& cplSiteName &

Riding the M2M Revenue Wave

Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
1/28/2013
50%
50%

In telecom, operators are looking to M2M as a means of alternative revenue in an environment where traditional voice services have reached penetration. But in the scheme of things, service providers will have to move beyond just providing connectivity for M2M and provide value-added services if they want to benefit fully from the M2M "explosion," because the operator that provides the most appealing combination of connectivity, cost savings, value-added offering and comprehensive M2M ecosystem will ultimately be the one to win and retain customers. In Heavy Reading's recent multi-client study on M2M, we surveyed 60-plus unique global operators. Some of the key highlights that came out as part of this survey are: M2M is still in its infancy as part of operators' overall business operations. The majority of operators report that M2M currently makes up less than 5 percent of their company's overall revenue. Thirty-seven percent of global respondents feel that five years from now, M2M services will make up 5 percent to 10 percent of their revenue, followed by 22 percent feeling that it will make up 10 percent to 15 percent. About one third of operators feel they have M2M offerings in all vertical markets. Twenty-one percent to 35 percent of all survey respondents report that they are currently offering M2M services in the vertical markets of automotive/telematics/fleet, manufacturing, energy, security and video surveillance, health care, consumer electronics, connected home and smart building management. Twenty percent to 33 percent of all respondents report they plan to offer M2M services in these vertical markets in 2013. Globally operators feel revenue from M2M will increase over the next five years but not astronomically. Though operators expect an increase over the next five years, none of the operators strongly feel revenue from M2M will be up more than 20 percent five years from now. Operators expect transaction volumes to increase. The majority of respondents from all operator types expect a 10 percent to 20 percent increase in transaction volumes over the next five years. Most operators currently see themselves as a wholesale provider and a connectivity provider in the M2M value chain, but in the future look to partnerships. The majority of global respondents feel their current role in the M2M value chain is as a connectivity provider (85 percent), followed by a wholesale provider (75 percent). Five years from now, the majority of global respondents see themselves as a partner with OTT M2M players (93 percent), followed by a provider of premium pricing plans for M2M traffic (80 percent) and a provider of device management and services capability (77 percent). The B2B M2M business model is currently the most popular, but five years from now most operators look to a multiparty model. Seventy-one percent of global respondents have implemented the B2B M2M business model, followed by B2C (70 percent) and low-cost model (use existing retail infrastructure) (45 percent). In five years, 86 percent of global respondents expect to implement the multiparty model (global connectivity hub) followed by blending own M2M platform with network management (82 percent). Operators look to quality of service as a differentiator. Seventy-five percent of global respondents report they use quality of service to differentiate their M2M offerings followed by customer services (67 percent) and network speed/performance (62 percent). Lack of zero-touch service activation, integrated configuration management and ability to create permanent roaming agreements and tariff plans with selected partners are seen as a serious problem that will inhibit full support of their company's M2M operation. Forty percent of global respondents feel that lack of zero-touch service activation is a serious problem inhibiting full support of their M2M operation, followed by lack of ability to create permanent roaming agreements (37 percent) and lack of integrated configuration management (36 percent). The majority of all operator types plan to support M2M in the cloud. The majority of respondents (63 percent) plan to support M2M in the cloud. The majority of survey respondents feel that concern with data security will be the most major obstacle regarding deployment of M2M services. The majority of respondents feel that concern with data security will the most major obstacle regarding deployment of M2M services in the cloud, followed by the need to transform business processes and unproven ROI. -- Ari Banerjee, Senior Analyst, Heavy Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
You'll probably hear a lot of 5G flannel in Barcelona this year – but the Global 5G Test Summit promises to get beyond the hype.
As the fiber network landscape grows increasingly complex, effective network monitoring is becoming more important than ever, and key to carrier competitiveness.
SDN is constantly evolving and that process is helped along by numerous projects and other industry developments.
While the SD-WAN market continues to prosper, expect to see more innovations over the next year.
AT&T's Tom Keathley discusses the carrier's evolving plans for developing, testing and deploying 5G wireless services over the next few years.
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
MWC17: 5G, Cloud RAN & More

