M2M Communication – Next Revolution on Wireless Interaction...M2M Communication – Next...

© Cinterion Wireless Modules GmbH 2008, All rights reserved

M2M Communication – NextRevolution on Wireless InteractionHolger Lenz / Joachim KossCinterion Wireless Moduleswww.cinterion.com

ETSI Workshop on Machine to Machine Standardization4 - 5 June 2008 – ETSI, Sophia Antipolis, France

ETSI Workshop on M2M Standardization 4 - 5 June 2008 Holger Lenz / Joachim Koss

M2M Market Potential

M2M Trends & Drivers

M2M Technologies

M2M Applications

Summary

Machine-to-Machine (M2M) communication has a hugegrowth potential

50 millionconnectedusing cellulartechnology**

50 billionmachines*

6 billionpeople

2,7 billionmobilephone users

* Future World Consultancy, RSA** Allied Business, 2007





M2M Technologies

M2M Applications

Summary

Most M2M applications benefit from wirelessconnectivity over mobile networks

RemoteMaintenance &Control (RMC)

Router / Gateway /Wireless Local Loop

MobileComputing

Security

Metering

Automotive &Electronic Toll

Tracking& Tracing Payment





M2M Technologies

M2M Applications

Summary

Cellular M2M module shipments (mio units)

0

5

10

15

Telematic Security AMR Payment RMC

20072010

Pre-dominant markets with great opportunities ahead

+45%

+60%

+190%

+160%

+160%

(incl. Automotiveand Tracking &Tracing)

Source: ABI, The cellular M2M module market (June 2007)





M2M Technologies

M2M Applications

Summary

source: ABI, The cellular M2M module market (June 2007)

Market forecast global cellular M2M modules

0

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010 2011 2012

CAGR (06-12): +31% Mature M2M market whereCDMA and GSM networksare available, and telematicapplications are strong.

North America:

Emerging M2M marketwith large Fixed WirelessTerminal (FWT) projects.

Asia-Pacific:

M2M market is at an earlyphase, with major countriesbeing Brazil, South Africa,Israel.

LATAM & MEA:

Europe:Largest and mostadvanced M2M marketwith GSM as the dominanttechnology.

Source: ABI, The cellular M2M module market (June 2007)

Cellular M2M module shipments (mio units)M2M Market Potential




M2M Technologies

M2M Applications

Summary

� Acceptance of service automation

� OEMs increasingly use M2Mto implement „smart services“

� Requirement for greater productivity(lean processes, reduced complexity)

� Limited availability of resources(regulations to save natural resources)

Market trends and future growth driversin M2M communication

� Increased consciousness tosave energy

� Dedicated M2M connectivityofferings by MNOs and MVNOs

� Increased need for safety andasset protection





M2M Technologies

M2M Applications

Summary

M2M is an opportunity for MNOs and OEMsto extend their business scope

MNO

Person-to-Persone.g.� Messaging� Ring tones� Media delivery

(mobile music, TV)

Machine-to-Machinee.g.� Home security� Home automation� Personal health monitoring

� Attract & retaincustomers

� Offer new servicesgenerating additionalrevenue

OEM

e.g.� Vending machines� Metering equipment� Manufacturing systems� Office equipment

e.g.� Networked devices

enhance by value-addedservices (pay-per-use)

� Remotely serviceablemachinery

� “Smart services”

� Additional servicerevenues

� Reduce machinerydowntime

� Reduce service costs� Increase customer

retention

Service centricProduct centric





M2M Technologies

M2M Applications

Summary

With wireless M2M OEMs can extend their businessmodel and achieve competitive advantage

Extended business model

Existing business model

Design

Build

Sell

InstallOperate

Maintain

Repair

Finance

Extendbusiness

model overentire

lifecycle

With wireless M2M OEMs can:

� …remotely and continuouslycapture and analyze machineperformance data

� …preemptively initiate andmanage repairs and upgrades

� …offer differentiated productsupport and services over theentire „product-in-use“ lifecycle

� …introduce new offering(pay-per-use, on-demand)

� …identify root causes of failure

� …use captured data for productimprovements and new designs





M2M Technologies

M2M Applications

Summary

Impact of smart service solutions oncustomers and operations

Source: Aberdeen Group (2007)

