Prediction is that by 2020 there will be 2.1B M2M cellular connections and a total addressable revenue of $373B USD for mobile network operators.
However, MNOs are by no means guaranteed a substantial share of this revenue. According to Machina Research, the majority of ‘value’ in the M2M market lies not in undifferentiated connectivity, but in moving up the value stack.
To capture a bigger share of the opportunity MNOs must start by providing enhanced connection management capability, enabling more revenue per connection AND focus on generating application revenue directly from customers.
Machina Research’s detailed analysis indicates that MNOs can benefit from a five-fold increase in cumulative profit over an 8-year period by adopting a cloud-based M2M platform to manage these connections.
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