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Navigating Permanent Roaming for IoT: Challenges and Solutions

  • The growing IoT ecosystem has brought forth its own set of challenges. One such challenge is permanent roaming.
  • While many countries allow permanent roaming without significant constraints, some big countries have implemented limitations on this practice.
  • There are multiple ways to circumvent the problem of permanent roaming. These includeeSIM, Multi-IMSI, aggregator platforms, and dynamic network selection algorithms.

The Internet of Things (IoT) has revolutionized the way we interact with the world around us. From smart homes to industrial automation,IoTdevices are playing a pivotal role in enhancing efficiency and convenience. However, the growing IoT ecosystem has brought forth its own set of challenges. One such challenge is permanent roaming, a phenomenon that has gained significance due to the global nature ofIoTdeployments. In this blog, we will delve into the concept of permanent roaming for IoT, discuss the challenges it poses, and explore potential solutions.

Understanding permanent roaming for IoT

Permanent roaming in the context of IoT refers to the practice of utilizingcellularconnectivity across different geographical locations on a consistent basis. Unlike traditional mobile phones, which might roam temporarily when users travel, IoT devices often need to maintain connectivity across various regions for extended periods. This is a fundamental requirement for IoT devices used in logistics, remote monitoring,agricultureand other activities.

While many countries allow permanent roaming without significant constraints, some big countries have implemented limitations on this practice. The map below shows countries where permanent roaming is banned and those where local carriers have imposed restrictions.Major countries where permanent roaming is restricted

Countries that prohibit permanent roaming includeIndia, China, Brazil, Saudi Arabia, Egypt, Nigeria, Turkiye (formerly Turkey), UAE and Singapore. Besides, mobile operators in the US, Canada and Australia have imposed restrictions on permanent roaming within theirnetworks, effectively imposing a ban on this practice in these countries. Remarkably, these 12 countries collectively cover more than 50% of the world’s population and account for well over three-quarters of the IoT market.

Challenges posed byrestrictions onpermanent roaming

IoT devices are typically deployed on a global scale, leading to a complex scenario where these devices are connected to multiple mobile network operators (MNOs) across different countries. Imagine an electric car company that markets its vehicles across various regions. In countries where permanent roaming is not allowed, the company must procure local connectivity. This situation presents a host of challenges that ripple through the operational landscape:

  • Complex network management:Handling connections to multiple networks becomes really complex. Each network might have different prices, coverage areas and technical needs. The process of harmonizing such distinct facets is likely to be intricate and time-consuming.
  • Dealing with many partners:The company needs to work with different network partners. This means making deals, managing money and ensuring good service quality across networks. Besides, multiple networks means multiple bills and contracts. All of these tasks together can become very complicated and hard to manage as this activity is not core to the business.
  • Higher costs:因为规则对永久漫游,the company has to pay more money to set up connections in each country. This extra cost can make things difficult and might affect how much the company can grow.
  • Less flexibility:Without the ability to use permanent roaming, the devices might not work as well when they move between countries. This can be a problem for customers who expect a consistent experience.
  • More planning needed:Since the company can’t rely on the same connection everywhere, it needs to plan ahead. This can slow things down and make expansion harder. There could be issues related to data sovereignty and compliance that may require additional planning.

Solutionsforpermanent roaming

There are multiple ways to circumvent the problems associated with permanent roaming. However, it is critical to select a managed service provider that has tie-ups with local MNOs/MVNOs. Alternatively, direct MNO relationships can be managed using aggregator connectivity management platforms.

eSIM (embedded SIM):eSIMtechnology is a game changer in the IoT landscape. It enables devices to have programmable SIM cards that can be remotely provisioned over the air. With eSIM, IoT devices can switch between different MNOs without requiring a physical SIM card replacement, thus simplifying the management of connectivity. UsingeSIM, it is possible to switch between a local profile and multiple roaming profiles every 90 days to avoid permanent roaming. Many managed service providers have this workaround to avoid permanent roaming. The new IoT eSIM specifications will further simplify the provisioning and orchestration of connectivity.

Multi-IMSI (International Mobile Subscriber Identity):Multi-IMSI solutions allow a single physical SIM card to have multiple IMSIs from different MNOs. This enables the device to seamlessly switch between networks while maintaining a single SIM card. By intelligently selecting the optimal IMSI based on factors like network quality and cost, Multi-IMSI solutions optimize connectivity and reduce operational complexities. However, the managed service provider needs to have a local presence or tie-ups.

