Intelligent Transportation Systems (ITS) is one of the areas where M2M will make a huge difference in our lives. Transportation of people and goods will be more sustainable, safer, more efficient and more predictable. The communication required is complex and includes communication between vehicles, between vehicles and road infrastructure. The EU has invested over €180 million in more than 40 research projects since 2002 and last week the European standards organisations, ETSI and CEN, confirmed that the basic set of standards requested by the European Commission to make connected cars a reality has been fully completed. The European car industry is eager to translate these enabling standards to competitive advantages and we could see the first connected cars able to communicate with road infrastructure already 2015.
Vehicles with wrong tire pressure cause accidents and consume excess energy. Tire Pressure Monitoring Systems (TPMS) were developed to prevent these issues. The first passenger vehicle to adopt tire-pressure monitoring was the Porsche 959 in 1986 and today it is becoming a legal requirement in more and more countries. Car manufacturers have been introducing different TPNS systems more or less voluntarily but in the United States, as of 2008 and the European Union, as of 2012, all new passenger car models released must be equipped with a TPMS. Similar laws are on their way in Asia-Pacific.
Many of us are convinced that M2M, Internet of Things or whatever we want to call it, will happen big ways and will bring massive change to most industries. The part of it easiest to measure is things connected using a mobile subscription and it grows with some 30% per annum. Good growth but from small numbers. Since standard mobile subscriptions sometimes are used to connect things it’s hard to say exactly how many mobile M2M connections we have but it should be close to 150M. And an absolute majority of these are 2G – probably still around 90%.
150M subscriptions is a lot and annual growth 30% normally sends sales directors on President Club trips to Hawaii. But there are a two issues I would like bring attention to.
A big part of the subscriptions comes from connected meters. Connected meters are great and enables smart metering, smart grids, new services, etc. But most of the meters are connected due to political decisions and not business decisions. I called the combination of regulation and public stimulation packages for “M2M doping” at a speech at M2M+ in Milan earlier in May which triggered an interesting discussion. Personally I believe the political push for smart meters around the world is very good for the society and obviously for the M2M industry too. My point is that people in the M2M industry must remember that a big chunk of M2M business so far comes from artificial promotion and not genuine market demand. I believe meters would have become smart also without the doping but it would have taken much longer time. Let’s not fool ourselves!
The next wave of doping is eCall and similar public initiatives. The idea to save lives and minimize injuries due to car accidents by sending an SMS with position when the airbag explodes is over ten years old. Me and my colleagues at BrainHeart Capital invested in Wireless Car at the time together with Volvo, Telia and others, and OnStar was developed in parallel by GM and others in the US. It looked very promising until the owners of the connected cars with the airbag service had to start pay for the service themselves. Very few did and Wireless Car and OnStar, both still live and kicking, had to go after adjacent business opportunities. I’m not saying it’s wrong now when politicians are pushing this to the market, I just want to remind everyone in our industry that this is “doping” and not the result of genuine market forces. Interestingly enough the car industry is very active in Telematics again, with visions and plans often quite similar to the first wave of plans ten-fifteen years ago. But due to the technical approach chosen for eCall these plans might be separated from implementation of eCall. Transport is supposed to be the biggest segment for M2M 2013 and it will be interesting to see if the “built-in approach” will beat the “BYOD-approach” that won last time.
Mobile operators have taken the lead in promoting M2M. All operators want to exploit the expected growth of subscriptions but most if not all of them are uncertain of exactly which role to play. The fact that the M2M business still is a tiny fraction of the operator’s business together with the widespread uncertainty of which role to play could make operators become less aggressive and take on a more cautious “wait-and-see” approach. I definitely don’t vote in favor for such approach and suggest more concrete collaboration with selected partners to conquer industry by industry. Specialist service enablers are key to such efforts and in a perfect world operator device connectivity platforms should be delivered with an á la carte menu of specialist service enablers for different industries. But until that happens I have to continue introducing the members of Swedish M2M Service Enablers to mobile operators one by one.
Mobile World Congress 2013 is over and some 72.000 visitors and 1.700 exhibiting companies have gone home. The new location – Fira Gran Via – was more “professional” and space, logistics, food, etc was better. But on the other hand, it is far away from down town Barcelona which made people spend much more time in the traffic. And at a couple of occasions the traffic turned really bad.
