Operators should think of IoT connectivity like software

The cost to deliver wide-area IoT connectivity continues to fall and developments in 5G, iSIM and core networks will lead to further declines. Intense market competition means that these declines will translate into lower prices for customers. Indeed, the monthly price for connectivity will soon be close to zero for low-bandwidth devices (that is, devices that consume less than 10MB per month).

Operators need to think about what this means for the IoT connectivity business. They may need to look to the software market for inspiration. It too has marginal costs that are close to zero (that is, the cost of an additional user is almost zero) and yet players in this market are still able to charge customers significant fees.