M2M LTE and the next generation SIM applications – my talk at the LTE world summit in Amsterdam
Machine to Machine (M2M) refers to the idea of devices that transmit and receive data over a network, typically
from remote locations. Application domains include healthcare, energy networks etc
- O2 + Smart metering company G4S – deploys a remote management system including around 200,000 SIM cards,
to connect smart meters across the UK to G4S’ data centre.
- Telstra introduced a web-based self-service platform, allowing organisations to manage M2M products
- Operators like M2M because predictable billing , more connections etc
Currently 5 billion users worldwide connected to mobile networks and Ericsson estimates there will be 50 billion connected
devices by 2020. These devices need certification, authentication, registration and management(ex SW upgrades) + QOS
BUT M2M != IOT
Machine to machine is two (intelligent) machines communicating with each other
Internet of things is about interacting objects(active or passive) – ex includes RFID
M2M is a subset of IOT
many factors driving IOT
• Android@Home: Google I/O last week – An IOT – home gateway used by Lighting Science to connect an Android tablet to mesh-networked LEDs. Pitched towards inexpensive hardware for mesh networking.
• Networked LEDs and devices over WiFi
• A Tungsten music player reacting controlled via NFC. Once the CD touched the player, it automatically started playing the album.
• Microsoft – Smart Home, Kinect , IBM, Cisco and HP all have sensor development and service platforms
• Smart objects,
• NFC for interactions vs. NFC for transactions.
• Tap and know’ vs. ‘Tap to pay’ – NFC can extend itself to signage, posters, billboards and other merchandising and
advertising mediums, Compare prices, read reviews, receive a coupon – replaces bardcode scanning (but less clunkier) –
• NFC is now being built into many devices – especially Android, Samsung, Blackberry and Apple
• 150,000 retailers in the U.S. with readers that accept NFC transactions but mass market penetration 3 to 5 years away
• Interactions may come before transactions .. (easier problem to solve)
• Visa is launching a system that includes
: an e-commerce offering,
an m-commerce offering and
an offline piece for point-of-sale transactions.
• Disruptive because – it is a platform (includes other providers, allows customers to choose cards, allows promotions
• Visa recently announced a strategic investment in Square
• PayPal is expanding its online efforts and going more mobile, Amazon is reportedly considering its own NFC
• Apple is also reportedly looking at NFC AT&T, Verizon and T-Mobile’s Isis
• Facebook credits
• LTE is all about high performance, low latency and low cost.
• But selling advantages of a network has not been easy for Operators since customers do not understand networks,
they understand services.
• While Operators have been good at selling simple, mass market services globally; how they can do this in the
LTE world remains a challenge.
• In the LTE world, the SIM plays a mandatory role as specified by 3GPP
• But the SIM is also evolving and could play a role as an enabler of services and in management of services
• Which services? Services based on the SIM for LTE and M2M may be based on mass market elements like
Security, Mobility and Identity
- Identity takes on more significance. Recently, the NSTIC (National Strategy for Trusted Identities in Cyberspace)
US govt – officially unveiled its plans for a national secure internet ID program.
- This initiative will be voluntary and largely driven by various private sector companies, who will be responsible for verifying your ID
- It provides you with secure credentials that you’ll be able to use across the internet
– the credentials themselves could simply be a secure application, or something like smart card or SecurID token.
Outsourced management services of devices(la IBM, Accenture) – ex privacy and security is a good initial model
We are seeing the development of open platforms and that’s good development for the ecosystem(Visa and Sim
- Telecoms not the only way for M2M/IOT.
- Means learning to play in a broader ecosystem vs. controlling it. We are seeing the rise of Open platforms (Visa, Sim alliance etc)
- Interactions vs. transactions. Interactions may come first
- Mobile Broadband is a good analogy. But in niches (health, smart grid). Operators are good at managing access networks
- Portion of revenue within ecosystem is a good pie …ARPU valuations may have to change(machines are not people).
Operators can reuse existing assets leverage network
- Outsourced management services of devices (la IBM, Accenture) driven by privacy and security is a good initial model
(not just enterprises but cafes)
PS: I am a part of webinars at the Sim alliance covering various aspects of M2M, SIM, NFC and APIs