CTIA E&A 2011: GSMA report reinforces expected potential of M2M space

SAN DIEGO – The GSMA poked its head into the domestic space this week, announcing a new report showing that connected devices are set to increase to 24 billion by 2020, with those devices connected to mobile networks surging 100% to 12 billion. That report was announced the evening prior to the official opening of this year’s CTIA Enterprise & Applications event in San Diego.

The GSMA, which is probably known most for the annual Mobile World Congress event, said it commissioned the report in connection with a number of its carrier members.

The GSMA report, which was conducted in partnership with Machina Research, claims that the growth in connected devices will result in an addressable revenue opportunity for mobile operators of nearly $1.2 trillion by 202, a sevenfold increase compared with expected revenues in 2011. The report noted that operators can benefit from this opportunity by “addressing key areas of the value chain such as service provision and system integration, as well as collaborating more closely with vertical industry sectors to provide compelling new services to their customers.”

The report singled out a potential revenue generation of $445 billion from the consumer electronics industry; $202 billion in revenues from the automotive sector; $69 billion from the health sector; and $36 billion from the utilities sector by 2020.

“Mobile operators are uniquely placed to work in partnership with other industries to enable this opportunity because they provide ubiquitous network connectivity; deliver proven customer care, billing and distribution capabilities; and represent a trusted brand for consumers and businesses,” the report noted.

The GSMA press conference included representatives from AT&T Mobility and Qualcomm Inc., which both provided further support to the report’s findings.

Glenn Laurie, president of emerging devices and resale at AT&T Mobility, noted that as a carrier, AT&T Mobility has “had to change” and that business is no longer about just two-year contracts. Laurie did caution that for these opportunities to become reality the key was to make the solutions simple for the end user.

“Our job is to make sure it’s simple,” Laurie said. “If we don’t we are going to fail.”

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