Best IoT data plans: Guide to cost-effective connectivity

Over 4 billion IoT devices connected in 2024, but choosing the right data plan remains a challenge.

In this guide, we’ll take a closer look at the complexities of IoT data plans, outlining key options like pay-as-you-go, high-volume, prepaid, and testing plans to help you choose the best fit for your IoT project and avoid costly mistakes.

Whether you’re launching your first pilot or scaling an existing deployment, your connectivity choice can make the difference between a project that thrives and one that drowns in unnecessary costs.

Why traditional cellular IoT data pricing fall short

Here’s something many businesses discover the hard way: consumer-grade data plans just aren’t built for IoT deployments.

While consumer devices may need to connect to 1-2 networks per day, IoT devices might need to communicate across 3-5 different networks in multiple countries.

Industrial sensors often operate in harsh environments, tracking devices need reliable cross-border connectivity, and deployments can involve managing hundreds or thousands of devices simultaneously.

Understanding your IoT data plan options

The 4 IoT data plans you should consider are:

• Pay-as-you-go IoT data plans
• High volume IoT data plans
• Buy once (Prepaid) IoT data plans
• Testing and development IoT data plans

Let’s break down them down one by one with real-world implications for each.

Pay-as-you-go IoT data plans

Pay-as-you-go plans (PAYG) have become the gold standard for modern IoT deployments, offering unmatched flexibility and cost control. With PAYG, you’re only charged for the actual data your devices consume, making it incredibly efficient for most IoT applications.

Key advantages:

• Perfect cost alignment with actual usage
• No wasted data allocations
• Transparent billing without hidden fees
• Seamless scaling capabilities

High volume IoT data plans

When it comes to data-intensive IoT applications, high volume plans become pretty crucial. Research from an Ericsson Mobility Report shows us what “high volume” actually means in practice: during peak periods, IoT deployments can consume up to 24GB per hour across a device fleet, while individual devices might use around 30KB per hour. These aren’t just numbers — they’re crucial benchmarks for planning your deployment.

Here’s what makes high volume plans different:

• Predictable costs for high-usage scenarios
• Premium network access
• Optimized for continuous operation

For applications like video surveillance, real-time monitoring, or large-scale sensor networks, these plans offer the consistent, heavy-duty performance you need to keep your operation running smoothly.

Buy once (Prepaid) IoT data plans

While not always ideal in modern IoT deployments, prepaid data plans serve a specific niche in the market. These plans let you purchase a fixed amount of data upfront that never expires, which can work for projects with very predictable usage patterns or fixed timelines.

Key benefits:

• One-time purchase
• Good for fixed-timeline projects
• Ideal for devices with predictable usage patterns

The main consideration? You’ll need to accurately estimate your total data needs upfront to avoid over-purchasing which can be a costly commitment to make up front, and even costlier down the road as device firmware continues to evolve.

If you need help reducing your data overhead, network software Cloud Connectors can help you save both on data and costs.

Testing and development IoT data plans

During the testing and development phase, you need flexibility without long-term commitments. Think of it as a sandbox for your IoT deployment — a safe space to figure out what actually works before going all in.

Key advantages:

• Freedom to experiment with different device configurations
• No long-term commitment required
• Pooled data across multiple test devices
• Perfect for proof-of-concept phases
• Helps identify potential scaling issues early

For example, if you’re testing a fleet of 20 devices with various configurations, you might discover that some setups use 10 times more data than others. That’s exactly the kind of insight you want before rolling out thousands of devices.

How to choose the right IoT data plan for your deployment?

1. Understanding your device requirements

Before diving into connectivity decisions, you need a clear picture of how your devices will actually behave in the real world. We’ve seen that evaluating the performance of different SIM cards with your devices makes a huge difference when deciding an IoT data plan.

Here’s what you need to map out:

• Data volume per device (and how it varies)
• Transmission frequency requirements
• Device signal strength
• Battery life expectations

This kind of practical assessment actually sets you up for smarter decisions about everything from plan selection to network requirements.

2. Geographic coverage

Network availability is actually one of the most critical factors in IoT success. Think about it — your devices might need to connect through dozens of different networks during their lifecycle, whether they’re traveling across regions or just seeking the strongest local signal. Each network shift introduces potential connectivity gaps and roaming complications if not managed properly, or if a SIM doesn’t have automatic network selection.

Traditional approaches often involve juggling multiple SIM cards or provider relationships based on geography. But here’s something interesting – with modern IoT connectivity solutions, a single SIM can now provide access to hundreds of networks globally. At Onomondo, we’ve found that giving devices access to 680+ networks across 180+ countries lets businesses focus on scaling instead of worrying about coverage gaps.

Key considerations:

• Network redundancy for reliable uptime
• Urban vs. rural coverage requirements
• Cross-border capabilities
• Signal strength in specific deployment locations

3. Cost structures and budgeting

Here’s something interesting about IoT connectivity costs — they’re not just about the price per MB. We need to look at the total cost of ownership:

4. Management and support infrastructure

A solid management platform can reduce time-to-resolution for connectivity issues by up to 86% and help you spot issues before your customers do. To take advantage of this, you’ll want:

• Real-time visibility into device performance
• Troubleshooting capabilities
• API access for custom integrations
• Webhooks for custom alerts

Our recommended IoT data plan

Start by thoroughly evaluating your specific needs. Consider your deployment scale, growth trajectory, and technical requirements. Think about your device locations, data transmission patterns, and long term management needs.

Remember that the right connectivity partner should provide more than just data — they should offer the tools and expertise to optimize your entire IoT deployment.

In most cases, PAYG plans combined with smart optimization tools provide the most flexible and cost-effective solution for IoT deployments.

Thanks to our pay-as-you-go model, Consibio‘s IoT devices that are only active approximately 50% of the time translates to 50% savings on SIM card rates compared to vendors with flat-rate models. Read Consibio’s success story here.

Getting started: A practical approach

The best way to validate your connectivity strategy is through hands-on testing. We recommend starting with a sandbox testing program that allows you to understand the full scope of your device’s performance, and then move into a plan that fits your specific use case.

Here’s what to measure:

Our team at Onomondo is ready to help you navigate these choices and find the perfect fit for your IoT deployment. With our combination of flexible plans, powerful optimization tools, and dedicated support, we’re committed to helping you build a more efficient, secure, and scalable IoT solution.

Get in touch with our team to start testing today.