Sprint inks deal with M2M enabler RACO Wireless
BARCELONA, Spain--Sprint Nextel (NYSE:S) signed a deal with M2M enabler RACO Wireless to use the company's M2M platform and allow RACO's customers access Sprint's CDMA and LTE networks. The deal is significant because since May 2011 RACO has been T-Mobile USA's primary M2M provider.
According to John Horn, president of RACO Wireless, the company originally was exclusive to T-Mobile USA, not contractually, but just because of the nature of the M2M business. However, now it believes it makes sense to offer its customers a choice of carriers and network platforms. "This doesn't mean we are moving away from T-Mobile," Horn said. "It doesn't change our relationship with T-Mobile."
Horn said that many of RACO's clients want to have multiple operators so that they do not become dependent upon one carrier. He added that there will be different pricing depending upon which operator an M2M client wants to use. "Our cost structure is not the same with the carriers," he said. "But we won't pit one carrier against the other. That is not our objective."
RACO also inked a deal with Latin American operator Telefonica and will be able to offer customers access to that market in addition to the United States and Europe (through its relationship with Everything Everywhere).
Last October, private equity firm Inverness Graham Investments invested in RACO with the intent of helping the firm grow its business and acquire other M2M firms and technologies.
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