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How to launch an Internet-of-things (IoT) business

Acquire network communication lines

IoT and Machine-to-Machine (M2M) solutions are creating a buzz around the world because of the new values, services and business opportunities they create. The market is growing and is expected to reach 1.7 trillion USD by the year 2020, according to an IDC report.

Companies offering these solutions prefer to use mobile telecommunications services, rather than wired lines, to avoid various installation, flexibility and scalability issues. However, mobile telecommunication services are costly to purchase on an item-by-item basis. To assist these companies, Mobile Network Operators (MNO) are now selling bulk access to mobile services at wholesale prices.

Become an MVNO

Companies seeking to launch an IoT business can lower costs, more precisely meet their needs, and open up opportunities for new businesses and services by becoming Mobile Virtual Network Operators (MVNO) that operate the communication lines themselves.

Mobile Network Operators (MNO) provide all services related to mobile telecommunications.

Figure

MVNOs use the infrastructure provided by MNOs to provide other services.

Figure

MVNOs control use of wireless services in their network via "Layer 2 connection". By controlling bandwidth according to usage, they can optimize service efficiency for end users.

MVNO capabilities

MVNOs can optimize the management of their mobile network services by purchasing exactly the number of lines and amount of bandwidth they need. They can also resell the lines they purchase at wholesale prices to general consumers and users of their IoT products and services. Other capabilities include the following:

IoT device communication

  • POS store data collection
  • Credit card payment
  • Digital signage content distribution
  • Smart meter data
  • Sale of product (tablet, car navigation system, etc.) bundled with line

Other communication

  • Communication between associates working externally
  • Installation of in-house Wi-Fi spot

Figure

If your company is planning to start a IoT-related business, be sure to consider MVNO solutions.

Employ an SDN solution

Operating a network as an MVNO adds new responsibilities. To simplify operation of the mobile communication lines, as well as add value to the provided services, MVNOs can take advantage of Software Defined Network (SDN) solutions. These solutions are especially beneficial to companies wanting to divide line usage according to operation and status as in the chart above.

[Next page] "What is the MVNO solution employing SDN?"

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