Smart Business Blog

Having nearly reached the saturation point with mobile phones, wireless carriers are now turning their attention to new smart devices capable of being connected to a network. Strategists in a wide range of network service providers have finally awakened to the fact that we have entered a new era of connectivity.  

Network operators are taking a number of market- and technology-focused steps to advance M2M market development, including creating distinct M2M business units, deploying M2M-specific network technology, and beginning to work more directly with partners for M2M applications. But are these maneuvers enough to really drive M2M growth?  Probably not.

The M2M opportunity presents multiple challenges for network operators. From the business model, to the supply chain, to vertical applications, to ongoing support challenges, M2M market development represents a very complex set of inter-related elements. Designing an M2M business requires a whole new design – one that involves optimizing all of these elements.
The M2M vendor landscape historically has not been aligned well with cellular network operators; its still extremely fragmented and disjointed. Today’s solutions are still difficult to design and deploy and have typically been built at a very high cost.  These solutions often require many players to perform diverse roles and the complete ecosystem to provide solutions has yet to fully develop.

In short, while the opportunity may be very large, many network service providers are coming to realize the prevailing telephony business model for managing smart devices has to change and while that process has started it is far from complete.

For cellular network operators, developing M2M capabilities is a prime example of an opportunity to gain share and really differentiate if they are willing to act.  The convergence of wireless networks, IT and Smart Devices drives huge opportunities.  However, innovation in the design of M2M businesses for the wireless carriers will need to reach beyond just simple ideas about new product and service extensions. To successfully develop this market, network operators will need to think and act differently.  A renewed focus on developing M2M ecosystems and the critical relationships that will drive value are key to success.  

Carriers that choose to go at it alone will have a hard time building market development momentum in the M2M arena.

Download New White Paper On The Cellular M2M Opportunity Here