Vodafone Verizon and Qualcomm expect increased demand for M2M networks as they seal strategic alliance

A strategic alliance has been agreed between Vodafone (LSE: VOD), Verizon Wireless (NYSE: VZ) and Qualcomm (NASDAQ: QCOM), aimed at accelerating the development and adoption of machine-to-machine (M2M) deployments internationally. The partners anticipate that this move will result in increased demand for M2M services on mobile networks across Europe and North America over the coming years.

The alliance between Vodafone, Verizon and nPhase, a joint venture between Verizon and Qualcomm, will simplify remote management of M2M communications and enable the monitoring of M2M devices across both European and US networks. The alliance is designed to deliver a simple and effective international management solution for the growing number of companies looking to use M2M wireless communications.

"The essence of this new alliance is to simplify the complex", nPhase President Steve Pazol said. "This business alliance removes many of the complexities by building on the tremendous capabilities and reach of Vodafone and Verizon Wireless to offer a single standard interface”.

The initiative will make it easier for Verizon Wireless and Vodafone customers to activate, monitor and pay for devices that are deployed across both European (on GSM) and US (on CDMA and GSM) networks, Vodafone said. Furthermore the alliance will also offer a single point of contact for provisioning devices that are connected to both Verizon Wireless and Vodafone networks.

According to Swedish telecoms analyst, Berg Insight, global industry-wide operator revenues for wireless M2M were €3 billion (US$4.3B) in 2008, and is forecast to rise to €8.9 billion (US$12.9B) in 2012. An example of M2M technology in action is the growing use of smart meters in the utility industry, enabling firms to efficiently collect meter data and provide two-way data transmissions and tailored offers for their customers.

"M2M technology is playing an increasingly key role in helping firms to deliver more customized services to their customers, but the difficulties of managing devices on a global level was stopping the sector from realising its true potential" Vodafone’s Global Head of M2M, Erik Brenneis commented. "Through this alliance, we are making it even easier for firms to roll out M2M technology to their customers, where ever they may be".

M2M networks and technologies are considered to be a key growth area within the telecommunications sector. On the London Stock Exchange’s AIM market Telit Communications (AIM: TCM) is among the few M2M pure-plays across international markets. Telit develops and manufactures the M2M modules which enable M2M devices and vehicles to communicate with the wireless networks.

Last week in a brief trading update, Telit said it expects to report 7% revenue growth for the twelve months ended 31st December, at approximately €63 million. In response to the statement, London-based stockbroker Astaire Securities stated that Telit has continued to increase market share as previous design wins move into production. In particular Astaire noted that smart metering and telematics sectors will drive growth in the current year.  http://www.proactiveinvestors.co.uk/companies/news/13315/vodafone-verizon-and-qualcomm-expect-increased-demand-for-m2m-networks-as-they-seal-strategic-alliance-13315.html