Telecom strategies for IoT innovations in Asian and European business ecosystems

Telecom operators are looking for ways to develop new revenue streams beyond their current basic connectivity service. Internet of things (IoT) represents a new revenue opportunity where devices embedded with sensors connected to the operators' network collect and exchange data that improves decision making, business performance and customer experience. In this article we study how telecom operators have developed partnership strategies related to IoT innovations in emerging markets in Asia as well as in the more mature and advanced economies in Europe. In the emerging economies the telecom operators pursue a fully integrated vertical IoT solution provider strategy in co-creation with other third-party service developers. In the mature economies, the telecom operators follow an IoT business relationship strategy. This article contributes to the literature by defining three types of IoT business ecosystems and the respective telecom operators' strategies for successful exploration and exploitation of value in these ecosystems.