Why Connectivity Alone Isn’t Enough for IoT MVNOs

For years, being an MVNO meant one thing above all: connectivity.
SIMs, coverage maps, rates, SLAs. If you could deliver reliable connectivity at the right price, you had a business.

In IoT, that model is no longer enough.

As IoT deployments scale and mature, customers are no longer asking “Which network should I use?”
They are asking “How do I make this project actually work, from device to data to business outcome?”

That shift changes everything for IoT MVNOs.

Connectivity is now the entry ticket, not the value

Connectivity has become highly commoditized:

• Global coverage is expected
• eSIM and multi-IMSI are standard
• Prices continue to compress
• Customers can switch providers more easily than ever

In many tenders, connectivity represents less than 20–30% of the total IoT project value.
Yet many IoT MVNOs still try to compete almost entirely on that layer.

The result?

• Price pressure
• Low margins
• Short-term contracts
• Limited differentiation

Meanwhile, the real complexity and value, lives above the network layer.

What customers actually struggle with in IoT projects

In real-world IoT deployments, connectivity is rarely the hardest part.
The real challenges tend to be:

• Choosing the right devices and sensors
• Certifying hardware across regions
• Managing device lifecycle at scale
• Handling data ingestion, storage and analytics
• Integrating with customer IT systems
• Ensuring security, compliance and monitoring
• Operating the solution long after pilot phase

Customers don’t want ten vendors for ten problems.
They want one accountable partner.

The shift: From MVNO to End-to-End IoT partner

Successful IoT MVNOs are increasingly evolving into solution providers, offering:

• Connectivity (SIM / eSIM / LPWAN)
• Devices and hardware sourcing
• Device management platforms
• Data pipelines and dashboards
• APIs and integrations
• Ongoing operations and support

This doesn’t mean “doing everything yourself.”
It means owning the solution architecture and orchestrating the ecosystem.

In this model, connectivity becomes a powerful enabler, not the product.

Why this model is better business for MVNOs

From an MVNO perspective, end-to-end solutions fundamentally change the business dynamics:

1. Higher and more stable revenue

Instead of earning cents per SIM, revenue is tied to:

• Platforms
• Services
• Managed solutions
• Long-term contracts

2. Stronger customer lock-in

When you manage devices, data and integrations, switching providers is no longer trivial.

3. Longer customer lifecycles

IoT projects often run for 5–10 years once fully deployed.

4. Strategic positioning

You move from being a supplier to being a trusted advisor in your customer’s digital strategy.

Startups and enterprises expect this already

One important misconception is that only large enterprises want end-to-end solutions.

In reality:

• Startups want speed and simplicity
• SMEs want predictability and support
• Enterprises want scale, governance and integration

Across all segments, the expectation is the same:
“Help us succeed, don’t just sell us SIMs.”

The future of IoT MVNOs

The IoT market is entering a phase of consolidation and maturity.
Connectivity-only players will struggle to stand out.

The winners will be MVNOs that:

• Build solution capabilities step by step
• Partner smartly instead of trying to do everything
• Focus on customer outcomes, not network features
• Treat connectivity as part of a broader value stack

In the long run, end-to-end is not a premium option, it’s the baseline expectation.

Final thought

Over the years, working with IoT projects of all sizes, from early pilots to large-scale deployments, I’ve learned that connectivity is rarely what makes or breaks a solution.

What matters is everything around it.

Customers don’t fail because the SIM stopped working.
They fail because devices weren’t right, data wasn’t usable, integrations were missing or ownership between vendors was unclear.

As an IoT MVNO, you are already in a position of trust. Your network is running at the core of your customer’s solution. The real opportunity is to build on that trust, to take responsibility beyond connectivity and help customers succeed end to end.

For me, the shift from connectivity-first thinking to solution-first thinking wasn’t just a strategic choice. It was a response to what customers were repeatedly asking for in real projects.

The IoT MVNOs that embrace this mindset early won’t just compete better. They’ll build deeper partnerships, more resilient businesses and solutions that actually deliver long-term value.

That’s where the future of IoT MVNOs is heading, and it’s a future worth building.