IoT Explained

18 August 2025

Reading Time: 7 mins

IoT SIM Data Plan Pricing: Understanding Costs for Global Connectivity

Eseye

IoT Hardware and Connectivity Specialists

Unlike consumer mobile applications and devices, which cater to both voice and data, IoT devices and applications are predominantly data-driven and have very different data usage patterns. IoT use cases expect lots of small data packets from large numbers of devices at an irregular cadence, versus the data hungry and more consistent requirements of a single smartphone.

This has a significant impact on the data pricing models used for global IoT connectivity and IoT data plans.

What is an IoT data plan?

Cellular networks were originally designed with consumer smartphone usage in mind and the pricing models of consumer and business connectivity established by MNOs and MVNOs reflect that. But this same pricing model does not work for IoT initiatives, which may feature thousands or tens of thousands of devices under a single account, all sending small amounts of data, maybe multiple times per day, or maybe only once per year.

For consumer SIMs and the pricing schemes associated with them, you’re often locked into rigid data plans that either exceed your needs – such as ‘unlimited data’ – or penalise overages or roaming off-network with expensive fees. M2M and IoT SIMs require more flexibility.

Specialist IoT connectivity providers such as Eseye, offer tailor-made pooled pricing plans designed specifically for M2M or IoT communication. The structure of these plans mean businesses can balance data usage across their entire fleet or estate of IoT devices, maintaining predictable spend over multi-year periods, avoiding surprise charges and adapting as requirements evolve. The SIM contract is not locked, and Eseye offers quarterly reviews to ensure the data plan meets the exceptions, so it will be adjusted accordingly.

Discover why leading UK IoT deployments trust Eseye. Get a free device assessment and SIM card kit.

Types of IoT SIM

Many IoT initiatives feature IoT devices that typically:

Transmit small volumes of data packets on an infrequent basis. Although as the IoT market matures this isn’t always the case and high-bandwidth applications are emerging.

Sleep for long periods and wake up periodically or on-event to poll the network. Again, there are some devices that stay connected for longer periods.

Are deployed in remote, inhospitable or otherwise low coverage environments for cellular or other wireless technologies.

Need to scale massively, perhaps to thousands or tens of thousands of devices.

Need to connect to multiple different networks or even technologies depending on location and available coverage.

Individual or clusters of IoT devices may also face different challenges relating to the above factors depending on location. This is particularly prevalent in multi-regional or international deployments.

All of these elements have an impact on the type of SIM required for IoT devices and on the pricing model for connectivity.

The physical SIM itself needs to be designed with durability and reliability in mind. Many IoT devices are deployed in harsh environments and require a minimum 10-year lifespan. Specialist IoT SIMs are built to last longer.

Eseye offers industrial SIM cards including embedded MFF2 SIMs (eSIMs or Chip SIMs), along with traditional plastic SIMs. They are manufactured from durable H-ABS plastic and high-grade silicon, and are built to operate reliably between -40°C and +105°C. The material is resistant to corrosion, moisture, and physical stress. Whether embedded in smart meters, industrial machinery, cold chain logistics devices, or outside in the elements, these industrial grade SIMs continue to perform reliably.

Physical SIMs come in a wide range of form factors, including 2FF mini SIM, 3FF micro SIM, 4FF nano SIM, MFF2 embedded SIM, USON-8 embedded SIM, and iSIM or integrated SIM. The mini, micro, and nano SIMs come as a chip embedded in a plastic surround or card, while the embedded and integrated SIMs are soldered onto the IoT device’s circuit board, making them more durable and tamper resistant.

Regardless of the SIM used, the capabilities are the same. The wide range of form factors are to support the amount of space available for the SIM and the environment in which the devices will be used.

An eUICC SIM (embedded Universal Integrated Circuit Card), is a technology available in any of the above SIM form factors that uses a remote SIM provisioning platform (RSP) and has the ability to update connectivity preferences and switch mobile network operator profiles over-the-air (OTA).

eUICC SIMs leverage multi-IMSI (International Mobile Subscriber Identity) capabilities to store multiple IMSIs or network identities, enabling devices to switch to different networks without physically changing the SIM.

Typically, eUICC SIMs also employ stronger authentication mechanisms than traditional SIMs, addressing the critical need for data security in IoT applications.

Pricing models for IoT SIMs

Because of the typically data-centric, low volume, high-scale requirements of IoT applications, a different approach to connectivity pricing is needed to the traditional high-volume model used by consumer MNOs and MVNOs.

IoT connectivity providers need to deliver data pricing plans that are aligned with how IoT devices behave but also factor in the scale and complexity of your IoT initiative. This includes considerations like the number of devices or SIMs required, the SIM form factor, the connectivity technology, the volume of data being transmitted, potential overage charges, the country (or countries) or regions for deployment, whether the devices will roam, and what the payment schedule will look like.

All these factors will influence the final cost.

Key features of IoT data plans

Data volume or allowance

Data plans range from low-volume applications like a utility meter that might be less than 1MB per month or less, all the way through to intensive high-data-rate applications like connected cars that could be transmitting multiple GBs of data.

