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The Role of the Operator in the M2M Chain
Of course the role of the operator in the M2M chain starts purely from delivering connectivity, which means selling SIM cards dedicated to M2M. But it doesn’t have to be so limited. As was mentioned at the beginning of the article, companies using M2M technology would like to receive stronger support from operators. At Comarch we call this more advanced connectivity service “intelligent connectivity” and see it as a combination of managed connectivity, a self care portal and application package, that is an “enabler” for verticals. The APIs and applications are very generic, starting from activation/deactivation through dedicated support for device management to specialized applications for a particular vertical.
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Now is the time for operators to make such strategic decisions to protect their position on the M2M market. |
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we can say that offering pure M2M
connectivity may prove to be profitable
in the long term, but only for some
verticals. In general, after reaching the
M2M market maturity, profits from pure
connectivity will radically decline.
“Intelligent connectivity” may still secure revenues by providing much better support for customers and allow easier establishment of partnerships. But entering selected verticals may provide much more profit even compared to the “intelligent connectivity” offering, as we can now see in the case of some leading M2M operators.
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The Roles of Telecom Operators in the M2M Value Chain
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Such “intelligent connectivity” makes it easier for companies to forget about the complexity of M2M technology and focus on core business, which in turn may boost the development of the M2M market.
The next step of great importance is connected to activities related to selecting strategic verticals. This can include direct support or cooperation with partners which offer bundled and comprehensive services to end users. This is one of the most exciting aspects of the M2M future and also a very promising one for operators.
Looking at trends on the market and
seeking analogies in other markets
(e.g. traditional telecom businesses)
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The differences in revenue for operators from pure connectivity, “intelligent connectivity” and verticals are not yet visible. However, we may start observing these differences in no more than two years.
Conclusion
The M2M market is growing and it is certain that its potential for operators is high. It is still difficult to say exactly how profits will be shared between various players, but there are important choices to be made by operators. Now is a good time for operators to make such strategic decisions to protect their position on the M2M market.
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About Comarch:
Comarch is a global supplier of industry-standard compliant IT products and services for the telecommunication industry. One of the company's fundamental distinguishing features is its focus on the flexibility and configurability of its solutions, which are developed in-house and customized to suit the specific needs of its customers. Comarch solutions are business driven, and they are evolving based on customer demand. Since 1993, Comarch has accumulated a lot of experience and knowledge in the fields of designing, implementing, and integrating IT solutions.
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