Another significant development for consumers and businesses alike is that many wireless devices are now becoming carrier-agnostic. That isn’t a bad thing, but it has upended the buying and support process for wireless hardware. It wasn’t so long ago that a business or consumer had little choice but to purchase devices directly from the major wireless carriers. In fact, the device manufacturers were completely reliant on the large wireless carriers to inventory and sell their devices, which were subsidized by and produced separately for each of the major wireless carriers.

Recently, however, Google (via its Nexus brand), Apple, and to a lesser degree Microsoft are changing that market dynamic. Now, the carriers are becoming a less important distribution point for the equipment manufacturers, and the channel is stepping in to fill the gap. This opens new opportunities for the channel to bundle the tablets, PC’s and other devices with wireless connectivity and value-added services for end customers.  The channel, however, is facing the same problem enterprises are: a shortage mobile data services packaged and outfitted for the business customers they service.

Mobile Industry Challenges

The wireless industry is scrambling to address the explosive growth of mobile data demand. Carriers are advancing their networks beyond 4G LTE, with sights set on 5G, which by some estimates will support a mobile data download speeds of 20 gigabits per second. But 5G networks are still a few years away from being widely commercially available.

The trouble is, users expect fast and consistent connection speeds now. They expect to be “always connected,” no matter if they are at work, at home, at a store or restaurant, or on the road. They also expect their employers to provide them with best-in-class connectivity as part of their employment, as a required business tool.

At present, there are few viable options for businesses that require robust mobile data services. Not only are the traditional wireless carriers no longer subsidizing the devices and selling them, they are often backing away from business services and focusing more on the consumer market. Some wireless providers are downsizing sales and support teams; others are closing call centers and encouraging self service, even for large business customers. In addition, wireless carriers are more often than not offering mobile data services to businesses that have been designed for consumers – services that still come with multi-year contracts, termination fees, inflexible rate plans with breakage and overage charges, weak controls, and still – to some degree – device subsidies.

Mobile data service options from the major carriers have been joined by a whole host of services from MVNOs, but many of these don’t meet the needs of business users. MVNOs, by definition, are wireless service providers that do not build and maintain their own mobile networks. Instead, they resell wireless access to the carriers’ networks. To differentiate themselves, some MVNOs offer custom service features, but most compete on price. The services are generally limited; traditional MVNOs works with only one carrier, focus on consumers, and offer little in the way of business-class services.