M2M value proposition:� Provide services more

cost-effectively

� Predictive andpreemptivemaintenance

� New revenue streamsfrom additional serviceofferings

� Lifecycle servicecontract

� Pay per use, novelfinancing models

Advantages for OEMs integrating wireless M2M intotheir service offering

-30%

-13%

-11%

12%

20%

23%

38%

-40% -20% 0% 20% 40%

Technician dispatches

Mean time to repair

Service response time

Service profitability

Service revenues

Machine uptime

Customer retentionM2M Trends & Drivers




M2M Technologies

M2M Applications

Summary

Selecting the appropriate M2M Wireless Technologyfor the application

M2M Technologies

Transmission DistanceData VolumeSystems-/InfrastructureTechnology Interworking

MachineMachine

Direct communication

MachineAccessPoint

Applicationserver

WirelessTerminal

Local communication

MobileNetwork

ApplicationServerInternet

Web Interfacefor User

WirelessModuleMachine

Wide area communication




M2M Technologies

M2M Applications

Summary

Convergence of short-range and cellular technologiesin future M2M applications

Mob

ility

, per

form

ance

Standalone ready-to-gosystems

Combination of differentradios for specific usagescenarios

Complex systems formission-criticalapplications

RFID

3GHSDPA

GPRS/EDGE

IndustrialWLAN

Integration of complementary systemsto take advantage of individual

technology strength and efficiencygains.

� High availability, reliability and redundancy� Economies of scale because of global standardization� Low installation and deployment effort� High mobility combined with low-cost of ownership

M2M Technologies




M2M Technologies

M2M Applications

Summary

Wireless technologies for M2M communication

� GSM family servesM2M requirements well

Degree of mobility

Stat

iona

ryW

alki

ngD

rivin

g

User data rate

10 Mbps

IEEE802.16a,d

1 100

HSDPAHSUPA

IEEE802.16e

Systemsbeyond 3G

>2010

0.1

WCDMA

WLAN(IEEE 802.11x)

GSMGPRS

Zigbee(IEEE 802.15.4)

EDGE

Bluetooth

WiMAX

Infrastructure with global coverage already in place provides low invest ubiquitous network access.

M2M Technologies




M2M Technologies

M2M Applications

Summary

M2M applicationsTelematic, Remote Maintenance & Control (RMC)

� Comprehensive solution consistingof GSM, GPS and RFID technologyto manage the fleet and monitor thecargo / freight.

� Status of individual packets (e.g.temperature, unloading time/place)are continuously sent to the backoffice.

Telematic – tracking and tracing:� GPRS/GSM

modem� GPS

receiver

TemperatureSensors

Controldevice

Antenna GPS

Display(opt)

RFID Reader(opt)

Batteries> 24 h

M2M Applications

� The vending machine with an integratedGPRS M2M module enables a “smartservices” concept.

� The vending machines can be remotelymonitored via a GPRS connection toactively check for fill level or a possiblemalfunctioning.

RMC – vending machines:




M2M Technologies

M2M Applications

Summary

M2M applicationsTelematic – pay as you drive

� Establishes information such astravel time and distance

� Recording of accident data� Transmission of data to insurer� Tracking of stolen vehicles

Telematic – pay as you drive

M2M Applications

Customized monthly bill

Hardware Adaptation to insurance needs!

Insurance Products€How / When /Where / How Fast0




M2M Technologies

M2M Applications

Summary

M2M applicationsAutomated Meter Reading (AMR), Smart Metering

� Remote data transmission� Remote control

(e.g. switch on/off power flow)� Security control for manipulation� “Smart Metering”

Automated two-way communicationbetween utility meters and utilitycompanies back-end IT infrastructure

AMR – smart metering

M2M Applications

Meter(Power / Water / Gas / Oil / Heat)

GSM

GSM / GPRSsystem

Maintenance Center

Data Collecting Center

Internet




M2M Technologies

M2M Applications

Summary

M2M applicationsTelematic – eCall (Emergency Call)

� eCall: pan-European service based on asingle European Emergency number (112)

� Audio/Voice call together with MSD (datatransfer)

� Basis for additional vehicle data concepts(ITS, Intelligent Transport Systems)

Telematic – eCall

M2M Applications

Source: Saftey Forum, Recommendations of the DG eCall, for the introduction of the pan-European eCall




M2M Technologies

M2M Applications

Summary

Summary

� Machine to Machine (M2M) communicationis the next revolution of wireless interaction

� Global trends drive fundamental marketgrowth including- Business process optimization- Limited natural resources and increased

consumption consciousness- Increased need for safety

� Future proof cellular technologies provide areliable backbone for M2M

� Increasing number of MNOs offer dedicatedM2M tariffs

Summary

Wireless M2M is ready for “take-off”

Let’s speed it up by standardization




M2M Technologies

M2M Applications

Summary

Questions

Thank you for your attention

Now time for your questions

Holger Lenz / Joachim KossCinterion Wireless Modules

www.cinterion.com

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