Frost & Sullivan comment on the acquisition of Telenor Connexion's M2M Technology Platform
Ericsson will acquire Telenor Connexion’s M2M Technology Platform in a move that bolsters its 50bn Connected Device vision. This significant acquisition will buoy the overall M2M market from several angles. This move makes Ericsson a credible force in the M2M market and creates conditions for wider market development.
“Ericsson’s acquisition provides service providers – and not only telecoms players – with an alternative way to achieve faster time to market with regards to deployment of M2M communication services,” says Frost & Sullivan analyst, Yiru Zhong. “As such, we see a potential for Ericsson to disrupt traditional M2M players by opening up possibilities for new types of service providers.”
Ericsson’s customer reach allows it to position its improved M2M offering to a broad range of telecom service providers. This acquisition is expected to set the scene for the second wave of telecommunications entry into the M2M space by overcoming their operational challenges in tapping into this growth area.
“Telenor Connexion’s decision to sell its M2M technology platform and outsource operations to Ericsson is a clever strategy,” says Zhong. “It can now be truly customer centric and have better control over its cost of sale, allowing it to extract the maximum possible margin from its M2M offers.”