Carriers in M2M: Opportunities and Challenges (part six)

This eight-part series describes different strategies employed by various operators across the globe. Each part extensively discusses one strategy, its implications and companies involved.

M2M technology is still evolving and hence the technology expertise and customer awareness, mainly at retail level, are at rudimentary levels. This is likely to slow down mass penetration of this technology among the user population.

Furthermore, technology standardization is a key challenge as there are so many players involved setting the standards. However the industry has not made consensus on a particular set of standards. It is up to the companies to develop capabilities themselves. A common set of technology framework has to be globally standardized for faster rollout. Telecom Operators are aware of this painful situation and hence they have taken steps to address this issue through strategic partnerships.

Given the scenario, collaborating efforts for technical development saves time and resources. Usually telecom carriers operating in different markets have joined forced to share knowledge and expertise.

Strategy 5: Partnering to share Technology and knowledge

Telefónica Digital, has joined forces with UAE incumbent Etisalat to develop business opportunities, license products and share knowledge for a gamut of digital services. Telefónica and Etisalat will collaborate to develop business opportunities in M2M and other digital services. Within the field of M2M, the two companies will share technical and platform expertise, co-operate in international M2M roaming and collaborate in bidding processes.

Telefónica Digital also signed a deal with Avea (part of Turk Telekom group) through which the two companies will develop business opportunities in the M2M sector. The alliance covers technological cooperation, as well as the development of joint commercial and marketing endeavours. This venture will allow them to create economies of scale, with significant cost reductions, and obtain new sources of income thanks to the opening of new markets.

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Analysis of telecom and ICT infrastructure, technologies, and applications.
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