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M2M ecosystem for IoT ripe for Asian telecom firms

Posted: 02 Sep 2013 ?? ?Print Version ?Bookmark and Share

Keywords:M2M? telecom service provider? Internet of Things?

According to International Data Corp. (IDC), the Asia Pacific excluding Japan's (APeJ) connected M2M market ecosystem is forecast to grow 127 per cent from $3 billion in 2012 to $6.8 billion in 2017. However, Asian telecom service providers must first start to define how they will deliver and support the M2M solutions that drive the Internet of Things or miss out on their share of a multi-billion dollar market opportunity, noted the market research company.

As the buzz around the market opportunity for the Internet of Things gathers pace, telecom services providers in Asia need to enhance their existing internal capabilities and develop partnerships across the M2M ecosystem to make sure they do not get left behind. This ecosystem includes modules, service connectivity, platforms, applications, analytics, security and professional services.

"The vast majority of telcos face a future with the declining or slowing of their traditional voice and data revenues. As such, they need to identify new revenue streams and business models to drive future revenue growth," states Charles Reed Anderson, head of telecoms, IDC Asia Pacific.

"However, few Asian telcos have the required skill sets currently to offer anything other than the network on which M2M solutions run. The key will be seeing which telcos can build out their internal skills and form the right partnerships with the platform and application vendors to jointly-develop the solutions that drive the market."

He points out that while this market will grow across the region, certain countries and industries will lead the way.

"China, for instance, will account for 48 per cent of total connections and 49 per cent of total M2M spend by 2017, creating a $3.3 billion opportunity in that country alone. The 'smart-city' initiatives combined with the massive growth in M2M in the resource industries and utilities will push China to the forefront of M2M solutions, as well as be the key driver of the Internet of Things," added Anderson.

He notes that the massive market opportunities combined with the buzz around M2M and the Internet of Things has not only generated excitement in the ICT community, but also provided the impetus for the telcos to act fast to define their M2M solution strategy.

"In recent years, many telcos have been slow to react to new market opportunities and have lost out as a result. As they continue to see the slowing of their traditional revenue streams, they realise that M2M is one opportunity they cannot afford to ignore."

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