AT&T and Jasper Forge Alliance for M2M and Consumer Electronics Solutions

| May 11, 2009 | Enterprise Mobility - U.S. | Competitive Intelligence Report

| Analyst: Kitty Weldon

Current Perspective: Positive
Vendor Importance: Very High
Market Impact: High

Event Summary

May 7, 2009 - AT&T and Jasper Wireless are allying via a multi-year, exclusive strategic agreement to leverage Jasper’s SaaS service platform to build, deploy and manage connected devices with low cost, rapid time to market, flexible business models and pricing, and a superior user experience. This should accelerate opportunities for AT&T in both the consumer electronics and industrial M2M markets.

Analytical Summary

• Current Perspective: Positive on AT&T and Jasper’s strategic agreement to work together to deliver new categories of wirelessly connected consumer electronics (CE) devices, (e.g., personal navigation devices, e-readers, mobile internet devices, gaming systems, home healthcare monitors, pet/child tracking modules), and to buttress AT&T’s existing forays into industrial M2M applications (e.g., opportunities such as POS transactions, fleet management, asset tracking and “smart” utility and security monitoring), as Jasper’s best in class M2M service delivery platform should facilitate new business models, innovative pricing, rapid time to market, and performance and user experience optimization for AT&T customers.

• Vendor Importance: Very high to Jasper Wireless as this proves that it has successfully changed its business model from that of a global network aggregator to an enabler of carrier partners’ direct data service opportunities in diverse segments. High to AT&T who is not only committed to offering new categories of devices and services for consumers, but who is also taking a more active role in business M2M solutions. The alliance will serve both companies well in executing plans to accelerate revenues within their respective business domains.

• Market Impact: High on the enterprise mobility market (specifically the wireless data and M2M segments) as the two companies stand to gain on their rivals both in the consumer wireless service/device segment where AT&T competes primarily against Verizon Wireless, Sprint and T-Mobile, and the industrial automation services segment where both carriers and aggregators (e.g., Kore Telematics, Numerex and Aeris) play a role. M2M and CE applications also offer global opportunities for service providers, and although AT&T is not necessarily planning to use Jasper’s aggregated global network in favor of its own roaming partner agreements, it may now have more options.

Recommended Competitor Actions

• It is now Verizon Wireless’ turn in the cyclical event announcement game regarding CE and M2M initiatives. The carrier already announced that its 700 MHz C-Block LTE Specifications were published on April 17 and is hosting a device developer’s conference on May 13, so it is likely to have some interesting new devices and applications it can tout as it looks towards its LTE future.

• T-Mobile is in a good position to offer affordable M2M to MNCs given its Deutsche Telekom parentage and its sister companies in Europe. It is already using its support of Android to tout its “open-ness” and boasts a streamlined certification process.

• Although they have recently been lumped together, wirelessly embedded consumer electronics and industrial M2M are extremely different market segments. Competitors need to be able to provide unique capabilities (such as rapid time to market and remote testing) and support options for CE device manufacturers and their joint consumer customers. Jasper benefits as it has already carved out a niche in the consumer space with deals with TomTom, Coyote and Active 4Life. Large utilities and other users of business M2M solutions require vertical expertise which may or may not be available within a carrier or aggregator organization.

Recommended End User / Customer Actions

• AT&T’s existing customers for M2M solutions will be happy to have the additional benefits provided by the Jasper SaaS platform, as they can now be assured of rapid problem isolation and resolution. Companies who are thinking of an M2M solution will also have more reason now to think of AT&T as both a solution and connectivity provider.

• Consumer electronics device manufacturers looking for connectivity partners are no doubt trying to sort through the various carrier-led “open” initiatives to see which ones will provide them the least expensive and quickest route to market (as well as the most extensive and most reliable network coverage). AT&T can now provide them with a more efficient way to streamline certification and testing, which have historically been difficult and time-consuming processes, negatively impacting their business plans.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Enterprise Mobility - U.S. | More information

Top