.
- Early leadership in 5G technologies should help Verizon gain a competitive edge in the wireless business. 5G is a crucial IoT technology for self driving cars and robots.
- Verizon anticipates that 5G will be able to handle multi GB download speeds and 1000X more consumption speeds than current technology.
- Verizon founded the 5G Technology Forum (V5GTF) with partners like Cisco, Ericsson, Intel, LG, Nokia, Qualcomm, and Samsung.
- Verizon is producing IoT hardware to connect Smart Cars in addition to building fleet management software for Smart City Solutions which will also include intelligent video, traffic management, and lighting.
- Verizon sees IoT Enterprise Applications as being the biggest drivers for Internet connectivity.
- ThingSpace is Verizon's IoT Platform and it provides network connectivity for a growing list of APIs and analytics.
- Verizon estimates that 80% of IoT revenues will come from IoT apps, 15% will come from the ThingSpace platform, and 5% will come from connectivity.
- Verizon has been spending Billions on acquisitions to rapidly build it's IoT position. Acquisitions include AOL, Yahoo!, nPhase, Fleetmatics, Hughes Telematics, LQD, and Telogis.
- Verizon expects rapid growth for IoT over the next 18 months due to falling costs. In 3-5 years, automation and efficiency gains from IoT will have dramatic impact on consumers and enterprise businesses. Watch the full slideshow here.
