The internet of things (IoT) market continues to develop rapidly, presenting both opportunities and challenges for mobile virtual network operators (MVNOs). In a recent discussion with TecFutures, Sam Colley from Giesecke+Devrient (G+D) provided valuable insights into the changing dynamics of the IoT connectivity landscape and the strategies MVNOs can adopt to thrive in this dynamic environment, whilst also serving the changing needs of enterprises.
Navigating the Shift to Digital Journeys
Sam Colley makes the point that the market can be viewed from both a connectivity perspective and a broader service offering perspective. While connectivity is a core component, the focus is shifting towards the overall service offerings and how they are evolving. One of the key trends is the shift from a traditional single SIM and resale approach towards one that highlights advanced "digital journeys" in IoT connectivity. The growing popularity of the upcoming SGP.32 solution for embedded SIMs, along with IPA (IoT Profile Assistant) implementation signal a maturing market, as enterprises seek more sophisticated and flexible connectivity options.
This shift presents both opportunities and risks for MVNOs. On the one hand, the decentralization of power away from traditional mobile network operators (MNOs) can strengthen the position of MVNOs, who can now offer more tailored and innovative connectivity services. However, MNOs are also adapting, exploring ways to retain control through contractual mechanisms and additional value-added services.
Embracing a Consultative Approach
To capitalize on these changes, Sam Colley emphasizes the importance of MVNOs adopting a more consultative approach when working with enterprises. Rather than simply providing connectivity, MVNOs should position themselves as trusted advisors, helping enterprises navigate the complexities of IoT implementation and ensuring their projects are set up for success.
This approach can involve services such as G+D's Verify program, which tests device compatibility and firmware to minimize technical issues during deployment. By taking on a more holistic advisory role, MVNOs can differentiate themselves and become indispensable partners to their enterprise customers.
Addressing the Challenges of Irregular Connectivity
One of the key challenges highlighted in the discussion is 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 and other applications where the cost of traditional ‘always-on’ cellular connectivity may outweigh the value provided.
To address this, Sam suggested the development of new solutions that can provide long-term, low-cost connectivity for these types of use cases. This could involve innovative technologies like G+D's "Intelligent Online" platform, which aims to deliver a long life for devices with minimal connectivity requirements. By catering to these underserved use cases, MVNOs can unlock a vast pool of potential IoT applications and drive mass adoption of the technology.
Navigating the Evolving Competitive Landscape
The IoT market is also seeing a shift in the competitive landscape, with Sam cautioning against the "hyper-scaling" approach adopted by some players. Instead, he advocates for a more focused, vertical-specific strategy, where MVNOs can develop tailored solutions that address the unique needs of different industries and applications.
This vertical focus should be coupled with a "horizontal integration" approach that can leverage common market opportunity fundamentals, where MVNOs build out a full-stack solution that seamlessly integrates cloud, hardware, and connectivity management. By offering a comprehensive, end-to-end service, MVNOs can differentiate themselves and provide greater value to their enterprise customers.
Key Advice to Enterprise Adopters of IoT
Sam Colley believes that enterprises looking to deploy IoT should consider the following three key pieces of advice:
1. Understand the Value of the Application
The first and most crucial step is for enterprises to thoroughly understand the value that their IoT application will provide. There is often a disconnect between "ideas" and "value creation" in IoT; just because a device can be connected, it doesn't mean it should be. Enterprises need to carefully analyse the tangible benefits and outcomes they are seeking to achieve through the IoT deployment.
2. Consider Broader Ecosystem Interactions
Once the core value proposition is clear, enterprises should then think more broadly about how their IoT application can interact with and create value for other players in the ecosystem. The concept of "mass IoT" is not about individual, siloed applications, but rather about connecting the dots and leveraging the metadata and insights generated across multiple services. Enterprises should explore opportunities to package their offerings or create collaborative initiatives with other IoT stakeholders.
3. Embrace Broader Connectivity Solutions
Sam Colley advises enterprises not to make assumptions about the connectivity technology to be used. He cautions that the choice of cellular, LPWAN, satellite, or other connectivity options can make or break an IoT project. Enterprises should invest time upfront to thoroughly research and select the most appropriate connectivity solution for their specific use case, taking into account factors like coverage, cost and long-term viability.
By taking these factors into account, enterprises can lay a strong foundation for successful IoT deployments that deliver tangible value and leverage the full potential of the evolving IoT ecosystem.
MVNO Strategies for Success
To maximize the potential in the evolving IoT landscape, MVNOs should consider the following strategies:
Embrace a Consultative Approach: Position your organization as a trusted advisor, helping enterprises understand their connectivity requirements and design the right solution.
Develop Vertical-Specific Solutions: Focus on addressing the unique needs of different industries and applications, rather than a one-size-fits-all approach.
Integrate Connectivity into a Broader Platform: Offer a comprehensive solution that combines connectivity management with cloud services, device management, and other value-added features.
Explore Innovative Connectivity Technologies: Invest in developing cost-effective solutions for irregular connectivity use cases, leveraging the latest advancements in areas like satellite IoT and low-power cellular.
Foster Ecosystem Partnerships: Collaborate with hardware manufacturers, software providers and other ecosystem players to create a more seamless and integrated IoT offering.
By embracing these strategies, MVNOs can position themselves as indispensable partners to enterprises wanting to optimize their IoT implementations.
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