Tele2 yesterday announced that they are entering into a strategic partnership with L&T Technology Services to strengthen Tele2's move into the Machine-to-Machine (M2M)/ Internet-of-Things (IoT) space. L&T Technology Services provides engineering solutions across a number of verticals, including the transportation sector, covering railways, aerospace, automotive, trucks and off-highway. This is another IoT/M2M initiative announced by Tele2 after its recent partnership with Cubic Telecom, a global mobile network operator to provide M2M/IoT solutions to companies in the PC OEM and automotive area.
The partnership, said Tele2, will enable the Swedish operator to offer a wide range of services within the transportation M2M/IoT segment. These services will enable enterprises operating in the transport sector to use advanced tracking and remote monitoring solutions based on M2M communications to offer enhanced fleet management and telematics services for their clients. Tele2 said in its statement that examples of service that it foresees reaching end-users include the ability to be updated on the arrival and departure times as well as delays and being informed of the vehicle diagnostics including engine performance.
In a recent report from the International Data Corporation, the IoT market is expected to hit USD3 trillion in 2020, growing at a CAGR of 13%. IDC also expects the installed and connected base of IoT units to reach 30 billion in 2020. Tele2 in its statement predicts the M2M/IoT market under transport and mass transit sector alone to grow from $10.4 billion in 2014 to $29.4 billion by 2017 and $76.1 billion by 2020. The transport sector is one of the major industry verticals to benefit the most from advancements in the M2M/IoT communications as monitoring, maintenance and management of both commercial and passenger vehicles offers huge monetization opportunities for players in this space. The partnership with L&T Technology Service is part of the ongoing trend in the industry which sees service providers establing partnerships with various other parties within the M2M/IoT space including other service providers, manufacturers, hardware makers, cloud service providers, app developers and software solution providers - a step necessary for early entrants to build their own ecosystem in this space so that they can leverage on the best available solutions to roll out their suite of M2M/IoT services.
Read more on other recent IoT/M2M partnerships and strategic alliances.