How much is Verizon making from the IoT?
Verizon launched its nationwide internet of things network on the last day of the first quarter. The carrier added Category M1 technology to its network through a software upgrade, and in the months ahead will likely to start to see revenue from that network.
Already, Verizon is on track to book roughly a billion dollars in IoT-related revenue this year. The carrier’s first quarter revenue included an estimated $228 million in organic IoT revenue, meaning revenue that came from businesses owned for at least one year.
In addition, Verizon is generating IoT revenue from two telematics businesses acquired during the last twelve months. In November Verizon closed on its $2.4 billion purchase of Fleetmatics. Shortly before that it completed its purchase of Telogis for an undisclosed sum said to be just shy of $1 billion.
Verizon’s total telematics revenues were $214 million in the first quarter of 2017, making telematics by far the largest contributor to the carrier’s internet of things revenue.
According to Fleetmatics, telematics is defined as “the technology of sending, receiving and storing information relating to remote objects – like vehicles – via telecommunication devices.”
During the fourth quarter of 2016, Verizon said that IoT revenues increased 21% from fourth quarter 2015, to $243 million. Including acquisitions, IoT revenues increased more than 60% in the fourth quarter of 2016.