There will be two huge waves of innovation in the automotive market driven by innovation, connectivity advancements, machine learning, applications (infotainment, diagnostics, and personal experiences), and machine intelligence. The first wave, which is what we are experiencing now but are just breaking the ice is "The Connected Vehicle" wave. Imagine a vehicle that ...
Some of the biggest names are playing in this market...connected vehicle, connected cars, smart cars, automated vehicles, etc. Amazon, AT&T, Blackberry, Ericsson, IBM, Intel, Microsoft, and Sierra Wireless just to name a few are major players in this industry, along with every major automotive manufacturer.
Recent and related news for further reading:
Next week we will talk about the second wave, autonomous vehicles. Stay tuned...
Make sure to check out my earlier post, “Preparing Your Enterprise for IoT and Automation in the Workplace: Part 1,” before reading this column.
In Part 1, we discussed top key happenings, findings and wisdom that might help your business engage in better discussions as you plan for 2017. This is specific to automation of operations and the workforce, connecting your workplace, and implementing internet of things (IoT) applications. We have already explored the first three bullets below, so now let’s explore the last four. read more by going to CIO.com
Last month I attended IoT6 Exchange Summit, a conference put on by nGage Events and held in San Antonio Texas at the La Cantera Resort and Hotel. One of the panels I sat in on focused on the emerging trends and happenings in IoT and connected enterprises. While there was a consensus that IoT needs to focus on collecting and using only actionable data, intelligence, and information for businesses, there was also continued discussion around security, core applications, justification through KPIs and ROI, and managing the solution.
Below is a summary of some key trends I highlighted and discussed on what to expect in 2017. I would love to explore these topics with your company or organization in more detail. Please contact Compass Intelligence to begin your connected enterprise journey.
Written By: Stephanie Atkinson @stephatkins
Q3 2016 and End of Year Assessment of the “Top 4 Mobile Carriers” - Net Adds Drop and Service Revenue Declines
Compass Intelligence just completed the final assessment of Q3 subscribers and connections including the comparisons to Q2 2016 in terms of improvements and declines for the U.S, Wireless Carrier market. We do this each quarter to understand the subscriber and share changes, as well as evaluate the key trends taking place in the wireless industry for both consumer and B2B. We have been tracking the quarterly metrics since 2007. Some metrics are our own internal modeling and estimates, as the market does not report in all categories.
A snapshot of Q3 2016 is below. Compass Intelligence compared last quarter’s results to this quarter to show which metrics showed improvement over others (denoted by + or -).
Below are additional thoughts and insights based on the quarter and annual performance:
About 9 months ago I wrote a blog on IBM Mobile Insights discussing what is on the horizon for B2B mobility, and one of my observations was the carrier becomes less relevant and CONTENT becomes king. As we can see from recent acquisitions by the carriers (Verizon/Yahoo and AT&T/Time Warner) that these predictions are becoming a reality. The issue is the current offerings, service revenue and profitability metrics are becoming less consistent to the carriers' bottom line, and the ONLY way to stay relevant and reach the customer base is to do that with interactive content and changing customer experiences. The devices we use every day are really only important to use because of the things we can do with them, the content we can access, and the business and productivity benefits that can be obtained. We do expect the carrier community to drive offers, services, and reach new revenue streams with content, and that includes access to music, sports, entertainment, movies, television, games, news, and yes even business content. Sprint's Claure also mentioned he has a content deal in the works, and T-Mobile currently lures customers by providing free media and content to its customers. Most of the early term content offers are expected to be very consumer driven, but we expect for B2B content partnerships and offers to also come into play, as again CONTENT is KING!
