Does the mobile M2M market herald the rise of the machines?

Does the mobile M2M market herald the rise of the machines?


Mobile operators are in a unique position to capitalise on the M2M (Machine to machine) opportunity with operators such as Vodafone, o2, Verizon and KPN already putting significant resources into developing M2M business units. Vodafone has established a 100 strong M2M business unit recently and Verizon Wireless has formed an alliance with Qualcomm, to cite just one or two examples.  Device manufacturers, for their part, have been focussing on the area for some time, and though the M2M device industry is far from mature and comprises thousands of small players, the pricing of M2M components has been coming down particularly over the last eighteen months to two years.  Though this will help the M2M industry develop, there are significant challenges involved in addressing the M2M market, not least the fact that there is not one M2M market but several, all of which have their own attributes and all of which are at different stages of development.  And despite rumblings and some exceptions, genuine operator interest in the area of M2M is fairly new. This is partly because the ARPU “profile” of M2M applications cannot match existing revenue models for “human” subscribers, though volumes will ultimately be substantially higher.  Even operators that made an early commitment to M2M have taken some time to work through and address the various challenges that M2M presents, such as SIM reliability in challenging environments and seamless activation.

24 Oct 2011
01 Dec 2010
5 Page(s)
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