June 2, 2015
In August 2012 AT&T announced that their 2G network would be shut down latest January 1 2017. This was somewhat surprising to me since roughly 90% of all M2M devices connected to mobile networks used 2G. (https://connectcompute.com/2012/08/08/what-will-be-the-impact-on-m2m-of-announcement-to-shut-down-2g/) Given that 3G is something of a compromise I would have believed that 2G and 4G would be a better bet – one with cheap modules, low bandwidth and great coverage and one focusing on data intensive terminals and applications.
Since two years, we have started to see mobile operators taking different roads for IoT. Good examples include Tele2 who only provide connectivity and great partnerships, Telenor Connexion who was the first to use both Jasper and EDCP (because they follow their customers) and KPN who returned back to Holland, building their business from there with excellent roaming.
And here we go again! Telenor Norway’s CTO, Magnus Zetterberg, said at an investor meeting in London that the company plans to completely shut down its 3G network in 2020, five years before it closes 2G in 2025. “It’s better to retain 2G than 3G because all the devices today are still embedded with 2G, so you will lose out without the network,” he said. “2G is still important for the M2M market.”
I believe this is a good approach since replacing all 2G M2M modules installed across the country to something else, even if only a SIM-card from someone else, is a disturbance and cost the customers neither expect nor like. The labour cost involved in changing are typically far bigger than the hardware. And Telenor is creating yet another criteria for customers to evaluate when picking mobile operator for their IoT applications. And with a 2G/4G approach an operator probably has a better answer to a customer who want to deploy a large IoT project today with an ROI calculation for 8-10 years.
December 27, 2012
The key to rapid progress and growth in the M2M market is Service Enablement. It is the middle-ware, the magic, between generic connectivity and the specific applications the customers are asking for. The Service Enablement has to be robust, secure and efficient in order to make the solutions affordable to develop and maintain. It is also important for the communication provider’s M2M business to scale nicely. Beyond technical matters Service Enablement also has to cover practical issues like deployment and support.
There are three ways to deploy service enablement: in-house, by mobile operator or by independent service enablers. The in-house option is most often used when the data from the connected devices are business-critical which is typically the case when companies provide their product as services. The independent Service Enablers typically place their services on top of the connectivity and provide the entire customized solution for the customer and the devices connected. And mobile operators are increasingly adding a quite generic piece of Service Enablement on top of their connectivity services, dealing with things like alarms, device management, self-service portals and more granular invoicing. This is often referred to as Device Connectivity services which is a natural way for mobile operators to make their M2M offering richer and more competitive.
The Service Enablement part of the market has developed rapidly over the last year with several operators announcing agreements with primarily Jasper Wireless and Ericsson. But we also have a lot of independent Service Enablers active in the M2M market. These independents are most often small national players with scarce resources and difficulties to reach out. We started Swedish M2M Service Enablers (swedishm2m.se) last spring to join forces educating the market and promoting the members. Today we are eight members in the alliance with more in line. But still the operator offerings are too generic for most customers and the indies don’t have muscles enough why customer uptake remain quite slow.
I believe we have to be more granular when talking about Service Enablement in order to get to a solution which is good enough to develop and maintain specific customer applications on. In Beecham’s most recent SES study they identified 22 different service groups and 112 individual service elements within those so M2M Service Enablement is clearly a complex issue. It is already clear that independent Service Enablers must be at least industry focused. It is simply too easy today to just connect terminals and gather the data in the cloud. A competitive service need to understand the data and what to do with it. In other words, Service Enablers have to become Specialist Service Enablers to survive and that is rapidly happening now. With generic Device Connectivity solutions providing standardized APIs for the Specialist Service Enablers to use, the indies can focus all their resources on their speciality. And the operators with such solution in place would be far more attractive to customers and their software developers and integrators to work with. Provided I am right and the market will develop in this direction it might be a dead-end for operators to develop Device Connectivity in-house.
November 7, 2012
Yesterday was a good day for M2M. TeliaSonera’s M2M Symposium 2012
was a well organized full-day event in Stockholm with almost 30 exhibitors, over 300 conference delegates and a number of great speakers. Telia’s CEO Lars Nyberg stated that M2M is the third wave of mobile communication with massive impact on society and businesses. Hans Dahlberg, Head of M2M Globally at TeliaSonera dressed this in numbers and expect one billion connected devices in the Baltics and Nordics by 2020, with 100 million of them using a SIM card. He also announced that TeliaSonera signed an agreement with Ericsson to implement the Ericsson Device Connection platform (EDCP) to prepare for the market take-up.
This was a good day for M2M since it manifested continuous development of the M2M market. But several speakers said that the M2M questions now have reached the board rooms which I believe to a large degree is wishful thinking. Decision makers need to understand the potential implications of M2M to their industry and business but unfortunately few do that today. But we are working hard to evangelize them and I gave my pitch about “data being the gold of M2M” also yesterday.