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Ericsson completes M2M purchase, addresses market barriers


Ericsson has completed its purchase of Telenor Connexion’s M2M platform, reinforcing the company’s goal of helping operators – including now Telenor – go to market with machine-to-machine services.

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Telenor Connexion, a subsidiary of Telenor, provides embedded connectivity for a range of M2M solutions from healthcare to smart metering, smart grids and telematics. The company will become the first customer for the now Ericsson-owned M2M technology platform.

The potential for M2M is huge and much discussed – indeed Ericsson themselves today announced a deal with Ausgrid to manage their smart grid roll out in Sydney, Australia. A key part of the offering is the M2M functionality that allows data from 12,000 smart monitoring devices, 3,000 mobile field computers and 200 zone substations to be collected automatically.

With the predictions for M2M adoption ambitious by any standards – Ericsson’s own forecasts suggest 50 billion connected devices by 2020 – a low cost and easy route to market is essential.

According to Mike Short, VP of Telefonica, “50 billion by 2020 is a very rapid growth profile in barely nine years….. it would require very low unit pricing/low usage, as well as high demand” (CP: M2M by the numbers and by the solution ).

"The M2M business is characterized by a low average revenue per device, so that means the aim is for telcos to pursue high volumes,” said Magnus Furustam, vice president, head of Core & IMS at Ericsson. “Telcos will therefore benefit from a solution with low cost of entry, and one that gives scale. Our approach is to provide a service lowering the barriers for telcos that want to go for M2M business."

Ericsson’s strategy is to offer M2M from the cloud and as a service. This minimizes the cost of entry to telcos. “Our global presence, as well as having multiple telcos on board this platform gives us scale,” said Furustam

With the potential uses for M2M technology almost limitless, a low cost entry provides telcos with the tools to step up and position themselves as the companies that are the lifeblood of connectivity, (CP: Evolving opportunities for telcos – finding the third way) monitoring and intelligence to almost every industry.


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