Sunday, October 9, 2011

GSMA Sees a US$1.2 Trillion Opportunity for Service Providers with Connected Devices

The GSMA calculates that the number of total connected devices will increase from approximately 9 billion today to more than 24 billion in 2020, and within that, mobile connected devices will grow 100 percent from more than 6 billion today to 12 billion in 2020.

This will create an addressable revenue opportunity for mobile operators of nearly US$1.2 trillion by 2020, a sevenfold increase from expected revenues in 2011, according to the GSMA study, which was backed by AT&T, Deutsche Bank, KT, Telenor Connexion and Vodafone, and developed by Machina Research.

"We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives," said Michael O'Hara, chief marketing officer, GSMA. "In this new Connected Life, mobile will transform society and will have a profound effect on the way we interact not only with each other, but also with our surroundings. However, capitalising on this enormous opportunity requires collaboration across the entire ecosystem to demonstrate how mobile technology in everything from tablet PCs to new healthcare devices can enhance people's personal and business lives."

Jim Morrish, director at Machina Research, commented: "We are moving into a new era in connectivity where we will see the proliferation of billions of connected devices in the world. Most of that growth is coming from machine-to-machine: a new market for communications service providers, and with new dynamics. The way that mobile operators, device vendors, service providers and others in the value chain react to this opportunity will have important implications for their future success. Right now, the mobile industry has a clear opportunity to play a central role in the Connected Life."

Matthew Bloxham, director of telecoms research at Deutsche Bank added: "The growth of connected devices has the potential to offer substantial social, ecological and financial benefits to the world economy. The figures announced today highlight the significant revenue opportunity this space could deliver. However the wider economic impact could be far greater, including indirect benefits to industry such as cost reduction, increased efficiency and the potential for new products and services. We are pleased that many mobile operators are already implementing strategies to tap into this market, although a broad industry-wide approach is essential to realising the full opportunity."

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