Digi and Ericsson announce M2M tie-up in China

M2M specialist Digi International has teamed up with networks vendor Ericsson on the installation of a power distribution monitoring system for utility provider Shandong Power.

Although the work for Shandong Power is described as a pilot project, the “strategic collaboration” between Digi (Minnetonka, MN, USA) and Ericsson (Stockholm, Sweden) marks a significant push into China’s M2M market and could lead to major opportunities in future.

M2M specialist Digi International has teamed up with networks vendor Ericsson on the installation of a power distribution monitoring system for utility provider Shandong Power.

Although the work for Shandong Power is described as a pilot project, the “strategic collaboration” between Digi (Minnetonka, MN, USA) and Ericsson (Stockholm, Sweden) marks a significant push into China’s M2M market and could lead to major opportunities in future.

In a statement on the alliance, Digi said the two companies would aim to provide easy access to and control of remote devices used in M2M applications through the country.

It also pointed out that Ericsson’s customers in China would henceforth gain access to Digi’s wireless gateways, routers and embedded wireless modules, saying the combination of “outstanding network performance and industry-leading wireless hardware” could help to open up new M2M markets across China.

“We are growing our M2M ecosystem and Ericsson is a leading provider of communications technology and services with an established M2M presence in China,” said Frederic Luu, the vice president of Asia and EMEA sales and marketing for Digi.

“By collaborating with Ericsson, we are able to broaden our customer base in China,” he added. “With our wireless gateways, Ericsson customers can enjoy simple, scalable and secure device connectivity.”

Digi said the pilot system provided to Shandong Power – a part of the State Grid Corporation of China – would be deployed in five cities across Shandong.

According to a study published earlier this year by Pyramid Research, China’s M2M market is set to overtake the US in 2013 to become the world’s biggest in terms of connectivity revenues.

The report noted that government policy and regulation are largely driving the M2M agenda in most parts of the world and responsible for China’s progress in this area.