Mobile Operators Tapping M2M Technology as Traditional Voice Calling Declines

By Jacqueline Lee June 25, 2012

PriceWaterhouse Coopers recently reported that the average number of minutes of use for telecom subscribers had dropped from 720 per month to 638 per month between 2010 and 2011. As voice continues to decline, mobile operators are turning to other sources of revenue to boost their sagging numbers.

Verizon, for instance, will be transforming all of its cell phone plans into data-only plans; other telecoms will certainly follow suit. Still, other telecoms are turning to M2M technology to replace revenue from the decline in voice.

Telecoms lost the battle for application stores to Google and Apple. By investing in M2M, companies are working to prove that they are more than just highways for data. Vodafone established a partnership with Boston Scientific Corp., to develop a health-monitoring system. The system will allow patients to transmit health-related data to their doctors using their mobile devices.

Additionally, Verizon purchased Hughes Telematics for $612 million. Hughes owns technology that enables the transmission of data between car components.

Infonetics Research predicted in 2010 that M2M growth would also be driven by the need to track data sent between devices and to provide a variety of applications with access to that data. Currently, the M2M market is valued at $82 billion globally.

In Switzerland, Swisscom AG has partnered with watch provider Limmex to create a watch designed to help the elderly get quick emergency care when needed. The watch connects to Swisscom’s network and automatically dials up to 10 programmed numbers at the push of a button.

Gerhard Schedler, who heads Swisscom’s M2M business, predicts that Swiss residents will soon own at least 20 connected devices including switches, watches, temperature sensors, meters and even bicycles. Schedler hopes that the Limmex watch will help Swisscom boost sagging earnings. The company reported its first Q1 loss in a decade earlier this year.

In the U.S., Sprint has partnered with Chrysler to provide wireless communications for Chrysler’s UConnect program. Telematics provider, Aeris uses the Sprint network for communications in Hyundai’s Blue Link System.

Tom Nelson, Sprint’s marketing and emerging solutions director, says that Sprint is consolidating the expertise that it has been developing in the M2M market. “Sprint doesn’t just provide connectivity, but is an enabler of the ecosystem,” says Nelson. “Wireless is well-adapted to these purposes.”

Want to learn more about M2M technologies? Then be sure to check out the M2M Evolution Conference, collocated with ITEXPO West 2012 taking place Oct. 2-5, in Austin, TX. The M2M Evolution Conference is for industry professionals interested in capitalizing on a rapidly growing segment of the telecom industry. The M2M Evolution Conference embraces the any-to-any strategy of the Internet today. Co-sponsored by TMC Partner Crossfire Media, it showcases the solutions, and examines the data strategies and technological requirements that enterprises and carriers need to capitalize on a market segment that is estimated to grow to $300 Billion in the year ahead. For more information on registering for the M2M Evolution Conference click here.

Stay in touch with everything happening at M2M Evolution Conference. Follow us on Twitter.

Edited by Brooke Neuman

Contributing Writer

Related Articles

An Issue of Scale: How Numerex Soothes the Savage IoT Beast

By: Ken Briodagh    11/25/2015

The IoT is a simple beast, really. Plug smart device A into cloud B and try your best to make sense out of what you find, while keeping evildoers from…

Read More

Hey Health Care Professionals! Let's Solve Security

By: Ken Briodagh    11/25/2015

I love how readily the health care industry has taken to the IoT. You folks are leading the way in both enterprise and consumer-facing M2M technology,…

Read More

Ingenu Launches National IoT Machine Network in US

By: Ken Briodagh    11/24/2015

Ingenu, a connectivity provider exclusively for machine networks, recently announced the initial rollout of its Machine Network, which will cover 30 m…

Read More

The Shopping Mall of Things: A Black Friday in the Life of the IoT

By: Special Guest    11/23/2015

While we have seen examples of some high-end retailers closing their doors for good, such as Blockbuster and Borders, brick and mortar retailers have …

Read More

Atmel Brings Improves WeChat's IoT Capability

By: Frank Griffin    11/17/2015

As more of the things around us become smarter, the information they transmit must be secured to protect the data. One of the largest social media com…

Read More