Smart Home Will Be a US$11.2 Billion Opportunity For Telcos in 2022

To win the smart home, CSPs must take a platform approach, as done by Deutsche Telekom or Comcast, two of the leading CSPs in this space. A platform strategy must be supported by the creation of a wide partner ecosystem and must be underpinned by an innovative monetization approach favoring freemium services over traditional bundles. CSPs have assets all around the connected home from providing connectivity, creating content and delivering video, to specific applications such as monitored security and as such, they have a wider reach than any other competitor. CSPs should use this mix of essential (e.g., broadband connectivity) and value-added services (e.g., monitored security) to tailor a strategy fine-tuned to customers' needs and regional dynamics. "CSPs should not impose their legacy fixed-line business model to the smart home," Tomasi stated.

To win the smart home, CSPs must take a platform approach, as done by Deutsche Telekom or Comcast, two of the leading CSPs in this space. A platform strategy must be supported by the creation of a wide partner ecosystem and must be underpinned by an innovative monetization approach favoring freemium services over traditional bundles. CSPs have assets all around the connected home from providing connectivity, creating content and delivering video, to specific applications such as monitored security and as such, they have a wider reach than any other competitor. CSPs should use this mix of essential (e.g., broadband connectivity) and value-added services (e.g., monitored security) to tailor a strategy fine-tuned to customers' needs and regional dynamics. "CSPs should not impose their legacy fixed-line business model to the smart home," Tomasi stated.

"The smart home is core to the CSPs' future and it is a real test to assess how far CSPs have developed their business beyond their telco heritage and how they can adapt their bundling business to market condition, experiment with innovation, and compete head-to-head with webscale players," he concluded.

These findings are from ABI Research's UnTelco in Smart Home: Telcos opportunities and Market Activities report. This report is part of the company's Telco Digitization research service, which includes research, data, and Executive Foresights. 

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