Carriers in M2M: Opportunities and Challenges (part seven)

Traditionally, the role of a telecom service provider has been to provide mere connectivity. Earlier it was limited to voice-based connectivity which later expanded to data. With the advent of M2M, telecom operators are incorporating different means to offer added services rather than just be provider of ‘dumb-pipe’. M2M platforms have proved to be valuable asset for increasing revenue derived from M2M clientele.

Platform capabilities enable an operator to include basic connection support and service enablement as part of its offering. Development of a connectivity support capability allows the operator to generate more revenue ‘per connection’ through the provision of value-added services. Thus carriers can concentrate on generating application revenue directly from customers, thereby unlocking significant potential revenue opportunities.

Increasingly, carriers are exploring options that include the use of third party providers of M2M platforms to offer consistent interfaces and common solution components to their customers. This will also ensure consistent interface across geographies. The uniformity of integration interface that third party platforms provide is valuable to customers which require M2M services across the globe. Furthermore, the carriers can reduce costs and associated rick through the use of third party connection support and service enablement platforms. At the same time carriers also will be able to accelerate the time-to-market with such services.

Strategy 6: Establishing M2M Platform capabilities

M2M platforms have the potential to significantly enhance a mobile operator’s prospects in the M2M space by:

• Supporting the need of clients, who are looking for partners to integrate into end-to-end business processes, rather than simple providers of connectivity.

• Maintaining a leading edge proposition in a rapidly changing, and technically sophisticated, marketplace by positioning platform capability as competitive differentiator.

• Supporting multi-country client solutions using the same platform to support solutions.

• Reducing operator costs using cloud-based platforms which offer operators a low-cost, low-risk entry into providing M2M connectivity and associated services.

Some of the major alliances in this area are:

Everything Everywhere has established partnership with Transatel to develop propriety M2M platform. The platform has been designed to enable business customers to securely manage their accounts and connections from any location.

In November 2012, TeliaSonera Global M2M Services announced that it is implementing a new dedicated M2M-platform from Ericsson. The new platform will allow TeliaSonera to deploy and manage connectivity for M2M solutions across geographical markets and multiple industries on an industrial scale.

Telecom Operators are gearing towards providing open platforms for developers to develop solutions and applications around the service. This will ensure creativity in terms of applications and faster development of industry-specific applications.

A case in point is Rogers Communications and Axeda Corporation forming an alliance which will provide businesses and developers across Canada access to Axeda® Platform. This initiative will enable the developers to build and roll-out enterprise M2M applications for connected products in Canada.

More instances of such partnerships can be found at:

About Mind Commerce

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