--- title: Pay-as-you-go data for IoT devices explained url: "https://onomondo.com/blog/pay-as-you-go-data-for-iot-devices/" description: Only paying for data in the months when a SIM uses data aligns cost with value. Here's why having zero active SIM fees and PAYG data is so important for IoT. date_published: 2022-05-23 date_modified: 2026-03-10 content_type: Post site_name: Onomondo site_url: "https://onomondo.com/" --- # Pay-as-you-go data for IoT devices explained > Only paying for data in the months when a SIM uses data aligns cost with value. Here's why having zero active SIM fees and PAYG data is so important for IoT. ###### IoT Explainer ###### 23.05.2022 # Pay-as-you-go data for IoT devices explained Here’s why pay-as-you-go (PAYG) data pricing and having no active SIM fees is vital for IoT. ![michael bosson](https://cdn.growth.onomondo.com/app/uploads/2023/04/18102354/1516797037906.jpeg) ###### Michael Bosson Content Specialist at Onomondo [](https://www.linkedin.com/in/michaelbosson/ "See Michael Bosson Linkedin profile") ![tech pricing](https://cdn.growth.onomondo.com/app/uploads/2023/04/20112410/tech_pricing_1200x628px_01-1024x536.jpg) Pay-as-you-go (PAYG) data for IoT devices might sound like a small thing, but it adds up to massive time and cost savings for IoT solutions. We offer hands-free where you only pay for the months that SIMs send data. PAYG data isn’t common in the IoT connectivity industry because of technical restrictions and commercial decisions. Most IoT SIM providers lock users into subscription and have data pooling limitations But for IoT to flourish, we think that it’s important to only charge for data when data is being consumed. Otherwise you end up paying for devices that are sitting on shelves or have to spend a lot of time activating and deactivating SIMs. ## What PAYG data means for IoT Our flexible data pricing model that is based on value creation means: - Always-on SIMs with no active SIM fee. - No need for manual SIM deactivation and activation. - No workarounds with Zapier or other unnecessary tools. - No prepaid risk, you only pay for data when devices are in use. - Full network flexibility with no limitations on the networks you choose. And that’s how [a common-sense data pricing model makes IoT easier](https://onomondo.com/pricing/). ## Why are data subscriptions common in cellular IoT? SIM information is stored in the core network of your cellular IoT operator. Specifically, the HSS (Home Subscriber Server) or the HLR (Home Location Register). And there’s a problem with these systems … they are expensive! [Mobile network operators (MNOs) and Mobile virtual network operators (MVNOs)](https://onomondo.com/blog/tech-talk-mno-vs-mvno/) pay companies like Oracle to set up databases on their HLR/HSS systems and are charged a fee for each row of data stored. And if you offer roaming and need access to another operator’s database, it can cost millions of euros for access plus a fee for each SIM. A consequence of how databases are set up in the telco industry is that SIM cards have a monthly fee per active SIM card. This fee doesn’t matter much to consumers as it’s only a tiny fraction of their overall subscription. But for IoT, where businesses have thousands or millions of SIM cards, the subscription fee that you incur even when not using the SIM impacts any business case significantly! If you make 100,000 devices for multiple markets, you will spend a lot of time and money forecasting when to activate them and how to minimize these subscription fees. ## Don’t pay for activated SIMs, only for active SIMs. With Onomondo, if a SIM is not in use, it incurs no costs. How do we do this? We’ve rebuilt the complete network logic from scratch and don’t have the same data storage expenses that MNOs and MVNOs face. And as we don’t have any costs for activating SIMs in the database, we don’t need to charge our customers. Read more about always active SIMs with PAYG pricing: [Always Active IoT SIMs](https://onomondo.com/blog/magic-mode-iot-sims/). You can now receive activated SIM cards for production (so your device can join a network), send your device out to the market (where it might sit on a shelf for a while), not have to worry about when to activate the SIMs, and only incur fees when data is transmitted. ### Build your own network Enhance signal quality and network control with non-steered SIM cards. Connect all your devices securely to a global network with Onomondo. [ See our Global IoT SIMs ](https://onomondo.com/product/global-iot-sim/) ### Start testing Onomondo for free Ready to experience next-generation IoT connectivity? Create an account, explore the platform, and start testing Onomondo’s IoT SIM cards for free. [ Get started ](https://onomondo.com/pricing/) ## IoT businesses building on Onomondo infrastructure “Onomondo’s network transparency is unrivalled. It took three days to resolve network issues with our previous provider. It only takes 10 minutes on average with Onomondo.” Chris Guest [ Read case story ](https://onomondo.com/case-stories/lightbug/) ![lightbug blog hero](https://cdn.growth.onomondo.com/app/uploads/2023/04/20122216/lightbug-blog-hero-1024x535.jpg) ## Related articles Read more about the topic ![Remote SIM Provisioning for IoT](https://cdn.growth.onomondo.com/app/uploads/2026/04/21115413/Remote-SIM-Provisioning-featured-1024x536.png) Articles###### Remote SIM Provisioning: What is it and how it works for IoT Connectivity Basics IoT SIM Learn what Remote SIM Provisioning is, how it works, and why it matters for IoT deployments – from eUICC fundamentals to SGP.32, form factors, and real-world benefits. [ Read more ](https://onomondo.com/blog/remote-sim-provisioning-iot/) ![iSIM](https://cdn.growth.onomondo.com/app/uploads/2026/03/01092112/iSIM-1024x536.png) Articles###### What is an IoT iSIM? How it works, benefits, and why it matters IoT / M2M SIMs If you’re building IoT devices today, you’re likely looking at traditional, physical SIM form factors, and possibly embedded SIMs. But there’s a newer form factor starting to reshape how connectivity is designed: iSIMs. So what actually changes with iSIMs—and when do they make sense to use? We break it down in this article. [ Read more ](https://onomondo.com/blog/what-is-an-iot-isim/) ![SGP.32 eSIM IoT interview with Henrik Aagaard](https://cdn.growth.onomondo.com/app/uploads/2026/03/31085742/eSIM-IoT-Henriks-interview-1024x576.png) Articles###### “eSIM IoT isn’t connectivity – it’s a device capability”. An interview about SGP.32 with Henrik Aagaard Future-proofing IoT IoT SIM You’ve probably heard a lot about eSIM IoT, SGP.32 – how much of it is substance and how much is noise? Henrik Aagaard separates the wheat from the chaff. [ Read more ](https://onomondo.com/blog/esim-iot-isnt-connectivity-its-a-device-capability-an-interview-about-sgp-32-with-henrik-aagaard/) --- *This is a machine-readable version of [Pay-as-you-go data for IoT devices explained](https://onomondo.com/blog/pay-as-you-go-data-for-iot-devices/).* *Last updated: March 10, 2026* ## About Onomondo Onomondo is a global cellular IoT connectivity platform providing IoT SIM cards, eSIM, and SoftSIM with a management platform, real-time diagnostics, and cloud integrations. Operates across 680+ networks in 180+ countries. Founded 2012, headquartered in Copenhagen, Denmark. ISO 27001:2022 certified. - Website: https://onomondo.com - Documentation: https://docs.onomondo.com - Knowledge Base: https://help.onomondo.com