Verizon’s Internet of Things
In this part of the series, we’ll look at Verizon’s (VZ) performance in the IoT (Internet of Things) segment. IoT is a small segment for Verizon, but it’s a growing revenue stream. Organically, Verizon’s IoT and Telematics revenue rose ~17.4% YoY (year-over-year) to reach $229.0 million during 1Q17.
During the recent Guggenheim Media Day conference on June 8, 2017, Marni Walden, Verizon’s executive vice president and president of Media & Telematics, spoke about Verizon’s IoT strategy. She said that with only 5.0% of IoT revenue coming from connectivity, Verizon is instead focusing on the services component. She also said that 85.0% of the global value is in the services space.
Additionally, the Fleetmatics and Telogis acquisitions have positioned Verizon as the number-one provider of fleet services globally. Also, a partnership that Verizon entered into with the City of Sacramento will provide large media and advertising opportunities through smart communities.
Growth potential of IoTs in the US
As shown in the above graph, research firm IDC (International Data Corporation) estimated that the global IoT-installed base will increase from 9.7 billion devices in 2014 to 25.6 billion devices by 2019 and expand further to 30.0 billion devices by 2020.