Ericsson drives into Russian M2M market with MegaFon deal

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Ericsson will work with operator MegaFon to promote the adoption of machine-to-machine services in Russia. The two firms inked a partnership under which Ericsson will provide MegaFon with M2M utilities market research together with consulting services and systems integration.

The partnership will see MegaFon using Ericsson's Device Connection Platform (DCP) product to offer M2M services to enterprises from different industries, along with a number of market-ready applications that are designed to help the Russian operator to establish a strong business foothold in the M2M sector.

Oleg Butenko, CEO of MegaLabs, a solutions development unit owned by MegaFon, said the Russian M2M market is still in its infancy. "MegaLabs and Ericsson are jointly working to develop this new M2M solution to the benefit of our subscribers," Butenko said in a statement. "We expect the solution to help our enterprise customers efficiently monitor M2M SIM cards and choose the best tariff options."

This venture should help MegaFon with its M2M ambitions, commented Steve Hilton, a principal analyst with Analysys Mason. "Ericsson has deep relationships with a variety of enterprise customers and will use its local teams in Russia to help bridge relationships between potential customers and MegaFon in key industry sectors."

"Ericsson is one of the M2M vendors that can offer both strong technology and go-to-market support for operator," Hilton added. "This is a boon to any operator, but especially those in emerging markets."

Dmitry Maselsky, head of Ericsson Russia, said in a statement that M2M connections could reach over 2 billion by 2020, adding: "We will fully support MegaFon in capturing new revenue streams and opportunities." The M2M pilot phase is set to be launched next month.

For more:
- see this Ericsson statement

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