When TecFutures speaks to IoT MNOs (Mobile Network Operators) and MVNOs (Mobile Virtual Network Operators), the discussion often focuses on use cases which are high bandwidth and low latency. These critical applications have very attractive revenue profiles, but as the IoT market is maturing and many of these use cases become intensely competitive and saturated. CSPs (Communications Service Providers) face significant challenges of capitalizing on a new range of underserved opportunities.
Here TecFutures analyses the need to address "Irregular Connectivity" use cases, where devices may only require occasional or intermittent low-bandwidth connectivity.
Examples include smoke alarms, roadside assistance beacons, smart meters, environmental sensors and other applications where the cost of traditional "always-on" cellular connectivity may outweigh the value provided. While the data is sporadic, it can be critical and highly valuable when connectivity is required.
Use Cases for Irregular Connectivity
Irregular connectivity is essential in scenarios where devices operate in low-power modes for extended periods and transmit data sporadically. Key examples include:
Emergency Systems: Devices like roadside assistance beacons or panic buttons that only need to transmit data during emergencies.
Smart Homes and Buildings: Smoke alarms, water leak detectors, and other safety systems that remain dormant until a critical event occurs.
Utility Monitoring: Smart meters for water, gas, or electricity that send usage data at predefined intervals, often daily or monthly.
Agricultural IoT: Soil moisture sensors or weather monitoring devices in remote areas that periodically send data for analysis.
Environmental Monitoring: Air quality monitors, wildlife tracking devices or remote seismic sensors that need long-term operation on limited connectivity.
Market Development for Irregular Connectivity
The market for IoT devices requiring irregular connectivity is growing rapidly. Low power IoT connections like LPWAN (Low Power Wide Area Network) are projected to account for a significant share of IoT deployments globally. Technologies such as NB-IoT (Narrowband IoT), LTE-M, and LoRaWAN are emerging as key enablers for these applications.
Companies like Giesecke+Devrient, through platforms such as "Intelligent Online," are innovating to address this market by offering connectivity solutions optimized for long life, low cost and minimal bandwidth usage. These advancements align with the growing demand for cost-effective and scalable IoT connectivity.
Challenges for MNOs and MVNOs in Addressing Irregular Connectivity
Infrastructure Costs:
MNOs often face high infrastructure costs for maintaining cellular networks designed for always-on, high-bandwidth connectivity. Adapting these networks for low-power, intermittent connectivity can be costly and complex.
MVNOs may lack the direct control over infrastructure, relying on MNOs to provide flexible connectivity solutions, which can limit their ability to innovate independently.
Scalability and Device Management:
Managing millions of IoT devices with irregular connectivity requires robust platforms for device onboarding, provisioning and lifecycle management. Both MNOs and MVNOs face challenges in scaling their operations to handle these requirements efficiently.
Commercial Viability:
The low data usage of irregular connectivity applications can make traditional pricing models unsuitable. MNOs and MVNOs need to ensure profitability while offering affordable options for customers deploying low-bandwidth devices.
Commercial Models for Irregular Connectivity Applications can be Complex
To address the challenges of irregular connectivity, MNOs and MVNOs should look to adopt innovative commercial models:
Pay-as-You-Go Connectivity:
Charge customers based on actual data usage rather than a flat rate. This model is ideal for devices that transmit data infrequently.
Lifetime Connectivity Plans:
Offer one-time payment plans for devices with predictable, low-bandwidth requirements over their entire lifecycle, such as smart meters or environmental sensors.
IoT Bundles and Vertical Solutions:
Package connectivity with IoT devices and value-added services, such as device management platforms, analytics or application-specific solutions.
Shared Connectivity Pools:
Allow enterprises to share a data pool across multiple devices, optimizing costs for large-scale deployments with varying data needs.
Dynamic Pricing Models:
Introduce flexible pricing based on network conditions, data priority, or the time of day, optimizing network usage while providing cost-effective options for IoT deployments.
By adopting these models and investing in technologies tailored for irregular connectivity, MNOs and MVNOs can unlock significant opportunities in the IoT market. Addressing these use cases effectively will not only drive mass adoption but also enable transformative applications across industries, making IoT accessible to a wider range of customers and use cases.
TecFutures has significant experience in delivering consulting projects that analyze the potential for Irregular Connectivity IoT Applications and steer suppliers towards solutions that address these opportunities. We work with our clients to define their Ideal Use Case Profile and then develop research and analysis programs to identify and prioritise the best opportunities that suit their revenue needs.
About TecFutures
TecFutures is a different type of 'boutique' market analysis / market strategy business. With a unique combination of tailored flexibility and research-driven insights, we are geared to support our clients' growth with speed and agility.
Unlike many consultancies that offer generic solutions, TecFutures provides client-specific, actionable analysis focused on the telecoms, messaging and IoT sectors.
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