I have obviously not seen everything and met everyone so my conclusions have no trace of science:
The over-all impression was quite boring rather then exciting. Devices, boxes, antennas and software architectures all over the place and the devices really look the same. Is this a sign of commoditization? The very serious fact that Europe is seriously behind in LTE usage (4% of subscribers world-wide acc. to GSA) should make a lot of Europeans nervous. Our entrepreneurs in the European mobile industry might start move to the US like IT entrepreneurs have done for many years.
The value of MWC continues to be the interaction between people from the same industry across the world why parties and sub-events continue to be important. The 5:th Swedish Mobile Association-party on Monday was spectacular again and my job as bouncer was as easy as all previous years.
There is a growing number of visitors and exhibitors from other industries mainly due to M2M. I guess there were 20 more or less connected cars to look at but I also found exhibitors like Assa Abloy with their connected locks in a small both. I believe this increased focus on what to use the mobile network for is a good development – maybe the event should be divided in two: building and operating networks – using networks.
M2M was everywhere but the heavily promoted GSMA Connected City part of the event I unfortunately found quite dull. In the far end of Hall 3, few visitors, a lot of screens with presentations and no real energy or “heat” (if we exclude the Gangnam Style dancers from KT). And I couldn’t find anything about OTA provisioning of SIMs which was demonstrated by GSMA last year. Connected cars was clearly the most discussed topic in M2M followed by mHealth. I believe it is a sound development that focus on M2M itself disappears (no customer has ever asked me for M2M) and that we start discuss real problems with real customers. The industry needs to be able to create value for the huge SMB market and not only the multi-nationals, consumers and governments. That is the key challenge for M2M today.
Ericsson’s Key Note event Tuesday night was a highlight: well structured and executed with M2M and Networked Society as a leading theme. And finally Vestberg invited Avicii on stage and then they launched a new song right there, XYOU based on a crowd-sourcing process. The thing I really liked was that they showed the Twitter feed from when Avicii entered the stage and when they played the new song we could see it spreading over the Internet on another huge screen. Well thought through and executed! I’m not sure everyone in the audience understood what was going on but my 17 years old daughter was really impressed already by the SMS I sent her.
My choice of coolest product at the show was also in the Ericsson hall. Under the banner “Windows of Opportunities” they demonstrated four connected windows solving real problems. My favorite was the one for skyscrapers which generates electricity from light coming in. I hope they have solid patents in place!
Personally my highlight of the week was outside of MWC. I was invited by Prof. Aninyda Ghosh, assistant professor of entrepreneurship at the great IESE Business School, to give a speech on Parallel Entrepreneurship. I enjoyed every minute!
The European Union took yet another step towards an interoperable EU-wide eCall solution when the Commission just adopted a Regulation which establishes the specifications for the upgrading of the Public Safety Answering Point (PSAP) infrastructure required for the proper receipt and handling of eCalls. eCall is a key initiative to meet the target of halving the overall number of road deaths in the European Union by 2020 starting from 2010.
According to EU: Road safety is an issue of major concern across the entire European Union and for all of its inhabitants: 500 million citizens in the 27 Member States use more than 230 million vehicles on over 5 million km of roads. The purpose of the interoperable EU-wide eCall initiative is to introduce in all vehicles in Europe the minimum functionalities needed to ensure adequate handling of the emergency calls by the emergency response services. Currently, road journeys exceed 100 million annually across the various Member States and they are increasing due to further consolidation of the European Union (through the free movement of goods, people and services). Road safety is one of the major policy issues of Transport Policy in the European Union. In 2009 around 35,000 people were killed and more than 1.5 million injured in about 1.15 million traffic accidents on EU roads. In addition to the tragedy of loss of life and injury, this also carries an economic burden representing approximately EUR 130 billion of cost for society.
I believe this is a typical area where agreements on a standard infrastructure makes a lot of sense. We will save lives, pain, money, time and the environment while establishing an infrastructure which will support the development of the EU region for many years. A common PSAP could obviously be used for more than eCall and will set a standard for certain international services which will help us in the critical effort to make M2M an international business.
Most people have a view on parking. Typically not very positive. As more people continuously move to the cities – Stockholm received the equivalent of two loaded busses per day last year – taking care of traffic and parking is challenging. While doing the research for dynamIQ parking™ I came across a lot of facts and figures related to parking and I though it could be interesting to share some of them in my blog.
A great source of parking data is IBM’s Global Parking Survey 2011 with 8042 commuters in 20 cities on six continents surveyed. That is where I first came across the staggering data that more than 30% of traffic in a city is caused by drivers looking for parking. IBM claims over 1B cars on the roads worldwide which explains the scope of the parking problems. 27% of drivers in the survey respondents self-reported being involved in an argument with a fellow driver over a parking space within the last year. The average time to find parking is around 20 minutes and over half of all drivers in 16 of the 20 cities surveyed reported that they have been frustrated enough that they gave up looking for a parking space and simply drove somewhere else.
Commuting pain is also reflected globally as 69 percent of those surveyed indicated that traffic has negatively affected their health in some way. Some 42 percent of respondents globally reported increased stress and 35 percent reported increased anger.
In order to compare the situation across the globe IBM developed their Parking Index. The IBM Parking Index is comprised of the following key issues: 1) longest amount of time looking for a parking place; 2) inability to find a parking place; 3) disagreement over parking spots; 4) received a parking ticket for illegal parking and 5) number of parking tickets received. The cities scored as follows: New Delhi: 140; Bangalore 138; Beijing 124; Moscow 122; Shenzhen 122; Paris 122; Milan 117; Nairobi 111; Madrid: 104; Singapore 97; Mexico City: 97; Stockholm: 90; Johannesburg: 87; London: 86; New York City: 85; Montreal: 85; Buenos Aires: 80; Toronto: 77; Los Angeles: 61; and Chicago: 51.
According to EU (2008) 60% of the European population is concentrated in urban areas, with these areas producing almost 85% of GDP. Urban issues like traffic congestion and pollution is estimated to cost EU 1% of its GDP.
Another interesting fact is that Michael Schwarz, European Commission, claimed 2010 that goods of value of 7B€ is stolen from trucks in Europe which explains why safe and well organized truck parking is a priority.
Finally it could be interesting to know that Nissan cars got most parking tickets in Sweden 2010 compared to number of registered cars – 40.000 tickets translates to about 35% of all registered Nissan cars. BMW and Mercedes followed just behind (ref Vi Bilägare).
Parking is a critical component of Intelligent Transportation Systems (ITS). Parking space is a scarce and expensive resource in urban environments and every free parking slot is an opportunity to improve the traffic situation and increase efficiency in people’s lives. So far parking space have been a dumb static resource and people’s traveling plans have been based on hope. There are estimates that 30% of city traffic is people looking for parking. The result is wasted fuel and time, excess carbon emissions, frustrated drivers and negative impact on the local economy.
The parking related problems will continue to grow as urban population is growing. We need to act now to establish the parking infrastructure needed to enable development of user-friendly and powerful tools which people can use to plan their traveling properly, owners of parking space can use to optimize their business and service and cities can use to plan their traffic system based on solid data.
At B3IT we developed a concept for dynamic parking which we announced at the ITS World Congress in Vienna in October 2012. It is based on an holistic approach where users get access to information from all organizations involved in parking in a city but where each of these organizations still use a solution to connect and manage their parking space which they prefer. We call this dynamIQ parking™.
Last week we launched dynamIQ parking™ at the Mobile Future conference in Stockholm together with the mobile operator Tele2 and Streetline, the world leader in Smart Parking. The parking issue is incredibly complex with a lot of stake holders, business models, political interests and point of views. I am absolutely convinced it takes a complete solution including a set price in order to move forward. Together with our partners we now have what it takes to offer clients a complete customized solution as a service with a set price. We always start with a six months trial period to a fixed price giving us time to follow-up an adjust the solution for optimal value to the customer. It takes less than two months from signing to have the installation up and running. In other words, this is something very easy for customers to understand and buy and if they aren’t happy after six months they can just abandon the ship. And regardless if the customer is a city, a parking company, a real estate owner, a public transportation company or a private parking space owner they can use our solution to run their parking business better. And the relevant parking data is being made available to drivers together with data from all other parking players simply making urban life easier.
With dynamIQ parking™ in place you can check if there is a decently priced parking available where you are going tomorrow at noon and if you like, reserve and pay for it. And if you don’t find one decide to use public transportation instead. Drivers can use their smartphones, pads and computers but dynamic parking information can also be made available using digital signs and interactive kiosks.
Smart cities simply need dynamIQ parking™!