Smarter Cities The Key Driver Of M2M In Latin America

Machine-to-machine (M2M) technology is in its early stages of development in Latin America; however, the sector is beginning to generate interest from mobile operators, governments and M2M hardware and solutions companies. Collaboration between the three will help to see the number of M2M connections rise from millions to billions over the next 10 years and 2014 has begun to see the makings of this. At present, the region lags more developed markets. Global M2M hardware manufacturer Digi International, reports that revenues from Latin America amounted to USD1.6mn in the quarter ending April 2014, accounting for 3.5% of total revenues. This was far below North America at USD27.4mn, USD11.9mn in EMEA (Europe, Middle East and Africa) and also the Asia Pacific region which was USD5.0mn over the same period.

Mobile Operators' 4G Investments

In Telefónica's Q114 report, the company stated that it had 4.502mn M2M connections in Latin America, up by 49.5% from 3.011mn in Q113. This figure still represents just 2.4% of its 185mn mobile subscriptions; however, this number is expected to grow rapidly over the next decade to surpass its mobile customer base. Telefónica has a presence throughout the whole region and claims to have M2M subscriptions in all of its country operations, including less developed markets in Ecuador and throughout Central America. Mobile operators have been investing huge amounts in 4G LTE infrastructure in Latin America. 4G subscriptions are expected to grow at a steady pace while incomes improve and the cost of technology comes down. M2M connections can also utilise these networks and begin to immediately recoup some of this investment providing motivation for mobile operators to foster M2M partnerships and contracts.

Brazil To Remain Regional Leader
Telefónica M2M Connections By Market ('000), Q114

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