2|21|17   |   04:35   |   (0) comments


Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
LRTV Interviews
MWC 2017's Key 2-Letter Terms

2|20|17   |   08:29   |   (1) comment


5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
LRTV Interviews
Key Trends for Mobile Operators in Developing Markets

2|20|17   |   06:37   |   (0) comments


Ovum's Matthew Reed talks to Scott Bicheno from Telecoms.com about the challenges and opportunities facing mobile operators in the developing markets of Africa and the Middle East.
LRTV Documentaries
YouTube Takes on Facebook Live-Streaming

2|17|17   |     |   (0) comments


Popular 'YouTubers' will be the first to get the new service on their smartphones. You have been warned.
LRTV Custom TV
Open Source NFV/SDN Automation

2|17|17   |   05:54   |   (0) comments


AT&T ECOMP (Enhanced Control, Orchestration, Management and Policy) code is transitioning into the Linux Foundation for placement into open source. In this video, Carol Wilson provides an update on the maturation of open source ECOMP and meets with industry leaders from AT&T, Bell Canada, Orange, Linux Foundation and Amdocs to discuss what this means for the ...
LRTV Documentaries
Uber & NASA Collaborate on Flying Car Project

2|16|17   |     |   (0) comments


Is Uber for real? Well, it's hired NASA engineer Mark Moore to lead the project, and he wouldn't come cheap.
LRTV Documentaries
Zuckerberg Tries Out the Oculus Rift VR Glove

2|15|17   |     |   (0) comments


Facebook CEO shows off a new way to interact with the Oculus Rift virtual reality headset: an Oculus glove.
LRTV Custom TV
Huawei Digital Transformation Forum 2017

2|10|17   |     |   (0) comments


Here's a preview of the upcoming Huawei Digital Transformation Forum taking place in Barcelona with trending telecom topics like cloud, IoT, 5G and much more!
Telecom Innovators Video Showcase
Dan Sahar of Qwilt on Open Edge Cloud Platform

2|8|17   |   08:38   |   (0) comments


Dan Sahar, Qwilt's co-founder, sits down with Steve Saunders of Light Reading for a conversation about Qwilt's Open Edge Cloud platform and the new role of service providers in application and content delivery.
LRTV Documentaries
ZeroStack's 'Self-Driving Cloud'

2|7|17   |   01:09   |   (0) comments


Its Z-Brain tech automates day-to-day management and long-term planning for hybrid clouds.
Telecom Innovators Video Showcase
Nominum's Craig Sprosts on DNS & Cybersecurity Trends

2|7|17   |     |   (0) comments


Nominum's Craig Sprosts talks about the fast-changing landscape of cybersecurity with Steve Saunders of Light Reading. Sprosts touches on the trend of the rise of ransomwares, rivals of IoT base attacks, and mobile network security. He also discusses the realization of the importance of IoT security after a recent cyber attack that paralyzed several major ...
LRTV Documentaries
China Moves Towards Mixed Ownership of Telcos

2|1|17   |   01:10   |   (0) comments


Chinese authorities are promoting new ownership models in order to raise capital.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
March 22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
T-Mobile CEO: M&A Coming but Not Quite Yet
Dan Jones, Mobile Editor, 2/14/2017
Is the Time Right for a Cisco/Ericsson Wedding?
Ray Le Maistre, Editor-in-chief, 2/17/2017
Nice to See at Least One CSP Taking My Advice
Mitch Wagner, Editor, Enterprise Cloud, 2/17/2017
Charter Launches 5G Field Trials
Mari Silbey, Senior Editor, Cable/Video, 2/16/2017
Cloudifying the Communications Network
Prayson Pate, CTO, Ensemble, ADVA Optical Networking, 2/16/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
No One Likes This Click Here
Take a hint!
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.