The research firm projects that in 10 years, there will be 6 billion cell phones, most of them with Internet connectivity. An estimated 2.5 billion televisions today will largely be replaced by TV sets that are Internet capable, either directly or through a set-top box. More and more of the world’s one billion automobiles will be replaced by newer models with integrated Internet access. Yet, the greatest growth potential is in machine-to-machine, according to IMS President Ian Weightman.

“This has the potential to go way beyond industrial applications to encompass [such applications as] increasingly sophisticated smart grids, networked security cameras and sensors, connected home appliances and HVAC equipment, and ITS infrastructure for traffic and parking management,” Weightman said in a statement.

Connected Planet’s take,
Kevin Fitchard:

It’s an easy assumption to make that a good deal of these new connected devices will be linked to the Internet through mobile wireless connections, but I think it would be hasty to assume that each one of those devices will have a 3G or 4G chip. What I mean is that we’re starting to see the first examples of distributed mobile broadband connections in the wireless industry. Wi-Fi routers like the Novatel MiFi have become popular, and this year we started seeing smartphones that can act as modems, distributing their 3G or WiMax connections through Wi-Fi.

On the M2M side, a car might have a dozen sensors and applications — the nav system, the roadside emergency system, the Internet-linked stereo, etc. — but rather than each of those devices having a separate radio, they’ll probably be fed by a single 3G module. And eventually that module could be replaced by a phone that slots into the vehicle’s dash.

Ten years from now there could easily be 50 billion devices linked to the Internet through a wireless connection, but the number of actual cellular wireless connections will be much smaller. We’ll see a rapid ramp-up in connections, as more and more devices, vehicles and appliances are embedded with radios. But eventually that number will level out and possibly even fall, even while the number of connected devices and machines continue to grow.

Doesn’t compute? Well think about the high-end prosumer today that has individual wireless connections (and contracts) for her smartphone, iPad and laptop. Those three connections will eventually merge to one. How the wireless industry evolves to meet that trend will be interesting. Does the carrier wind up only managing the connection? Or does it manage all of the devices at the end of that connection.

That’s our take on this. Let us know what you think in the comments section below:

[Verizon Wireless CEO Lowell] McAdam acknowledged that Verizon has some catching up to do in the field. AT&T is the carrier for Amazon.com Inc.’s popular Kindle and the new iPad. “They were able to get out of the box faster,” Mr. McAdam said. Verizon has been handicapped by its CDMA network technology, less common than AT&T’s GSM, but the executive said his company will have devices ready to show early next year once its new network is in place.

That new network promises much higher speeds for transferring video, for example. Verizon says it will be running in 25 to 30 cities by the end of the year. The new network will likely bring a shift from current unlimited-use pricing plans. “The old model of one price plan per device is going to fall away,” Mr. McAdam said, adding that he expects carriers to take an approach that targets a “bucket of megabytes.”

With multiple devices, customers are likely to end up paying more for connecting their gadgets to the next-generation network than they do today, he said. “It’s not out of the question,” he said.

Connected Planet’s take,
Kevin Fitchard:

The more we hear about the wireless operators’ 4G plans, the more they seem to be indicating they’re following Clearwire down the path of selling connectivity rather than devices. McAdam basically summed up Clearwire’s business model in a nutshell: sell a broadband connection, which can be distributed to any device, and let the customer figure out what they want to do with it. The value of that may not seem obvious right now, but as more and more devices have cellular broadband chips, the more customers will start wondering why they have to procure a separate data connection — and sometimes a separate contract — for each one of them.

The first example of that has emerged with the iPad, as there will likely be many iPad 3G customers who also have iPhones. AT&T has neatly headed that problem off by keeping prices low: The combined $60 for the two plans matches the mobile broadband plans that the other operators offer plus doesn’t impose data caps. But what happens when customers want to start connecting their laptops and netbooks and eventually their hand-held gaming systems and other electronic bric-a-brac?

