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Declining average revenue per user

Cost sensitive IoT applications will require a different pricing model to succeed.

Current mobile networks are built for today’s mobile broadband (MBB) users and priced accordingly. Wide scale IoT applications cannot afford MBB service pricing, so operators will need to charge significantly less for them if they are to attract IoT service providers. Combine this with the expectation of 30 to 50 billion IoT devices in service by 2020 and it becomes clear that how mobile networks are built must also change. This was the main driver behind the new reference architecture specified in the 3rd Generation Partnership Project's (3GPP's) release 13.

But how will these changes impact existing MBB services? Will the architectural enhancements for IoT negatively affect current services?

The key for managing this transformation will be visibility into how the mobile network, the existing mobile services and the new or enhanced service elements perform while the changes are being implemented.

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