In-Stat: Telemetry prime fixed wireless market

Telemetry applications, including automatic meter reading and security monitoring, have greater market potential for fixed wireless technology than voice service, according to a new In-Stat report. Such applications require a very different and more complex sales process, however, according to Bill Hughes, the In-Stat analyst who authored “Wireless Telemetry Services for U.S. Businesses.”

“You have a sales channel challenge with wireless telemetry,” Hughes said. “There are multiple organizations that have to be involved. That includes a module manufacturer, the carrier, the customer and in some cases. This is not a matter of going to the mall and figuring out what phone to buy. There are multiple people involved with similar or different agendas. The idea is to identify all the agendas and make a conscious decision” on technology choice.

Municipalities and other entities are increasingly interested in using wireless technology, as opposed to POTS, to do cost-effective AMR and more, but they don’t want to deploy field units that face constant upgrades.

“For these kind of applications, the main issue for the customers is a stable communication environment, one that is not going to need someone to go out an change the modules as the technology changes,” he said. The last thing customers want to do is have to retrieve and replace thousands of devices deployed throughout a city.

Service providers who want to offer telemetry applications need to understand the different market segments and treat each according to its needs, Hughes said. One application that is expected to be particularly hot is safety and security, because of increased concern and funding that may be available from the Department of Homeland Security.

Most telemetry applications don’t require broadband service, he added, which is why more conservative customers may be satisfied with using POTS for their telemetry.

But wireless service providers who don’t explore telemetry applications, despite the longer and more complex sales cycle, “will be leaving money on the table,” Hughes warned.