Optimizing IoT service pricing with our IoT Partners Programme
Pricing in the IoT ecosystem has evolved significantly compared to traditional telephony models. While conventional telephony simply distinguishes between prepaid and postpaid, IoT is more complex and responds to the diverse consumption patterns and operational needs of connected projects. Therefore, maximum flexibility in pricing models is essential in order to be able to adapt in the most accurate way to different use cases, from projects with predictable consumption to those with variable traffic patterns. This flexibility may seem contradictory, but it makes it difficult to make the decisions necessary to select and adapt the tariff that best meets the specific needs of each individual project or business. It is therefore essential to be supported by the tools of our IoT Partners Programme (IPP) and to optimize connectivity solutions. Understanding the differences between the various pricing models, particularly the comparative advantages between all the rates we offer from Telefónica Tech (which we will see in detail later), is a differential factor to optimize the operating costs of IoT projects in the long term. In this post you will find a summary of the initial possibilities we have to approach your business. Summary table of current pricing rates Practical implementation: how to choose the right model The choice of the most appropriate pricing model depends on many project-specific factors. We can offer some general recommendations based on our experience serving our partners: A dynamic pool rate offers the best balance between flexibility and efficiency for deployments with a large number of devices with heterogeneous consumption patterns. They allow devices with high consumption to be compensated by those with lower utilization, optimizing the overall utilization of the data pool. Let's consider an IoT project with 50 devices that require a dynamic pool of 10GB, each SIM contributes 10GB, therefore, we have a pool to be used by the 50 devices of 500GB (some SIMs can spend more than others and will not incur pay-per-use until they exceed 500GB of the full pool). In addition, if 10 SIMs are added to this plan, the bag will be increased by 100GB for a total of 600GB to be shared among all of them. Projects with gradual but predictable growth especially benefit from static pool rates, which allow for tight budget control while maintaining the flexibility of resource sharing. As we have indicated, in the static pool the data, sms or voice pool is fixed regardless of the number of active SIMs (generating traffic or consumptions) but allows that the distribution of that data/sms/voice pool can be dynamic per SIM within that rate. A clear example of this case refers to an IoT project with 50 devices, requiring static pool of 100GB shared by all devices in the project at a fixed price. Even if the number of devices is increased, the 100GB will not change and the price will not change. Complex individual rates are a pool of data/sms/voice included for each SIM individually and is an efficient pricing option when dealing with constant usage patterns, such as solutions with few devices but high data requirements. Example: an individual rate for 50 devices, with a 1GB bonus and an overage (pay-per-use or consumption above the required capacity), each device has 1GB at its disposal and, even if it does not spend it, it will be billed the full bonus if the SIM is active. On the other hand, if a SIM spends more than 1GB, it will be charged on a pay-as-you-go basis, even if there are SIMs that have not consumed 1GB. Solutions with few devices but high data requirements may find complex individual rates (with a bag of data/sms and/or voice included per SIM and exclusive non-shared) the most efficient option, especially when usage patterns are relatively constant. With an individual rate for 50 devices and a 1GB bonus and overage, each device has 1GB at its disposal and even if it does not spend it will be billed the full bonus if the SIM is active, on the other hand, if a SIM spends more than 1GB it will enter pay-as-you-go, even if there are sims that have not consumed 1GB. The pay-per-use (PPU) model allows paying only for the data consumed, with no fixed fees, providing a cost-effective alternative for projects with low or unpredictable data demand. And finally, prepaid rates allow a specific balance to be loaded on IoT SIMs, facilitating cost control and avoiding unexpected expenses. It is especially useful in projects where strict financial management is required or in use cases where connectivity has a limited duration. The strategic role of our IoT Partners Programme (IPP) in innovating charging models IPP plays a crucial role in collaborating to define new charging model designs that improve pricing accuracy for our partners. The program, at the same time, allows us to extend the functionality and competitiveness of our Telefónica Tech IoT Kite connectivity platform. This two-way collaboration within the common workspace promoted by the program not only benefits partners but also strengthens the position of our Kite platform in the market. Collaborative benefits The collaborative approach of the IoT Partners Programme (IPP) offers several key benefits: Billing and pricing accuracy: new billing models designed together with our partners ensure greater accuracy, which is essential for a successful business. Expanded functionality: the symbiosis between IPP and Kite allows to nurture and expand Kite capabilities, making it more versatile and attractive to users. Competitiveness: by improving functionality and billing accuracy, the platform becomes more competitive in the IoT market, to the benefit of our partners as well. Our IoT Partners Programme is a key to driving innovation and growth within the IoT ecosystem, fostering a winning relationship with our partners. ______ AUTHORS Adriano Adrianza Global Head of IoT Partners Programme Susana Pérez García-Valdecasas Technical Lead of IoT Partners Programme ✅ If you are interested in joining Telefónica Tech's IoT Partners Programme and accessing the benefits of our private portal, please contact us and we will explain how you can join this ecosystem that will grant you access to the best connectivity solutions to continue growing together in the IoT world. Connectivity & IoT How the IoT Partners Programme's private portal helps you manage your IoT connectivity efficiently July 8, 2024
May 19, 2025