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Carrier Positioning Will Determine Shape of Growing M2M Market, Finds ABI Research.


Business Editors/High-Tech Writers

OYSTER BAY Oyster Bay, uninc. area (1990 pop. 6,687) of the Town of Oyster Bay, Nassau co., SE N.Y., on N Long Island, on Long Island Sound; settled 1653. It is chiefly residential. , N.Y.--(BUSINESS WIRE)--June 9, 2004

Packet-based cellular machine-to-machine (M2M M2M Machine-to-Machine (communication, mainly mobile)
M2M Minutes to Midnight (Linkin Park album)
M2M Mobile to Mobile (cellular phone)
M2M Member-to-Member
M2M Month to Month
) communications are becoming a very large market. The technology is attracting intense interest from many quarters, as end-users, wireless carriers and equipment makers alike begin to understand the multibillion dollar potential it represents.

Yet some drivers of this market are pushing in different directions, and the final shape it takes will be the result of commitments that major players such as wireless carriers make (or fail to make) to its development.

These are among the conclusions of a major study recently released by ABI Abi (ā`bī) [short for Abijah], in the Bible, King Hezekiah's mother.


(Application Binary Interface) A specification for a specific hardware platform combined with the operating system.
 Research, entitled "Cellular Machine-to-machine Communications: Global Markets for Modules, Equipment, and Service Providers".

"A number of different pieces must make up this picture," explains Erik Michielsen, principal analyst at ABI Research. "Makers of cellular modules, others who make the surrounding equipment; wireless carriers, integrators, application developers - all will participate. But the wireless carriers stand centrally positioned to determine the future shape of this market. They must decide what role to play."

An example of one choice is Orange, which has announced in the UK that it will create and own a gateway providing not bandwidth alone, but a variety of other management and security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the  for M2M users, under its own brand.

Other carriers may simply choose to sell raw bandwidth, leaving the field free for "mobile virtual network operators A Mobile Virtual Network Operator (MVNO) is a company that provides mobile (sometimes called wireless or cellular) telephone service but does not have its own allocation of the radio frequency spectrum nor all of the infrastructure required to provide mobile telephone service. " such as AIRDESK to provide end-users with a package of hardware, software, integration, certification and air time, often sourced from smaller developers.

If more carriers choose to commit themselves to something like Orange's model, the market will most likely be supplied mainly by large IT and communications vendors. If they hold back, opportunities for smaller and more localized suppliers will proliferate pro·lif·er·ate
v.
To grow or multiply by rapidly producing new tissue, parts, cells, or offspring.
.

ABI Research's "Cellular Machine-to-machine Communications" examines the M2M marketplace, forecasts unit shipments and revenue for M2M modules by air interface, and quantifies service revenue for leading M2M applications.

Founded in 1990 and headquartered in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, ABI Research maintains global operations Global Operations is a first-person shooter computer game developed by Barking Dog Studios and published by both Crave Entertainment and Electronic Arts. It was released in March of 2002, following its public multiplayer beta version which contained only the Quebec map.  that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the web at www.abiresearch.com, or by calling 516.624.3113.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2004, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jun 9, 2004
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