Many of the wireless operators have already starting moving to this model, selling Novatel’s MiFi device and other 3G routers that redistribute the mobile broadband connection through Wi-Fi. Sprint has implied that it will use its upcoming WiMax smartphone, the HTC EVO 4G, as a connectivity hub, allowing customers to use its Wi-Fi router capabilities to connect their other electronics under a single data plan. It’s only a matter of time before Wi-Fi and Bluetooth tethering starts making its way back into the mobile broadband discussion.

That’s our take on this. Let us know what you think in the comments section below:

But lately you may have seen the phrase ‘Internet of things’ bandied about. What does it mean?

Turns out it’s just a better (or should we say alternative) way to describe what the telecom industry typically calls machine-to-machine, or M2M, communications. That’s smart vehicles, appliances, industrial devices and other machines (ie, not persons) talking to one another and exchanging information to perform better and in a more “aware” fashion.

A Google query on “Internet of thing” yields 600,000 results (M2M comes in at 4.75 million, though “machine-to-machine-” yields only 375,00). Connected Planet has a site section on M2M of its own, btw.

So where’s the “Internet of things” coming from? More from the Web world than telecom, with blogs like ReadWriteWeb and GigaOm applying the moniker most aggressively (though McKinsey and Forbes have dallied with the term as well.

Writes GigaOm in a story on AT&T’s earnings this week (AT&T Bets Big on the Internet of Things):

AT&T is betting big on wireless through the sale of phones with data plans (it added 1.9 million wireless subscribers), prepaid plans and an emphasis on providing wireless connectivity for the Internet of things.

The irony here is that M2M connectivity in many ways represents the dumb pipe future that AT&T is so worried about — it’s not providing anything to its partners but the bits. On the call, AT&T executives explained that the number of bits sent via the network are high-margin bits and the machine-to-machine clients have very low churn. Total wireless operating margin rose for the carrier to 44.5 percent.

Connected Planet’s Take, Rich Karpinski:

It was indeed notable that both Verizon and AT&T stressed M2M — or Internet of things — momentum in their earnings calls. But M2M applications are anything but “dumb pipe.” Because the bits being moved are often tiny, such applications typically run over * last generation * data networks. But the level of intelligence required to track and monitor those bits as well as feed them in and out of various enterprise applications that use those bits to provide actionable intelligence makes M2M solutions anything but dumb. Sometimes incumbent carriers provide that solution-level intelligence; other times it comes from M2M resellers. But either way, the value delivered not only makes them smart apps but potentially high margin ones as well.

Now, onto the phrase “Internet of Things.” Is it better and more descriptive than M2M? Maybe. Is it similarly clunky? I’d argue it is. It’s also just a little too cute, too precious. But that’s just my take. Maybe I’ve absorbed too many IMSs and OTNs and FTTxs to be qualified to judge.

What do you think? Do you think the moniker “Internet of things” will catch on? And is M2M a smart application or a dumb pipe solution?

CNN Mobile, first introduced as an exclusive to AT&T Mobile TV subscribers in 2008, provides political, world, health and entertainment news, including from Anderson Cooper, Larry King and Robin Meade, as well as live events, one of FLO TV’s best performing content categories. AT&T’s exclusive hold on CNN Mobile still holds today, so it won’t be made available to subscribers of VZW’s V Cast Mobile TV service.

FLO TV is also available on the iPhone and iPod Touch through a mophie juicepack TV accessory to the handset. The company has been busy combatting a tough market for mobile TV by expanding its direct-to-consumer strategy, adding content to its line-up, including March Madness coverage and expanding its marketing campaign to include commercials launched at the Super Bowl.

