M2M Communication via Mobile Radio: What You Should Consider When Selecting SIM Cards and M2M Plans?

Anyone who has dealt with wireless communication knows the advantages of mobile communications for IoT projects. All that's missing is the right M2M SIM card to transfer data quickly and securely from IoT devices. In this article, we explain what you should look out for when choosing an M2M SIM provider and where pitfalls lurk for your project.

Find the Right M2M SIM Provider for Every Project

Regardless of whether you only need 15 SIMs for M2M communication or 50,000 SIMs - the following questions and points can help you to define important requirements for your future provider of M2M SIM cards for each project:

1. The Roaming Trap: Non-Steered vs. Controlled

An M2M SIM uses the networks of different network operators and thus enables wireless communication. To do this, it is permanently in roaming, also known as national roaming. This in turn is divided into controlled and uncontrolled roaming. While the M2M SIM always enables a connection to the strongest available network at a location in uncontrolled roaming, the network provider determines the connection in controlled roaming. An M2M SIM with controlled roaming will always establish a connection via its home network before using the network of another mobile network provider. However, this can lead to end devices having to make do with a poorer connection for a while than would be possible with a different network.
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For your use case, check whether you can cope with a weak connection and possibly more frequent disconnections in case of doubt. This could be the case, for example, if only very small amounts of data that are not time-critical need to be transferred. If you are dependent on a permanently available and stable connection for your project, an M2M SIM provider with uncontrolled roaming is recommended.

2. M2M Plans: Selecting the Right Data Package

Depending on the SIM provider, there are different M2M data tariffs for your IoT project, from a fixed monthly data package per M2M SIM to a shared data pool for all SIM cards. There is no right or wrong tariff model - it either fits your project or it doesn't. To find the right M2M data tariff, you should first ask yourself a few questions about your data requirements:

Do you know the exact or at least approximate monthly data requirements of your IoT devices?

If not, look for a provider that allows you to test the M2M SIM cards extensively in advance. A test phase of three to six months is recommended for valid data.

‍Is the monthly data requirement rather constant or are (strong) fluctuations to be expected?

If your data consumption is constant, you can book a suitable fixed data package. If your data consumption fluctuates, there are pay-as-you-go tariffs, for example, where you only pay for the data you actually use.

‍Isyour M2M project subject to seasonal peculiarities, so that, for example, months without data consumption are also expected?

In this case, look out for providers that allow you to temporarily pause the SIM cards at no extra cost.

‍Do you expect similar consumption for all M2M SIM cards used, or does consumption fluctuate from card to card?

Some M2M SIM providers allow you to assign a shared data pool to M2M SIM cards. This means that the lower consumption of one SIM offsets the higher consumption of another SIM.

Depending on your answers, you should be able to identify the appropriate data model for your project. This can be a fixed monthly data quota per SIM or a shared data pool for all active M2M SIM cards.

3. Cost Traps: Forced Activation and Other Hidden Costs

Low acquisition costs quickly become unattractive when monthly fees or hidden costs for M2M SIM cards have to be taken into account. Therefore, check exactly which running costs are incurred for the SIM cards. This refers not only to the data, but also to the M2M SIMs themselves. An unpleasant but not uncommon cost trap: forced activ ations or multiple activation fees.

In the case of forced activations, all purchased M2M SIM cards are activated after a set period of time. From then on, monthly basic fees are usually due for these SIM cards - regardless of whether they are used in an IoT device or are in storage. With multiple activation fees, you can pause SIM cards temporarily and thus save on the basic fee, but pay a fixed amount again each time after reactivation. Both cost blocks can quickly make low one-off costs unattractive.