How Mobile Operators Can Unlock the True Value of Cellular IoT

How Mobile Operators Can Unlock the True Value of Cellular IoTHow Mobile Operators Can Unlock the True Value of Cellular IoT  Read More iot


The current IoT connectivity landscape


The Internet of Things (IoT) presents mobile operators with a transformative opportunity to unlock new revenue streams and maximize the ROI on their infrastructure. However, realizing IoT’s full potential demands more than simply repackaging standard consumer services. Enterprises leveraging cellular IoT require scalable, cost-effective solutions that not only optimize network infrastructure but also deliver robust security—essential in a landscape where a single breach can result in catastrophic reputational and financial damage, or even bankruptcy.


Mobile operators generally cater to IoT connectivity needs with two distinct offerings: quick, self-service solutions and bespoke, enterprise-grade packages tailored to specific business demands. Advanced options boast sophisticated features such as real-time analytics, fine-grained policy control, and robust security measures, including firewalls and Private APNs. The Private APNs incorporate a secure Enterprise VPN, ensuring IoT traffic and connected devices stay protected. However, the deployment of these tailored offerings can be complex and time intensive. In contrast, basic connectivity services with SIM management as the main feature—while simple to deploy—lack these critical security measures, leaving enterprises exposed to risks and far from adequately equipped to handle the complexities of modern IoT ecosystems.

Revolutionizing IoT connectivity: balancing scalability, security, and cost-efficiency


The proliferation of IoT devices—many of which are unmonitored, headless, or physically vulnerable—has exponentially expanded the risk landscape, leaving enterprises exposed. While advanced connectivity solutions deliver critical services for enterprises, they often lock operators into an inefficient “every customer is a project” approach. This model requires extensive engineering effort, incurs high costs, and leads to prolonged deployment timelines that can span weeks or even months. Such inefficiencies limit scalability and delay time to market. According to Transforma Insights, this model could significantly contribute to over $100 billion in additional costs globally between 2020 and 2030.


The challenge lies in serving IoT customers who demand robust security without incurring the high costs of bespoke deployments. To avoid being “stuck in the middle,” operators need a scalable solution that bridges the gap. Something that is just as much a “self-playing piano” as the basic services but offering the firewall and Private APN functionality typically found in advanced, customized solutions. The answer lies in adopting an IoT Connectivity Control Function (ICCF), which complements existing connectivity management platforms. This approach allows operators to automate, scale, and secure IoT connectivity, meeting customer demands efficiently and cost-effectively. By moving beyond commoditized services, operators can avoid a price race to the bottom that erodes profitability, stifles innovation, and leaves them vulnerable to competition from more agile players including specialised IoT MVNOs and private network providers.


Automating IoT connectivity for scalable success at hyperscalers


We propose that mobile operators add an IoT connectivity control layer on top of the IoT Connectivity Management Platform (CMP) they already have, placing it with hyperscalers for maximum flexibility and scalability.


This programmable cloud-native ICCF delivers a flexible layer of connectivity control, security, and automation on existing cellular networks, enabling operators to:


Empower customers to define and manage their own connectivity policies, Private APNs, and firewall settings via a self-service portal. 

Automate deployments by creating Enterprise VPNs in minutes rather than weeks through API-powered VPN setup from the self-service portal.

Scale their IoT offerings profitably while meeting diverse customer requirements. 


This approach allows mobile operators to be agile and deliver tailored services at scale, introducing unprecedented speed to market. 


As operators can support enterprise customers through a single APN connected to the ICCF, the need for individual setups in the mobile core is eliminated. Enterprises benefit from the ability to create and manage multiple VPNs, reconfigure device connectivity centrally, and establish secure connections for subcontractors—all without requiring device-level adjustments.


Overcoming global IoT connectivity challenges


With many current offerings, global connectivity remains a significant hurdle—regulations in countries like Brazil, India, China, and Turkey prohibit permanent roaming, and some operators have their own restrictions based on business decisions.  Mobile operators address these challenges by leveraging eSIM/eUICC technology to localize the device’s connectivity in compliance with local regulations. IoT enterprise customers seek unified global connectivity under a single contract, but localizing an IoT device to a partner mobile operator with eSIM localization risks the original mobile operator losing control over that device. An ICCF resolves this by enabling the mobile operator to retain control, delivering a seamless service experience across partner networks. It ensures consistent settings, such as IP addresses and firewall rules, regardless of localization. All the mobile operator must do to deliver truly unified global connectivity is connect their partner mobile operators to the ICCF in the same way they are connected themselves.


Flexibility to deliver granular policy control to each IoT customer


Advanced policy control is essential for meeting the diverse needs of IoT deployments. Traditional mobile cores are built around a narrow range of smartphone subscription types, limiting the ability to implement granular policy customization for IoT customers. Whereas an ICCF empowers operators to deliver precise policy controls tailored to a wide variety of use cases. It also enables enterprises to manage their own policies and security settings via user-friendly portals. Many small and medium-sized enterprises (SME) lack the expertise or resources to independently secure IoT environments, relying instead on providers to deliver robust protection. By leveraging ICCFs, operators can offer managed security services—a critical capability that addresses enterprise needs while unlocking new revenue streams.


How unlocking IoT connectivity drives industry transformation


ICCFs revolutionize the way vertical IoT segments operate, offering tailored, scalable, and secure networking capabilities to meet diverse needs. From enabling the efficient management of security policies to providing seamless private connectivity for vehicles and businesses, these solutions are driving innovation across sectors. These include:


Utilities: Secure millions of simple IoT devices like smart meters with firewalls and anomaly detection. 

Automotive: Manage multiple VPNs for connected car systems, enabling predictive maintenance and seamless updates with subcontractors.

SMEs: Provide intuitive self-management tools for small businesses with limited IT expertise or handle the management for them as a managed service. 

Forestry: Integrate secure enterprise APN connections and VPNs for vehicle tracking and predictive maintenance. 

Global Logistics: Standardize IoT-enabled devices for worldwide deployment, ensuring regulatory compliance and minimizing manufacturing complexity. 


To secure their place in the IoT ecosystem, mobile operators must embrace a bold vision: leveraging cloud-native, hyperscale IoT connectivity control solutions to deliver programmable, secure, and globally consistent IoT connectivity. This approach addresses the diverse demands of enterprise customers while positioning operators as leaders in the next wave of digital transformation. 


By investing in hyperscale IoT connectivity control solutions, operators can achieve a win-win scenario—delivering exceptional value to their customers while driving sustainable growth in the IoT era. It’s time to rethink, retool, and realize the true potential of IoT connectivity. 


 


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