Though not a new concept–Progressive is already issuing usage-based insurance policies in several states–M2M has the potential to revolutionize the industry by allowing insurance companies to set their rates based not on generalizations but on a specific policy holder’s driving behavior. Typically an insurance company lumps drivers into general categories of age, car type, gender, and place of residence, which are often good indicators of how a demographic group as whole would behave, but doesn’t account for the many exceptions and variations in behavior. The only personalized info an insurance company can really take into account is the number of traffic citations a driver receives. Usage-based insurance suddenly makes the world more fair to the teenager that doesn’t speed and comes to a full-stop at each stop sign or the sports car owner that only drives the product of his mid-life crisis on alternate weekends.

What’s different about the Walsh Data Logger–which plugs into the on-board computer of the car–is it monitors driver behavior in real-time, while other insurance-targeted devices tend to send out reports on a schedule. While no insurance company is discussing this yet, a real-time M2M solution could lead to the ultimate form of usage-based insurance: metered premiums. A driver could literally buy insurance by the mile, being charged a variable rate determined by any number of factors from road-conditions, time of day and even weather.

The tablet computing device has received a storm of media coverage, both before and after it was officially announced at the beginning of the year. Analysts have since put out multiple forecasts on iPad sales, most of which have the supply not meeting demand for the device. To name a few, Canaccord Adams analysts say production problems will limit the number of units available at launch to 300,000, while BroadPoint AmTech believes the iPad will definitely sell out in hours – much like both versions of the iPhone.

Other analysts have predicted that the iPad will likely run primarily on WiFi, a sentiment shared by AT&T, which is busy exploring usage-based pricing to offset strain on its 3G network. AT&T instituted a tiered data pricing structure for the iPad to prepare for customers that it believes will only supplement WiFi with occasional 3G access. The WiFi-only version of the iPad will hit stores on April 3 with 3G-enabled versions coming to market later in the month.

T-Mobile (NYSE:DT) has always prided itself as being on the leading edge of innovative machine-to-machine communications, embedding M2M modules in everything from children’s watches to industrial farm equipment. It’s latest M2M trial is no exception. T-Mobile is currently working with an unnamed police department in the US to track the movements of its patrol officers–and it’s not using GPS. Rather, the trial uses accelerometers embedded in the officers’ flashlights to determine whether they’re running, walking or still. Embedded M2M modules then send that info over the T-Mobile GSM network to dispatch, which can use that biometric data to determine if an officer is in pursuit  or–heaven forbid–incapacitated.

“We don’t usually want to talk about this but let’s say the flashlight came to a sudden stop,” said John Horn, T-Mobile’s national director of M2M. “That would be a reason for concern.”

The system isn’t perfect, Horn said.  There are lots of reasons a cop could be running or motionless that wouldn’t necessitate calling in the SWAT team. But the accelerometer tracking gives the police department base line data, which can then be used to detect unusual patterns that could trigger certain responses. A cop running or motionless for more than a few seconds might get a radio call from dispatch asking if he needs assistance. Though the trial only uses motion data now, it has the potential of becoming very interesting if other sensors are added to the system, Horn said. A sensor that detects when a gun is unholstered or an officer’s heart rate increases could all be very useful to a police force looking to moniter the safety of their officers, Horn said. “The sky’s the limit,” he added.

Horn won’t reveal the specific police force conducting the trial, nor would he give any hints to its size, but he said so far it’s been very successful and the department in question has agreed to move from trial to a full deployment.

Among the top four desired features were public transit information including real-time transit data, “logical guidance” of specific pedestrian routes and shortcuts, visual cues such as landmarks and micro maps of destinations such as airports and shopping malls. Navteq also identified four behavioral motivators driving the interest in mobile nav:

• Commuting: Navteq said those who commute by foot or public transit spend one-third to one-half of their commute on the mobile phone already, so nav access is at their fingerprints.
• Transportation: Consumers wanted transportation guidance to increase their efficiency and confidence while traveling.
• Mobile users: Half of respondents had already accessed mapping directions on their mobile phone for use while on foot, one-third while on public transit and three out of four in a vehicle.
• GPS users: Consumers interest in more nav apps was driven by past positive interactions with GPS technology, Navteq said.