Contract type

IoT connectivity contract types range from the familiar monthly subscriptions and pay-as-you-go models to longer term flat-rate plans. Monthly subscriptions might include a fixed data allowance per device, or a pooled allowance that can be shared across all devices. While PAYG options enable you to pay for only what you use.

Some IoT connectivity providers offer multi-year prepay contracts that include a set amount of data and SMS, which might make sense for very predictable data traffic levels in long-term initiatives.

You also need to establish whether you are paying a fee for every connected device, or if you only pay for devices that are awake and send traffic in any given month.

If you have a contract for a predefined volume of data, you also need to understand how you are charged for overages. In some cases, exceeding your contracted data allowance can trigger high charges.

Roaming and global connectivity

Multi-IMSI SIMs offer global connectivity by allowing devices to switch network profiles depending on the country they are operating in. But you need to understand if your contracted rates change depending on the geographic location of the device, and how roaming charges are handled as these can be costly.

Network type or connectivity protocol

IoT SIM data plans typically cater to cellular technologies, including 2G, 3G, 4G, 5G, NB-IoT, LTE-M, and possibly satellite as well.

Some implementations of LPWAN technology including Sigfox and LoRaWAN packages also have a subscription-based approach. While other LPWANs, WiFi, Bluetooth, and private 5G networks don’t require data plans, but will require some kind of backhaul network to move traffic from the deployment location to the cloud or the internet.

Additional fees

As well as the ongoing subscription cost of your IoT data plan, you will need to figure out if there are any additional fees or hidden charges. These might include setup fees, activation fees for new devices or for switching between network providers, roaming fees, overage fees, cost for device management, and costs for custom reports.

IoT connectivity specialists like Eseye also offer a full management and orchestration capabilities for enterprises.

Ensure your IoT data plan strategy is cost effective

Given the range of variables and factors that can influence the price of data for your IoT initiative, it’s important to work with your connectivity provider to find the most cost-effective approach by right sizing your plan.

This ensures you closely match your anticipated data usage to avoid overpaying for unused capacity, but in the event you have more unpredictable or ‘bursty’ traffic, that you aren’t unduly penalized for overages.

If your application doesn’t require high bandwidth, doesn’t require IoT devices to be directly connected to the internet, or feature clusters of devices around physical locations, you may be able to make significant cost savings by deploying an LPWAN or short-range connectivity technology and backhauling the data traffic to your control center.

Prepaid vs postpaid plans

PAYG plans can work out very efficiently for low throughput devices that only transmit data intermittently, while flat-rate or pooled allowances can potentially lower costs for consistent and predictable data usage.

Because roaming can have a significant impact on costs, it’s imperative to explore options and understand charges before deployment to ensure costs are manageable.

Establish whether your connectivity provider offers different SIM form factors and eUICC with support for RSP. This enables you to switch between network providers remotely offering more flexibility in terms of cost over a longer term. It also increases the reliability of your IoT application.

Ideally, test everything. Some connectivity providers like Eseye offer a free testing kit or trial option that allows you to see how their service performs in the wild before deployment. It’s much harder to make adjustments to your IoT estate after the devices are deployed and connected, so doing as much testing beforehand can really pay off for the future.

Trends in IoT SIM data pricing

The average price per megabyte for IoT data has been in decline for several years now due to increasing competition and large-volume deals driven by the automotive sector, where ecosystem partners have strong buying power.

According to Analysys Mason, the average price per megabyte for publicly listed 1MB tariffs was just $0.03 in 2023.

However, the decline in pricing is expected to slow with the rollout of more IoT applications that require continuous connectivity such as POS terminals and remote patient monitoring devices, as well as the adoption of connected cars and EVs that use cellular connectivity more heavily. In fact, EVs can consume many gigabytes of data per hour compared to the hundreds of megabytes consumed by non-EVs.

That maturity of connectivity ecosystems also has an impact on IoT data pricing. It took several years for NB-IoT and LTE-M module costs to fall to a price point that was competitive compared to 2G/3G and LoRaWAN and this had a corresponding impact on demand and pricing for data plans. The same cycle of maturity is true of 5G.

Preparing for future IoT connectivity needs

Rolling out an IoT initiative requires proactive planning and careful consideration of things like network infrastructure, connectivity, security, and hardware. After all, many IoT devices are expected to be in the field for over a decade without human intervention.

Technologies like NB-IoT and LTE-M have become common choices for many of today’s connected devices, but the maturity of 5G and the advent of alternatives like 5G RedCap (Reduced Capability) give pause for thought as to the most appropriate technology for your IoT connectivity.

Additionally, there is planning for the sunsetting of older technologies like 2G and 3G.

All of these factors should be considered when choosing your partner for IoT SIM data plans as predictable and reliable performance is the key to IoT success.

Your IoT device needs to connect to the most available network and be smart enough to automatically adapt to network variances and maintain connection when it’s in the field. This means investing in the right IoT connectivity provider.