Gartner Research

Sigfox Value Proposition Challenges Traditional IoT Cellular Connectivity Business Case

Published: 27 April 2016

ID: G00294608

Analyst(s): Toni Nygren, Sylvain Fabre , Ian Keene

Summary

IoT applications with high volumes of transactions demand cost-efficient connectivity. Dedicated IoT connectivity service provider Sigfox offers a noncomplex proprietary network solution. CSP product managers must assess their IoT offering and view toward players like Sigfox to stay competitive.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • CSPs' traditional cellular-based IoT business case (2G, 3G, 4G) cannot compete on price against the LPWA (which includes Sigfox) value proposition until NB-IoT is available, presenting the opportunity for more competitive pricing
  • Sigfox is becoming an alternative IoT provider thus forcing mobile CSPs to accelerate their own LPWA solutions or risk losing initial market opportunities
  • Even though Sigfox is emerging as a global player for IoT, its mode of operation to support product companies in its go-to-market process shows how emerging players approach resolving the IoT business case outcome

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