Menu
Will device vendors eat a piece of the global connectivity pie?

Will device vendors eat a piece of the global connectivity pie?

“Virtually every OEM has considered embedding some sort of “global connectivity” into devices."

This week, Apple made headlines with its reported pursuit of a mobile virtual network operator (MVNO) strategy for the US and Europe.

Whether the vendor confirms this rumour or not, for Dario Talmesio, research analyst, Ovum, something is certain.

“Virtually every OEM has considered embedding some sort of “global connectivity” into devices,” Talmesio says.

So far Ovum has recorded such activity from the likes of Google, Apple, Microsoft, Huawei, Xiaomi, Lenovo, HP, and Dell among others.

“The idea of global embedded connectivity is not new: Amazon started offering this capability on its Kindle devices in 2007,” Talmesio adds.

“But embedded connectivity has since transitioned to laptops, tablets, and now smartphones, and in the future it will take its place in the Internet of Things (IoT).”

For Talmesio, device vendors want connectivity to be a global service delivered at local prices, but so far established mobile operators have been unable to create an affordable global connectivity proposition that is always accessible with the same simplicity of starting an app.

“Device vendors have engineered several ways around this, mostly relying on two elements: SIM card innovation and MVNO agreements,” Talmesio adds.

As part of SIM card innovation, device vendors have used multi-Identity SIM cards, reprogrammable SIM cards, and even “virtual” SIM cards to allocate a local identity in every market and avoid roaming costs.

“In order to access local prices, these device makers have used MVNO agreements, often complemented by more traditional roaming agreements,” Talmesio says.

“These OEM-led global connectivity services still address fairly niche cases, but activities are moving towards mass-market propositions and mass-market and premium brands.”

At present, Talmesio believes it is still uncertain to what extent OEMs will want to subsidise connectivity, either by monetising services that rely on free connectivity, directly monetising connectivity, or a combination of the two.

“What is certain is that OEMs want to make their devices more attractive to end users and ease the sales process.

"In that, connectivity is one center-piece that will be globalised but also disrupted,” Talmesio adds.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ovum

Brand Post

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments