M2M implications
Rudolf van der Berg
rudolf.vanderberg@oecd.org
Disclaimer
This presentation is based on work by
Logica for the Dutch Ministry of Economic
Affairs. The views presented here are my
own and may or may not represent those
of the OECD and its member countries.
Billions of devices
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Ericsson: 50 billion devices by 2020
eCall: 14 million cars per year
Energy: 10bn sockets in North America
Nike+ shoe
Smart meters, grids, cities, dykes
Multiple communication modules per
device? e.g. for a car?
M2M applications by type
Dispersed
Car automation
Smart Grid, Meter, City
eHealth
Remote monitoring
Logistics
Concentrated
Portable consumer electronics
Smart Home
Factory automation
On-site logistics
eHealth
Fixed
Mobile
Dispersed
M2M networks by type
PSTN
Broadband
2G/3G/4G
2G/3G/4G
Satellite
Concentrated
Power line communication
Wireless Personal Area Network s
Wifi
Wired networks
Wireless Personal Area Network s
Indoor electrical wiring
Wifi
Fixed
Mobile
2G/3G/4G and WPAN for M2M
• Not one clear winner
• WPAN best for in and around the home
– How to connect to a gateway to internet?
• 2G/3G/4G best for dispersed applications
– Near global coverage
– SIM based zero configuration authentication
• Policy implications in use of 2G/3G/4G
Impact on business models
• The consumer is not the user
• A company or government is M2M user
– Controls parameters for millions of devices
– Needs to contract connectivity for device
• Change from one user, one phone to one
one user, million phones.
• M2M user have different requirements
– Businesses are responding to some
Business requirements
Business requirements difficult to fulfil:
– Switch mobile networks without SIM swap
• Logistics of switching 10,000 SIMs is a nightmare
– National roaming to avoid dark spots and
failure
– Negotiate roaming with local operators
• Gives small operators a chance of M2M contract
– Seamless access to home gateways
– Guarantees on life time of network (30 years)
A SIMple piece of plastic?
• SIM-card locks M2M-user to network
• If M2M users could be MVNO with own
SIM-cards, they could roam and switch
• Only public service providers have access
to IMSI-numbers for SIM-cards
• One option is to liberalise market and give
private networks access to IMSI-numbers
– See Logica for Dutch Ministry of Economic
Affairs – Flexibel gebruik MNC’s
How?
• Get IMSI from regulator
• Outsource platform and HLR (like telco’s)
• Contract telcos in each country
– It’s easiest if you need only one country
– Great opportunity for intermediairies
• Contract with broadband networks for
access to wifi?
– New, but standards exist
Precedents
• Everyone can get a block of IP-addresses
and Autonomous System Number
– Allows Googles and Amazons to appear
– AS42848 is European Commission
• Dutch Ministry of Defense has own IMSI’s
• UK and NL allow private organisations to
use GSM in unlicensed DECT-guard band
Technical solution not enough
• Over the Air update of SIM with new IMSI
and crypto keys
• Work on industry standard started this
year under pressure of Apple
• Control lies with telco for all parameters
• Doesn’t solve all business problems
The options compared
Telco SIM
OTA update
Own MVNO
Switch telco
SIM-Swap
Telco initiated
MVNO initiated
National roaming
Foreign SIM, all
networks
generally
Foreign IMSI
1, 2, 3, or 4
networks, M2M
user decides
Negotiate roaming Telco determines Telco determines M2M user
network and price network and price negotiates
network and price
Home gateway
Maybe, telco
chooses
Maybe, telco
chooses
M2M user
negotiates access
30 year life time
If telcos
cooperate
If network isn’t
shut down
If network isn’t
shut down
Other policy problems with M2M
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Numbering (enough phone numbers?)
Privacy (think TomTom)
Sharing public/private sector information
Frequency policy (M2M will lock in
frequencies for 30 years?)
Conclusion
• M2M changes the market, with a new user
emerging: The million device user
• This user is currently locked in and can’t
directly get access to numbers
• One option may be liberalising the market.
• M2M user will probably use own SIM with
own IMSI with OTA possibility
– In case of case of acquisition or selling of part
of business, SIMs can be updated