The IoT connectivity ecosystem is experiencing one of its most significant inflection points in years. New standards, new network layers, new commercial models, and new intelligence capabilities are reshaping how Communications Service Providers (CSPs), MNOs, and MVNOs compete—and how enterprises consume connectivity.

Across markets and sectors, CSPs are facing mounting pressure:

Price erosion continues. Network fragmentation accelerates. AI is reshaping operations. Global infrastructure demands grow.
And above all, SGP.32 is set to redefine how IoT devices are activated, scaled, and managed.

In this rapidly shifting environment, industry leaders must rethink their strategies and build capabilities that match where the connectivity world is headed — not where it has been.

This analysis outlines the major themes reshaping the IoT CSP landscape and how organizations can stay ahead of the next wave of transformation.

The Rising Impact of SGP.32 on IoT Connectivity

Remote SIM Provisioning (RSP) has been a decade-long journey, but SGP.32 represents a substantial leap forward, especially for IoT at scale.

Key implications include:

• Greater flexibility for enterprises deploying millions of devices across multi-country footprints
• More fluid movement between operators, driving competitive pressure on MNOs
• Reduced operational friction, enabling faster onboarding and simplified logistics
• New commercial dynamics for MVNOs and aggregators, who may gain more leverage

Not all CSPs see SGP.32 the same way. Some view it as a catalyst for innovation; others remain cautious, especially those with heavy investments in legacy provisioning flows.

But one theme is universal:

SGP.32 rewrites the rules of ownership, portability, and control.

And that creates opportunities — for both disruption and differentiation.

Evolving Middleware and the Single Pane of Glass

CSPs are also reassessing their middleware strategy.

Enterprises increasingly expect a single pane of glass (SPOG) that unifies:

• Device management
• Connectivity management
• Policy enforcement
• Billing
• Diagnostics
• Security insights

However, achieving a true SPOG is complex. CSPs face decisions around:

1. In-house vs. third-party CMP platforms

• In-house CMPs offer control but are expensive and resource-intensive.
• Third-party platforms are faster to deploy but harder to differentiate.

2. Extended middleware layers

With more complexity in provisioning (SGP.32), roaming, NTN integration, and 5G slicing, CSPs increasingly turn to extended middleware to mask fragmentation and deliver unified visibility.

3. Ecosystem integration

CSPs must integrate channels, OEMs, hyperscalers, analytics engines, and application platforms—none of which follow the same standards.

The winners will be CSPs who build open, interoperable, customer-friendly middleware stacks without forcing enterprises into vendor lock-in.

A Fragmented Network Technology Landscape

The network technology roadmap has never been more fragmented:

• 2G/3G sunsets vary widely across regions
• 4G longevity remains strong but not guaranteed
• 5G SA rollouts are uneven and slow
• RedCap introduces new opportunities for mid-tier IoT
• NTN (Non-Terrestrial Networks) expands reach via satellite connectivity

For CSPs, fragmentation brings both risk and opportunity:

Risks

• Operational complexity
• Increased support costs
• Slower enterprise adoption cycles
• Confusion in commercial positioning

Opportunities

• Differentiated multi-bearer offerings
• Global coverage strategies with NTN integration
• Specialized industry segments (automotive, logistics, healthcare, public sector)
• Smart pricing based on performance tiers rather than raw data buckets

Fragmentation is no longer a temporary state — it is the new normal. CSPs must build technology roadmaps that thrive in multigenerational, multi-radio, multi-orbit environments.

Fighting Price Erosion Through New Services

IoT connectivity margins continue to compress. As a result, CSPs are doubling down on new revenue streams:

1. Channels & ecosystem partnerships

VARs, systems integrators, hyperscalers, industry resellers, and hardware OEMs are becoming essential go-to-market accelerators.

2. Value-added services (VAS)

From remote diagnostics to profile switching to data intelligence, VAS unlocks monetization beyond raw connectivity.

3. Professional services

Enterprises increasingly need consultants who can design architectures, deploy devices, optimize networks, and build use cases.

4. Full-stack solutions

More CSPs are moving up the value chain—offering end-to-end outcomes, not just SIM cards.

5. Video analytics and AI-based applications

With sensors and edge compute expanding, video and AI continue to be among the most promising growth areas.

6. Diversification beyond IoT

Some CSPs are branching into adjacent domains such as security, IoT-driven cloud workflows, or vertical IT solutions.

To survive margin erosion, CSPs must transition from pipeline businesses to platform-and-service businesses.

AI Becomes a Core Differentiator

AI usage among CSPs has accelerated dramatically in the past year.

Key applications include:

AI for Customer Care and Interaction

• Intelligent virtual agents
• Proactive troubleshooting
• Device-level behavioral analytics
• Multilingual automated support

AI for Anomaly Detection

• Real-time network deviations
• Fraud detection
• Predictive maintenance
• Intelligent traffic optimization

AI for Process Automation

• Zero-touch provisioning
• Automated ticket triage
• Workflow orchestration
• Billing accuracy validation

AI is no longer a “nice-to-have” — it is a foundational capability for operational excellence and customer experience differentiation.

How 3Rivers Global Helps CSPs Lead the Next Phase of Digital Transformation

3Rivers Global partners with CSPs, MNOs, MVNOs, and enterprises to help them:

• Navigate SGP.32 and next-generation provisioning impacts
• Design modern middleware and SPOG architectures
• Build scalable, future-ready connectivity strategies
• Develop full-stack value-added services and monetization models
• Deploy AI for customer care, anomaly detection, and automation
• Create new go-to-market pathways and industry-specific offerings

With deep telecom, managed services, and digital transformation expertise, 3Rivers Global guides organizations through the complexity — helping them turn fragmentation into opportunity and innovation into growth.

The Future of IoT Connectivity Belongs to Those Who Transform Now

The IoT CSP landscape is entering a defining chapter.
SGP.32 is reshaping provisioning. Network fragmentation is accelerating. AI is becoming indispensable. And value is shifting away from pure connectivity toward full-stack, outcome-driven solutions.

CSPs that adapt their strategies today — modernizing their middleware, embracing multi-network realities, and unlocking new value streams — will lead the next decade of IoT growth.

And 3Rivers Global stands ready to help them do exactly that.