Maximizing Growth in Cellular IoT: Three Strategic Moves MNOs and MVNOs Can’t Afford to Miss

The demand for cellular connectivity for IoT is growing rapidly, with estimates of 70% growth in connections by 2030, driven by network technology improvements and the increasing use of 5G.

New applications and use cases are leveraging 5G networks and high-bandwidth video, ubiquitous coverage, and the rising awareness of the need for robust IoT security.

TecFutures has drawn out three areas of strategic advice for MNOs and MVNOs looking for market growth and competitive differentiation in cellular IoT.

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1. Focus on Vertical-Specific Solutions and Partnerships

Key Action: Develop and market vertical-specific IoT packages and seek partnerships within target industries to create tailored solutions.

Vertical-specific IoT solutions are in demand as more industries recognize the efficiency, cost-savings and innovation potential IoT brings to their business. Building IoT connectivity solutions tailored to specific verticals such as agriculture, smart cities, healthcare, or logistics, can help MNOs and MVNOs build expertise to meet the unique needs of each industry. For example, agriculture may prioritize NB-IoT and LTE-M for wide-area coverage with low-power consumption, while logistics and smart cities often requires real-time location tracking with robust LTE and 5G support.

Partnering with key industry players including IoT device manufacturers, application developers and integrators can further strengthen a CSP’s offerings and facilitate more rapid deployment.

This approach also helps ensure that the technology aligns with regulatory requirements and meets industry-specific security standards, which will be critical to building business in sectors such as healthcare and finance.

2. Emphasize Security and Compliance as Core Offerings

Key Action: Integrate comprehensive security features into IoT connectivity packages and actively market security as a core feature, whilst also proactively highlighting regulatory compliance to attract customers in highly regulated industries.

With the increasing integration of IoT in sensitive and regulated environments, data security and compliance are paramount. Positioning security as a core component of your IoT offerings can make your solutions more appealing to businesses concerned about data integrity, privacy and cybersecurity.

Compliance with industry standards and regional regulations, such as GDPR in Europe, further builds customer trust as customers are assured that their IoT implementations align with legal requirements without additional investment.

3. Provide Flexible, Scalable Pricing Models

Key Action: Develop pricing models that allow businesses to start small and expand as their IoT deployments grow, making it easy for customers to manage costs while scaling up connectivity.

IoT applications can often involve connecting large numbers of devices, so flexible and scalable pricing models can be a major draw for enterprises looking to manage costs effectively.

Implement tiered pricing options that allow businesses to scale device connectivity gradually or pay based on actual usage. For example, offering pay-as-you-grow plans or data-bundled packages tailored to specific IoT device categories (such as low-data NB-IoT or high-bandwidth 5G) allows businesses to adapt their IoT connectivity expenses to changing needs.

Ensure your pricing reflects industry vertical expectations and cost sensitivity in a way that emphasizes that you are the long-term partner.

Conclusion

To take advantage of and capture growth in the rapidly developing cellular IoT market, MNOs and MVNOs must leverage targeted solutions, robust security, and flexible pricing to stand out in a highly competitive environment.

By aligning connectivity offerings in this way means they can position themselves as trusted partners. Strategic focus on these areas will foster deeper customer relationships. MNOs and MVNOs that execute on these priorities will drive value and competitive advantage in the evolving cellular IoT ecosystem.

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About TecFutures

TecFutures is a different type of 'boutique' market analysis / market strategy business specialising in telecoms, messaging and IoT with its related technologies. We place client requirements at the centre of all our work, helping to identify growth opportunities.

With highly interactive engagements, we support clients through actionable projects as well as a cost-effective monthly retainer designed to be tailored to your objectives and provide rapid high-impact insight and support. Details can be found at https://www.tecfutures.com/services .

Contact us at [email protected] learn more about how we can support your journey towards ongoing success.

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