Convergent Strategy for M2M Networks and Opportunities
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1 Convergent Strategy for M2M Networks and Opportunities ETSI M2M Workshop October 2011, Sophia Antipolis, France This document is the intellectual property of PT and is prohibited the use or spread without express written permission. Bruno Conde Tomás Innovation Management
2 Expectation Machine-to-Machine opportunity has been evolving accordingly to different market stages 2011 Timing Exploratory Phase Industrialization Phase Consolidation Phase Description Phase of high initial expectations, with proof of concept, several prototypes and input pioneers More realistic phase, with consolidation and affirmation of the ecosystem of early entrants Phase of sustained expansion with the major players expectations accomplishment 2
3 raising a new series of challenges With the advance of M2M framework definition, the value chain actors still uncertain whether recent developments in new generation networks and The Internet of Things concept are an important step towards M2M massive deployments or not Internet of Things How the prioritization of the different possible M2M applications will impact the main strategy to follow is still uncertain for many Infinite Application Areas How to choose the technical framework in order to efficiently deliver leading edge and future proof solutions Future Proof Solutions How the actual and new network technologies and a diversity of new application areas, such as Vending and Smart Metering, will depict the future frameworks for service delivery Telco Strategy Main Challenges Wrap-up 1 2 Will New Network Technologies and Internet of Things concept lead to M2M massive deployments? What strategy and prioritization method for M2M potential applications in virtually limitless number of industries? 3
4 1 New network technologies are evolving Technology technical characteristics are evolving at a fast pace Theoretical Downlink (Kbps) aligned with m2m expected evolution Number of connected devices Millions. LTE (4G) 2600 MHz % 400 LTE (4G) 1800 MHz UMTS (3G) % EDGE (2,75G) 384 GPRS (2,5G) LTE (4G) 2600 MHz LTE (4G) 1800 MHz Latency (ms) leading to a new series of questions Should M2M application areas be supported in the most advanced solutions? UMTS (3G) EDGE (2,75G) % What is the right time to invest in new network technologies? GPRS (2,5G) 300 What about power consumption? Source: Juniper Research 4
5 2 Wide range of M2M applications M2M Applications % of worldwide connections 2020 (Total = 2,1 billions) Other Verticals Utilities 62% Parking Meter Points of Sale Production Chain Security & Surveillance 21% Traffic Printers Automotive 13% Location Services Lifts Healthcare 3% HVAC Government & Local Administration 1% Home Management Waste Vending Source: Commercial and consumer M2M device connections by industry sector, worldwide, 2020 [Source: Analysys Mason, 2011] 5
6 Objective Block Diagram To assess the identified challenges the problem was depicted in main action blocks a M2M Application Areas Decision Gateway Technical Framework Strategy for Prioritized Applications Network Technologies b Internet of Things Joint analysis and matching between new network technologies and application areas Evaluation method creation Roadmap for further developments 6
7 Attractiveness Challenge 1a main actions 1 a M2M Application Areas Main application areas analysis Business context and expected evolution Requirements per application (Fixed IP; Always on, etc.) Matching with technological capabilities matrix ILLUSTRATIVE Application Lantecy (ms) Nr Devices Nr Connections (Per Minute) QoS (%) Smart Metering/Grid 150 X Automotive? X Always Connected? M2M Value 7
8 Challenge 1b main actions 1 b New Network Technologies Internet of Things New and legacy network technology characteristics analysis Power consumption per technology Communication device cost and foreseen evolution for each network Matrix of capabilities per technology (QoS; Latency; Transmission rate; Traffic; etc.) Future developments on Internet of Things ILLUSTRATIVE Transversal Numbering & Addressing SIM Cards Network Scalability Core evolution for M2M Technology Device Avg. Cost ( ) Lifetime (years) GPRS (2,5G) EDGE (2,75G) UMTS (3G) LTE (4G) Technology Download* (bit/s) Upload* (bit/s) Range (meters) ADSL 8M 768k 300 ADSL2+ 24M 1M ADSL+500 GPON (FTTH) 1G 100M 10G GPON 10 G 2.5 Gbit/s 8
9 Challenge 2 main actions 2 Definition of internal procedures to acquire and process information Information gathering and analysis Metrics computation Evaluation method creation Decision Gateway ILLUSTRATIVE Inputs from 1a and 1b Metrics Computation Evaluation Method 9
10 Challenge 3 main actions 3 Definition of the roadmap Definition of technical and business guidelines on a year-by-year basis Final conclusions and further steps Technical Framework Strategy for Prioritized Applications ILLUSTRATIVE 10
11 What we usually get from traditional prioritization methods Energy Efficiency Health & well being Security e- Government Example of commonly prioritized verticals concerning business impact and market demand Automotive Education Sports & Leisure Home Management Smart Metering/ Smart Grid Remote & Inventory Management Key point: How to plan for the present but looking to the future? 11
12 and now what we defined for an effective and future proof strategy M2M Business Current Developments and Verticals Methodology Application Future Applications to Address M2M TELCO Tech State-of-the-Art Methodology Application Network Evolution and Technical Framework for the Next Years Where the Stakeholders are pointing Go where the Future is 12
13 Answering identified questions 1. Will New Network Technologies lead to M2M massive deployments? Yes, but the killer is a convergent strategy Invest regarding what the framework depitcs and not only what market demands Defining a technical framework for solutions delivery Matching business and technical requirements 2. What strategy and prioritization method for M2M potential applications in virtually limitless number of industries? 13
14 A consolidated strategy may be underpinned by a coordinated approach How the different stakeholders may contribute Call to action Best practices in access/core technologies per application Identifying gaps between technology and applications Defining transversal and time phased requirements for the following years Exchange of global best practices (Creation of a specific forum possibly coordinated by ETSI) Foment open discussions in TC s focusing on these specific topic Defining mandatory requirements per application Standardizing the evaluation metric in order to be applied widely 14
15 Thank you This document is the intellectual property of PT and is prohibited the use or spread without express written permission. Bruno Conde Tomás Innovation Management
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