M2M implications

Rudolf van der Bergrudolf.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

• 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

Smart Grid, Meter, City

Remote monitoring

Car automation

eHealth

Logistics

Portable consumer electronics

Concentrated

Smart Home

Factory automation

eHealth

On-site logistics

Fixed Mobile

M2M networks by type

Dispersed

PSTN

Broadband

2G/3G/4G

Power line communication

2G/3G/4G

Satellite

Concentrated

Wireless Personal Area Network s

Wired networks

Indoor electrical wiring

Wifi

Wifi

Wireless Personal Area Network s

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 network and price

Telco determines network and price

M2M user 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

• 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