Machine-to-Machine (M2M) Market Provide New Lessons for Mobile Operators

Online, January 11, 2011 (Newswire.com) - Machine-to-machine, also known as M2M, services have been in existence for nearly 20 years. For mobile operators, new lessons are emerging as specialization and competition coupled with a rapid growth of demand have increased the stakes in the M2M market.

According to Informa, "the market for the sale of cellular connections to people, private consumers and company employees, is rapidly saturating and operators are forced to look for new revenue streams." It is in the machine-to-machine market that mobile operators seek new hope; operators view the projected explosive growth in M2M as a significant source of new services revenue.

What are the factors driving the M2M market?

The growth in mobile connectivity to machines can be attributed to a number of driving factors: new trend among mobile network operators (MNOs) seeking to expand data service offerings; technical advances in air interface standards, which are enabling fresh 3G M2M market segments; increase in telematics and telemetry across vertical industries; and new government mandates necessitating functionality in telemetry and telematics. The research provided in Informa's new report take an in-depth look at the factors driving the M2M market.

Advice for mobile operators

"The M2M Market presents some unique technical and business requirement for Mobile Operators," writes Kittur Nagesh in a blog article on Machine-to-Machine for Mobile Operators. "The most obvious technical challenge is being able to provide connectivity to potentially many millions of virtually any kind of device." The focus for operators should be on adopting new aggressive business models to exploit the M2M opportunity. Nagesh concludes, "it's clear that mobile operators need to adopt a fundamentally different approach to participate and profit from the exploding M2M market. While becoming part of their customer's business critical solutions, operators need to respond to new challenges for mobile technical infrastructure as well as the overall business model and strategy." For more information, Informa's report provides a detailed comparison on the various strategies mobile operators are developing in order to move deeper into the M2M value chain.

For more information on this report:
http://www.the-infoshop.com/report/itm139711-machine-to-machine.html
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