QUALCOMM’s M2M module search tool: why didn’t I think of that?

Analyst Mason forecasts a worldwide market of 2.1 billion device connections by 2020, most of which will be mobile rather than fixed-line connections (see Figure 1). Each of these connections will require some sort of M2M module – the hardware and software component that allows a piece of equipment (such as a smart meter, an e-book reader or a vending machine) to be connected to the communications network. However, the M2M sector is fraught with complexity in the supply chain. Competing communications service providers (CSPs) and competing module vendors are often unwilling to collaborate. Therefore, it is difficult to get clear answers quickly in M2M purchasing because information is often not readily available or transparently shared.

Figure 1: Commercial and consumer M2M device connections by industry sector, worldwide, 2020 [Source: Analysys Mason, 2011]

Making the purchasing process easier for enterprises will help everyone in the M2M sector. The intense competition in the market for communication services and module sales is understandable, but this is a rapid growth segment with lots of opportunities for success. An online database tool that allows users to search for certified M2M modules is one way to make information more transparent and easier to access.

QUALCOMM has launched an M2M module search tool (see www.m2msearch.com), which provides a quick list of modules with all sorts of helpful information making it easier for the enterprise purchaser to learn about and purchase M2M solutions.

The online database enables users to sort modules based on various characteristics – such as vendor, modem technology and GPS capabilities – using very simple drop-down menus. The database provides a fairly comprehensive list of module technical specifications, including the chipset model, frequency bands supported, whether the product is commercially available and so on. In addition, it provides an email address and website link for the manufacturer of most of the modules listed, which makes it easy for users to find more-detailed information about the product.

QUALCOMM has taken a strong first step and we would like to see the following things added to the database to develop this initiative further.

• More modules: More carriers and module vendors need to be convinced to list their devices. The benefit of making this information available to enterprises that want to invest in M2M solutions far outweighs any competitive concerns in the industry.
• Pricing: The database lacks pricing information – one of the characteristics that will be of most interest to enterprise purchasers. The market for modules – particularly 2G modules – is highly competitive, and is unlikely to be subject to significant price variation. Manufacturers in the IT sector commonly make ‘list pricing’ available, and the M2M sector is going to become more and more similar to other areas of IT. No savvy enterprise buyer ever pays list-price, so there is no harm in showing it.
• Quality and performance ratings: Purchasers or qualified users of the modules should be able to provide feedback on the quality and performance of the devices. Module vendors may be wary of this, but every vendor should be accountable for the quality of its products. Furthermore, until vendors are willing to disclose performance metrics and encourage their customers to do the same, they will all be competing on price, which is not an attractive
  long-term proposition.

QUALCOMM owns the licensing for CDMA technology, but its online database is technology-neutral. It lists modules that use GPRS, GSM and various types of CDMA and LTE technology. The only criterion for inclusion is that the module be QUALCOMM-enabled.

Tools like this module database make it easier for enterprises to understand the valuable M2M products on the market. The more information available to M2M buyers, the better for the overall health of the industry.