Machine connectivity gets a boost with Ericsson and MegaFon

Machine connectivity gets a boost with Ericsson and MegaFon 
STOCKHOLM, SWEDEN -- (Marketwire) -- 11/01/12 --    * New partnership
aims to develop machine-to-machine (m2m) market 
* Is expected to allow MegaFon to offer m2m connectivity to
enterprises and     address new revenue streams 
* Ericsson's cloud-based Device Connection Platform at center of
At the Open Innovations Forum in Moscow, Ericsson (NASDAQ: ERIC)
announced a strategic cooperation with one of Russia's major
operators, MegaFon, to develop
the market around machine-to-machine
connectivity. Under the agreement, MegaFon plans to use Ericsson's
Device Connection Platform to cost effectively manage a large number
of connected devices and machines for enterprises. 
Ericsson will provide MegaFon with consulting services and utilities
market research plus systems integration services as part of the
In a world of 50 billion connected devices as foreseen by Ericsson,
many devices
will communicate with applications and control systems
using mobile networks. Both enterprises and consumers will make use
of numerous everyday devices that benefit from M2M connectivity at
home, at work, on the move, in remote locations
and elsewhere.
Potential uses include utility meters, alarms, cars, buses and trucks
and a wide range of consumer electronic devices. 
Thus, operators need tools in order to tailor enterprise offerings,
for example
in terms of price plans and bandwidth requirements for
different M2M applications. In addition, they must be able to
implement new applications fast. 
The Device Connection Platform is a cloud-based managed connectivity
platform, provided as a service.  It enables operators to
industrialize M2M connectivity services to a variety of different
industry needs.  Operators can address new revenue streams from a
variety of devices while simplifying the process, and reducing the
cost of connecting them in order to benefit from economies of scale.
At the same time, the platform facilitates smooth and efficient
network provisioning as well as access to key functionalities
including subscription management, device management and operator and
enterprise self-service portals. 
In addition to experience of the worldwide M2M market, Ericsson will
support M
egaFon in offering services to enterprises from different
industries, in order
to leverage efficiencies along their customers'
value chain from production to distribution. 
Oleg Butenko, CEO MegaLabs, a wholly-owned MegaFon subsidiary
focusing on the development of innovative solutions, said: "We see
this partnership as a good opportunity to develop M2M technologies in
Russia. The M2M segment is now in its
infancy, primarily because the
market itself has not been formed. MegaLabs and Ericsson are jointly
working to develop this new solution to the benefit of MegaFon
subscribers. We expect the solution to help our customers efficiently
monitor M2M SIM cars and choose the best tariff options. We believe
that this partnership and solution may help our customers leverage
the full potential of their M2M connectivity, and enhance our
vertical solutions portfolio." 
Dmitry Maselsky, Head of Ericsson Russia, said: "It took one hundred
years for technology to connect places, 25 years to connect 6 billion
people, and by 2020
we will have the ability to connect up to 50
billion devices.  We see over 2 billion of those connections will be
right here in Russia.  Connectivity across
a massive number and
variety of devices will help businesses reach new efficiencies, and
we will fully support MegaFon in capturing new revenue streams
The pilot phase is set to be launched December 2012. 
Product description of the Device Connection Platform 
About MegaFon OJSC 
MegaFon  OJSC  is  a  universal  operator  working  in different
segments of the
telecommunications  market. More  than 62 million 
people throughout Russia have
chosen  the high  quality of  services
and  communications provided  by MegaFon.
Appreciating  the trust  of
its  customers, the  company has  become one  of the
operators to adopt more customer-oriented policies. MegaFon is the
mobile operator in the country to launch 3G for commercial
operations. An active
supporter  of sports, MegaFon is the General 
partner of the XXII Olympic Winter
Games 2014 and XI Paralympic
Winter Games 2014 in Sochi, and the General partner
and  official 
mobile  operator  of  the  XXVII World Summer Universiade 2013
MegaLabs is a wholly owned subsidiary of MegaFon, and its principal
objective is
to research, develop and bring to market innovative
value-added services for MegaFon clients. MegaLabs is a centre for
innovative developments and quick-to-market launch of value-added
services in the areas of content and media, mobile finance, mobile
advertising, M2M services and cloudservices. 
Download high-resolution photos and broadcast-quality video at 
Ericsson is the world's leading provider of communications technology
and services. We are enabling the Networked Society with efficient
real-time solutions that allow us all to study, work and live our
lives more freely, in sustainable societies around the world. 
Our offering comprises services, software and infrastructure within
and Communications Technology for telecom operators and
other industries. Today
more than 40 percent of the world's mobile
traffic goes through Ericsson networks and we support customers'
networks servicing more than 2.5 billion subscribers. 
We operate in 180 countries and employ more than 100,000 people.
Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In
2011 the company's net
sales were SEK 226.9 billion (USD 35.0
billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New
York stock exchanges.

MegaFon and m2m: 
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