MEA operators’ global M2M apps worth $500m by 2012
About 52% of modules shipped to the region are for telematics purposes
The Middle East and Africa (MEA) region is expected to represent 5% of the global M2M connectivity market generating over $500 million for MEA operators by 2012, according to a senior official at Alcatel-Lucent.
Valerie Layan, EMEA Wireless Solutions-VP at Alcatel-Lucent said that the M2M market has good potential that enables operators to earn new source of revenues. "About 52% of modules shipped to the MEA region are for telematics purposes, mostly for the tracking of vehicles and truck-borne assets, followed by ATM/POS and OEM telematics," she told CommsMEA.
She said that the MEA region ranks fifth globally in intelligent wireless device connections with nearly 2.51 million active connections in 2008. This figure is expected to touch over 9.63 million by 2014 as compared to the global figure of 225 million connections. "We are seeing pilots on smart metering in several regions globally. In Europe, Orange and Telenor are deploying smart metering, and we work with local municipalities and power companies to implement these projects. In Africa, Orange is working in the area of smart metering," added Layan.
Layan said that the total value-added services through 4G dedicated to M2M applications could be worth up to $180 billion by 2012. "In M2M, we are seeing operator deployments in 2G and 3G. But, if you look at 3G, it is not very smooth. When 4G is deployed, we will be bringing in better bit per hertz, so better throughput in the spectrum, and less cost per bit. Ultimately, it will be better to do it through 4G as there will be quicker transmission and responsiveness," she said.
Layan also stated that the M2M connected healthcare market is still nascent and complicated, with liability, billing, and regulatory issues, but the potential is too important to ignore. She quoted a research study as saying: "The market for telemedicine devices and services is to generate $3.6 billion in annual revenue globally in the next five years, and close to $150 million for the MEA region."