Telcos Admit IoT Lag: The Imperative to Align With Customer Business Needs

In a candid session at the 6th IoT Forum CE in Vienna, three leading European telecom operators admitted that many businesses still lack a clear understanding of the Internet of Things (IoT). The consensus was simple yet powerful: telcos must demonstrate deep insight into their customers’ business goals, not just sell connectivity.

Reporter Jeremy Cowan captured the atmosphere of a panel that drew over 400 delegates from 18 Central European countries. The keynote by Bela Virag, Global Head of Innovative Business Designs at Arthur D. Little, highlighted Telstra’s pioneering work in live stadium experiences.

From Connectivity to Consumer‑Centric Services

Telstra’s prototype installed 12 camera angles at a UK football stadium, accessible via a fan app. The concept quickly evolved to 40 high‑definition feeds, enabling real‑time match views. The platform then added convenience features—ordering popcorn, locating the shortest restroom lines, and identifying optimal parking spots—turning simple connectivity into a fully integrated, ad‑supported consumer service.

Telstra’s journey exemplifies the shift from selling bandwidth to leveraging core expertise for innovative, customer‑focused offerings. While B2B IoT deployments have shown impressive traction, the consumer side lags behind, a reality Bela Virag underscored.

5G as a Catalyst—and the Growing Gap

Virag noted that many emerging IoT use cases now require 5G, yet operators remain on the sidelines. Consequently, some enterprises are deploying their own private 5G networks to meet real‑time performance demands.

Arthur D. Little’s executive shed light on the broader industry shift: “Non‑telecom players such as Ericsson, Comau, Facebook, Scania, and NEC are all venturing into 5G‑enabled solutions—from smart manufacturing to autonomous trucking and AI‑driven security.”

Industry Voices on Diversification

Hutchison Drei Austria CEO Jan Trionow emphasized a strategy that spans transport, logistics, and vending payments, while also expanding into medical partnerships and advanced data analytics.

Tele2’s deputy CEO Ingrid Wistrand reaffirmed a 2012‑era focus: “We continue to deliver secure, analytics‑rich connectivity that empowers our customers.”

T‑Mobile Austria’s SVP Werner Kraus highlighted the need for consultative sales: “We help Austrian firms navigate a crowded solution landscape, ensuring they find the right partners and adapt to evolving technology.”

Real‑World Impact: Atlantic Grupa

Senior Executive Director Mladen Pejkovic shared insights from Atlantic Grupa, a food‑and‑beverage supplier. He explained that in 2015, the company’s digital strategy centered on data storage and analysis rather than IoT per se. “We achieved up to 60% efficiency gains—especially in HR retention—by identifying employees likely to leave and proactively engaging them.”

Pejkovic also highlighted smart shelves and vending machines as avenues to capture real‑time customer preferences, enabling data‑driven decisions that directly influence product placement and inventory management.

Addressing the Growth Gap

Tele2’s Ingrid Wistrand acknowledged the complexity of IoT ecosystems: “Success requires collaboration across multiple partners and continuous flexibility.”

Hutchison 3’s Jan Trionow candidly remarked that the industry remains short of Ericsson’s 2020 target of 20 billion connected devices, noting that consumers’ data‑protection concerns often outweigh perceived value.

Werner Kraus added that telcos need mature sales and consultancy skills to translate technology into tangible business outcomes. “We must listen, not prescribe a one‑size‑fits‑all solution.”

Pejkovic echoed the sentiment: “The market must be convinced of the tangible ROI. It’s about project thinking, not just product selling.”

In sum, the telecom community recognizes that IoT’s promise is far from fully realized. The path forward hinges on genuine customer insight, robust 5G infrastructure, and a flexible, consultative approach to solution delivery.

Author: Jeremy Cowan, Editorial Director of IoT Now & VanillaPlus