T-Mobile just produced an amazing Q3 presented recently in their earnings call, yet AT&T's news about the Time Warner acquisition has been distracting, especially to the investor community. T-Mobile essentially beat all carriers on net adds, and is continuing to show growth and claims it may surpass AT&T in 5 years. I think Legere may be challenged with this goal, as it currently is producing about $250M in quarterly net income compared to AT&T's more than a billion. Even though T-Mobile had such a great quarter, its overall net income was not as impressive, despite revenue growing more than 17 percent. T-Mobile would only have a chance to grow by taking advantage of the fact that AT&T will be distracted with DirecTV, AT&T Mexico, and AT&T/Time Warner M&A activities, and secondly T-Mobile needs a better business approach. T-Mobile's focus on the 5 to 25 line business segment is limited to the Small Business market, and by not reaching the Fortune 1000 customer base, you are limited to developing enterprise partners and offers that reach the larger end of the business market. T-Mobile has a long way to go to provide salient offers for the enterprise, and also lacks the structure and deal flow on the IoT side as well.
Other observations is around the subsidization of devices....we are starting to see creative offers to provide clients the illusion that they are getting a new device for FREE. This is being done by offering bill credits if and only if the customer commits to a term equipment installment plan (EIP) and that term might be 24 months. In some cases the carrier will offer the full value of the device in bill credits, but customers may not get those bill credits until a few years and the carrier is banking the fact that consumers are wanting to upgrade earlier and possibly before the 24 month period. We witnessed a string of iPhone deals about a month back to lure customers for the bill credits deals, and now we are seeing this with the LG phone as well (see T-Mobile's Business site).
Lastly, where will the carriers focus for growth and monetizing over the next few years? We believe Verizon will focus further around Intelligent Transportation and Smart Cities (but mostly trial and early stages now), business mobility specific to the SMB market and retention of the enterprise client base, developing enterprise and content offers through partnerships and acquisitions, and remain the price leader. AT&T will continue to develop around the Connected Vehicle and will dominate in this space, further build-out its Mexico and Latin America operations, push its AT&T Partner Exchange and Emerging Business resellers and partners, and focus around salient and differentiated content offers leveraging DirecTV and in the future Time Warner. Sprint continues to make improvements and we expect them to focus very heavily on the SMB sector for the business market, leverage its major brand portfolio and offers for the consumer, and continue to grow through wholesale and affiliate relationships and focus on future partnerships for new offers. Sprint's prepaid business is struggling, so there definitely should be some focus around this customer base but it seems Sprint is focused around its postpaid business in the near-term. Lastly T-Mobile, as mentioned above T-Mobile will need to push forward in the SMB market and provide offers "up-market," meaning it should build out its B2B strategy and product portfolio around mid-sized businesses and the enterprise. T-Mobile could also seek out partners to help provide a better position around its IoT and M2M business, as it has not performed well compared to AT&T who it says it will be going after over the next 5 years. T-Mobile may need to seek out a business content partner, and totally disrupt the market but most of everything we have see with T-Mobile is focused around its consumer business.
Also, don't count out other companies to disrupt the current mobile market in the states. Vodafone is expected to expand in the states (keep a close eye on this), and LeEco (the Chinese Software & Content) company also launched this October in the U.S. and will be doing it all....think mobile devices, IoT/M2M, consumer electronics, Connected Vehicles/Bikes, Music, Media, Content, Applications, Customer Experience. This company is just scratching the surface to replicate its China business in the states, so if you have not checked them out yet, well you better start! LeEco has been buildings its West Coast team, has been busy with the analyst community, launched its smartphone, showcased many other products, but is emphasizing that it is not a "device" company, it is a Software company. This company gets it...my whole notion that content is king is exactly what this company is basing its foundation on, driving business through content, media, movies, and other entertainment interactive experiences.
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In a move that swept the headlines late last week, all 4 top U.S. wireless carriers are back in the business of discounting devices. No, we are not returning to device subsidies the way we were so accustomed to in the past, but with the launch of the iPhone 7 we are back in business in terms of getting a “discounted” device.
All four carriers are providing up to $650 in bill credits provided back to the customer over the course of the monthly equipment installment plans (EIP) on the iPhone 7, as long as an older iPhone is traded-in. Both AT&T and Verizon are offering these credits for iPhone 6 models traded in, including the iPhone 6, iPhone 6 Plus, iPhone 6s and iPhone 6s Plus. Sprint is offering the best options, as it is allowing trade-ins for both iPhone 6 models and Samsung Galaxy 7 models. T-Mobile is also differentiating itself by allowing iPhone 5 models to be part of the trade-in providing credits up to $370 depending on the smartphone traded in.
