Knowledge Aug 22, 2024 Embracing the Future: Connectivity Aggregators – Aggregation or Arbitrage?

In the world of global cellular connectivity, the role of the Aggregator is sometimes questioned. The opinion that aggregation is merely arbitrage – collecting a larger set of connectivity providers and offering a basic management interface on top without adding real value but still adding a margin before reselling it– is sometimes heard. Maybe rightfully so. However, a closer examination reveals that the right Aggregator does much more than simple aggregation, especially in the context of the Connected Car vertical.

Let’s examine the question a bit closer to see if the Aggregator really adds value or is just making a few bucks off “someone else’s connectivity”.

The right Aggregator brings in-depth market knowledge and expertise that goes beyond connectivity. For Automotive manufacturers (OEMs), this translates to an understanding of global and regional connectivity landscapes. Aggregators with established relationships in the industry can navigate complex regulatory environments, ensuring compliance and seamless integration of connectivity solutions across various markets. This expertise is invaluable for OEMs when launching vehicles with consistent, reliable connectivity worldwide. If the Aggregator can provide local presence throughout the OEMs target market and act as a Service Provider – there is tremendous upside in the value they are able to offer.

Leveraging their buying power and well-established industry relationships, the right Aggregator can secure better pricing and terms from connectivity providers. This not only reduces costs for OEMs but also ensures access to a wider range of network options. These relationships often allow Aggregators to offer bespoke solutions tailored to the specific needs of a particular Automotive OEM, enhancing the overall value proposition.

As a cherry on top, the right aggregator can offer unique technology layers that truly meshes networks through SDN (Software Defined Network) technologies and full support for the spectrum of standards in eSIM (embedded SIM), Remote SIM Provisioning (RSP) as well as their latest advancements on the path towards iSIM (integrated SIM). This technology ensures optimal performance, reliability, and security of the connectivity infrastructure. For OEMs, this means their vehicles can switch seamlessly between networks, maintaining connectivity even in challenging environments. An SDN and modern RSP solution also provides greater flexibility and scalability, allowing OEMs to adapt to changing connectivity needs without major overhauls.

Understanding the importance of User Experience (UX), the right aggregator can offer IT solutions for Business-to-Consumer (B2C) services, such as in-car entertainment and tethering. By providing a seamless, intuitive UX, aggregators help OEMs enhance the appeal of their connected car offerings. This not only attracts new customers but also fosters loyalty among existing ones, driving Customer Lifetime Value. And in terms of User Experience, nothing beats being able to guarantee a stable, local 5G network vs ending up roaming on LTE or even a soon to be sunset 2G or 3G network.

In conclusion, the opinion that aggregation is merely arbitrage is a viewpoint that is understandable on the surface but when diving a bit deeper in the potential value provided by the right Aggregator, one sees that the answer depends on the Aggregator’s capabilities. The Aggregator can add substantial value through market knowledge, buying power, industry relationships, best practices in network integration, advanced technology layers, and a clear focus on User Experience.

For Automotive manufacturers, partnering with the right Aggregator is not just a smart business move – it's a strategic imperative for success in the Connected Car era.