Always in Touch

Since 2009, M2M applications, M2m-enabled devices, and M2m-related revenue generation business models have been gaining ground

Machine- to- machine ( M2M) concept was cloudy since its inception in 2000 but in the recent years it has gained ground. Since 2009 M2M applications, M2M-enabled devices, and M2M-related revenue generation business models have been emerging significantly. M2M is being adopted globally in several verticals viz health care, utilities, advertising, transportation, energy, retail, agriculture, etc.

Factors Fueling Growth

Machine-to-machine technology is being driven by cloud computing and the proliferation of smartphones. Juniper Research says there would be about 412 mn machine-to-machine and embedded devices globally by 2014. It is also driven by declining hardware, service cost, and due to the ubiquitous coverage. M2M technology is referred to as a communication between a machine and mobile terminal, from mobile to machine and vice versa or between a machine and a backend information system and vice versa.

In automotive and commercial telematics sector, M2M enables tracking of vehicles, controls traffic, manages fleets, integrates IT and finance, helps in saving fuel, and provides logistical efficiency. Smart metering has also proved to be a boon to utility verticals as it can assist in conserving electricity, match supply and demand, lower cost, and increase efficiency in collections.

In BFSI and retail, technology can enhance more customer interactions and creates revenue opportunities. It will facilitate patient monitoring, real-time patient assessment, and emergency vehicle response in the healthcare segment. In India, the government has launched an ambitious M2M smart metering program under the National Solar Mission. The first phase (up to 2013) will focus on capturing the low-hanging options in solar thermal, promoting off-grid systems to serve populations without access to commercial energy, and modest capacity addition in grid based systems.

Major Deals

In 2009-10, Spanish Telefonica had set up an M2M entity in Madrid. In 2010 in UK, MVNO Abica commenced trials with Telehealth and Telecare applications which required secured data transit via private APN and HSPA+ connectivity. In early 2010 in the US, ATFT, KPN, Rogers, TelcelIAmerica Movil, and Jasper Pireless announced their commitment to the field of M2M communication electronics. In February 2010, Vodafone, Verizon Pireless, and nPhase (a joint partnership of Qualcomm and Verizon) announced their strategic alliance to provide global M2M solutions across Nurope and the US. In March 2010, Sprint and Axeda Corporation partnered.

Must Dos for Profit

The M2M ecosystem, particularly telecom operators and system integrators, needs to standardize technology platforms and develop open protocols. Hardware design challenges should be tackled as there are cost implications of radio modules and each business requires unique requirements. Bandwidth requirements, device management platform, and operational support are critical concerns. Major issues on application design are back-end host applications and the ability to port applications to newer generation of technologies.