UK number-one operator Everything Everywhere (EE) claims it is “absolutely plausible” that the network could have more M2M connections than handsets in the next two to three years, with the company keen to make the most of a booming market that has the potential to create highly profitable and loyal revenue streams.
 
In an interview with Mobile World Live, EE’s vice president of wholesale and M2M services, Mark Overton, called the M2M market “a massive opportunity… the possibilities are endless.” Overton said that the operator’s early M2M efforts were focused on the smart utilities space but it has seen recent progress within the automotive industry, as well as security and home monitoring.
 
With mobile handset penetration exceeding 100 percent in many markets and voice revenues declining, the M2M market is seen as the next new growth opportunity for operators. EE’s Overton is optimistic the sector can drive future revenue: “We see some of our highest ARPU customers as well as some of our lowest. I think the key thing about machine-to-machine is the longevity. The customer lifetime value of that connection is very different to a smartphone customer where people like to upgrade handsets after 18 or 24 months.”
 
He continued: “Some of the products that we see are incredibly profitable; always-on CCTV cameras using significant amounts of data have a very different commercial profile to a smart meter in a home that wakes up once a month to do one reading. It is a very different spectrum of business models and approaches.”
 
View the full video interview here