Why do people do it? Ease. Imagine you’re on a high after an all-night coding session. Finally broken through that problem that’s been bugging you for weeks. Now you know it works. It’s ready to be demo’d. Which is good, because you have potential investors lined up that need to be impressed.

The final piece of the puzzle is connecting the software with the input device. In this case, a tablet. It needs a SIM card so you can demo the user experience.

What do you do? Fastest solution is to put your coat on and run down to the corner shop to buy a pay as you go SIM card. You want to go now because you already feel your eyelids getting heavy and you know once you crash it will be a good 10 hours of solid sleep your body tells you that you need. And you don’t like to leave a job unfinished.

And that might be fine for a demonstration. It does the job. But what often happens is that early customers also get their tablets with a consumer pay as you go SIM in it. Maybe this time the SIM came directly from the operator, but the problem is the same as getting it from the corner shop because consumer SIMs are not a good solution for business.

What is the alternative to consumer SIM cards?

SIM cards can be used to connect any type of smart device or input handset.

IoT SIM cards. They’re designed for the job. If you hold a consumer SIM in one hand and an IoT SIM in the other, majority of the time you won’t see a difference. If you’re not deep in the world of telecoms you’d be forgiven for just assuming it’s a marketing tactic designed to get more money out of you.

It’s actually the opposite. We know from the experience of helping hundreds of customers over twenty years that IoT SIMs are cheaper.

What makes IoT SIMs cheaper than consumer SIMs?

Pricing is designed around behaviour. The same way you’ve thought about the needs of your users in creating your pricing strategy, mobile network operators and MVNOs have done the same.

An AI-driven platform connected to a user device does not operate in the same way as a thirteen year old endlessly scrolling through TikTok. Pricing is designed for data volumes and with the knowledge that data will be used across a number of devices that may have variable usage. If you want to see how we price IoT SIMs, there is a very popular section on our website you can read.

Telecoms providers are also more willing to give their best pricing to businesses because you’re more valuable in the long term than the TikToker. The usual principles of volume pricing apply.

By sticking with a consumer SIM you also leave yourself open to price volatility. Just this week price hikes of 14.4% have been reported as coming to consumer telecoms customers. If you’re not using an IoT SIM then these price hikes apply to you. While all prices rise over time, you’re much better protected within a business IoT connectivity contract.

What else makes IoT SIMs more cost effective?

One of the main benefits of using IoT SIM cards for your business is their reliability and security. IoT SIM cards are specifically designed for IoT devices and provide a more reliable and secure connection than consumer SIM cards. This is because IoT SIM cards are designed to work in a wide range of environments and temperatures and can handle the heavy data traffic that IoT devices generate.

Remember a few paragraphs earlier when we mentioned that the majority of the time a consumer SIM and an IoT SIM look the same? The minority is when the business needs an extra durable SIM form factor that has been designed for environments that consumers phone don’t need to endure. Like inside a refrigeration unit running -4 degrees Celsius 24/7.

The cost – and headache – of replacing a SIM card in an end user unit is a cost you don’t need. Especially if that cost is amplified by a period of time your user can’t access the real service they pay you for.

Depending on how quickly your usage scales, your consumer contract may block you from using the data volumes you actually need to service your customers.

IoT SIM cards also use advanced security features, such as encryption, to protect the data that is transmitted between the devices. We don’t have to tell you the cost of getting user data security wrong. There are other unique benefits around SIM management and the type of support you receive as an IoT SIM customer. Your PAYG consumer SIM doesn’t come with an account manager. If you are serious about your business and need SIMs we’re used to talking business owners through their options. Reach out to us or continue browsing our website to learn more.

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Ready to connect? Contact us today to discuss how Pelion can support your IoT ambitions.