Telit launches Seoul subsidiary

Computers. Machines. Money. It’s a whole new world. The computer chip may make it possible for machines to “talk,” creating a huge market for folks like Dominikus Hierl, president of Telit Communications. Mr. Hierl said Monday that the Italian-based mobile phone maker plans to expand business globally by creating components that enable machines to operate wirelessly. Machine to machine (m2m) communication covers a vast range of businesses. Some simple examples could be controlling household appliances by remote control from a distant location, or charging your credit card on a machine that operates through a mobile connection. Telit said that the m2m cellular mobile market is estimated to be worth $709 million this year, and that it will grow to $1.17 billion in the next two years. Mr. Hierl was in Seoul to attend the official launch of the Italian-based Telit Communications’ subsidiary, Telit Wireless Solutions Co. Telit Wireless Solutions was originally Bellwave m2m, a spinoff of the code division multiple access (CDMA) module business division of Bellwave. CDMA is a wireless technology used mainly in mobile phones. Much of the core technology for CDMA was developed by the U.S. firm Qualcomm. The other standard, Global System for Mobile Communications (GSM), is mainly used in Europe. Until now, Telit had mostly been developing GSM-based products. The most important aspect in acquiring Bellwave was access to global technology. “Bellwave is a technological partner for CDMA for Qualcomm,” Mr. Hierl said. “We’re buying intellectual property. We’re buying the people, the equipment and the experience.” Telit Communication acquired a 75-percent share of Bellwave m2m in a cash deal of $6.1 million on May 30, 2006. “We did it without any support from the Korean government, but we believe it is a great opportunity for both companies,” Mr. Hierl said. by Wohn Dong-hee