Report: 3G cheaper solution than 2G for M2M apps in the long run

A study from research firm Analysys Mason concludes that using more expensive 3G modules for machine-to-machine deployments will make M2M applications cheaper in the long run.

The study, commissioned by the GSM Association, said that for devices generating significant traffic, the higher cost of the 3G M2M module is offset by the lower costs of 3G traffic throughout the life of the device. Today, more than 90 percent of M2M deployments use 2G connections because modules are so cheap. But Analysys Mason senior manager Ian Streule said the M2M module cost is usually between just 1 percent and 14 percent of the overall cost of ownership for any M2M application.

Even though the majority of M2M applications use just a small amount of network resources, Analysis Mason argues that 2G networks are inefficient, especially as M2M network traffic grows. That traffic won't match the potential revenues operators could obtain using 3G and 4G networks, the firm argues.

For more:
- see this Connected Planet article

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