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Verizon (VZ) to Offer IoT Services to Small Businesses

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U.S.telecom behemoth Verizon Communications Inc. (VZ - Free Report) is known for its diversified business model, which covers varied fields like communications, technology, wireless industry, Internet of Things (IoT) and the media video and digital platform. Toward this end, the telco is planning to start selling its upcoming ‘IoT Fast Track’ services to small business owners.

The company had announced the new IoT services at the 5G North America conference. The commercial launch of the same is slated for the first quarter of 2017.

Verizon’s IoT Fast Track

Verizon clearly stated that its $15,000 IoT Fast Track services are specifically designed for small business owners instead of larger multinational companies such as auto makers who usually opt for cellular-based IoT offerings. The main motive behind this latest offering is to expand the company’s addressable market for IoT services.

The service will essentially connect small business owners interested in IoT ventures with Verizon consultants. It will also offer technical, supplier-related and expense details to the companies for the IoT installations. Moreover, customers will not have to purchase Verizon’s network services to avail its IoT offerings.

Meanwhile, the company said that it is looking forward to expanding in the IoT space further as it will allow it to better serve customers. The company also said that its IoT business, which includes smart cities, telematics, ThingSpace and other products, has risen 24% year over year to $217 million. ThingSpace integrates services ranging from LTE to WiFi which allow customers to collect and analyze IoT data.

Recent IoT Events

This September, Verizon entered into a partnership with Qualcomm Technologies, Inc., a subsidiary of Qualcomm Inc. (QCOM - Free Report) , to develop its IoT platform, ThingSpace. Meanwhile, Verizon’s rival AT&T Inc. (T - Free Report) partnered with Cisco Systems, Inc. (CSCO - Free Report) to launch an all-in-one IoT Starter Kit. Notably, these telecom companies are looking for alternative sources of revenue to offset the decline in their legacy businesses like fixed-line services.

Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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