Ericsson launches cloud based service for M2M communication

Press release
Feb 14, 2011 06:45 (GMT +00:00)
  • Launch of Ericsson Device Connection Platform paves the way for 50 billion connected devices in 2020
  • M2M (Machine-to-machine) service for telecom operators will allow for connection of devices beyond smartphones and laptops
  • Cloud-based Software as a Service business model minimizes entry barriers for operators
  • Enterprises in the transport, energy and surveillance industries, among others, will benefit from connectivity services

Communication has the potential to benefit more than just people. M2M communication is an area that is expected to grow rapidly in the coming years, adding significantly to today's more than 5.3 billion mobile subscriptions as enterprises realize the benefit of M2M communication over mobile networks.

To support this development, Ericsson (NASDAQ:ERIC) today launches its Device Connection Platform at the Mobile World Congress in Barcelona. The service will be offered to telecom operators around the world, which in turn will set up M2M services tailored towards their enterprise customers. The platform is brought to market in a Software as a Service business model, offering operators benefits such as a low initial investment in technology and a fast time to market.

"We envision a world with 50 billion connected devices in 2020, where everything that benefits from a connection will be connected," says Magnus Furustam, Vice President, head of Core & IMS at Ericsson. "To get there, Ericsson is working with telecom operators, selected industry verticals and other players across the M2M value chain to create world-leading, innovative technology and sustainable business solutions."

"Already, mobile connectivity is used - for example - in smart meters and fleet management, and in the future we will see a lot of interesting solutions in which M2M could be useful. This includes all products with software that, if they were connected to a mobile network, could be easily upgraded," continues Furustam.

Ericsson's Device Connection Platform primarily makes it possible to create tailored connectivity and price plans for M2M services. Ericsson provides a complete service that the operator can adjust to serve its enterprise customers' needs, including a self-service interface, flexible billing, charging and connectivity plans for all devices connected to the network. Since M2M applications can communicate using any existing IP protocol they can be accessed and share data via internet. In addition, the operator's customer will be able to manage their subscriptions and devices in real time.

 "The platform will help operators deliver solutions for devices and applications that have diverse connectivity needs, ranging from sending a single business critical SMS to high-quality video surveillance via the mobile network. Ericsson's Device Connection Platform addresses these needs and is there to support operators in developing their business in new areas," concludes Furustam.

Notes to editors:

Whitepaper "Device Connectivity unlocks value":

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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.


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