By Anton Le Saux, Head of Managed Connectivity and Partner Sales, O2: Over the past year we have seen an explosion in the so-called 'Internet of Things'.
This market is also known as Machine-to-Machine communications (M2M) encompassing services as diverse as smart meters in homes that feedback real-time consumption information to gas and electricity companies, to sensors on cow herds that automatically alert farmers when a cow is about to give birth.
The industrial nature of many of these applications mean the spread of the Internet of Things is less apparent to consumers, but analysts say the global market for M2M was already worth 65 billion euro last year and is continuing to grow.
Established telecoms providers, rather than start-ups, are likely to be the prime beneficiaries of this trend as the industry's growth is mainly driven by large scale contracts from governments or companies seeking ways to use this technology to generate cost savings. In Spain, Telefónica's technology has become embedded in a 'smart city' experiment being carried out in Santander. More than 10,000 sensors monitor the city, from traffic flows and air quality to noise and street lamps. This technology is now being used to improve public life, for example telling refuse collection when to pick up full bins to prevent unnecessary trips.
In the UK we are seeing a demand for smart meter devices in homes that feedback real-time consumption information to gas and electricity companies. The automotive industry is also adopting connected technology for tracking, car entertainment and safety features, as well as to provide tailored insurance packages to drivers willing to have their performance measured. Other key areas are healthcare, retail, security and IT networks. I see the channel as being a fantastic opportunity to deliver growth in these areas within the UK.