Aggregator platforms:Aggregator connectivity management platforms (CMPs) act as intermediaries between IoT device owners and various MNOs. These platforms offer a unified interface for managing connectivity, provisioning,billing, and reporting across multiple networks. By consolidating these tasks, aggregator platforms simplify the management of permanent roaming for IoT devices. A new set of aggregator CMPs like IOTM and ConnectedYou is targeting enterprises instead of carriers to solve the problem of managing multiple networks.

Some of the aggregator platforms offer Dynamic Network Selection Algorithms. Smart algorithms can be implemented in IoT devices to dynamically select the most suitable network based on parameters such as signal strength, latency and cost.

Conclusion

物联网领域继续扩大全球ly, the challenges associated with permanent roaming are becoming more pronounced. However, with the advent of innovative solutions such aseSIM, Multi-IMSI, aggregator platforms, and dynamic network selection algorithms, these challenges can be effectively mitigated. These solutions not only simplify the management of connectivity but also enhance cost-effectiveness and operational efficiency for IoT deployments. The key is to find the right managed services partner, which has a platform that enables easy management of connectivity.

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Nigeria Smartphone Sales up 81% YoY in 2021; TECNO Retains Top Position

  • TECNO saw annual growth of 65%, retaining its top position for the fifth consecutive year.
  • Nearly 3 in 4 smartphones sold in 2021 were LTE enabled.
  • The average selling price (ASP) increased 9% YoY in 2021.

New Delhi, Seoul, Hong Kong, Beijing, London, Buenos Aires, San Diego – April 25, 2022

Annual smartphone sales in Nigeria grew 81% YoY in 2021, according toCounterpoint Research’s Global Monthly Handset Sales Tracker. Nigeria’s smartphone market entered a slowdown in early 2020 amid pandemic restrictions. However, the market saw rising demand in 2021 driven by improving economic conditions, pent-up demand, and entry of new Chinese OEMs. Besides, increasing digital adoption due to the pandemic, expansion of social media, entertainment, and mobile money, and drop in data costs also drove customer demand.

Talking about the network penetration in Nigeria,Research Associate Anam Padhasaid, “Sales share of LTE smartphones in Nigeria grew to 72% in 2021, while that of 3G smartphones dropped. The expansion of 4G networks by operators will keep data costs low even as better connection quality and improved internet experience fuel further growth.5 g智能手机销量渗透grew from 0.3% in 2020 to 3% in 2021.”

Discussing the ASP trend,Research Associate Ravyansh Yadavsaid, “The ASP of smartphones sold in Nigeria grew 9% in 2021 driven by demand for devices capable of handling heavy internet use. Nearly 90% of smartphone sales in 2021 were in the less than $200 price band, where Transsion brands Infinix, itel and TECNO captured 63% share. Transsion brands are expected to maintain their price competitiveness for the foreseeable future.”

Commenting on the macroeconomic conditions in Nigeria,Senior Analyst Yang Wang说:“总的来说,经济形势在尼日利亚has been better than initially feared. This is primarily due to COVID-19 not causing as much damage to the healthcare system. The Nigerian Naira dropped 8% against the US dollar in 2021, as the currency was more resilient than initially expected. Furthermore, the economy was boosted by rising energy and agricultural commodity prices, which increased government revenues and household income. Looking ahead, rising oil prices will continue to boost the country’s state sectors, but there are worries that high inflationary pressure, especially in food prices, may damage consumer sentiment towards big-ticket items like smartphones.”

Counterpoint’s Global Monthly Handset Model Sales (Sell-through) Tracker, Feb 2022

Market Summary

  • TECNO, Samsung and itel captured over half of the smartphone sales in Nigeria in 2021.
  • TECNOrecorded its highest-ever annual smartphone sales in 2021 to reach 5 million units. The brand also managed to maintain its top position for the fifth consecutive year, driven by the performance of its Camon series, multiple sales events, and an increase in marketing activities.
  • Samsungovertookitelto grab the second position in 2021, more than doubling its annual smartphone sales in Nigeria. Swap-and-trade as an upgrade option for customers, price cuts during sales events, multiple new launches in the popularA seriesand celebrity endorsements drove its growth.
  • itelcaptured a 19% sales share driven by a strong low-tier portfolio, partnership with retail outlet Spectrum in Q3 2021, multiple launches and aggressive promotional activities.
  • Infinixshowed rapid growth at 163% YoY in 2021 driven by popular mass-market series Hot and Note.
  • Xiaomiwas the fastest-growing brand with 173% YoY growth in 2021. The Redmi 8 and Note 8 series were its best performers. Xiaomi put greater focus on brand visibility with its marketing strategies in 2021, especially during the launch of the Redmi 10 series.

