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Ericsson Business Review: no. 03, 2010
The great scare
Editorial: We can connect everything − but why should we?
In this issue we give you some answers. It is hard to define or gauge the emerging market for machine connectivity, because the only common denominator seems to be that it will be very, very big. But acknowledging that fact is a good start.
In this issue
COVER STORY: The great scare – embracing the internet threat
Having lost the first internet battles, the media and telecom industries are left with declining revenues. Now, after a history of failed collaborations, both industries have little choice but to blaze a common trail towards future relevance, says media management expert Lucy Küng.
The vision is clear: network−connected machines will improve our lives in numerous ways. So what’s the problem then? Put simply, most network operators are not geared up for handling this radically different line of business. But they could be, and there are very good reasons for them to get into the race.
THEME: The experience of an early starter
Norwegian incumbent Telenor is an M2M pioneer having installed close to 2 million M2M SIM cards, with their numbers doubling each year since 2004. Here, they explain why connecting machines is fundamentally different from what telecom operators traditionally do.
THEME: The Internet of Things in the eyes of the users
The power of the Internet of Things is not in any of its single connections but in the totality of interconnections. Unless this is made clear to consumers, it will be very hard to create the mass−market platform the industry is hoping for.
THEME: The Chinese take on connected machines
The Internet of Things has been officially dubbed one of China’s strategic emerging industries. Talking to analyst Flora Wu and engineer Yu Xiaohui, it’s clear that China sees immense opportunity in the machine-to-machine market and aims to take a leading role in it.
THEME: What operators need to support 50 billion connections
The evolution of an M2M industry ecosystem is closely linked to the role of the network operator. A closer look at the knowledge necessary to develop that ecosystem gives an indication of what future M2M platforms might look like.
How Telstra gained speed to market – without blowing the budget
When Telstra set out to transform its transmission network, it was not simply to counter exploding traffic volumes. Telstra restructured as part of a long−term plan to get ahead of the competition. This is a lesson in how intimately network strategy is coupled with business strategy.
The benefits and barriers of network sharing
Why have so few network sharing projects been successful? The technical issues between partners can be resolved, so the real challenge is to make cooperation between competitors work. A business−focused and structured approach will improve the chances of success.
The value−driving role of devices – and what to expect
Wireless devices have undergone dramatic changes but have still remained core to operators’ value creation. In the new era now taking shape, devices are connected in ever simpler ways. Telecom players should watch out for what this simplification could do to their value chains.
OPINION: Realize the promise of M2M – make it work out of the box
In terms of revenue per user alone, the M2M market may not seem viable. But when low churn and low acquisition costs are taken into account, the potential of M2M is clear. The key metric that operators need to consider is margin.
