Numerex was established in 1992 and has focused on wireless connectivity since 1999 after divesting its wire line business to BT. The company recently passed the 2m connections milestone during Q1-2013. While this connections base is small in relation to the M2M business units of the large mobile operators (many of which fall in roughly the 5–10m range) it serves as a useful reference point for business planning, performance benchmarking and investor due diligence insights. These are highly topical in the present climate where companies are expanding their M2M operations; this earlier post on building a billion dollar M2M business, for example, has been the most read item on this site in recent months.
Apr 23, 2013
M2M service provider metrics
Numerex was established in 1992 and has focused on wireless connectivity since 1999 after divesting its wire line business to BT. The company recently passed the 2m connections milestone during Q1-2013. While this connections base is small in relation to the M2M business units of the large mobile operators (many of which fall in roughly the 5–10m range) it serves as a useful reference point for business planning, performance benchmarking and investor due diligence insights. These are highly topical in the present climate where companies are expanding their M2M operations; this earlier post on building a billion dollar M2M business, for example, has been the most read item on this site in recent months.
Apr 16, 2013
Competing for In-Home Services
Late last year, in the course of some project-related research, I took a look at the home security market in the context of 'smart-home' service concepts. Fixed- and mobile-network operators view this as one of several promising market opportunities to offer home automation and home security types of service.
A great deal is made about mobile operators pursuing new opportunities such as these in what are referred to as ‘adjacent markets’. However, it is as well to recognize that incumbent providers from those 'adjacent' markets may also have ambitions of their own in the communications arena.
Apr 9, 2013
IoT Business Models
Digital Things ran in parallel to sessions on Digital Commerce and Digital Entertainment so there was definite competition for conference delegates. As a measure of how seriously Silicon Valley is taking the IoT market, the Digital Things session drew by far the largest audience.
Since the IoT market is still comparatively underdeveloped in commercial terms, my presentation focused on lessons learned from the M2M market. In particular, I highlighted several insights from the business strategies that service suppliers and providers are implementing.
Apr 3, 2013
Launch Strategies for Digital Business Units
In a post-event blog post Key highlighted how the mobile industry is moving beyond the realm of “phone calls and pure connectivity” with particular reference to M2M and mCommerce opportunities. He observed that “Despite the realization by all telcos of the need to become digital to leverage these opportunities, there is a lack of consensus on how to get there. What then is the way forward?” His own position involves “driving open partnerships and using mobile and digital technology to address pressing social needs”. Partnerships, in a variety of forms, is something I have previously described as a key aspect of business model innovation.
Stepping back, however, what are the key characteristics of other mobile operator ‘digital’ initiatives? And, what does this imply as the way forward as other operators strive to become Digital?
Mar 20, 2013
M2M valuation
As a result of these variations, business developers and CFOs need suitable tools to manage both the risks and the rewards associated with different application opportunities. This is where valuation techniques become useful. They not only help to quantify new opportunities but they can also drive business model innovation.
Mar 7, 2013
Two Aspects to Business Model Innovation
Feb 14, 2013
M2M Platform Permutations
Ericsson’s 5 February announcement to supply its M2M Device Connection Platform (DCP) in support of XL Axiata in Indonesia has prompted this update to an earlier article on the competitive dynamics of international alliances and M2M platforms.
The DCP deal is
something of a coup, providing Ericsson with a meaningful customer reference in the
highest population country in South East Asia. The news announcement actually formalizes
a business relationship that dates back to early 2012. In October 2012, both companies highlighted
an achievement of 89,000 M2M connections. The pace of growth
seems to have accelerated with XL Axiata’s M2M base reaching a total of 125,000
in the intervening months. The latest announcement provides some timely
marketing collateral for Ericsson to use with mobile operators that cannot
justify an investment in their own M2M platforms and the delegations of mobile-operator executives
who will shortly be congregating at Mobile World Congress.
The move by XL Axiata is not unique in the market. Other
mobile operators have partnered for M2M platform capabilities to handle large
scale application opportunities using processes that are geared specifically to M2M operational needs
and economics. AT&T was an early partner of Jasper Wireless, for example, while
Everything Everywhere in the UK has been working with another platform provider, Transatel.
These developments and the changing competitive dynamics for M2M platforms will have far-reaching implications for all device vendors, service providers and users in the M2M eco-system.
These developments and the changing competitive dynamics for M2M platforms will have far-reaching implications for all device vendors, service providers and users in the M2M eco-system.
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