18/08/2026
Imagine a city where a bicycle and a massive 18-wheeler pay the exact same toll to use a bridge. It sounds absurd, but this is the exact economic model currently powering the Internet of Things.
While IoT traffic is projected to quadruple over the next five years, the wholesale operators carrying that data are watching their revenues flatline. We are witnessing a massive transfer of value from physical infrastructure to software.
Here are the key takeaways on why the current model is reaching a breaking point:
▶️ The connectivity paradox. Even as the number of connected devices explodes, the financial return for connectivity providers is shrinking. Connectivity has dropped from 12 percent of the total value of an ecosystem to as low as 4 percent.
▶️ The crane vs. the rat trap. Right now, a remote-operated crane streaming live video and a connected rat trap sending one message a week are often priced using the same per-megabyte logic. This makes high-intensity use cases too expensive and low-intensity ones unprofitable.
▶️ The rise of network slicing. Instead of building new physical networks for every use case, wholesalers must use software to virtually slice existing 5G pipes. This allows for high-speed slices for industrial machinery and low-power slices for simple sensors on the same infrastructure.
▶️ Moving to outcome-based pricing. The value of a connection isn't just the data volume. For a fall detection pendant, the value isn't a few kilobytes of data; it is the safety of a human life. Pricing models need to reflect that intrinsic value rather than just bits and bytes.
Wholesalers are laying the expensive asphalt while software companies drive luxury cars on it for free. To survive, infrastructure providers must pivot from being simple utility providers to capturing the actual value of the services they enable.
Is the per-megabyte pricing model officially dead, or is massive scale still the only way to win in the infrastructure game?
Drop your thoughts in the comments below.
Watch the full video: https://bit.ly/4qfrx1i
Imagine a world where a bicycle and a massive 18-wheeler pay the ex...