M2M Goes Cross-Border
T-Mobile US Inc. 's M2M spinoff RacoWireless is joining the likes of AT&T Inc. (NYSE: T) and Sprint Corp. (NYSE: S) with a chip that lets enterprises connect their wares on international turf. (See Photos: MWC Pops With Bursty Devices and Sprint, Orange Strike M2M Deal.)
On Tuesday here in New Orleans, Raco announced the first customer to use its multi-mode international mobile subscriber identity (IMSI) SIM: OnAsset Intelligence, an asset-tracking vendor that works with global shipping companies. (See Everything Everywhere, Raco Bring M2M to Europe.)
But Raco President John Horn says the SIM, developed in partnership with EE , is different from that competition in that it relies on local roaming agreements to connect out of the country, making things significantly cheaper for the enterprise.
"GSM gives us a worldwide footprint, but the uniqueness of the solution is the pricing structure and ability of the SIM to choose the least expensive pricing depending on the location," Horn says.
Raco was spun off from T-Mobile during the merger attempt with AT&T, and it's now recruiting customers -- 400 so far -- based on its preferred status with its former parent. (See Raco Wireless Sees 300 Percent M2M Growth, Raco Wireless Racks Up M2M Partners and T-Mobile Outsources Its M2M Strategy.)
M2M seems to have enough business to go around so far, as all the wireless operators are reporting robust customer lists. The international market is relatively untapped, and the operators that nail the coverage and flexible cost combo will ultimately rack up the most wins.
— Sarah Reedy, Senior Reporter, Light Reading Mobile