M2M Network Providers Begin to Add Infrastructure to Optimize Data Traffic Control

(Business News & Technology News, 2 Jan 2009)

Machine-to-machine (M2M) communications have specialized requirements, and over time this market has seen a specialized class of network providers—Mobile Virtual Network Operators (MVNOs) and M2M Mobile Operators (MMOs)—emerge to address these requirements in ways the traditional mobile operators have often declined to do directly except for very large customers. For example, these specialized network providers can aggregate demand from a multitude of smaller customers in a very cost-effective manner.

While the traditional MVNO model has been essentially to purchase bulk airtime from mobile operators and retail this to customers, along with an array of specialized services, an increasing number of these network providers are starting to deploy their own specialized network infrastructure equipment.

This equipment is intended specifically to optimize their control over network functionality and thereby the services they can offer. There are only a few such M2M Mobile Operators (MMOs) so far, but they see their ability to manage their customers' data traffic with more precision as a powerful differentiator. ABI Research expects this tendency of MVNOs becoming MMOs to increase over time.

Both MVNOs and MMOs partner with mobile operators in several ways to develop services catering to the M2M market. Some providers choose to focus on regions such as North America or Europe, offering multiple communication technologies that provide extensive coverage in those areas. Others aim for a generalized global reach, without attempting to address multiple communications technologies.

Some try for the best of both worlds: North-America-centric KORE Telematics, for example, has agreements with other providers in Europe and Australia, through its m2mGlobal Alliance, offering a more global footprint. In a different vein, MMO Jasper Wireless recently announced a turnkey offering for mobile operators, including software, optimized equipment, and services, to enable rapid deployment of mobile operator M2M service offerings.

Click here for more information on ABI Research