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NSR Analysis: SCADA/M2M Under Threat From Cellular

In December of 2012, SkyBitz announced the Falcon Series GXT100, a new global positioning satellite (GPS) asset tracking solution for 3G/4G cellular networks with seamless North American coverage. With this launch, SkyBitz indicated that it is able to provide additional cost-effective solutions for complete asset visibility to its customers.

The announcement is noteworthy for two reasons:

  • First, SkyBitz participates in the largest market vertical in the SCADA/M2M market (the North American Transportation/Cargo sector), and it is also one of the key players in this vertical.
  • Second, it has exclusively used satellite solutions in targeting its customers prior to the December 2012 announcement.
The inclusion of cellular 3G in its portfolio is certainly a strategic move where two (among many) advantages are garnered by SkyBitz:
  • Higher bandwidth solutions and offerings using 3G/4G cellular can be achieved.
  • Lower costs to support higher bandwidth services will likewise be achieved.
The question raised not only for SkyBitz but for all players serving the North American market is clear: Will satellite SCADA/M2M solutions be replaced or lose substantial market share to cellular 3G/4G?

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