Telcos Approaches to Smart Home Monetization

Telcos Approaches to Smart Home Monetization


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Executive Summary

Telcos' Approaches to Smart Home Monetization

Summary

"Telcos' Approaches to Smart Home Monetization", a thematic research report by GlobalData, examines the smart home business models that telcos are applying to monetize the smart home market opportunity. Using a case study methodology, the report analyzes four leading telcos to identify key monetization approaches, provide a strategic assessment of the approaches and recommendation for telcos.

Telcos have already perceived the need to expand their portfolio beyond connectivity to monetize the growing smart home opportunity. To develop smart home portfolio telcos are are engaging in partnerships and joint ventures with different stakeholders that are part of the smart home ecosystem, including device manufacturers, technology providers, application developers and start-ups.

The report is structured as follows-

- Section 1: Smart Home Monetization Aims and Models; this section provides a strategic framework of key smart home monetisation approaches available for telcos.

- Section 2: Telcos' Approaches to Monetizing Smart Home Services; an analysis of four case studies of telcos smart home services that includes Deutsche Telekom, HKT, Comcast, and Vodafone Spain.

- Section 3: Findings and recommendations; we conclude the report with a set of key findings and critical considerations and recommendations for telcos and vendors pursuing the smart home opportunity.

Scope

- There are four key monetization opportunities for telcos in the smart home: customer retention and acquisition, B2C cross-selling and up-selling, hardware sales revenue, and white-labeling and upsell opportunities in the B2B segment.

- Telcos are facing three dilemmas in smart home monetization: the revenue potential from connectivity is minimal, ecosystems can also be quite complex, and often telcos do not have all the in-house technical capabilities required to provide end-to-end IoT solutions and services to their clients.

- Many telcos are focusing on leveraging their capabilities to develop cross-vertical solutions that can be applied across different IoT projects.

Reasons to buy

- This report provides an examination of telcos' smart home monetization models to help executives understand market dynamics, determine what works and what doesn't, formulate effective product development plans, and optimize resource allocation and return on investments.

- Four case studies illustrate the findings of the report, providing insight into particular situations regarding smart home services and the role of telcos in service provision; this will help the reader understand both the challenges confronted in the real world and the strategies employed to succeed.

- The report discusses opportunities in the smart home market, providing a number of actionable recommendations for telcos.

- The report is designed for an executive-level audience, to help to understand the different approaches that telcos are adopting to foster their presence within the smart home value chain and ecosystem.



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Table of Contents

Table of contents 3

List of exhibits 4

Executive summary 5

Section 1: Smart Home Monetization Aims & Models 6

Monetization Aims 7

Key Monetization Models 8

Section 2: Telcos' Approaches to Monetizing Smart Home Services 9

Deutsche Telekom Magenta SmartHome 10

Comcast XFINITY Home 12

Vodafone V-Home Spain 14

Hong Kong Telecommunications (HKT) Smart Living 16

Section 3: Findings and Recommendations 18

Key Findings & Recommendations: Telco smart home monetization 19

Appendix 20

Acronyms and definitions 21

Companies mentioned 22

About the authors 23

Contact information 24

List of Figures

Exhibit 1: Key Monetization Aims 8

Exhibit 2: Key Monetization Models 9

Exhibit 3: Deutsche Telekom, Germany, Magenta SmartHome Case Study Snapshot 11

Exhibit 4: Deutsche Telekom Service model, value proposition, & monetization Approaches 12

Exhibit 5: Comcast, US, XFINITY Home Case Study Snapshot 13

Exhibit 6: Comcast Service model, value proposition, & monetization Approaches 14

Exhibit 7: Vodafone, Spain, V-Home Case Study Snapshot 15

Exhibit 8: Vodafone Service model, value proposition, & monetization Approaches 16

Exhibit 9: HKT, Hong Kong, Smart Living Case Study Snapshot 17

Exhibit 10: HKT Service model, value proposition, & monetization Approaches 18

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Charter Communications

Cox Communications

Deutsche Telekom

Hong Kong Telecommunications (HKT)

KPN

Rogers Cable

Samsung

Vodafone

Comcast

PCCW Global

smart homes, smart services, Deutsche Telekom, Hong Kong Telecommunications, HKT, monetization models, Vodafone, Comcast

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