The IoT MVNO market is undergoing a strategic transformation as connectivity revenue growth encounters hurdles, reveals ABI Research. The surge in Low Power, Wide Area (LPWA) connections, coupled with disruptive pricing models, has impacted the profitability of connectivity services for virtual operators. Facing intense pricing competition and a rise in LPWA connections post the 2G and 3G network shutdowns, MVNOs are diversifying by investing in value-added services.
ABI Research predicts that by 2030, IoT MVNO revenue from value-added services will reach $1.9 billion, constituting 44% of all service revenues. MVNOs are expanding portfolios to include device expertise, planning services, and on-device software, recognizing the importance of integrating connectivity with IoT devices. Security concerns prompt investments in virtualized private network offerings and SIM technology. MVNOs like Kajeet and Webbing are providing connectivity to both IoT and non-IoT devices, broadening offerings to cater to evolving customer IoT needs. Notable players adopting these strategies include Sierra Wireless, Eseye, Kajeet, and Wireless Logic. In response to thinning connectivity margins, MVNOs are set to continue investing in device expertise and value-added services.
