Vodafone, VZW, nPhase form M2M alliance focused on multinational businesses

Vodafone, Verizon Wireless and nPhase formed an initiative to make it easier for global businesses to integrate machine-to-machine communications into their enterprises. Specifically, the alliance will make remote monitoring and managing of devices in the United States and Europe easier.
“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 to enhance their customer service and create new service offerings in sectors including energy, healthcare, automotive telematics, consumer and commercial products,” according to the companies. “A good 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.”
Even as global adoption of M2M solutions increase, companies can get frustrated when they have to use different solutions across different regions. The alliance enables businesses to have a single point of provisioning devices that are connected to Vodafone or Verizon Wireless’ networks, and is working so that enterprises are presented with a single invoice and a single point of contact. It also allows businesses to use pre-certified devices that can operate on Vodafone and Verizon Wireless’ networks. The alliance should bring immediate scale as Verizon Wireless is the largest U.S. carrier and Vodafone, which holds a 45% stake in VZW, is the world’s largest wireless operator, with 333 million proportionate customers and operations in 31 countries.
“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,” said Erik Brenneis, Global Head of M2M, Vodafone. “Through this alliance, we are making it even easier for firms to roll out M2M technology to their customers, where ever they may be.”
Operator revenues for the M2M sector stood at$4.3 billion in 2008, according to research firm Berg Insight, and are expected to grow to nearly $13 billion in 2012. While M2M average revenue per unit is low, churn is also extremely low and customer service costs are also light. As the wireless industry matures, operators are increasingly interested in the connected devices space, to grow revenues.
“The essence of this new alliance is to simplify the complex,” said Steve Pazol, president of nPhase. “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, and provide pre-certified global devices that can support both CDMA and GSM networks.”
NPhase is a joint operation between Verizon Wireless and Qualcomm Inc., formed last year to address the nascent industry.