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ARC Group: Vending Data Traffic to Generate $3 Billion For Network Operators Alone
URL(s): ARC Group
GUILDFORD, England, Sept. 14 /PRNewswire/ -- ARC Group (http://www.arcgroup.com)
believes market penetration rates of wireless capable machines will grow from
4% in 2001 to 38% of all vending machines by 2006 presenting a significant
business opportunity for all wireless vending solution providers. Wireless
network operators, who have been experiencing falling ARPUs, can expect to
generate revenues of $3 billion from vending data traffic alone. Cellular
module unit shipment figures per year will also rise from just over 1m in 2001
to 8m in 2006.
Wireless vending has two key attributes that will make it successful --
wireless telemetry and cashless payment.
An individual is no longer restricted in making a purchase by a lack of
the correct change. There is also less likelihood of machine operators having
to contend with other cash related problems such as theft, vandalism, jammed
coin mechanisms, counterfeit coins and currency upgrades. They no longer have
to solely rely on cash payment systems, a major issue for many operators in
Europe who have to introduce new payment systems to cater for the Euro.
Although there are various payment tools such as credit/debit cards and
smartcards, ARC Group believes the mobile handset will ultimately stand out as
the major cashless payment device and will be crucial in the ultimate take-up
of wireless vending.
There are further benefits presented by telemetry.
"It will be possible to track exactly what has been sold from each machine
thereby reducing the number of unnecessary visits and increasing efficiency
through improved product profiling. It will be possible to track exactly
which products are selling well in particular areas at particular times of
day. Decisions based on realtime data will enhance the customer experience --
for example products need never be out of stock" says Ifeoma Nwoyeocha lead
author of ARC Group's Wireless Vending strategic report.
The vending market presents substantial business opportunities to wireless
vending solution providers across the value chain. Major vending
finance/leasing companies in Europe are even starting to see the use of
wireless vending by machine operators as a sound basis for offering financing
solutions. "The way they see it, the more efficient a machine operator's
business is, the greater the likelihood of repayment of loans."
ARC Group is convinced that machine-to-machine communications will propel
the vending industry to greater heights, holistically solving the problems it
faces and enabling it to compete effectively with alternative distribution
channels in an aggressive marketplace.
The report covers:
-- How machine to machine (M2M) communication is shaping the industry
-- Cost-Benefit analysis - operational savings, new revenue generators
-- Detailed market forecasts by application, by region to 2006
-- New market and revenue stream opportunities
-- Pricing strategies
-- Revenue sharing
-- Role of mobile technology community and vending associations
-- Checklist for choosing wireless vending service providers
-- Future trends
Notes
For more information on this report or to request an interview with the
author, contact Elizabeth Lux on +44 (0) 1483 543505
(elizabeth.lux@arcgroup.com)
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