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Large Carrier M2M Changing the Wireless Landscape

Machine-to-Machine communications, or M2M, is all about large carriers seeking to capture low data rate machine applications using their nearly ubiquitous cellular networks. The users of low data-rate applications, such as SCADA, remote control, alarm systems, vehicle tracking, etc. are only able to support single and low double digit monthly bills for their communications services before it pays to develop a private wireless network. So why would carriers want to pursue M2M when the average revenue per cellular subscriber today is approximately $56 and climbing?
The answer has to do with the number of devices, penetration levels and the value of a bit.
• Cell phone penetration has exceeded one device per user in almost all other OECD countries and is slowing.
• The number of potential devices is many times that of the world’s population.
• The revenue per bit for an industrial user is up to 100x that of a retail user and data use is trending up.
Putting these facts together leads to an impressive revenue opportunity for the carriers. The promise of M2M for users is a reduction in the capital costs associated with wireless networks and a low risk pay-as-you-grow business case. The threat of M2M is to small equipment providers who may see many of their traditional customers migrate from private to carrier-based wireless networks.
Tech-Knows can help you resolve the big question for your application: Carrier M2M or your own Private Network?
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