Global IoT Deployment Stalled: Why Roaming Prices Are Holding Back 50 Billion Devices

In the world of IoT, the promise of a truly connected planet remains elusive. The core issue? Mobile network operators (MNOs) are grappling with drastic reductions in roaming revenue, which threatens the economic viability of global IoT deployments.

Jeremy Cowan, editorial director of IoT Now, cites Nick Earle, CEO of Eseye, who argues that the European Union’s decision to eliminate roaming charges across the continent was well‑intentioned but unintentionally undermined the business model that keeps networks profitable. While consumers enjoy zero‑cost roaming, operators have invested billions in infrastructure that now faces an unsustainable revenue stream.

When EU operators needed to roam onto US networks such as Verizon or AT&T, the latter questioned the fairness of the new regime. US carriers, in turn, pushed back, citing a 90% cut in roaming revenue that could jeopardize their own financial health.

At the heart of the problem is the lack of profitability for IoT roaming. Operators report that no revenue is generated from traditional roaming agreements for IoT devices, leading some to renegotiate terms or, in extreme cases, shut down services altogether.

EU’s Consumer Focus Ignores IoT Reality

“It’s a classic case of a well‑meaning regulation creating an economic blind spot,” says Earle. “Consumers benefit from low data costs, but IoT traffic is largely invisible on the revenue ledger.”

Consider Eseye’s U.S. client with 120,000 vending machines. In 2018, AT&T announced the sunset of 2G, which would have required a massive truck roll to replace SIMs. Eseye leveraged its AnyNet Connectivity platform to re‑route devices to alternative networks, updating nearly 80,000 units over‑the‑air and avoiding a $12 million cost.

However, AT&T’s own pressure on roaming rates forced the company to limit availability on certain routes, compelling Eseye to adjust device IMSI profiles to maintain service continuity.

Creative Pricing Models and Walled Gardens

Operators are experimenting with minimum fees, revenue‑commitment per connection, and the formation of “walled gardens.” These strategies undermine the predictability of roaming agreements, a critical factor for enterprises planning global IoT rollouts.

Customers demand seamless interoperability akin to the Internet Protocol, yet MNOs are clustering into alliances, prioritising partners over competitors. This fragmentation limits coverage to roughly 80% globally.

The Economic Catch‑22 for MNOs

With roaming revenues slashed and regulatory restrictions tightening, MNOs face a paradox: they must open their networks to third‑party traffic to win global contracts, but doing so erodes their control over customers and revenue.

Eseye’s CEO frames this dilemma as a “Catch‑22,” highlighting the tension between global reach and local profitability.

How Eseye’s AnyNet Federation Could Break the Cycle

Eseye proposes a two‑pronged solution: (1) deploying multiple IMSI profiles to guarantee connectivity across regions, and (2) localising devices via eUICC (embedded Universal Integrated Circuit Card) to enable region‑specific profiles.

The AnyNet Federation will allow MNOs to share eUICC profiles, delivering global pricing, invoicing, and support while retaining ownership of the customer relationship.

Enter Hyperscale Cloud Providers

Amazon Web Services and Microsoft Azure are extending their global reach into IoT, offering centralized policy and security management without the need for a telecom license. This shift threatens the traditional value‑add services that MNOs rely on to offset commodified connectivity costs.

Five Forces Analysis of the IoT Landscape

1. MNOs – squeezed by reduced roaming revenue and forced into walled gardens.
2. Customers – demand out‑of‑the‑box, worldwide connectivity.
3. Hyperscale Cloud Providers – deliver value‑added services at scale.
4. Device/Module Manufacturers – embed eSIM functionality for plug‑and‑play deployments.
5. Eseye – bridges gaps by enabling shared eUICC profiles.

Eseye’s strategy offers MNOs a path to win profitable global contracts while maintaining control over data localisation and customer relationships.

Future Outlook

With upcoming announcements, Eseye aims to dismantle the current Catch‑22 and unlock the 50 billion‑device vision. McKinsey forecasts that digitisation will be the next wave of disruption, yet the economic model remains the main barrier.

“Ten years ago, Cisco’s John Chambers projected 50 billion connected things. Today, excluding smartphones, we’re at roughly 1–1.5 billion. The gap remains because the business model is broken,” says Earle.

As enterprises increasingly adopt connected vending machines, EV charging units, and smart textiles, the need for a robust, cost‑effective global IoT infrastructure has never been greater.

Author: Jeremy Cowan, Editorial Director, IoT Now & VanillaPlus.