With inflation likely to remain high, smartphone ASP is expected to increase further in 2022 in Nigeria. The demand for low-tier smartphones is expected to rise further due to accelerating digitalization. However, growth may be capped by supply chain issues, which have improved in early 2022 but not completely resolved. Transsion brands are positioned well to capitalize on this opportunity but may face increasing competition from new Chinese OEMs like Xiaomi,OPPOandvivo. The Nigerian smartphone market is likely to remain flat in 2022, despite the government lifting the ban on new SIM registrations.

Note:The analysis is based on wholesale ASPs.

Please reach out to us at press@www.arena-ruc.com for press comments and enquiries.

For more insights on the Middle East and Africa smartphone market, please go through ourMEA Smartphone Market Report, Q4 2021.

You can alsovisit our Data Section(updated quarterly) to view the smartphone market share forWorld,USA,ChinaandIndia.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Yang Wang

Anam Padha

Ravyansh Yadav

Counterpoint Research

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Top Five Smartphone Brands in Nigeria Capture a Record 84% Share in Q2 2019

  • Tecno reached its highest ever share in Nigeria in Q2 2019.
  • Combined, Chinese brands had a market share of 67%, the highest ever.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –

Sep 23th, 2019

The market share of the top five smartphone brands in Nigeria reached a record 84% during Q2 2019, according to the latest findings from Counterpoint’sMarket Pulseservice.Transsion Group’s brandTecnoled the market, while others in the top five included Samsung, itel, Infinix, and Huawei.

Commenting on the findings,Anshika Jain,Research Analystat Counterpoint Research, said, “The top five smartphone brands’ market share reached the highest-ever level during Q2 2019 in Nigeria. The market continues to be dominated by Tecno, Infinix, itel, and Samsung. Tecno’s market share of 33% during Q2 2019 was the highest ever. The brand continued to refresh its product portfolio and ran various promotions and campaigns during the quarter.”

The performance of Transsion Group brands also helped the combine market share of Chinese brands reach a record high of 67% during Q2 2019. Apart from Transsion’s performance, the entry of new players in the Nigerian smartphone market helped the overall performance of Chinese brands.

Overall, smartphone sales in Nigeria during Q2 2019 declined in double digits year-on-year (YoY) as there were no notable festivals to drive sales volumes. Smartphone brands launched various individual promos, especially with cell phone networks to attract customers.

Looking at the overall market,Tarun Pathak, Associate Director对比研究,他说:“美国50 99美元美国price band was the largest segment in terms of volume capturing 46% share in Q2 2019, highlighting that Nigeria remains a very price-sensitive market due to low income and purchasing power. Going forward, we estimate this segment to capture more than half of the total smartphone market in H2 2019, with an increase insmartphone adoption rate.”

Exhibit 1:Nigeria Smartphone Market Share

Source: Counterpoint Research Market Pulse Q2 2019

Market Summary:

  • Samsung captured the second spotin the Nigerian smartphone market in terms of market share (23%) and first position in terms of value share (41%), driven by itsS10 series.
  • itel’s share remained flatMultiple launches and marketing activitieslike sponsorship of various shows and musical concerts droveInfinix’s YoY growthof over 50%.
  • Nokia was the fastest growing brandwith 61% growth. The growth came from sales of Nokia 2.1, 3.1 Plus, and Nokia 6.1 Plus.
  • US$50-US$99 segment was the largest in terms of volume(46%), indicating that the Nigerian market remains price sensitive. Tecno and Infinix dominate this segment.
  • Samsung led the premium(over US$400) segment with its newly launched S10 series.
  • Top 10 smartphonescontribute to 30% of the total volume and 42% of the total value of the smartphone market.Samsung Galaxy A2 Corewas the best-selling device in this period.

The comprehensive and in-depth Q2 2019 Market Pulse is available for subscribing clients. Please feel free to contact us atpress(at)www.arena-ruc.comfor further questions regarding our in-depth latest research, insights or press inquiries.

