Telular Corporation (WRLS) operates in the M2M wireless monitoring space, where machines wirelessly communicate with each other. With an estimated market size of $8.4 billion and a growing rate of 22%, Telular focuses on two key segments: security alarms and tank monitoring. In the security alarms segment, Telular holds about 25% of the market share, catering to approximately 22 million properties. The company has successfully expanded its offerings by adding fire monitoring and smartphone app services, boosting their average revenue per user (ARPU).
Telular’s tank monitoring segment, although considered nascent and less adopted, presents an opportunity for growth. With around 20,000 subscribers and an average revenue per user (ARPU) of $12.45, this segment contributes positively to the company’s overall revenue. Key barriers in the industry include market share retention and creating economies of scale. Telular’s management has demonstrated their commitment to shareholder value through strategic moves, such as being the first to introduce digital communicators and venturing into tank monitoring.
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