How the Internet of Things Is Transforming Mobile Network Operators

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According to industry research, the number of devices connected through the Internet of Things (IoT) is set to grow dramatically. Whatever the exact forecasts, mobile network operators (MNOs) can expect a sharp rise in devices communicating over their networks. This surge will demand a fundamental rethink of the infrastructure that supports these services. If operators fail to adapt, they risk losing IoT revenue and customer loyalty for traditional voice and broadband services.

IoT infrastructure demands

IoT devices do not all behave like smartphones or computers. Some devices, such as smart meters for gas or electricity, transmit small amounts of data infrequently. Others, like connected cars, may send continuous diagnostics and provide high-bandwidth services for passenger entertainment, exchanging much larger volumes of data for extended periods.

These differing endpoint behaviors create distinct requirements for both the radio access network and the data centres that process and host IoT data. A 4G network is well suited to high-bandwidth, low-latency use cases like connected vehicles, but it can be overkill for low-data, long-life devices. For scenarios that require minimal power draw and only occasional data bursts, low-power wide-area networks (LP-WANs) such as LoRa and Sigfox are being deployed alongside existing 3G/4G infrastructures. LP-WANs enable batteries in small IoT devices to last for years while providing sufficient connectivity.

On the data centre side, adopting cloud-native approaches is essential. The ability to rapidly instantiate virtual environments that deliver both network functions and IoT platform services tailored to specific use cases is critical. Because IoT covers a wide array of applications, there is no single architecture that fits every need. To maintain continuous availability and support frequent rollouts of new IoT applications, service providers must ensure their cloud infrastructure is resilient, flexible, and capable of scaling dynamically.

Preparing for IoT

Overall, service providers are making steady progress toward IoT-ready infrastructures. Many operators are already deploying LP-WAN technologies to complement traditional mobile access networks, while consolidation of core networks is reducing complexity and cost. Simplified core architectures also accelerate the introduction of new services.

Early IoT projects have shown the value of cloud technologies such as Network Functions Virtualisation (NFV). NFV virtualises entire classes of network node functions into modular building blocks that can be chained together to create scalable communication services. Initially adopted to reduce capital and operating expenses, NFV is increasingly viewed as an enabler for rapid service innovation and adaptation—capabilities that are vital for addressing diverse IoT requirements.

For service providers seeking to capture IoT opportunities, NFV and cloud-driven architectures will be central. These technologies allow operators to deploy tailored network and application functions quickly, scale them as demand changes, and introduce new services with reduced lead times.

The remaining hurdles

As the connected world expands, service providers are well positioned to act as the backbone of IoT ecosystems. Beyond providing radio access, many operators are exploring ways to offer higher-level IoT platform services to enterprises and developers. However, despite strong cloud foundations and NFV experience, several challenges remain.

One of the most critical issues is security. Connecting devices is only the first step; protecting those devices and the applications they use is equally important. Operators have become more security-conscious in recent years as cyberattacks and distributed denial-of-service incidents have disrupted services and harmed reputations. That heightened caution affects how some companies approach IoT expansions.

That caution can be constructive. Consumers and businesses will realize the full benefits of IoT only if the networks and infrastructures behind those services are secure, well managed, and reliable. Operators that prioritize robust security, resilient cloud platforms, and flexible, cost-effective network architectures will be best placed to capture IoT value while maintaining user trust.

Interested in hearing industry leaders discuss topics like this and share real-world IoT use cases? Attend the IoT Tech Expo World Series events, which run in several technology hubs, to learn more.