Most of the respondents, two-thirds, who access maps or directions on their phone had been doing it for less than a year, and the other third for less than six months. More consumers in more countries are relying on PNDs than mobile nav apps still too. Nearly 50% of consumers indicated using a PND or in-vehicle system daily or weekly, while a range of one-third to 40% of consumers use the mobile phone that often.

Mobile nav is still a relatively new market, but one that is growing fast. With Google and Nokia’s recent moves to make their navigation services free, the landscape has already changed significantly. Some are even predicting the demise of PNDs altogether as a result. Navteq powers the data from 90% of the more than 145 in-vehicle PNDs available in North America today, but its interest in mobile stems from parent company Nokia. Nokia paid a hefty sum for Navteq and is counting on selling more smartphones based on its free mapping to help recoup the investment.

After months of speculation, the iPad is official! Apple (NASDAQ:AAPL) CEO Steve Jobs took the stage today at the company’s highly anticipated press event. After some quick updates on the impressive progress Apple has made in the past year, he cut right to the chase – officially unveiling the iPad. He told attendees that it is way better than a laptop and way better than a phone, calling it the best Web experience you’ve ever seen.

The device includes most of the specs that have already been revealed in the blogosphere, including a large on-screen Qwerty keypad, built-in iTunes storefront, video playback and full capacitive multi-touch.

The iPad, powered by Apple’s own 1GHz Apple A4 chip, will be available in 16 GB, 34 GB or 64 GB and boosts 10 hours of battery life or more than a month on standby.

In terms of the application store, the iPad will be able to run all of the iPhone’s apps on full-screen mode out of the box. Apple’s senior vice president of iPhone software Scott Forstall said Apple rewrote all of its apps for the iPad display, and the iPhone SDK supports development for the iPad now. He said he anticipates another gold rush for developers.

At the event today, Jobs invited up developers to show the power of the platform with games from Gameloft and Electronic Arts, Brushes, a painting app, MLB.com and a new New York Times app that allows for embedded video within articles.

Jobs even gave a shoutout to the Kindle, saying that Amazon has done a great job of pioneering ebook readers. This came right before he announced the potential Kindle-killer, iBooks. The feature comes equipped with a book store and five initial partners, including Penguin, Macmillion, Simon & Shuster and HarperCollins. iBooks supports the open ePub format compared to the Kindle’s proprietary service. Jobs also said that Apple’s iWorks, a suite of presentation apps, will be available on the iPad with an entirely new user interface.

Update: Every iPad will work over WiFi, but Apple is also introducing models with 3G connectivity built in. Apple is offering two prepaid service plans, one for 250 MB of data for $15 per month or $30 per month for unlimited data. Apple’s iPhone partner AT&T will also be the carrier partner powering the iPad. Jobs said he hopes to have international carrier deals in place by June or July and that all models will be locked to new GSMmicro-SIMs.

The WiFi-only 16 GB version of the iPad will cost consumers $499, 32GB for $599 and 64GB for $699. The 3G models will cost an extra $130. Jobs said Apple will ship the WiFi versions in 60 days and 3G versions in 90.

Analysis on what this means for carriers is coming to Connected Planet Online shortly. In the meantime, here’s a look back on our coverage of the road to the Apple iPad:

• On Apple’s potential to redefine industries: Apple Tablet could create new category, redefine others
• On Apple’s earnings: Apple defends partner AT&T as its exclusivity slips away
• On potential carrier mash-ups: VZW to get iPhone, share Tablet with AT&T?
• On your prediction for a VZW, iPhone combo: Will VZW get the iPhone? You tell us.
• On the rumor mill: Morning Rounds: Motorola’s many Androids; Comcast’s music play; and all things Apple tablet
• On the Tablet’s rumors visualized: The Apple Tablet rumors’ visual aid
• On the Tablet’s effect on eReaders: Will tablets kill the eReader?
• On the Tablet’s network implications: Which network will Apple’s tablet flood?

(Images courtesy of Engadget.)