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Article

Title: M2M Market is Low-Churn, Low-ARPU Game

Author: Carson, Phil Article Type: Product Analysis
Source: RCR Wireless News, v26 n19 p12(1) Publication Date: May 21, 2007
  ISSN: 1533-0796
  Illustrations: Photographs
URL of Publication: http://www.rcrnews.com

Efficiency is essential in machine-to-machine (M2M) communication as gathering data from remote locations is sought with less labor, less danger, lower power, and in real time. It would seem that M2M applications would be equally attractive throughout the world, however the use of M2M technology differs significantly between the United States and Europe. Network operators in Europe embrace M2M applications as another source of revenue, yet U.S. network operators concentrate almost solely on their human cellular subscribers because they are a much more profitable market. Social policy is a key factor in Europe, while revenue and stock value are the primary drivers in the U.S. Mobile virtual network operators (MVNOs) are driving the North American market because they are better suited to fill the M2M role than traditional network operators. Original equipment manufacturers (OEMs) and network operators are contemplating business models and services that could be a new source of income from M2M possibilities. Energy utilities, industrial manufacturing, and health care all have promising M2M growth. Aeris Communications is an MVNO that plays the role of systems integrator by furnishing solutions for telematics systems for autos and telemetry systems for everything from asset management, automated metering, and home security. The M2M market segment should grow in the U.S. as the new technology is adopted, costs come down, and standardization occurs. In the meantime, Aeris and its domestic competitors, as well as M2M module vendors, are focusing on the attractive European market with its mandates for auto safety and energy efficiency. The M2M industry hopes to connect the entire world eventually.

Special Features: Photographs

Companies:
Aeris Communications Inc

Products:
M2M (Machine-to-Machine) MVNO (Mobile Virtual Network Operator)

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