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by rozzie
1773 days ago
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I believe the greatest unrealized potential is for product manufacturers to embed cloud connectivity without the end-user needing to do anything to get it working. The Kindle Whispernet model is my ideal, where you make an up-front decision to buy a cell-enabled product and it just works. The classic model of monthly charging, activation, deactivation, etc used by the likes of the Apple Watch are not good for IoT because then someone needs to
- ensure that your device is certified on a carrier, or get it ptcrb certified
- sign up for a carrier contract
- acquire/activate the sim
- pay a monthly fee per-device (and sometimes also per-fleet)
- figure out how to not needlessly pay when devices are broken or end-of-life
- and so on. Of course, if you want to just use the Notecard with your own SIM, you can. The Notecard and all the standard Notecarriers have an external SIM slot (usually used when someone wants to use it in a non-covered country such as China). |
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To put it this way lets say the ODM makes a device for 40 bucks and sells it to you for 50. Their cost to their MDN/carrier is say 1 dollar per month per device. That means at best they can float you for is 10 months before you start costing them money. That does not involve any other services they may have to pay for to make that connection happen (support, VMs/machines, phone lines, datalines, buildings, etc). But if there is an extra ARPU on each unit that time to cost you money is much longer and in some cases never happen.
They way they priced this it looks like they are trying to get people into the ecosystem and are willing to eat some cost on that. Hoping to get a few whale accounts to cover the 'free' bits.
> ensure that your device is certified on a carrier, or get it ptcrb certified - sign up for a carrier contract - acquire/activate the sim - pay a monthly fee per-device (and sometimes also per-fleet) - figure out how to not needlessly pay when devices are broken or end-of-life - and so on
That is exactly what MDNs like this do. They do that carrier abstraction for you. They do however charge for it. Each of the big carriers also do this and have programs for it. They have a list of pre-certified devices and 'try before you buy' style programs.