How Can You Monetize M2M?

This entry is part 3 of 3 in the series Machine-to-Machine Communications

“Rural service provides have two main options,” said Steve Pazol, CEO of nPhase. “One, they can provide the transactional connectivity, selling SIM cards and data plans direct to business customers, or negotiating roaming agreements with established M2M vendors. Or they can climb higher in the solution chain, offering a complete M2M solution for various vertical industries.”

Pazol went on to note that it’s probably unrealistic for most rural service providers to develop their own M2M solution. He offered the example of a wireless M2M medical device. In order to create a mobile plug-and-play solution, the developer must create the medical device, design a wireless antenna, embed the radio connectivity into the device, develop the middleware and ensure that it communicates with the backend core network. For many rural telcos this is a complicated and technically challenging process. As a result, instead of developing their own solution, most rural telcos will look to partner with outsourced solutions providers to offer a white-label product. Most likely rural operators first will turn to their infrastructure and consulting providers for this partnership. Read more

Competition for Netflix?

The competition for video streaming and DVD rentals heated up this week. Verizon Communications announced that it has entered into an agreement with Redbox’s parent company Coinstar Inc. to begin offering a video service that will compete directly with Netflix. Read more

Verizon Smart Energy Home

With little fanfare, Verizon launched its smart home products. The product allows customers nationwide to remotely lock and unlock doors and windows, manage thermostats and lights, and monitor video cameras.

According to Verizon Director of Product Development, Home Monitoring and Control Ann Shaub, most customers opt-in to the complete smart home package that includes door sensors, door locks and cameras, along with the energy package.

While Verizon doesn’t claim that use of the energy control package will save money or energy, it is clear that for most customers the added advantage is the level of security and media management the complete package performs, according to Shaub.

According to Verizon, approximately 95% of smart home customers install their own devices, although Verizon continues to work with Ingersoll-Rand for security systems and Aeon Labs for energy and thermostats.

Industry Demands Scrutiny of Verizon-Cable Agreements

Last week Comcast and Verizon Wireless announced that they will launch a new marketing program in Seattle and Portland, Ore., selling their respective services to the other’s customers.

This is the first marketing promotion under the new landmark partnership which was announced last month, whereby Verizon Wireless agreed to pay $3.6 billion to a consortium of cable providers for 122 advanced wireless services (AWS) spectrum licenses covering approximately 259 million people, or more than 85% of the U.S. population. Additionally, the cable companies and Verizon Wireless entered into a joint re-sale, marketing and technology development agreement. Separately, just a few days later, Verizon Wireless entered into an similar agreement with Cox Communications to purchase 20 MHz of AWS spectrum licenses covering 28 million POPs for $315 million. Read more

First ‘LTE in Rural America’ Participant Completes Network Test

Pioneer Cellular, one of 13 participants in the Verizon Wireless LTE in Rural America program, announced December 16 that it has successfully completed end-to-end data testing over its new 4G LTE network in preparation for a commercial launch next spring for customers in central and western Oklahoma.

Pioneer announced its participation in the LTE in Rural America program last December. During the past year, the operator has constructed cell towers, laid fiber optic cable, and installed network hardware and software, working closely with Verizon Wireless engineers. Pioneer is now testing its new network and trial devices for speed, reliability and ease of use. Pioneer’s 4G LTE network covers more than 260,000 people in 21 counties across nearly 17,000 miles of central and western Oklahoma. Pioneer appears to be the furthest along of Verizon’s rural LTE program participants. Read more

Verizon Wireless Adds Cox to its Cable Partners

Cox Communications announced December 16, that it has entered into an agreement to sell Verizon Wireless its 20 MHz Advanced Wireless Services (AWS) spectrum licenses covering 28 million POPs for $315 million. The deal plays on the joint venture announced by SpectrumCo. and Verizon Wireless which was revealed just a few weeks ago.

Cox and Verizon Wireless also announced that they plan to sell each other’s residential and commercial products and services through their respective sales channels. Over time, Cox may have the option to sell Verizon Wireless’ services on a wholesale basis. In addition, Cox expects to enter into arrangements with the innovation technology joint venture formed by Verizon Wireless and SpectrumCo. partners Comcast, Time Warner Cable and Bright House Networks, to better integrate wireline and wireless products and services. Read more

Fall Out from the SpectrumCo./Verizon Wireless Deal

The industry continues to experience fall-out from Verizon’s recently announced spectrum purchase and joint sales, technology and marketing partnership with the cable industry.

Comcast is moving quickly. While the spectrum sale will likely take up to 12 months to receive regulatory approval, Comcast Cable President Neil Smit announced last week that the cable company will begin bundling Verizon Wireless services in four markets in early 2012. ”The teams are already engaged; they are great commercial arrangements and we think we’ve put together great packages that combine the best of the various bundles,” Smit said, while speaking at a UBS investor conference. Read more

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