Tags: Internet, Technology Industry, Telecommunications
By Alexander Villafania
MAKATI CITY, METRO MANILA –Globe Telecom is predicting demand for wireless machine-to-machine (M2M) services from small and medium enterprises to grow in the coming years.
The telecom firm also said the demand will be driven by increasing competition as well as encouragement to use new tools in improving operations.
Such are the expectations on this segment that Globe Telecom is expanding its services line up on wireless M2M as part of its “Negostar” campaign to promote the use of technology for business operations.
With plateauing revenues from Globe’s core consumer telecommunications services, the SME segment is poised to be a major contributor to Globe’s revenues.
During a press conference, Emmanuel Aligada, Globe Business Head for Corporate and SME Segments, said wireless M2M services are being touted as the next stage for SME plans to improve operations and maximize costs.
Likewise, he said there is an increasing number of young entrepreneurs familiar with business-related technology and are curious as to wireless M2M offerings.
“The new generation of young businessmen is weighing in on technology to improve on existing business strategies and even further grow their business without having to spend as much,” Aligada said.
M2M is an umbrella term describing devices that “talk” to each other to perform tasks that are otherwise done by people.
For instance, a store manager who needs to order certain items from a supplier can do it using a mobile phone or through the web, with all the necessary paperwork automatically being produced between the store’s and supplier’s computer.
This essentially cuts the need for an extra person to do the paperwork.
Another example of an M2M service is on vehicle tracking for logistics and fleet transport companies wherein each vehicle has a tracking device that automatically sends out its current location to the headquarters’ computer in real time.
Globe introduced similar services, including a wireless remote video security system, a mass SMS system for employee updates, an inventory ordering system for retail shops, and the logistics vehicle tracking system.
Aligada said a number of factors are considered for having launched these services only recently. One is the availability of the technology itself and another is the apprehension of most SMEs in the past to invest in technology.
He did not narrow down as to how much these services will generate revenues for Globe, but Aligada said wireless SME services could contribute significantly to their business.
Globally, M2M is growing almost double in the past year.
A report by business research firm Berg Insight indicated that the number of mobile network connections for wireless M2M communication in 2010 reached 81.4 million. The Asia Pacific region grew 53 percent last year with over 19 million wireless M2M connections.
The competition for wireless M2M in the Philippines is also expected to be intense as Globe rival Smart Communications recently relaunched its Smart Enterprise business unit, which is also providing M2M services.
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