IoT - Money Is Made In Connectivity As A Service (CAAS)

IoT are tiny little electronic devices that can collect input (sensors, human input, etc) and transmit it to the cloud (for storage, processing, etc).  Here is a depiction :

IoT devices need a way to connect to the cloud via "The First Mile"

Because most IoT devices are inexpensive, how is the IoT ecosystem to make money? The answer is Connectivity As A Service (CAAS). If your IoT uses WiFi, the cost of connectivity should be $0 (unless you are traveling and don't have access to free WiFi).  But for most IoT devices that are not home bound (thereby having free WiFi access), what will "The Last Mile" look like? It will probably be mobile cellular. AT&T already has a plan for this, and it isn't cheap:

AT&T Connectivity As A Service

So that IoT device with a $10 BOM and $30 full retail price looks cheap compared to the CAAS that you will pay to be connected.  Will this hamper IoT growth? Relegate IoT (that require connectivity in all locale) to serious applications such as industrial and commercial?