Ericsson to Acquire Telenor Connexion's M2M Technology Platform

The machine-to-machine (M2M) communications market is maturing considerably. In an effort to strengthen its offering within machine-to-machine (M2M) communications, Ericsson has signed an agreement to acquire Telenor Connexion's M2M technology platform.

Telenor Connexion, wholly owned by Telenor Group, a major mobile operator with 203 million mobile subscribers. This robust subscriber base prompted Ericsson to acquire Telenor Connexion's M2M Technology Platform.

The latest acquisition by Ericsson not only includes Telenor Connexion's M2M technology platform, but also transfers eleven employees who will continue to work with development of the service offering provided on Ericsson's Device Connection Platform.

Telenor Connexion's M2M technology platform is a service that enables operators to provide M2M connection beyond smartphones and laptops. This service was launched during the Mobile World Congress in February this year.

Apart from providing telecom operators a way to set up tailored M2M services for enterprise customers, the Device Connection Platform also brings a 'software as a service' business model to the market, thereby facilitating low initial investment in technology and a fast time to market.

According to Ericsson, the new acquisition follows the company’s objective to drive the market for M2M communication, thereby adding valuable technology and know-how from eleven employees that will be transferred as part of this deal. In addition, the cloud-based 'software as a service' business model minimizes entry barriers.

Per Simonsen, CEO at Telenor Connexion said, in a statement, "M2M solutions have gained momentum and the market is much more mature compared to when we formed Telenor Connexion in 2008.”

Simonsen added, “Utilizing our offering on Ericsson's platform means that we can focus our resources on value adding services, improved and customized products, and partnerships to further strengthen our position as the leading provider of premium M2M solutions for business and life critical applications."

Magnus Furustam, VP, head of Core & IMS at Ericsson, said in a press release, "Telenor Connexion's M2M technology platform complements our service and will improve our offering, adding the know-how of the pioneers in this area. Our ambition is to grow the M2M market and offer our customers a solution that they can quickly use on the market for a low initial investment."

Currently, mobile connectivity is used in several M2M solutions including smart meters and fleet management. It is also useful in all products with software that can be upgraded when connected to a mobile network.