Tuesday, March 15, 2011

How MNOs can generate revenue from Machine-to-Machine services

PADERBORN, GERMANY: Many operators have realized the revenue opportunities for machine- to-machine (M2M) business. Taking a look at today's margins for this business, it becomes obvious that it will be a tough task to realize profitable margins for these M2M services.

To act profitable, operators need to offer connections on a high volume basis bundled with dedicated managed service offerings. What is more, they need to dramatically reduce their costs for enabling these M2M services. Orga Systems, #1 choice for real-time charging and billing, enables MNOs to realize outstanding service innovation or diversification, based on its real-time convergent charging and billing solutions.

Strong growth in number of M2M connections
Leading analysts predict strong growth for M2M connections. Some predict wireless M2M connections will reach 294.1M in 2015. This would mean they represent 4 percent of the total cellular connections worldwide. Furthermore, the number of M2M connections may rise to 2.1 bn in 2020. Taking these impressive figures into account, operators face major challenges in sales, marketing and converging OSS/BSS for M2M services.

Automation and large scale are key for profitable business
Operators need to automate device support for customers in markets like smart grids, energy, transportation telematics or healthcare. This is the only way to reduce provisioning as well as customer support costs and enable profitable M2M business.

While monthly revenues for dedicated transportation telematics services are not that low, especially areas with highest growth rates like smart metering generate extremely low ARPUs. Real-time capabilities are the common basis to promote profitable M2M business. For the utility market, an easy integration into existing meter data management and utility CIS systems based on standard interfaces needs to be ensured.

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