To see the full comparison graph and Read More, CLICK HERE: http://blog.hylamobile.com/iphone-7-trade-in-offers-from-the-top-4-us-carriers
Image Courtesy of Network World
Wireless data spending is growing for U.S. businesses as workers increase their use of smart devices on the go for everything from communication, collaboration and other business uses to shopping and watching videos. Wireless and wireline data, along with apps, are IT areas where spending is on the rise. Spending is flat or declining in other IT areas, including voice communications, personnel and hardware. With free or low-cost Wi-Fi available, U.S. businesses will increasingly look to shift wireless data traffic away from cellular networks to Wi-Fi networks where possible.
No help from MEM or EMM toolsToday, mobile expense management (MEM) tools and enterprise mobility management (EMM) tools can offer some relief, but they come at a cost and can be cumbersome to manage, especially for small and midsize businesses. Many require real-time oversight and management and may involve QoS (quality of service) compromises like data compression or rely on Big Brother-style policies that mandate usage caps and other restrictions.
Read More at CIO.com here.
Compass Intelligence just completed the final assessment of Q2 subscribers and connections including the comparisons to Q1 2016 in terms of improvements and declines for the U.S, Wireless Carrier market. We do this each quarter to understand the subscriber and share changes, as well as evaluate the key trends taking place in the wireless industry for both consumer and B2B. We have been tracking the quarterly metrics since 2007. Some metrics are our own internal modeling and estimates, as the market does not report in all categories.
A snapshot of Q2 2016 is below. Compass Intelligence compared last quarter’s results to this quarter to show which metrics showed improvement over others (denoted by + or -).
Source: Compass Intelligence, 2016
Below are additional thoughts and insights based on the quarter and annual performance:
Final Word – The industry has reached 73% saturation among smartphone subscribers and overall service revenue has declined by 1.9%. Two avenues for major growth are centered around IoT and content. Content drives access to applications, which in turn provides increased growth and usage of data, video, and other more interactive services. The industry is seeking out new avenues for revenue and profit, including through new content revenue streams demonstrated by the recent acquisitions of Verizon with Yahoo! (and AOL) and AT&T with DirecTV. IoT growth has primarily been driven around the connected vehicle and connected home, but the industry becomes even more interesting as the carriers leverage their new content partners to offer new offerings to entice through the use of media, games, sports, streaming TV/music, news, weather, and much more. Expect to see exciting announcements in Q3 and Q4 in how the carriers will leverage content to reduce churn, and offer new revenue streams that may be noticed on the backend, meaning customers may require MORE data.
As for IoT and connected devices, the industry is experiencing an overall 17.9% growth in reported numbers from a year ago but we have yet to really hear on a quarterly basis the overall revenue generated from IoT alone. Verizon reported about 3 quarters back and we have seen some anecdotal tidbits here and there, but the industry and Wall Street will be pushing for more of that detail in the near future. Also, keep in mind, that some of the reported numbers for connected devices also include activated tablets (for example at US Cellular). IoT, M2M, and connected devices reached 62.4M in Q2 just in the U.S. alone.
"As a CIO or CTO, you and your team are responsible for a long range of corporate-liable technology buying, and this includes selection, onboarding, issuance, security, management, integration, software updates, repair, replacement, upgrades, warranty, BYOD, wiping, backup, and more. But there is one more step you need to includes in this long list, and that is what you do with the hardware, computing equipment, and devices once you are no longer using them or are ready to replace them." Please check out the full article on CIO.com - http://goo.gl/FntX03
"Mobile enterprises are taking a collaborative approach to implementing, adopting and building mobility into operations. One key highlight of the mobile conference was the notion that cloud, analytics, security and the user experience are finally coming together." Please read the full article on IBM Mobile Business Insights.
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