Companies are realizing new value from traditional products by connecting devices to the Internet. Ovens, thermostats, cars, medical devices and even articles of clothing now have their own IPv6 addresses and numerous sensors with connected capabilities.
In 2009, the number of “things” connected to the Internet surpassed the number of people, and by 2020, there will be 50 billion connected devices, according to a 2015 Federal Trade Commission (FTC) report.
Businesses vary in their motivations for entering the Internet of Things (IoT) market. Many are looking to new growth opportunities or new revenue streams from subscriptions or increased sales. Meanwhile, others want to maintain or build brand loyalty, and they enter the market to ensure their competitive edge.
But while these businesses look to the future, many are neglecting to consider the regulatory and tax implications of entering a market with a voice and/or data transmission (communications service) component.
The briefing document linked below will:
- Provide your business with information about the tax and regulatory implications of providing a connected product or service
- Distinguish between traditional products and communications services
- Describe the complications of communications service regulation
- Explain compliance options for companies developing Internet of Things products and services