Analyst Contacts:

Tarun Pathak

Anshika Jain

Counterpoint Research
press(at)www.arena-ruc.com

You can alsovisit our Data Section(updated quarterly) to view smartphone market shareGloballyand fromthe USA,ChinaandIndia.

Transsion Led the Kenya Smartphone Market in Q1 2019

Tecno captured top position due to its affordable offerings, faster refresh rate, and focus on local needs.

7 of the top 10 best-selling models are from Transsion Group.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –

July 9th,2019

Transsion emerged as the dominant player in Kenya’s Smartphone market in Q1 2019 with over 40% share and Tecno capturing the top spot, according to the latest research from CounterpointMarket PulseService. Tecno’s popularity was due to its faster refresh cycles and various promotional offers to attract young customers. Further, itel and Infinix also grabbed consumer attention due to their low-cost offerings.

Looking at the competitive landscape in Kenya,Tarun Pathak, Associate Director, said, “LikeNigeria, the Transsion Group dominates the smartphone segment in Kenya with its affordable product line and promotions and discount offers. Further, Transsion brands are capturing the market in different price segments. While itel led the sub-US$50 price band, Tecno maintained its lead overall as well as in the US$100-US$200 price band. Going forward, we estimate there is going to be increased competition in the country due to the increasing share of other Chinese players (Huawei, Xiaomi and OPPO). Brands which have good marketing presence, deep distribution network, and launching handsets addressing local needs like affordability emerge out as winners in the hyper-competitiveAfrican Market.”

In Kenya, the sub-US$100 segment contributes to the highest volume (69%) and value (44%). More than 50% of the population lives below the national poverty line, with 40% living on less than US$2 a day.

Commenting on the overall market,Anshika Jain, Research Analystsaid, “The entry-level segment dominates the Kenyan smartphone market. This is mainly because of first-time users and the low purchasing power of consumers. In Kenya, consumers make purchase decisions based on pricing rather than features like longer battery life, connection to social media, and online browsing. Though the availability of low-cost smartphones is increasing in the region, affordability still remains a key issue for wide-scale smartphone adoption.”

“In the short-term, the focus on affordable smartphones (in >$100 segment), as well as content in the local language, is likely to be the key growth driver for smartphone adoption as less than 20% of the population in Kenya speaks English,” she added.

Exhibit 1:Kenya Smartphone Market Share Q1 2019

Market Summary:

  • The Kenyan smartphone market declined 2% year-on-year (YoY) and 7% quarter-on-quarter (QoQ) in Q1 2019 due to a slowdown in promotion activities post the holiday season.
  • The top five brands captured 66% share of the total smartphone market.
  • Seven of the top 10 best-selling models are from Transsion Group.
  • Tecno captured top position due to its affordable offerings, faster refresh rate, and focus on local needs. It was the first OEM to provide dual sim handset in the African Market.
  • Samsung has an aspirational brand perception, but its market share declined QoQ. Its J series is facing tough competition from Chinese players, which provided better specs at lower or similar price points. We expect, the revamp of A series and introduction of M series in Kenya would help Samsung to gain market share in Q2 2019.
  • OPPO has been aggressively marketing and winning mind share in Kenya. There is a tendency of Kenyan consumers to buy a well-known brand in the market.
  • Xiaomi and Huawei grew QoQ (albeit from a small base) despite the market decline. Xiaomi’s growth was driven by Redmi Go – the Android Go device, while the Y series drove Huawei’s growth.
  • The online channel is becoming popular for smartphone purchase in Kenya. Jumia, one of the leading e-commerce platform, reported 10x growth in its sales of smartphones in 2018 as compared to 2014.
  • There is immense popularity of Mobile Money platforms like Mpesa in Kenya, which is driving financial inclusion and mobile phone adoption.

The comprehensive and in-depth Q1 2019Market Pulseis available for subscribing clients. Please feel free to contact us atpress@www.arena-ruc.comfor further questions regarding our in-depth latest research, insights or press inquiries.

TheCounterpoint Market Pulseis based on sell-through estimates based on retail surveys, vendor polling triangulated supply chain checks and secondary research.

Analyst Contacts:

Tarun Pathak

Anshika Jain


Follow Counterpoint Research
press(at)www.arena-ruc.com

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