How IoT automation boosts profit - enable IoT growth

How IoT automation drives profitability despite falling ARPU

As IoT growth accelerates, businesses are experiencing a surge in connected devices and data consumption. However, declining average revenue per user (ARPU) due to market saturation, competitive pricing, and increasing network demands is making profitability a challenge. To stay ahead, companies must streamline operations and optimize connectivity management, and automation is the key to achieving this efficiently.

The ARPU challenge in IoT

With the rapid growth of IoT, ARPU has been declining across industries. The sheer number of cellular IoT connections has driven down per-device revenue, making cost control and operational efficiency essential for service providers. This trend, coupled with the complexity of managing large-scale IoT deployments, makes cost control essential for businesses aiming to thrive in this evolving landscape. 

The role of automation in IoT connectivity management

By implementing automation in IoT connectivity management, businesses can:

✔️ Reduce operational costs
✔️ Minimize manual intervention & human errors
✔️ Optimize network performance in real time
✔️ Enhance scalability for high-volume deployments

MAVOCO’s connectivity management platform (CMP) delivers a fully automated solution that helps businesses cut costs, streamline workflows, and maximize profitability, even in low-ARPU IoT business models.

Automation as the key to cost reduction

Automation in IoT connectivity management offers a solution to the rising operational demands. By automating tasks such as device provisioning, network optimization, customizable data usage monitoring, and real-time troubleshooting, businesses can significantly reduce manual interventions, human error and associated costs.

MAVOCO CMP automates all workflows to create, deliver, and monetize IoT connectivity services. Our complete BSS-stack has an optimized cost-structure that accommodates the low ARPU/high-volume nature of IoT.

Click here to read more about our CMP workflows in detail. 

Key benefits of MAVOCO CMP’s automation framework:

1. Streamlined device provisioning

How does automation simplify device provisioning?

• Automated setup & configuration. Faster and error-free onboarding of IoT devices reducing time and labour costs involved. 
• Real-time monitoring & alerts: Automated systems can continuously monitor device performance and network usage, providing immediate alerts for anomalies or inefficiencies, minimizing downtime and operational disruptions
• Automation rules: These rules trigger immediate actions when specific events or conditions are met, enabling real-time responses to changes and potential issues.
• Self-care diagnostics reduce support tickets, improving customer experience

2. Customizable data usage monitoring:

Managing IoT connectivity efficiently means keeping costs under control while ensuring seamless operations. With customisable data usage monitoring, businesses can track SIM activity, prevent overages, and optimize billing—all through automated rules and real-time alerts.

For connectivity service providers (CSPs), this means revenue assurance, improved network efficiency, and flexible pricing models. Enterprises benefit from cost savings, greater transparency, and automated control over their IoT connectivity. By eliminating manual oversight and enabling predictive analytics, MAVOCO CMP helps businesses scale their IoT operations without unexpected costs or inefficiencies.

3. Fully automated SIM lifecycle management:

Managing large-scale IoT deployments manually is inefficient, costly, and prone to errors. MAVOCO CMP’s fully automated SIM lifecycle management simplifies provisioning, activation, and deactivation, ensuring seamless connectivity without manual intervention.

For connectivity service providers (CSPs), this means lower operational costs, improved accuracy, and real-time visibility across their SIM base. Enterprises benefit from enhanced security, compliance, and faster service delivery, leading to greater efficiency and customer satisfaction. With automation handling the full SIM lifecycle, businesses can scale effortlessly while maintaining complete control over their connectivity.

4. Dynamic network optimization:

Managing IoT connectivity effectively requires real-time adaptability to changing network demands. MAVOCO CMP’s dynamic network optimization ensures that bandwidth and data are allocated efficiently, preventing over-provisioning and unnecessary costs.

For connectivity service providers (CSPs), this means optimized network performance, reduced waste, and improved scalability without excessive infrastructure investment. Enterprises benefit from lower connectivity costs, enhanced service reliability, and seamless IoT operations. By continuously monitoring traffic patterns and usage, MAVOCO CMP enables smarter, cost-efficient network management that adapts instantly to business needs.

5. Automated billing:

Handling IoT billing manually can lead to errors, delays, and revenue leakage. MAVOCO CMP’s automated billing and invoicing ensures accurate, real-time charging, eliminating billing discrepancies and enforcing connectivity policies effortlessly.

For connectivity service providers (CSPs), this means greater billing accuracy, flexible pricing models, and seamless management of prepaid and postpaid subscriptions. Enterprises benefit from transparent cost tracking, predictable billing cycles, and reduced administrative overhead. With customizable billing cycles and real-time charging, businesses can streamline operations, minimize errors, and enhance financial control.

Read more about MAVOCO's advanced CMP features here.

Profitability despite falling ARPU

While IoT growth presents enormous opportunities, the challenge of declining ARPU forces businesses to rethink their cost structures. Automation enables companies to: 

✔️ Cut operational expenditures (OPEX)
✔️ Eliminate inefficiencies in IoT connectivity management
✔️ Optimize pricing strategies without sacrificing profitability

By leveraging automation, businesses can remain competitive, scale efficiently, and maintain sustainable revenue streams in a rapidly evolving IoT ecosystem.

Conclusion

As the IoT landscape becomes increasingly competitive and the challenge of falling ARPUs persists, automation in IoT connectivity management emerges as a critical strategy for businesses seeking to enhance profitability. By implementing automated solutions, companies can streamline their operations, reduce operational costs, and improve accuracy across various processes, from device provisioning to billing. The key benefits of automation — including real-time monitoring, dynamic network optimization, and fully automated SIM lifecycle management — not only facilitate efficient management of connected devices but also contribute to superior customer satisfaction. As businesses adapt to the evolving demands of the IoT ecosystem, embracing automation will be essential for sustaining profitability and driving growth in a challenging market.

Ready to take your IoT connectivity to the next level?

Click here to book a 1:1 session with us to review your IoT strategy and see how you can improve your efficiency and monetize IoT.

You may also be interested in the below articles: 

• What is IoT connectivity management?
• How to choose the right IoT CMP
• The benefits of IoT for small and medium-sized businesses.