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Why don't more resellers sell mobile data?

Posted by Andrew Dickinson on 23-Nov-2021 20:09:03

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According to Ofcom 8500 organisations in the UK have a RID code but, despite it being the fastest growing product in the world, only around 1000 of these sell mobile data. Why is this?


Resellers feel it is dominated by the mobile networks direct.

Well, yes it is, or at least until recently it was. However, early movers in this market are now hoovering up huge deals by working with aggregators offering products (like Multinet and eSIM) that the networks cannot deliver but their customers demand.

Managing thousands of SIM assets is difficult and resellers have been burned by high overages in the mobile voice and data market.

Agreed but aggregators that offer a real-time comprehensive portal remove the headaches associated with ordering, provisioning and managing SIMs and have eradicated unexpected data overages completely.

It’s hard to sell and too niche.

Resellers often conflate mobile data and IoT. IoT is a subset of mobile data and requires resellers to either partner-up, or develop their own sector ecosystem. Conversely M2M projects for applications like CCTV, coaches, signage and car parks often only need a specialist router and a SIM.

The ARPU is too low and the margin is eroded by the MNOs direct.

Again, you’re probably thinking of IoT projects and the mobile data market is far bigger than just IoT. That said aggregators now have powerfully differentiated IoT solutions that help resellers beat the networks and at decent margins.

The market is not worth the effort.

Seriously, does anyone really still believe this? Mobile data is now the fastest growing ICT product in the world and mobile data companies are valued by the market at 3x the value of traditional comms companies.


Jola is an award-winning, channel-only supplier of business communications specialising in mobile data SIMs controlled in our management portal. We offer a wide range of mobile data products that offer MSPs good margin, which you cannot buy from anyone else. To find out more, request our Partner Pack.

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Topics: mobile data

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