Mobile M2M Market in India

Mobile M2M Market in India
January-2012

1 Copyright © Jan 2012, Tonse Telecom

The Mobile M2M eco-system is beginning to grow. improve efficiency (faster tracking of goods in movement / logistics). Indian market will consume millions of Mobile M2M devices. India will see M2M applications driven more to improve processes. mobile M2M data revenues will contribute to about 5. the potential total revenue opportunity is about USD 141 mil over a three year period. M2M device monitoring applications to the market and exploring partnership opportunities and early market entry. Considering the larger picture of end to end market. In steady state. For now.Mobile M2M Market in India Executive Summary As Indian telecom transitions to a data era. healthcare. agro and logistics applications over a three year period. Tonse estimates that for the mix of mobile M2M applications deployed. its staggering mobile base finds new modes of exploring wireless connectivity into social networks and mobile commerce. security (video surveillance) and healthcare (patient monitoring for example). Several solutions are already in pilot phase with some operators evaluating solution readiness and end to end SLA management. Unlike some Western operators. storage and cloud services that would be required to support mobile M2M. From a hypothetical model developed for a given service area with 1. The Indian Mobile M2M space still has some key pieces missing – for example lack of MVNO play – which could inhibit specialized application offerings. these are still early days and Indian operators are not yet structuring their businesses to include a M2M business division yet but this will happen eventually.97% of projected total mobile VAS revenues in India. 2 Copyright © Jan 2012. Early stage players are bringing in cloud based data analytics solutions. device rentals and data revenues combined. operators are finding new ways to bring in additional revenues to the table. Unlike some other markets where compliance and regulatory aspects are drivers. reduce losses (power distribution and transmission). with associated back-end applications. assuming data services are adequately available and vertical applications take off. this market could balloon into a potentially very large opportunity. The mobile operators at this point are facilitating the end-to-end solution as they are impressed not only by the high value-addition the solution brings to the enterprise client but also by the scale that these M2M solutions can achieve.8 billion including activation fee. system integration support. could potentially generate to mobile operators a combined revenue base of about $1. triggered by various drivers such as state electricity agencies as well as verticals such as logistics and health / agro industries. Mobile operators are exploring the possibility of bringing in connected devices as a new enterprise service in the form of M2M (machine to machine). we are seeing Mobile operators partnering with M2M ASPs via a still-formative value chain – with several specialized solutions coming together to complete the offering. Tonse estimates that by year 2014-15. A base of 25 million mobile M2M devices covering smart metering. Mobile M2M is still an emerging service in India and only some operators have so far experimented with the possibilities.72 million mobile M2M device install base. Tonse Telecom .

.................................. 21 Figure 4: Tonse Estimates.......Devices & Load on Network.................................................. 6 M2M STANDARDIZATION BODIES ..................................................................................................... 11 Table 2: Tonse Estimates......................1 5............ 6 3.....................................................................................3 ACKNOWLEDGEMENT....... Tonse Telecom .............. 23 METHODOLOGY ADOPTED IN THIS REPORT: ................................................... 11 CHALLENGES AND SOLUTIONS FOR M2M ....................................... 7 4 M2M TECHNOLOGY TRENDS ...................................................................................................................... 3 INTRODUCTION ................................................ 25 List of Figures Figure 1: Typical M2M Network schematic ....................................................................................... 5 TERMINOLOGIES.................................................3 M2M ARCHITECTURE ........................1 3................................................................................................................................................................................................................................................... 11 5 MARKET DRIVERS ............................................................................................................................... Hypothetical market projection for M2M in India ..................................................................................................4 BUSINESS MODELS ........................ 13 5..................................................................3 KEY OPPORTUNITIES AND DRIVERS FOR M2M MARKET IN INDIA.......................................................................................Revenue ...............2 3 SCOPE OF THE REPORT.......3 5....2 4................................................ 24 7............. 16 Figure 3: Tonse Estimates....................................................................MARKET ANALYSIS ........... 20 Table 3: Tonse Estimates.......................................................................................................................................................................................................................... 24 COPYRIGHTS AND DISCLAIMERS:... 13 VALUE CHAIN .......................................................1 7...................................... 4 2.....................Mobile M2M Market in India Table of Contents 1 2 EXECUTIVE SUMMARY. M2M projection... 17 ASSUMPTIONS USED IN THE MODEL: ....................................................................1 4................................................................ 17 6 7 CONCLUDING REMARKS ...2 7....................................................................... 21 3 Copyright © Jan 2012...... 16 IMPACT OF M2M ON COMMUNICATION NETWORK ...................................................................................... 9 4.......1 2........ 24 ABOUT TONSE TELECOM: . 22 List of Tables Table 1: Types of M2M devices for various parameters .................. Consolidated M2M projection .................. 5 M2M INDIA .............................................................2 5...........................2 3..................................... 10 Figure 2: M2M Value Chain ................................. M2M projection................... 7 M2M APPLICATIONS CURRENTLY ACTIVE IN INDIA ...... 9 TYPES OF M2M DEVICES ...................................................

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