Today, Chipset, Module and Device manufacturers all over the world are striving to increase their revenues through a “recurring revenue” model, by switching from pure hardware sales to a combined hardware + ongoing service model. To do so, they require worldwide cellular coverage for their hardware, without the complexities related to owning and maintaining a core cellular network.
MNOs are facing their own challenges, with IoT and M2M devices proving to be unprofitable to most operators: Most MNOs bear an annual cost for every subscriber registered in their core network regardless of whether the device is active or the size of their ARPU. Typically, only 10% of IoT and M2M devices are active, with ARPU often lower than their annual cost.
Thus, MNOs are also seeking new means and business models to attract customers to their network.floLIVE_Connectivity_Management_Platform-_for_MNOs