Frost & Sullivan: Prioritising M2M Revenue Potential Will Help Take The Service To The Next Level In 2013
LONDON, Feb. 4, 2013 /PRNewswire/ -- Telecom companies, despite continuous efforts to fine-tune their machine-to-machine (M2M) strategies, are seeking new ways for revenue growth in a connected M2M world. Up to now, telcos mostly targeted the easy to reach opportunities in areas such as new cars, electricity meters and those around consumer and professional healthcare, traditional telemetry, security and industrial automation. Telecom service companies can accelerate revenue and market development by increasing customer awareness through a broad market strategy and further addressing customer needs.
According to Frost & Sullivan, a priority has to be M2M offerings for the small and medium enterprises (SME) customers. "Widening an M2M telecom service provider's reach to a spectrum of customers regardless of enterprise size can yield a more sustainable flow of revenue," said Frost & Sullivan Senior Industry Analyst Yiru Zhong. Frost & Sullivan estimates that a broad enterprise M2M strategy will also stimulate revenue growth by 22.3 per cent in the next five years as M2M functions and customer needs evolve.
The second priority for M2M telecoms service providers is to develop the depth of customer needs outside of traditional M2M logistics applications and applications in smart electricity meters and connected cars for E-call compliance. "Frost & Sullivan predicts that the emergence of M2M opportunities lies in industrial automation, retail sectors and even local governments," added Ms Zhong. A higher revenue potential of between 10 and 35 per cent of addressable revenue is achievable in the next five years, when M2M revenue would be derived from utilising the intelligence generated from machine data or in enabling enterprises to develop new functionality or new services to their end customers.
According to Frost & Sullivan the M2M market will also benefit from new market entrants, as the presence of mobile virtual network operators (MVNOs) or wholesale M2M telecoms service providers will become more vocal in 2013. This additional market entry push will accelerate market development and stimulate greater innovation within the M2M space.
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