Unlike previous telecommunications gold rushes that operators considered as add-ons to existing voice and data businesses, M2M communications are viewed as a market opportunity in their own right. But to maximize returns and offer an effective service, operators need to form alliances and partnerships with M2M specialists for long-term success.
Most operators possess limited competencies in the support and management requirements associated with M2M enterprise solutions in particular. It is likely we will witness acquisitions that will help build out operators’ M2M capabilities.
By connecting machine-to-machine, new business models emerge to increase revenues and profits. Some operators have spotted this opportunity, but the potential is likely to increase dramatically with consumers driving demand for more intelligent machines in the energy and security spaces, thus creating the need for M2M.
Partnerships have already been formed by some operators globally who are looking to capitalize on the opportunity. On the smart grid roll-out front, AT&T has teamed up with clean tech firm Petra Solar, which specializes in solar generation and smart grid technology.
Also, a partnership between Orange Business Solutions and Telit Wireless Solutions will see Orange’s M2M offerings serving the French market. In turn, a partnership between Telit and Deutsche Telekom is focusing on delivering integrated solutions for the networking of vehicles, machines, measurement, and control modules, along with a comprehensive range of customized services.
While these partnerships and others demonstrate how operators are looking to unleash the revenue potential of M2M, there are unique technical challenges that Asian operators need to recognize. For example, existing network infrastructure needs to be updated with technologies that support real-time networks, such as the smart grid.