MEF Programme Lead for Connectivity & Wholesale Isabelle Paradis discusses the key challenges facing the wholesale IoT sector and explores meaningful solutions for unlocking its full potential.
The Internet of Things Wholesale market is at an inflection point. While the potential for growth is undeniable, the lack of clarity in trading practices is hindering progress. This ecosystem is characterized by fragmentation, inconsistent APIs, and a lack of structured processes – challenges that the industry must overcome to unlock its full potential.
The Challenges: Fragmentation and Inefficiencies
1) Lack of Standardization
The Internet of Things wholesale market suffers from a lack of common APIs, inconsistent CDR (Call Detail Record) formats, and fragmented practices. Trading between operators and aggregators often involves unnecessary overhead costs and inefficiencies.
2 ) Complexity in Traffic Identification
Differentiating between travel Travel eSIMs, IoT SIMs, and other use cases remains a significant challenge. Operators struggle to trace and categorize traffic, especially as IMSIs are traded multiple times across the ecosystem.
3 ) Emerging KYC Requirements
Regulations in markets like Europe, Saudi Arabia, Taiwan and the USA are introducing stricter KYC requirements, compelling stakeholders to identify and validate end-users. This adds another layer of complexity to an already convoluted system.
4) Unregulated Reselling Practices
IMSIs are often resold multiple times without clear guidelines, eroding transparency and complicating the value chain. This practice disrupts pricing strategies and raises questions about quality and fraud risks.
The Internet of Things wholesale market demands change, and you can be part of the revolution. MEF invites stakeholders to join the conversation and take action. To this effect a dedicated working group was created within MEF to help drive these initiatives forward.”
The Solution: Collaboration, Best Practices, Guidelines, and Governance
1 ) Establishing Industry Best Practices and Guidelines
The industry must create guidelines for APIs, CDR formats, and traffic categorization. By defining these foundational elements, stakeholders can reduce operational inefficiencies and enhance interoperability.
2) Promoting Transparency
Transparency in pricing, usage, and traffic categorization is essential. Operators and wholesalers need to work together to ensure clarity and trust in their transactions, which will also mitigate fraud risks.
3 ) Implementing KYC Frameworks
Adopting robust KYC processes will help address regulatory requirements and ensure that IoT SIMs are used for their intended purposes. This will protect operators from SIM farms and unauthorized usage.
4 ) Collaborative Innovation
Collaboration among industry stakeholders is essential to driving meaningful progress in the Internet of Things ecosystem. By working together, stakeholders can help build the consensus needed to address shared challenges and unlock the full potential of Internet of Things Wholesale.
Call to Action: Join the Movement
The Internet of Things wholesale market demands change, and you can be part of the revolution. MEF invites stakeholders to join the conversation and take action. To this effect a dedicated working group was created within MEF to help drive these initiatives forward.
The group will focus on actionable deliverables, such as white papers, best practices documents, guidelines and codes of conduct. It will also foster cooperation and discussions between the different stakeholders through panels and roundtables at key events, this to help raise awareness and build consensus.
The message is clear: the Internet of Things Wholesale market holds immense potential, but realizing it requires collaboration, innovation, and decisive action. Let’s build the future of IoT connectivity together.
