Russian mobile operators actively develop M2M services

The М2М activities of Russia’s three leading mobile operators are developing quickly.

At MTS, one of the three operators, M2M-related revenues could grow almost sevenfold in 2011, compared with the previous year, generating 1.7% of the company’s overall revenues, estimates an unnamed internal source. According to this source, that percentage could exceed 3% in 2013.

Furthermore, MTS’s subscriber base could increase by 50% yearly, reaching 4 million subscribers in 2015, compared with today’s 530,000.

VimpelCom, another of the three leading operators, presently claims a few hundred thousand M2M subscribers, while MegaFon, the third operator, reports that the current M2M activities generate approximately 100 million rubles per year ($3.5 million).

The M2M ARPU for MTS ranges from 50 to 300 rubles ($1.70 to $10.30) – not so different from Western European indicators, which range from $2 to $15, depending on the type of service.

According to Berg Insight, a consultancy specializing in the telecom industry,M2M services in wireless networks represented a value of €3 billion in 2008 and are expected to reach €8.9 billon in 2012.

M2M (machine-to-machine) technologies enable both wireless and wired systems to communicate with other devices. Mobile operators around the world are currently developing a variety of M2M applications, primarily for businesses.

Source: Kommersant

Topics: Data & Reports, Mobile & Telecom, News, Operators & Networks
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