Exploring the Emerging & Evolving Opportunities for MVNOs in IoT

The market for MVNOs is experiencing growth due to the increasing demand for digital services, such as mobile money, machine-to-machine transactions, and cloud computing. These factors contribute to the powerful position in the global market, as MVNOs can establish private networks that enhance various aspects of work.

Projections indicate that the MVNO market will continue to expand steadily globally, with a moderate compound annual growth rate (CAGR) of 7.7% expected between 2022 and 2030. The following article will showcase the current state of MVNOs in IoT and investigate the emerging opportunities for MVNOs entering the IoT market.

The current state of MVNOs in IoT

MVNOs have established a significant presence in the IoT market, contributing to the seamless connectivity of smart devices. Businesses play a crucial role by providing wireless communication services without owning the underlying network infrastructure. Instead, they lease network capacity from established Mobile Network Operators (MNOs) to offer their services to end-users.

In the realm of IoT, numerous MVNOs have emerged. They focus on delivering comprehensive connectivity solutions, enabling efficient communication and data exchange. Notable players in this domain include Aeris, Cubic Telecom, Pod Group, and KORE Wireless.

Aeris, for instance, operates globally, serving various industries. Its comprehensive IoT connectivity solutions encompass cellular connectivity, device management, and application enablement. Similarly, Cubic Telecom is renowned for its global connectivity solutions, primarily targeting automotive and smart city applications.

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MVNO vs. MNO: challenges

Despite the growing influence of MVNOs in the IoT market, they encounter various challenges such as:

Network coverage. MVNOs heavily rely on partnerships with MNOs to access their network infrastructure. Ensuring reliable and widespread coverage for IoT devices, especially in remote areas or across different countries, can be a demanding task. Limited network coverage may hinder the scalability and reach of IoT deployments.

Scalability. As IoT deployments expand in scale, MVNOs face the critical challenge of scalability and flexibility. Companies must accommodate the growing number of devices and efficiently manage the associated data traffic. Offering flexible pricing models and scalable solutions is imperative to meet the increasing demands of IoT applications.

Fierce competition. MVNOs must also contend with the competitive landscape posed by MNOs. The last ones often extend their IoT connectivity services, directly competing with MVNOs. With the advantage of owning and controlling the network infrastructure, MNOs can offer bundled services and competitive pricing. This intense competition makes it challenging for MVNOs to differentiate themselves and attract customers effectively.

Security concerns. Rising security worries regarding network safety, data theft, complex installation, and inexperienced personnel are restricting the MVNO market’s development. The delayed implementation of 5G further hampered the industry’s expansion prospects. Vendors prioritize platforms that are more amenable to future technical developments or updates.

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Emerging Opportunities for MVNOs in IoT

Edge computing

The technology reduces latency and enables real-time data processing and decision-making. MVNOs can leverage edge computing to provide faster response times, improved reliability, and enhanced security for IoT applications.

Edge computing addresses the challenge of real-time data processing. Bringing computational resources closer to the devices reduces the time required to transmit data to a centralized cloud and receive a response. This capability is crucial for time-sensitive applications.

5G networks

5G provides faster data speeds and increased network capacity compared to previous generations of cellular networks. The introduction of 5G network bandwidths pushed the MVNO business forward, widening the communication network area. The enhanced network capacity and low latency of 5G enable MVNOs to support a more significant number of connected devices simultaneously. This scalability is particularly valuable in manufacturing, logistics, and healthcare industries, where numerous devices need to be interconnected.

Related: What Business Leaders Should Know About Private 5G Networks

MVNO’s business model can differentiate itself in the market by capitalizing on these emerging technologies. Such organizations can provide advanced IoT services that require high-speed connectivity and real-time data processing. The value delivered attracts new customers and positions MVNOs IoT as leaders in the ecosystem.

Key considerations for MVNOs entering the IoT market

Reliable business partnerships: MVNOs should seek strategic partnerships with IoT device manufacturers, network operators, and platform providers. These partnerships will help ensure a comprehensive and diverse ecosystem. Collaborating with device manufacturers allows them to access a wide range of IoT devices for their customers. Partnering with network operators provides reliable connectivity and access to a robust network infrastructure.

Attention to pricing: MVNOs entering the IoT market must carefully develop pricing models that are competitive and flexible. They should consider the specific needs of IoT customers, such as data usage patterns, device types, and service levels. Tiered pricing plans based on data consumption or device capabilities can cater to different customer segments.

Scalability plan: As IoT connections and data traffic grow, the underlying infrastructure must be capable of handling the increased demand. Investing in scalable network infrastructure, cloud computing resources, and data storage solutions is crucial. By designing their systems to accommodate future growth, MVNOs can ensure that their services remain reliable and efficient as the number of IoT devices and data volume expands.

Summary

MVNOs in the IoT market are experiencing growth and facing opportunities and challenges. They provide seamless connectivity for IoT devices by leveraging partnerships with established MNOs. However, MVNOs face challenges. They can capitalize on emerging technologies like 5G and edge computing to overcome them. By leveraging these technologies, MVNOs can differentiate themselves and offer advanced IoT services.

Strategic partnerships with device manufacturers, network operators, and platform providers are crucial for building a comprehensive ecosystem. Flexible pricing models and scalable infrastructure investments are essential for meeting the developing needs of IoT customers and accommodating future growth.