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machine to machineI should say for a Telecom operator to be successful on M2M requires some serious efforts. A dedicated M2M team (technical, support, operations, agreements, sales in the ground and a strong management etc), different KPIs and goals for the M2M unit, much more flexibility and support from the top management.

Europe is not doing fine economically and people are spending less and less on Telecom services. For Telcos to keep growing, they should invest in new areas like M2M, Cloud and Media & Entertainment Services. However, the success will not come quick and margins are not as good as we got in typical Telecom services. I see that more and more Telcos in Europe are taking serious steps in M2M and leaving the Cloud to IT providers; making M2M a bet of Telcos and Cloud for IT playes.

Teleco industry needs a new push and new units might bring that extra jump for growth. M2M is an opportunity for Telcos and for sure requires a different approach and skills. My recommendation is, select your fight and go for it. But do not expect quick wins.

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IoTI am part of the M2M global solutions team at a multinational Telecom company and one of our main goal is to follow the trends and make sure that the whole company is moving to the right directions. Being a Telecom company the first thing we want to win is of course the connectivity and also the device platform services. (more…)

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convergenceI was thinking about the meaning of convergence in Telecom context this morning. I have came up to see this nice graph developed by VisionMobile. So what do you think are the vision, focal point and the compete based on will look like by 2015?

My guess is vision: connected devices, focal point: software/apps and compete based on: quality of content.

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mdmIf you ask CTOs what are they looking to do to secure personal devices used at work, they generally talk about data encryption or MDM. Since data encryption is already widely used I think the real interesting thing is to understand what they are looking for in an MDM solution?

I think there the confusion starts. Should we then consider a mobile device managent, or mobile security solution or maybe a mobile application/data management tool? (more…)

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4gI would like to share few things around LTE development in Sweden. First of all 4G has been adopted much faster than 3G. Remember that for the first years after introducing 3G, in most markets, there was hardly any data usage. Contrary to that, just like two years after the launch of LTE in Sweden, we are at the data usage level we were at with 3G at 10 years post-launch. I can clearly say we have already skipped the pre-maturity phase entirely.

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One petabyte a day: That’s how much data BMW’s Connected Drive cars will generate by 2017 reckons BMW Group IT infrastructure chief Mario Müller.

I took out this note while listening BMW group’s Cloud presentation at Telecom Cloud Services Summit at Berlin this year. M2M data will need a lot of IT capacity and the data produced by machines will be a real source of revenue. I realized that a lot of Telcos are still confused when it comes to M2M and Cloud business models. Many invested heavily into the infrastructure and getting ready for a big fight against global giants such as Amazon. Well, sure they can differentiate based on their local market demans but I am a bit sceptical to IaaS, except storage, at all.

I realized that when Telcos talk about M2M it was all about providing connectivity and mainly about infrastructure when it comes to the Cloud. None of the CSPs really talked about Big Data yet. I believe enterprises need more than basic connectivity and infrastructure. I think they need a solution, which will help them create business intelligence and value for them. I think big data analytics and ICT business solutions are the future for CSPs.

Around sixty percent of CSPs fear they’ll be bit-pipe providers in the M2M and Cloud market. To avoid this, they must have the ambition to take some more risk and be more innovative. I do not agree at all – as one Telco professional stated on the panel- “telcos are expected to be evolutionary not revolutionary”. Telcos need to better understand the business value of their offers and be more a complete ICT providers, extracting intelligence from the pipe – instead of simply delivering connection from A to B.

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Global Data Traffic

mb-consumed-per-year

One of the interesting topics that we are discussing a lot nowadays in telecom sector is the shift from voice to data. The graph on the left shows how much data is consumed globally per year and what types of services are filling the capacity up. It is obvious that the world is going mobile and mobile video is becoming more and more important. But how can telcos charge enough for the data?

In traditional telecom world, voice is priced per-minute or per-second because that is reflective of the industry’s cost structure (and billing sophistication) about 100 years. When you had a physical copper connection between points A & B, with a human doing the switching, both capex and opex had fairly logical temporal-based components.

On the other hand, what we see with mobile data is a blend of volume, duration, use-case, location and maybe even congestion levels can be used as the basis for service pricing. As you can see the charging models for voice and data must be somehow different in my point of view. I think we telcos need to be more innovative when it comes to the bsuiness models and pricing with an increasing demand towards data.

What do you think might be a good charging model for telcos then? The fact is that the minute is fundamentally an anchor to the past, when all voice was “telephony” and all telephony was “voice”. The faster we get rid of our duration-centric obsession, the more likely we will be able to profit from The Future of Voice, before others less confined beat the telecoms industry to the punch.

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