The IoT Value Chain and the Strategic Positioning of IoT Mobile Virtual Network Operators

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By Abdullah Haider | 2Q 2022 | IN-6594


Connectivity Vendors Are DeadLong Live Connectivity Vendors


Recently, Mobile Virtual Network Operators (MVNOs) have begun to diversify beyond their core connectivity offerings. MVNOs have historically served as resellers of connectivity from large Mobile Network Operators (MNOs). MVNOs also then provided complementary Connectivity Management Platforms (CMPs), which allows them to “manage” the connectivity. “Managing” connectivity means creating a system for customers to provision the Subscriber Identity Module (SIM) (i.e., onboard the SIM to a management dashboard) and then provide SIM lifecycle management capabilities (billing, monitoring SIM usage, and deactivation of SIMs). For MVNOs, this strategy was characterized by intense price competition, which drove down Average Revenue Per User (ARPU), despite the growing number of IoT connections.

There was some Merger & Acquisition (M&A) activity for MVNOs that were acquired by hardware vendors further down the IoT value chain. For example, module and gateway vendors like Telit and Sierra Wireless were the acquirers. However, the…

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