Four Strategies Operators are Adopting for Tackling the Cellular M2M Market
Published on: 2nd Feb 2013
Note -- this news article is more than a year old.
As cellular M2M subscriptions climb to over 478 million in 2017, operators will adopt one of four key strategies to improve their position in the market, according to a new report from Pyramid Research.
"Strategy 1 is where mobile operators simply sell airtime wholesale to MVNOs and resellers and have little or no additional involvement," says Pyramid Research Analyst at Large, Jan ten Sythoff.
Several years ago this was the principal way in which operators addressed the M2M opportunity, seeing it as a niche market too small to invest in and a low priority. In Strategy 2, operators have their own M2M platform, providing not only the network access, but they are also able to offer important connectivity capabilities.
Strategy 3 involves MNOs becoming the central point of contact. In this case, the MNO can take different steps to enhance its position in the value chain, while still depending heavily on partnerships.
The final strategy operators can consider is a complete end-to-end solution. "This requires that they gain strong vertical industry expertise and so are able to manage complete projects from sale, consulting, device design and manufacture, application development, integration and service management," he explains.