agriculture iot

The IoT Mobile Virtual Network Operator (MVNO) market sector is shifting from connectivity to value-added services, according to ABI Research. Causing the shift are dynamics such as disruptive pricing, discounted connectivity rates, and a rise in low power, wide area (LPWA) connections.

Revenue for device and application platform services, IoT security services, managed services and other services is predicted to be $1.9 billion in 2030, according to ABI. The report states that of this total, services will account for 44% and connectivity will be 56%.

The estimates were part of ABI’s “IoT MVNOs Market Update — Services, Private Networks, and Supplier Analysis.”

“Connectivity is the foundational offering of an MVNO,” ABI Research’s IoT Hardware & Devices IoT Networks & Services Analyst Lizzie Stokes said in a press release. “However, MVNOs now recognize that connectivity offerings alone are not sufficiently profitable as several market forces limit revenue growth.”

The IoT sector is challenging. There are huge numbers of devices, which makes security difficult. In addition, many are inaccessible once deployed and have extremely limited power budgets. The report summary provides great detail on the pressures of the increasingly crowded IoT MVNO market and provides examples of how some of those companies are reacting.

For instance, Eseye is focused on acquiring device expertise and providing on-device software, in an effort to improve connectivity resiliency. Kajeet and Webbing provide connectivity to both IoT and non-IOT devices. Companies investing in value-added services and driving innovation include Sierra Wireless, 1NCE and Wireless Logic, in addition to Eseye and Kajeet.

In July, Verizon Business said that it would globalize its ThingSpace IoT platform. The Verizon Global IoT Orchestration platform is a joint project with Bell Canada and Telenor.

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