The global broadband services market had an estimated value of US$326.7-billion in 2019, with a compound annual growth rate (CAGR) of 9% from 2020 to 2027, according to a report by Grand View Research.
Conversely, the five-year CAGR for telco-provided broadband access is a low single-digit figure in mostly mature markets, leaving telecommunications providers to look for opportunities to bundle broadband with complementary services to enhance their portfolio, retain their customers, and grow their revenue.
The smart home industry is rapidly expanding as well. The global smart home market size is expected to grow from $78.3-billion in 2020 to $135.3-billion by 2025, at a CAGR of 11.6%. The growing importance of home monitoring in remote locations and increasing demand for energy-saving and low-carbon-emission-orientated solutions are among the factors driving smart home growth.
Smart home solutions are a perfect complement to service providers’ fixed and wireless broadband offerings and can enable providers to expand services and create new revenues with their existing customer base. A study by Markets and Markets forecasts the smart home market will be worth $135.3-billion by 2025.
Adding smart home solutions to a broadband portfolio extends the utility of fixed and mobile broadband data plans and increases average revenue per user. They’re the ideal complement to fixed and wireless broadband offerings, enabling the expansion of services to create new revenues within the existing customer base.
Turnkey, brandable smart home solutions
When it comes to smart homes, Radisys offers a complete turnkey smart home solution set that is fully customisable and brandable for operators to extend the utility of their data plans, grow average revenue per user and create new revenue streams.
Flexible smart home solution packages from Radisys grant operators more ways to monetise their data plans. To start, cross-selling and upselling opportunities for advanced packages, subscriptions and bolt-on services allow operators to monetise data analysis by offering premium service packages.
Pairing smart home solutions with all-inclusive data plans also adds utility without increasing the cost of users’ existing plans, making a service provider’s data plan stickier and helping retain customers in the long run.
Operators can earn revenues from smart device sales and may also monetise ancillary services to create new revenue streams
Finally, operators can earn revenues from smart device sales and may also monetise ancillary services to create new revenue streams. Analytic reports and home security insurance offerings are just some of the ways smart home solutions may be leveraged by a service provider to create opportunities for additional revenue streams.
A recent Omdia and Broadband Forum report noted that smart home services represent a new growth opportunity for broadband service providers as innovative use cases continue to develop.
Smart home solutions deliver flexible, scalable opportunities that position service providers to grow revenues, enhance their product portfolio and make their customers less likely to switch to another provider.
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