MNOs have generally relied on connection for M2M revenues – network connectivity and connection management revenues represent up to 30% of the overall M2M revenue. Yet operators will need to provide more than basic connectivity to succeed, given the data requirements of many services. The genesis of this development has been evident in recent months, with a number of prominent operators providing managed services around specific market segments. Popular among these are transport services, surveillance, healthcare, consumer electronics and of course energy services, where M2M is a key part of Europe’s smart meter deployments.
A number of global organisations – such as that which brought together seven major telcos including Rogers, SingTel, Telefónica, Telstra and VimpelCom – have been formed to improve efficiency within the market, and to help make M2M technologies accessible to different industries.
Within Europe the main MNOs have been very active in recent months, showcasing the extensive range of services to which M2M can be applied. Telefónica has a deal with Dell to develop pay-as-you-go mobile broadband services using Telefónica’s SIM cards. Similarly, Deutsche Telekom has M2M deal with IBM to develop their ‘Smarter Cities’ solutions, with IBM providing IT systems and Deutsche Telekom providing M2M connectivity. The system enables people to make use of innumerable services within urban environments, such as traffic monitoring and keeping track of public transport networks and real-time updates on the whereabouts of trains and buses. Deutsche Telekom has also branched out to farms, signing an M2M deal with MEDRIA Technologies by which M2M monitoring on farms inform dairy farmers on the condition and needs of their herds.
TeliaSonera has an active Global M2M Services division which uses a platform built by Ericsson within its Nordic and Baltic markets. TeliaSonera estimates there will be more than one billion connected devices in the Nordic and Baltic countries alone by 2020.
The scale of M2M services appears to be limited only by people’s imaginations. For cash-strapped MNOs struggling with ongoing revenue decline, M2M provides some new source of revenue down the line.
For more information on M2M developments see Europe – Mobile TV, Applications and M2M Market Insights
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