New report from the world’s leading IoT analyst firm finds that MNOs and MVNOs need to optimise their approaches to addressing the IoT connectivity opportunity in the face of changing technological, regulatory and commercial dynamics, as well as the growing opportunities associated with AI.
The provision of cellular-based IoT connectivity is entering a new phase, evolving from a model centred on global roaming and best-effort coverage to one that prioritises performance, compliance, and technological diversity. This transformation is driven by technological advancements, regulatory changes, and the growing integration of AI into IoT ecosystems.
In a new Position Paper ‘Beyond Coverage: Building Smarter, Compliant, AI-Ready IoT Networks’, sponsored by floLIVE, Transforma Insights explores many of the key trends that are driving the growing complexity in cellular based IoT, and make recommendations for how MNOs and MVNOs might optimise their strategies to better address the changing landscape and emerging customer demands.
One key driver of change identified in the report is AI, as both a catalyst and an enabler. It amplifies demand for IoT connectivity, plays a critical role in optimising performance, and imposes further compliance requirements, including the need for distributed and localised connectivity architectures.
Elsewhere, regulatory and commercial factors are reshaping the market. Data sovereignty rules, roaming restrictions, and new obligations like the EU Data Act demand localised solutions and compliance-focused orchestration. Also, IoT data pricing continues to decline, eroding margins and prompting providers to pursue value-added services, consulting, and managed solutions. Operational expenditure (opex)-based models, including cloud-hosted platforms and subscription services, are replacing traditional capex-heavy approaches to maintain agility and reduce risk.
Technology is, as ever, a major driver of change. The evolution of eSIM and remote SIM provisioning (RSP) is a significant shift. At the same time, middleware platforms are also undergoing transformation, for instance with the arrival of the Single Pane of Glass (SPOG) platform. Network fragmentation is also a significant issue, with 2G and 3G networks being decommissioned globally, while Non-Terrestrial Networks (NTN) and 5G networks, particularly 5G Standalone (SA), are arriving, all adding to the complexity.
Commenting on the findings, author Matt Hatton said: “To remain competitive, Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) must move beyond providing basic connectivity. But that doesn’t mean pursuing an ‘up the stack’ approach of selling vertical solutions. It means ‘optimising the stack’ including localised infrastructure, advanced orchestration, eSIM capabilities, and compliance frameworks, while leveraging AI for operational efficiency and performance optimisation.”
The report identifies that there is clearly no one-size-fits-all approach for IoT connectivity providers. The approaches to be taken by MNOs and MVNOs will be different, and will vary significantly between MNOs that address the global opportunity versus those that are ostensibly national operators. The report includes recommendations for each of those company types.
Commenting on the results of the report Luigi Capobianco, SVP Head of Europe and The Middle East, from sponsor floLIVE said: “The challenges in this report, from roaming restrictions to the demands of AI, reflect exactly what our partners face every day. At floLIVE, we provide MNOs and MVNOs with a clear path forward. Through our globally distributed network and unified platform, we turn regulatory hurdles into competitive advantages, enabling compliant, low-latency, and AI-ready connectivity worldwide.”
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. The report is sponsored by floLIVE.
If you have questions concerning the methodology or the report, don’t hesitate to contact our analysts via enquiries@transformainsights.com.
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.
Register here.
