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 Wednesday, May 07, 2008

According to new a research report from the analyst firm Berg Insight, the number of cellular network connections used for machine-to-machine communication will grow from 37.5 million connections in 2007 at a compound annual growth rate (CAGR) of 37.9 percent to 186 million connections in 2012.

GSM and legacy technologies currently dominate the market and accounted for about 71 percent of the total number of active connections at the end of 2007. CDMA was the second largest technology with a strong foothold in North America and parts of Asia-Pacific. WCDMA has so far primarily been adopted for machine-to-machine applications in Japan. Elsewhere the adoption is held back by high component costs and limited network coverage.

Berg Insight has found that machine-to-machine applications today in general correspond to between 1-3 percent of the reported number of mobile subscribers in developed markets. In Sweden and Finland the share is closer to 10 percent due to extensive use of GPRS for meter reading applications.

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Source: Cellular News.