Ericsson | August 26, 2011 | Press Release
Telecom operators all over the world are to find out how Ericsson’s acquisition of solutions provider Telenor Connexion’s machine-to-machine (M2M) technology platform can help them break into the M2M business. The acquisition of the M2M platform assets has now been completed.
The M2M platform will form part of the cloud-based Ericsson Device Connection Platform offering, and be sold as a service. Details of the deal were announced in an April 19 press release.
Magnus Furustam, Head of Product Area Core & IMS at Ericsson’s Business Unit Networks, says the acquisition will add momentum to the M2M market as Ericsson’s global scale means operators can be offered efficient and cost-effective solutions.
“The M2M business is characterized by a low average revenue per device, so that means the aim is for operators to pursue high volumes,” he says. “Operators will therefore benefit from a solution with low cost of entry, and one that gives scale.
“Our approach is to provide a service lowering the barriers for operators that want to go for M2M business. We predict major interest in it in most parts of the world, and this will lead to tremendous growth of connected devices in the coming years as we enable the Networked Society in a world of more than 50 billion connected devices.”
“Our sales teams around the world will be highlighting our increased M2M capabilities to their customers.”
Per Simonsen, Telenor Connexion CEO, says: “Ericsson is very well positioned to operate large-scale platforms like this one, so we are happy that the company is taking our platform to the market. We are confident that Ericsson will be very active in developing it further.”
Simonsen says the transfer of the platform will allow Telenor Connexion to focus solely on new value-added services and improving and customizing products for its customers. The company will also continue to develop its support organization to maintain proactive service awareness.
He adds that M2M connectivity will benefit society through increased business efficiency, as well as having an environmental impact. Some of the advantages that customers realize through deploying M2M solutions include quick and measurable return on investment, improved customer service, installation cost savings, enhanced maintenance and distribution, and reduced energy consumption.
“The technology is well established,” Simonsen says. “The challenge is getting businesses to change their processes and mindsets quickly enough to benefit from the opportunities of M2M communication.
“Connecting products will add value and give manufacturers an ongoing relationship with customers, even after a product has left the shelf. This is the way for manufacturers to move into the service sector, offering software upgrades and other value through connectivity.”
Furustam says: “We’re ready to launch with a proven commercial platform, and experienced staff that will help with its continued development.”
The platform facilitates operators’ charging and provisioning of SIM cards in a more cost efficient way. It also supports operators’ enterprise and vertical-industry customers by enabling them to manage their own devices, including activation and monitoring.
“Our global presence, alongside having multiple operators on board this platform, gives us scale,” Furustam says. “We can support operators in their pursuit of a profitable business at low cost.”
Simonsen adds: “Ericsson and Telenor have complimentary goals for M2M solutions. Ericsson has a number of initiatives in the M2M field and Telenor Connexion has extensive experience in deploying M2M services. I foresee that we will have cooperation with major customers all over the globe.”
