Transforma logo
Sign Up Login
Loading...

IoT connectivity providers need a hyperscale approach to counter the ‘$1 IoT’ scenario

  • Hyperconnectivity
  • Internet of Things
  • IoT
  • connectivity
  • cellular
  • SIM
  • MNO
  • MVNO
  • CSP
  • pricing
  • Matt Hatton
Price erosion in cellular-based IoT connectivity is happening fast. Transforma Insights believes that there is a very good chance that MNOs and MVNOs will within the next 5 years be faced with ‘$1 IoT’, i.e. the prevailing price for IoT connectivity for most applications will be USD1 per year. The implications of such a scenario will be substantial. It will facilitate the use of cellular in a wider range of applications, accelerating adoption. At the same time it will demand a radical change in how cellular connectivity is provisioned, sold and supported, and will trigger a significant change in MNO and MVNO strategies. This report explores the likelihood of such a radical pricing scenario, the implications for adoption, and the ways in which connectivity providers will need to adapt to reflect the changing dynamics.

Price erosion in cellular-based IoT connectivity is happening fast. Transforma Insights believes that there is a very good chance that MNOs and MVNOs will within the next 5 years be faced with ‘$1 IoT’, i.e. the prevailing price for IoT connectivity for most applications will be USD1 per year.

The implications of such a scenario will be substantial. It will facilitate the use of cellular in a wider range of applications, accelerating adoption. At the same time it will demand a radical change in how cellular connectivity is provisioned, sold and supported, and will trigger a significant change in MNO and MVNO strategies.

This report explores the likelihood of such a radical pricing scenario, the implications for adoption, and the ways in which connectivity providers will need to adapt to reflect the changing dynamics.

  • 1NCE
  • Aeris Communications
  • Blues Wireless
  • China Mobile
  • China Telecom
  • China Unicom
  • Deutsche Telekom
  • Eseye
  • KORE
  • KPN
  • Sierra Wireless
  • Telia
  • Twilio
  • Verizon Business
  • Vodafone
  • Wireless Logic
  • Internet of Things
  • Hyperconnectivity