Chipset maker Sequans Communications announced its IoT deal with Japanese telecom operator NTT Docomo.
The IoT agreement will enable NTT Docomo to accelerate the development of LTE-M devices and applications on DOCOMO’s network, using Sequans’ Monarch LTE-M chip solution. The goal of this current collaboration is to develop and mature an end-to-end LTE-M ecosystem in Japan.
“The use of Sequans’ Monarch technology will be instrumental for us in reaching our goal of widespread adoption of LTE-M technology across Japan,” said Toshiyuki Futakata, vice president and general manager of the Communication Device Development Department, NTT DOCOMO.
Georges Karam, Sequans CEO, said: “DOCOMO has everything in place to serve its IoT customers well and we are proud that our Monarch technology will be a key part of DOCOMO’s LTE for IoT solutions.”
The Monarch LTE Cat M1/NB1 chip is compliant with 3GPP’s Release 13 definitions for narrowband LTE (LTE-M and NB-IoT). Monarch supports features such as programmable RF filtering for global band support in a single SKU, and proprietary dynamic power management technology for ultra low power consumption and operating life of 10+ years.
M2M market
Berg Insight says shipment of cellular M2M terminals will reach 13.7 million by 2022. The report on IoT said 4.9 million M2M terminals were sold during 2016 for a market value of approximately $875 million. The Asia-Pacific region was the largest M2M terminals market in terms of annual shipments in 2016 with about 1.93 million units.
Europe was with 1.44 million sold units the second largest global market, followed by the Americas with shipments of about 1.4 million units. Americas M2M terminal market generated revenue of $350 million compared to $260 million in Asia-Pacific and $245 million in Europe.
Average terminal prices in North America have increased as a result of a high share of 4G LTE routers and gateways in the product mix. Berg Insight forecasts that shipments of M2M terminals will grow at a CAGR of 18.8 percent in the next five years to reach 13.7 million units in 2022.
Berg Insight ranks China-based SIMCom as the market leader with $181 million in revenues from sales of approximately 1.7 million terminals.
US-based Cradlepoint is the second largest provider with an estimated $115 million in revenues from terminal sales. Other top players include Sierra Wireless and Digi International which generated $72 million and $47 million respectively from their terminal businesses.
