Qualcomm Inc. (QCOM) has entered into an agreement with Digi International Inc. (DGII) to integrate its Gobi modules with the latter’s embedded mobile machine-to-machine (M2M) design. Qualcomm has diversified itself into the mobile computing segment. The company’s MDM series (Gobi) chipset is an embedded mobile Internet solution for laptops. Already, more than 40 notebook products from various large OEMs are available in the market using Gobi. Several major telecom operators are also certifying compatibility with this technology.
 
Mobile M2M connections, which enable wireless data calls between machines, are the new services and business models that have recently received significant market traction. Deploying innovative connectivity platforms to deliver seamless, fully integrated M2M communication with global connectivity is an important factor to mobile service providers’ success in this market.
 
Gobi technology provides global, multi-mode 3G connectivity for High Speed Packet Access (HSPA) and Evolution-Data Optimized (EV-DO) networks in a single module with GPS functionality. This enables a device to support multiple cellular networks for data connectivity throughout the world. This relationship makes the Gobi technology more accessible for the M2M space.
 
The M2M wireless communications technology has become a major driving force for the next-generation mobile messaging system. M2M is a rapidly growing market opportunity. According to various industry sources, M2M connections may globally reach more than 200 million users by 2014, with a total market valuation of approximately $57 billion. This new business model is emerging as a potential source of massive revenue to several telecom operators and equipment manufacturers.
Read the full analyst report on “QCOM”
Read the full analyst report on “DGII”
Zacks Investment Research