Sprint Forms M2M Business Unit - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

01:42 PM

Sprint Forms M2M Business Unit

The company sees machine-to-machine products and connected consumer devices as critical to increasing revenue from its data networks.

Sprint Nextel is looking for new ways to use its data networks to generate revenue, and it has formed a new business unit focused on machine-to-machine products and mobile computing services.

Sprint has combined various sales, integration, and business development teams to form its Emerging Solutions unit, which will focus on accelerating the use of its wireline, 3G, iDen, and WiMax networks for businesses. The M2M market involves connecting various machines wirelessly, and it has multiple applications such as remote monitoring, telematics, smart grid initiatives, fleet management, and custom networks for colleges.

The new unit will also focus on providing connectivity for a growing number of consumer devices. Sprint already provides the wireless Internet access for the Amazon Kindle, and the company said consumers will soon expect pretty much all of their gadgets to have mobile data access. Beyond providing the data service, Sprint will also work with partners on hardware and software integration.

Danny Bowman, Sprint's president of integrated solutions, said the market this new unit is focusing on is the fastest-growing by far, but it represents different challenges and opportunities than the traditional cell phone subscriber model. The average revenue per user is far lower and the business models are different, but Bowman said it can be a high-margin market that will only grow stronger as more devices become connected.

As revenue from cellular voice services declines, Sprint is not the only wireless operator looking for other ways to utilize their networks to generate revenue. AT&T and T-Mobile have also targeted the M2M market with smart grid products, and Verizon Wireless is making a big push to provide wireless data for netbooks and e-book readers.

InformationWeek Analytics has published a guide to the business realities of virtualization. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Current Issue
IT 2020: A Look Ahead
Are you ready for the critical changes that will occur in 2020? We've compiled editor insights from the best of our network (Dark Reading, Data Center Knowledge, InformationWeek, ITPro Today and Network Computing) to deliver to you a look at the trends, technologies, and threats that are emerging in the coming year. Download it today!
Flash Poll