One of the biggest nuts to crack is the IoT opportunity. But it should be among the easiest, so why does this no-brainer opportunity remain largely untapped? Cellhire CEO Tony Guerion puts his finger on the key issues.
Never before has a market with so much promise been so undervalued by the channel, according to Guerion. He pointed to market data, such as the UK Wholesale Portfolio Market Trends report, that says 40 per cent of planned new services are mobile-related, including IoT. But the number of true IoT connectivity resellers in the telecoms space is ‘seriously lacking’, he observed, mainly because the boundaries of the IoT connectivity market are becoming increasingly blurred as more companies position mobile broadband (MBB) SIM cards as IoT connectivity solutions.
“While these SIM cards offer partners a quick and convenient way to provide data connectivity for their customers, this approach introduces risks ranging from limited security features to physically inferior SIMs,” stated Guerion. “MBB SIMs are primarily designed for consumer-centric applications such as tablets, laptops and smartphones, where the emphasis is on high speed, high volume data transfer. In contrast, IoT connectivity is more suited to handling critical business data. It requires specialised solutions that address challenges like security, scalability, global coverage and remote management.”
Relying on MBB SIMs as a stand-in for IoT connectivity not only undermines long-term revenue potential but also jeopardises the reputation of providers offering inadequate solutions. For example, security and CCTV companies often turn to mobile broadband SIM cards as a cost-effective option. However, educating these customers on the risks of such choices is crucial, believes Guerion. For resellers and MSPs offering ‘true’ IoT connectivity, sustainable long-term growth lies in tailoring solutions to meet the particular needs of a diverse range of industries. “From media, broadcasters and digital advertisers to security firms and construction companies, almost every sector requires some form of IoT connectivity for IoT solutions,” Guerion explained. “The resellers excelling in this space are those who invest in understanding the distinct connectivity challenges faced by each customer segment and delivering customised, value driven solutions.”
Relying on MBB SIMs as a stand-in for IoT connectivity not only undermines long-term revenue potential but also jeopardises the reputation of providers
Guerion also noted that resellers and MSPs do not need to become IoT experts. The key lies in partnering with experienced IoT providers. “These partners help businesses understand the nuances of IoT connectivity and help them to navigate the space safely and effectively,” he added.
While Cellhire is starting to see more partners recognising the value that IoT connectivity can bring to their portfolios, there remains a lack of awareness and understanding across the channel. “This may also stem from a perception that IoT connectivity is complex compared to traditional solutions such as mobile,” said Guerion. “This disconnect highlights a significant gap between the immense market opportunities IoT presents and the level of channel engagement, which we aim to address. Over the past two years Cellhire has focused on educating the channel about the advantages IoT connectivity can bring, particularly in driving revenue growth and increasing customer retention.”
Guerion says that IoT is the ‘ultimate door opener’ for resellers and MSPs as almost every business has a use case. “Those who have seen the opportunity are adding IoT connectivity as a value added service,” said Guerion. “This enables them to capitalise on their current customer base while also opening opportunities to engage new customers who may have been previously inaccessible due to established relationships with other providers.”
As mentioned above, to realise the full potential of IoT it is vital for resellers and MSPs to partner with the right provider that can deliver tailored solutions. Key factors to consider include the price of connectivity, the security features of the product, the breadth of coverage and the level of support. Resilience is particularly crucial in IoT connectivity, especially for mission-critical applications such as healthcare scenarios.
While growth will continue to emerge from traditional IoT use cases like fleet tracking and asset monitoring, opportunities are expanding into other areas requiring secure and reliable connectivity, observed Guerion. “Key sectors poised for rapid growth include Smart Cities, CCTV and healthcare, where IoT solutions are driving innovation in areas like infrastructure management, surveillance and patient care,” he added. “Resellers and MSPs need to ensure that they have the right mix of customer use cases, balancing low bandwidth and long-life span connections such as alarm monitoring or access control solutions with less permanent but higher data usage such as mobile surveillance or digital advertising.”
According to Guerion, Multi-IMSI technology is the next step-up in resilience from today’s multi-network on a single SIM card. Conventional solutions still depend on a single-core network, whereas Multi-IMSI provides a more robust approach by integrating at least two network cores. “This ensures that if the primary network or core experiences an outage the IoT device can seamlessly switch to a redundant core network,” added Guerion. “The result is resilient connectivity and enhanced reliability, delivering connectivity even in the face of major network disruptions.
“Equally transformative is the convergence of IoT, AI and edge computing which promises to enhance business operations by enabling real-time data processing and decision making at the network’s edge. This integration allows IoT sensors to collect vast amounts of data, while AI algorithms analyse it to provide actionable insights. Edge computing enhances these capabilities by minimising latency and bolstering data security, critical for sectors such as healthcare, manufacturing, and transportation.”
Cellhire is also working on delivering L2TP (Layer 2 Tunnelling Protocol) to partners. “These technologies are particularly valuable as remote working continues to rise, offering enhanced security and seamless, resilient connectivity for home and office environments,” he added.
By working with an IoT MVNO such as Cellhire, resellers and MSPs can move beyond providing SIM cards and offer end-to-end services ranging from solution design and deployment to ongoing support. “Resellers are more likely to build lasting relationships with customers,” added Guerion. “By delivering tailored solutions that address industry-specific challenges and emphasising reliability, security and scalability, these providers can ensure customer loyalty and differentiate themselves in a competitive market.”