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Blog/ Jun 7, 2024

Why State Based Pricing is Important in IoT

The state of an IoT SIM significantly impacts monetization and business operations. Here's how to navigate this complexity effectively.

IoT SIMs vs. Conventional SIMs

IoT SIMs offer several advantages over conventional SIMs:

  • Robustness: IoT SIMs are designed to withstand harsh environments, making them more durable than standard SIMs.
  • Multi-Operator Coverage: They provide connectivity across multiple networks, ensuring continuous service even when one network fails.
  • Longevity: IoT SIMs have a longer lifespan, supporting devices that may be deployed for many years without needing replacement.
  • Remote Management: They can be managed and updated remotely, reducing the need for physical interventions. 

These features make IoT SIMs ideal for applications requiring reliable, long-term connectivity.

What is State-Based Pricing?

State-based pricing adjusts subscription and usage charges based on the SIM's state:

  • Unsupplied SIMs: SIMs that are not yet active or deployed may have a lower or different price compared to those that are fully active.
  • Pre-Active SIMs: These are SIMs that are ready to be activated but are not yet in use.
  • Active SIMs with Usage: SIMs that are in use and generating data are priced based on their activity level.
  • Active SIMs without Usage: SIMs that are active but not currently transmitting data can have a different pricing structure.
  • Suspended or Deactivated SIMs: SIMs that are temporarily or permanently deactivated may incur specific charges, such as suspension or reactivation fees.

State-based pricing allows for more accurate billing by reflecting the actual use and status of each SIM, ensuring that charges are fair and correspond to the value provided.

One-Time Charges

Combine recurring and one-time charges for SIMs as part of your monetization strategy. One-time charges include configuration fees, activation fees, and cancellation fees, often triggered during state transitions.

Volume Pricing

Incentivize long-term customer engagement with volume-based preferred pricing. Customers with thousands of SIMs in varying states require billing systems that manage volume thresholds and tiers efficiently.

Final Thoughts

In summary, adopting state-based pricing for IoT SIMs enables enterprises to optimize their revenue streams, improve customer satisfaction, and maintain competitive advantage in an increasingly connected world. Whether dealing with robust, long-lasting IoT SIMs or managing diverse states and usage patterns, state-based pricing is a crucial component in the successful monetization and operation of IoT services. Embrace this strategic approach to unlock new revenue opportunities and drive sustainable growth in the IoT ecosystem.

About the Author

Chris Brown /

Chris has over 20 years of experience in the telecommunications industry dealing with Fortune 2000 enterprises and service providers globally. As VP of Innovation Chris interacts in the market and internally providing: technical leadership and vision, mentorship, and creative problem-solving.


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