Verizon quickly build its IoT business by means of acquisition and investment. Some analysts predict that the company's IoT business revenue will soon reach $1 billion.
Verizon, executive vice president and chief operating officer of John Stratton, said in Wells Fargo Technology media and telecom investor activities that Verizon company's IoT business revenue in the third quarter was 0.217 billion US dollars, up 24% year-on-year. He said: "It is very close to the income of 1 billion US dollars." He pointed out that most of the business comes from remote information processing, and most of them are internet of vehicles.
Verizon has recently completed a $2.4 billion acquisition Fleetmatics Group company, which will become part of Verizon Telematics business. In July this year, the company acquired Telogis,Telogis will help Verizon improve the remote information processing capability of enterprise customers. In addition, Verizon acquired Sensity Systems in September, which provides Internet of Things solutions for smart cities.
Stratton indicates that the Internet of Things will give full play to the network advantages of the Verizon, because the Internet of Things traffic on the network only accounts for 7% to 10% of the connection layer. He said: "The Internet of Things has great potential." He pointed out that even if each user of some IoT devices consumes less than $1 per month on average, it is still a "very profitable" business.
AT&T, Verizon competitor, has also invested a lot in the IoT business, but so far the company has not released its revenue from the IoT business in each quarter. AT&T also said that there are 26 million connection devices in its network and 1 million more connection devices are added every quarter.
Fiber Reach And 5G
in addition to IoT, Stratton also mentioned that the company is starting to purchase XO Communications for US $1.8 billion, and the company is still under review by the FCC, XO Communications will provide a very important component of the network-optical fiber rings covering 40 cities. These fiber rings will help Verizon 5G deployment because these fibers will flow back the traffic from the wireless network to the switch.
Stratton said: "When I deploy a wireless network and encrypt it, optical fiber will be a big problem."
original link: https://www.sdxcentral.com/articles/news/verizons-iot-business-may-soon-top-1b/2016/11/
this article is forwarded from d1net (reprinted)