Why should operators invest in M2M IoT?
Setting up initial M2M connectivity structures will require changes such as new business models, updated subscription and billing systems as well as a dedicated set of resources to service those. M2M operations will rely on data, not calls, so operators will have to determine how to bundle their services together. M2M customers are also likely to value a reliable and consistent service and be prepared to pay a premium for it to ensure business continuity. In other words, here is the chance for network providers to finally monetise quality of service (QoS).
Recent reports indicate that the M2M market is expected to grow to $28bn over the next four years, so operators can expect to see a massive boom in connections, and consequently massive returns on their investments. It is expected that pricing will be based on connectivity per device and M2M connections are expected to number at around 2.4 billion by 2025.
For businesses, there are sweeping benefits to using M2M connections, but many need the infrastructure and expertise of the operator to support the initiative. With the massive surge in M2M connections in the next four years set to grow at a CAGR of 4.6%, operators who establish themselves early in the market can capitalize on these prospects and position themselves as M2M leaders in IoT.
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