Verizon Wireless and Qualcomm form M2M joint venture
Published: 29 July, 2009
Verizon Wireless and Qualcomm added yet another alliance to their close relationship yesterday, creating a 50:50 joint venture focused on machine-to-machine services over wireless networks, one of the US cellcos' key growth opportunities in the coming few years.
The venture, unnamed as yet, will initially target M2M applications in a few key verticals, particularly healthcare, utilities/smart grid, and consumer electronics offerings that integrate a service with a device (like Amazon Kindle on Sprint's network).
Announcing the deal at Qualcomm's Smart Services conference in its San Diego home, Verizon Wireless' open development chief Tony Lewis called it "the ultimate partnership for M2M". He acknowledged the challenges too, and said Verizon and its partner would pool their expertise to address these, particularly security and privacy issues in healthcare and reliability for the electricity grid.
Developing hardware and software platforms, and hosting services, for M2M have been key aspects of Qualcomm strategy for some years, though it recently closed down its LifeComm healthcare initiative on funding shortfalls. It sees the market as an important way to diversify its business models and reduce its dependence on its core CDMA silicon products, and managing carrier services not only infiltrates its technologies into new sectors, but tightens its alliances with large cellcos, with which it has always worked more closely than the average chip firm.
Lewis was particularly focused on the smart grid opportunity, which is heavily supported by the Obama administration and where AT&T has already taken several steps including tie-ups with smart meter companies, while T-Mobile USA has been pushing a SIM-based technology for remote management of utility equipment over 3G. Verizon will bring a wide area network and expertise in running it, while Qualcomm will contribute "billions of dollars worth of R&D", he said, adding that utilities and healthcare providers would see that "we're there, we're ubiquitous and the network is already in place". He highlighted the use of cloud computing to track and manage devices and meters remotely.
No financial details were revealed, except the venture would be autonomous and equally owned, and headed up by Steve Pazol, currently VP of Global Smart Services at Qualcomm.
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