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Applications 1

I.2 Business models

The IoT ecosystem players may have a variety of relationships in real deployments.
The motivations for this variety of relationships are based on different possible business models. This
appendix examines only some IoT business models from the perspective of telecom service and network
operators. From this perspective, five business models are described below.
I.2.1 Model 1

In model 1, player A operates the device, network, platform and applications and serves the application
customer directly, as shown in Figure I.2.

In general, telecom operators and some vertically integrated businesses (such as smart grid and intelligent
transport systems (ITS) businesses) act as player A in model 1.

Figure I.2 – Model 1

I.2.2 Model 2
In model 2, player A operates the device, network, and platform, and player B operates the application and
serves the application customers, as shown in Figure I.3.
In general, telecom operators act as player A, other service providers as player B in model 2.

Figure I.3 – Model 2

I.2.3 Model 3
In model 3, player A operates the network and platform, player B operates the device and applications and
serves the application customers, as shown in Figure I.4.
In general, telecom operators act as player A and other service providers act as player B.

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