IoT Ecosystem > Mobile Workforce Blog

M2M Convergence Predicted by SA Coming True as Verizon Buys Hughes Telematics

by Andrew Brown | Jun 01, 2012

Today's news that Verizon has purchased Hughes Telematics business for a reported $612M is just the latest example of consolidation in the M2M market as noted by our M2M service.

In our February 2012 insight we predicted that ?2012 will represent a year of major change, as consolidation among various players in the M2M value chain continues and mobile operators look to move up the value chain through creation or extension of M2M service platforms. Fragmentation issues will be more readily addressed in 2012 but there is still a long way to go.

The opportunity in M2M is huge. How huge, well somewhere between our conservative 5B+ connections and more bullish 50B from other sources out there.

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We have already seen significant consolidation with operators like Deutsche Telekom looking to expand and enhance their position for the next big thing.. the Internet of Things. Now Verizon for a modest sum is beefing up its enterprise solutions assets. Several other examples include: AT&T extending its position in M2M application development with a U.S. reseller agreement with Axeda Corporation, an exclusive among major U.S. mobile carriers. The AT&T M2M Application Platform Powered by Axeda is designed to streamline the development of M2M applications to enable more rapid deployments at lower cost. Verizon acquiring the remaining 50% of nPhase, its joint venture for the M2M business it formed with Qualcomm in 2009 nPhase provisioning and back-end M2M systems combined with Verizon's sales force and distribution channel was envisaged as making it easier and faster for companies to get their M2M devices running on Verizon's network.

2012 will be a transition year that sees large SIs start to look more seriously at very large projects in the M2M market.

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Significant consolidation has already happened among module makers and the next phase of market development is likely to be more consolidation but also expanded partnerships.

Strategy Analytics believes that carriers are well placed to offer developer toolkits and also be a forum for developers to share information and knowledge, as well as potentially creating opportunities to aggregate and showcase developer applications.

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