Digital teapots, cars with SIM cards, internet-connected utility meters - this is the future for Australian telcos now that practically everyone owns a mobile phone.
And it could arrive very soon, says Telstra chief David Thodey.
"That wave is starting now. It'll flow through over the next 12-18 months," Mr Thodey said after announcing Telstra's full-year results on Thursday.
The results show Telstra now has more than 16 million mobile subscribers, but that growth is slowing.
"Is the market softening? Yes," Mr Thodey said.
"But I think the long-term perspective is really, really strong."
He pointed to the so-called "internet of everything", where everyday items from cars to light bulbs are woven into the World Wide Web.
"People will have two, three, four or five devices," he said.
"You think about the number of devices you have in the home, then you can go to meters, then you can go to every bit of machinery.
"Immediately your addressable market could be up to 100 million."
He said the next generation of connected devices will generate a fraction of the money brought in by smartphones - perhaps as little as $2 or $3 a month.
"Still, that is a tremendous opportunity," he said.
"The number of opportunities we're dealing with now has probably increased by 50, 60, maybe 100 per cent," he said.
He also expects tablet subscriptions to grow as more Australians upgrade from old PCs.
Telstra has looked to diversify its business over recent years, expanding beyond a traditional telecommunications business to a fully fledged digital media company.
The telco demonstrated its ambition this week, paying $US270 ($A292.13) million to take a controlling stake in US video streaming and analytics platform Ooyala.
That was the first purchase made by Telstra's Global Applications and Platforms group, which is tasked with gaining the telco a foothold in emerging technologies.
Yet Thodey said Telstra would continue to focus on strengthening its mobile infrastructure, with a plan to invest $1 billion over the next year.
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