We have described in a recent article the dimensions of the M2M Switch currently taking place in the wireless industry: a renewed emphasis on machine-to-machine communications away from human-to-human communications, and the implementation of a new business model based on new “ABCs”: low Average Revenue per Unit or ARPU; low bandwidth or data rate transfer; and low churn or customer attrition. These characteristics are fundamentally different from the wireless operator’s traditional business model. However, the shift in the business model foundation is not the only radical change. In addition to bringing a new focus, the M2M Switch transforms the way businesses operate. As millions of remote devices are going to be linked up together, the ability to better comprehend and monitor the operational quilt or the business environment in general will be increased, and, as a result, overall productivity enhanced. The M2M Switch infuses new life into the business-to-business (B2B) M2M market.
As mobile usage in the developed countries moves rapidly from voice to applications, the level of call processing in the network must increase correspondingly. Applications such as video and navigation require hundreds of times more data than voice, and the network’s processing capabilities must be upgraded to handle it. Yet choices now being made about 4G infrastructures will significantly impact operators’ ability to scale processing power as needed.
If you’ve been reading my columns with any regularity, you’ll know that even though I’ve been in the communications business longer than I might care to admit, I’d like to think I’m still pretty connected when it comes to new technologies, new services and new ways of doing business.