Novatel Wireless, a San Diego, Calif.-based provider of wireless broadband solutions, reportedly announced that it has signed a multi-year memorandum of understanding with German-based machine-to-machine communication modules provider Cinterion Wireless Modules, in order to enter the machine-to-machine smart devices market.

 

Under the terms of the agreement between Novatel and Cinterion, both the companies would be combining their forces to jointly market co-branded CDMA M2M solutions.

 

Generally, M2M applications leverage cellular technology to - automate business processes, enhance productivity and reduce costs in a wide range of industries, such as transportation, utilities, manufacturing, enterprises, healthcare, entertainment, retail and mobile computing.

 

In a press release, Peter Leparulo, chairman and CEO of Novatel Wireless (News - Alert), said, “Mobile carriers are increasingly focused on M2M opportunities, and we believe the timing is right for us to enter the market and seize opportunities to provide high quality M2M solutions.”

 

These Novatel-developed, co-branded CDMA modules (1X and Rev. A), which utilize Cinterion form factor, will help in addressing the emerging M2M marketplace, said officials with Novatel in a press release.

 

Novatel Wireless mainly designs and develops wireless broadband access solutions that are based on 3G and 4G WCDMA (HSPA & UMTS), CDMA and GSM technologies. Its embedded modules, USB modems, Intelligent Mobile Hotspot products and software enable high-speed wireless Internet access on wireless data networks.

 

“Our strategic collaboration with Novatel Wireless is a win-win proposition for customers who will enjoy a comprehensive product portfolio from two focused companies along with the highest level of customer care for which we are known,” said Norbert Muhrer, CEO, Cinterion Wireless (News - Alert) Modules, in a press release.

 

Cinterion Wireless Modules is involved in development of cellular M2M communication modules, combining M2M engineering expertise and localized worldwide customer support with a portfolio of GSM, GPRS, EDGE, UMTS and HSPA products.

 

“Cinterion’s leading market share in GSM/GPRS/EDGE/HSDPA technology and its vertical market expertise in the Machine-to-Machine industry, combined with Novatel Wireless’ innovation leadership and strong carrier relationships, create the ideal collaborative environment,” Leparulo said. “Novatel Wireless’ solutions-based approach for mobile broadband has been to bring together an ecosystem of intelligent platforms, enabling technology, host applications, and server applications to enterprises and consumers. This move extends our total solutions approach to a wide variety of vertical markets, where we will jointly deliver footprint-compatible intelligent, robust and secure M2M solutions.”

 

Both companies said they will drive all aspects of sales, marketing and technical support for M2M solutions by utilizing their respective sales channels.

 

“Cinterion and Novatel Wireless share complementary customer bases, as well as product and technology portfolios, giving both companies great business growth potential,” Muhrer said. This agreement will enable us to expand our product offerings.”