Leveraging the M2M Explosion: Operator Considerations for Building an M2M Business

Transcription

1 Leveraging the M2M Explosion: Operator Considerations for Building an M2M Business CDMA Development Group (CDG) CDMA450 Operator Webinar September 14, 2010 Pat Verrington Director, CDMA Service Portfolio KORE telematics, Inc (Mobile)

2 The M2M Market Opportunity Fastest growing cellular wireless market today Represents a significant revenue growth source as traditional voice & data revenues decline Encompasses both Business to Business (B2B) and Business to Consumer (B2C) markets Not a question of If but rather a question of When Worldwide growth of over 26% per annum reaching over 150 million units annually by 2015 (source: ABI Research)

3 The M2M Market Opportunity Deployed in a diverse vertical markets today...plus growing interest in Consumer Electronics!!!!. Payment and Transaction Processing Healthcare Asset Tracking Security Industrial Monitoring and Control Vehicle/Fleet Management & MRM Utilities Government Applications deployed across virtually all industries Drivers: Reduce Cost, Increase Productivity, Generate New Revenue and Meet Regulatory Requirements

4 Operator Challenges in Building an M2M Business M2M is very different from traditional voice, messaging & data services o Usage, ARPU, Churn o Customers/end users o Pricing, Packaging and billing requirements o Connectivity options o Support expectations o Service deployment o Device variability o Shifting requirements and rapid innovation from a multitude of sources Existing operations, channels and networks are optimized to support traditional services

5 Operator Challenges in Building an M2M Business M2M solutions demand a different approach o New sales methods and channels o 24x7 expert technical and consultative support o Specialized billing and rating plans Sometimes for a specific service o Bulk SIM management activation, suspension, stocking, logistics o VPN connectivity and back-office integration o Accelerated requirements analysis and application development o Application qualification and device certification So, what does an Operator need to consider?

6 Operator Alternatives for Deploying M2M A more holistic approach will yield more results over time Success Level Effort Level

7 Operator Alternatives for Deploying M2M Branded Solution Attributes Complete solution including application, device and network services Typical Customers Enterprises and Gov t agencies who need a complete solution Branded Network Services Packaged Data, SMS and voice services Enterprise, Gov t, sourcing own solution; Application Service Providers (ASP) Wholesale Bulk Data, SMS and voice services MVNO (Targets all customer types & sizes; Specialists: Technology, Verticals)

8 Operator Alternatives for Deploying M2M Approach Pros Cons Best practice Branded Solution Branded Network Services Wholesale Builds brand recognition; Generates higher revenue than just Network Services Moderate Development; Extension of existing service suite; Maintains brand recognition Minimal, one-time development; Fast Timeto-Market; Broad-base market penetration; Lower revenue but higher margin Extensive development; Very specialized channels, support and systems Difficult to serve all customer sizes w/o extensive investment in Sales, Support May cause channel conflict with Direct if Target Markets are not well defined Deploy only if needed; Cost may outweigh revenue; ROI may be questionable Target Large Enterprises, Gov t; Leverage existing relationships and contracts Target Small- Medium market + ASP; Leverage MVNO to reduce development, people cost/ttm

9 Recommendations and Conclusions Recommendations o Evaluate your own markets for M2M needs o Determine your level of readiness People->Process-> Platforms o Analyze alternative approaches Conclusions o M2M is different o M2M will generate revenue but timing is critical o Extent to which you profit -> Get to market quickly with the right portfolio Consulting Advice Expertise Depth? Business Business Process Changes? Build and Own M2M domain expertise? months development? $7-$10m $10m investment? Own Own Platform Managed Service In House Operated Fastest Fastest to Revenue Complete Solution Proven Proven Model ASP ASP Applications Library License and Launch Fast Fast to Market Low Low Domain Knowledge Risk Risk remains in service delivery

10 Thank you!!! KORE o Proven technology, platforms and expertise for global operators o Largest all digital MVNO offering a one-stop for: All major wireless technologies North America and International service footprint Pricing/packaging that fits your business needs M2M specialized tools that integrate into your business Expert consulting and support Access to a broad partner network including ASPs, Labs, Manufacturers Developer programs, API s and device approvals Learn more by visiting us at: