The ABCs of the M2M Switch: Machine-to-Machine turns the wireless business model upside down

As the Negroponte Switch announced a new era in telecommunications, it would not be farfetched to claim that, likewise, the shift to machine-based communications also has the same type of fundamental consequences. Numerex Corp. Chairman and CEO Stratton J. Nicolaides submits that we are currently witnessing the dawn of the “M2M Switch.” Nicolaides advances the idea that the ABCs of today’s mobile carrier business model are that 1) high ARPU, ie, average revenue per unit (voice, data and video); 2) high Bandwidth consumption per user; and C) high Churn. M2M flips this model on its head: in the M2M market, ARPU is low, Bandwidth used is low and the Churn is low.
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