Could Enterprises Become the Next MVNOs? Unlocking IoT Revenue for Operators

The Internet of Things (IoT) is more than a collection of consumer gadgets; it stitches together sensors, infrastructure, and industrial machinery, creating the industrial IoT ecosystem.

By connecting this expansive network of devices, operators can recapture revenue lost to declining voice services. More importantly, they can position themselves as full, end‑to‑end IoT service providers for businesses and industry, says Mikael Schachne, VP of Mobility & IoT Business at BICS.

According to Analysis Mason, operator IoT revenue grew between 7.9% and 30.4% during 2017, compared to the previous year. Yet this growth still represents less than 2% of operators’ overall business—a small share that signals ample room for expansion and new service offerings.

Leveraging loyalty

Without the necessary network, skills, and expertise, many companies will turn to fully managed IoT solutions. An operator already serving a manufacturer with a smartphone contract for hundreds of employees could expand that agreement to cover M2M technology for factory automation. Likewise, a logistics firm with a long‑term handset contract could seamlessly upgrade its fleet with connected trucks, leveraging the operator’s connectivity.

Vodafone’s latest IoT Barometer reports that the proportion of businesses with more than 50,000 connected devices has doubled since 2016, and their IoT spend has risen over the past 12 months—underscoring a substantial market opportunity for operators.

Know your consumer

It’s not just enterprises and industry—consumer households are also expanding their device footprint. Households owning more than three connected devices have risen by a quarter since 2017. From smart speakers to connected kettles, these devices require reliable, cost‑effective connectivity with quick, easy setup. Operators managing homeowners’ smartphone subscriptions are ideally positioned to provide that connectivity.

A bundled services approach can also help reduce churn. The more devices a consumer or business adds to a contract, the richer the operator’s view of subscriber behaviour. Insights can be used to tailor plans based on device usage, while enterprises can analyze endpoint data to drive smarter decisions and streamline operations.

Businesses take control

Many enterprises are stepping into the MVNO role, giving them full control over the lifecycle of each connected device and the ability to manage bandwidth according to specific device requirements.

This autonomy lets them deliver superior service quality and accelerate new solutions by integrating connectivity with their internal IT. End‑to‑end processes are streamlined, reducing OPEX. While the business still relies on operators for wireless infrastructure, it manages its own device network independently.

Launching an IoT proposition can be as simple as provisioning a global SIM—future devices will increasingly embed eSIMs—and managing contracts and endpoints via a cloud‑based platform. The range of endpoints depends on the sector, but with global SIM technology and reliable connectivity expanding, the possibilities are vast.

Movable consumer products such as fitness trackers, smart watches, laptops, and wearable tech—alongside vehicles, utility meters, patient monitors, and remote assets like forklifts and drilling rigs—become visible and controllable to the business/MVNO.

Connectivity without borders

Global SIMs make this model increasingly feasible, ensuring multi‑network connectivity worldwide without the need for operators to negotiate numerous roaming agreements in each region.

The opportunities of connecting "things" are diverse and growing. Scalable, managed connectivity enables operators, MVNOs, and enterprises to tap into a truly global ecosystem and boost revenues.