Transforma Insights recently published a new report, ‘Beyond Coverage: Building Smarter, Compliant, AI-Ready IoT Networks’ in conjunction with floLIVE, exploring the impact of seismic changes in the technical, commercial and regulatory landscape and how MNOs and MVNOs must adapt their IoT connectivity strategies to reflect that change. In this article, Matt Hatton, Founding Partner of Transforma Insights, explores one aspect of this evolution: the impact of changes in the technology landscape, including eSIM, network fragmentation and an evolving middleware landscape.
At the centre of this shift is the introduction of the SGP.32 eSIM standard, which resolves many of the practical limitations that previously constrained remote SIM provisioning in IoT. Earlier standards (SGP.02 for M2M and SGP.22 for consumer devices) were cumbersome, requiring manual processes or complex integration between operators. SGP.32 enables remote, lightweight, and protocol-efficient profile management, suited to constrained IoT devices and compliant with low-power technologies such as NB-IoT. This evolution allows devices to change connectivity providers without direct involvement from incumbents and introduces new commercial roles, most notably the eSIM Orchestrator.
For MNOs, SGP.32 represents both an operational and strategic imperative. Operators must now support remote provisioning and profile management across vast fleets of devices while ensuring security and compliance. This demands cloud-native infrastructure, open APIs, and interoperability with third-party orchestration platforms. MNOs also need to integrate with abstraction or Single Pane of Glass (SPOG) systems that allow enterprises to manage connections across multiple networks. Supporting these systems ensures visibility, flexibility, and retention of enterprise customers who might otherwise be tempted by more agile competitors.
For MVNOs, the standard is transformative. Traditional roaming-based models lose relevance as enterprises gain the ability to localise connectivity directly. To remain central, MVNOs must evolve into orchestration roles, managing eSIM profiles, switching logic, and policy enforcement across partner networks. The value shifts from resale to intelligent coordination. Success requires advanced software capabilities for integration with multiple Subscription Manager systems, robust automation, and compliance-aware data handling.
Beyond eSIM, the middleware layer of IoT connectivity is also changing. Connectivity Management Platforms (CMPs) are diversifying, and abstraction platforms/SPOGs that unify multiple CMPs are becoming essential. These tools provide the single operational interface that enterprises now expect for managing multi-network deployments. Both MNOs and MVNOs must adapt their offerings accordingly. MNOs are moving toward multi-tenant CMPs with standardised APIs, while MVNOs are integrating connectivity management with device and application oversight to deliver cohesive, value-added solutions.
Network technology itself is fragmenting further. The decommissioning of 2G and 3G networks, uncertainty over the long-term role of LTE, and uneven rollout of 5G Standalone all create a patchwork of coverage and capability. At the same time, satellite-based Non-Terrestrial Networks and Low Power Wide Area (LPWA) technologies offer new options but lack uniform global availability. This fragmentation forces providers to develop flexible architectures that can accommodate multiple access technologies and evolve with device lifecycles. MNOs must implement intelligent network orchestration and local breakout capabilities to manage this diversity efficiently. MVNOs must ensure their orchestration platforms support multiple network types and dynamic selection based on coverage, cost, or compliance criteria.
The move toward 5G, particularly Standalone (5G SA) deployments, brings opportunities for advanced capabilities such as network slicing, ultra-low latency, and programmable quality of service. MNOs that invest early in these capabilities can offer differentiated, performance-driven IoT services. MVNOs, meanwhile, can exploit open network APIs and slicing as part of orchestrated connectivity offerings tailored to specific use cases or customers.
Overall, the changing technology landscape is forcing MNOs and MVNOs alike to shift from static provisioning toward intelligent orchestration. The new environment demands flexibility, interoperability, and software-driven control. MNOs must focus on infrastructure modernisation, API openness, and integration with abstraction layers. MVNOs must prioritise platform sophistication, automation, and eSIM management. Those that adapt will move from being connectivity suppliers to becoming enablers of resilient, adaptive, and technology-agnostic IoT ecosystems.
This article provides a summary of some of the key points within the report. It will be further expanded upon during a Virtual Briefing on 23rd October. Both the Position Paper and the Virtual Briefing are sponsored by floLIVE.
The free Position Paper ‘Beyond Coverage: Building Smarter, Compliant, AI-Ready IoT Networks’ examines key changes occurring in the provision of cellular-based IoT connectivity, including the growing demand for data to feed AI, the changing regulatory landscape, and evolving technology, including eSIM, network technology fragmentation, and the evolving platform landscape. It goes on to explore the impact these changes will have on the landscape for IoT connectivity provision, and how MNOs and MVNOs should adapt their strategies to address the opportunity.
In addition to the published Position Paper, on the 23rd October, Transforma Insights and floLIVE will deliver a Virtual Briefing ‘Compliant, localised and AI-ready: how MNOs and MVNOs must evolve their IoT connectivity strategies’ exploring the ways in which MNOs and MVNOs addressing the IoT market should evolve their offerings to better reflect the market evolution, whether that be by streamlining operations, establishing new partnership models, addressing compliance challenges, delivering optimised global connectivity, or many other elements of an evolved IoT strategy.
