Electronics Production | April 25, 2006

Telit looks brightly on to the future with new R&D unit

The Italian Ministry of Industry is providing Telit Communications S.p.A. with a total of EUR 25.5 million to set up a new research and development centre.
The sum is comprised of a donation worth EUR 11.4 million and a loan worth EUR 14.1 million. With this move, the Italian government is acknowledging the telecommunications specialists' commitment to the field of machine-to-machine (M2M) communication.

On a market which, according to the latest study by ABI Research, will grow by 33 per cent year on year from 2005 to 2010, Telit has already successfully established itself with a wide portfolio of versatile M2M modules. The communications experts, who thus far have been known primarily for their mobile telephones, have their own protocol stack with GSM / GPRS network protocols. It is investing around 400 man-years in the development of this software platform, which enables the company as the sole owner of its software to respond flexibly to individual customer needs and requirements.

The Italian government is now supporting Telit's project, which involves expanding its research and development capacities in regions such as Sicily, Sardinia, Campania, Basilicata, Apulia and Calabria. Telit wants to use the financial support to expand its team of experts involved with
its Wireless Solutions Business, in order to push ahead the development of new and sophisticated products for wireless communication.

"The support that we are getting from the Italian government is helping us maintain our position as specialists on the lucrative M2M market. With our technology expertise and our own protocol stack, we are able to focus on the further development of innovative products for this growth market. The investments we are currently making in research and development are bringing our goal of becoming the market leader in the most important vertical M2M market sectors ever closer. Our strong commitment to this market is also demonstrated by our high-profile appearance at the M2M forum in Milan in May," explains Dominikus Hierl, Managing Director of Telit's Wireless Solutions Business Unit.

M2M applications can now be found in a range of industries and sectors - including vending machines, remote reading systems (automated meter reading or AMR), transport and logistics, healthcare, security technology and a wealth of other applications. In this context, the
requirements on M2M modules are growing: they need to be versatile in use and thus satisfy users' increased needs. The integration of complementary technologies at module level, for example, will play an increasingly important role (GPS, Bluetooth, Zig-Bee, etc.). Demand for small and compact modules for new terminals geared towards the consumer market will also grow (e.g. body function monitoring, localisation and alerts for sick people and navigation). Only by using modules that
satisfy these criteria can system integrators develop reliable end products with an optimised cost-benefits ratio.


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