The Race to the home butler : are telcos about to miss the digital home service opportunity?

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      <subfield code="a">Since 2012 we have identified the smart home as one of the most sizable opportunities for telcos, as it is increasing at a CAGR from 2018 to 2023 of more than 20 percent, to reach 126bn by 2023. However, until now, most telecom operators have not been able to transform this opportunity into profit. In recent years, many telecom operators launched smart-home initiatives hoping to capture part of the promising smart-home market. However, device-centered and platform-based offerings were not successful in empirical experiences, while client value- and service-oriented solutions were adopted and offered significant returns. Many different actors, such as internet giants and utilities, see the potential of this market and have started to develop a competitive advantage. However, by leveraging their assets, telcos have a unique legitimacy to move beyond connectivity to become the main digital home-service providers. To create holistic and successful offerings, telcos should also look into partnerships with platform and home-service aggregators.</subfield>
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