PageSierra Wireless Proprietary and Confidential 1

M2M and LTER&S LTE forum

Philippe Guillemette, CTOAnandamoy Sen, Senior Architect

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What is M2M

Sierra Wireless Proprietary and Confidential

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Internet of Things

Through intelligent M2M connections

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Why M2M? The Benefits Are Clear to All

Cost Savings/Improved Productivity

Improved Safety & Security Greater Customer Engagement

New Services

New and innovative high

margin revenue streams

M2M

Faster uptime, greater flexibility with end-to-end solutions, lower

energy consumption, risk reduction

$

Remote control and continuous real-time monitoring for instant

response

Remote access, global real-time tracking, 24x7 monitoring, automated emergency

response

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The Business Opportunity is Massive

2011 2012 by 2020 by 2050

7 billion people and 1.4 billion M2M

connected devices

Today, there are 5x more people on earth

than connected machines

By 2050, there will be 10x more connected machines

than people on earth

M2M connected devices

12B+

M2M connected devices

100B+Global M2M

market worth

$100B

M2M connectivity will impact all aspects of our daily lives

using data totalling

700 exabytes

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Example

M2M CloudIntelligent Gateway

Custom Web Application

Web 2.0 APIsHardware

Integration

ERP

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Challenges

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Security?

Challenges : complexityC

OS

T

TIME

OEM

EnterpriseApplications

Devices

Vendor 1

?

?

?

?

?

Wireless Services

Vendor 2

Backend Server

Vendor 3

Developer

A

Developer

B

Developer

C

Machine

ERP

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Challenges : network usage

1 10 100 1000 10000

> 1

00

X

Large

M2M

Market

Signaling and Billing Overhead

Highly Optimized$0.01-0.05 / MB

Custo

mer

Cost

per

MB

Usage (MB/Month)

Study for UMTS Application sends 4MB/day, online 5 hrs/day, and goes dormant every 30 seconds61% cost for signaling37% cost to be online for 5 hrs

2% cost to send the data

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Challenges : network congestion

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Source KPN

Traffic Storms

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of T

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ctio

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Periodic Peaks

ExcessCapacity

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Challenges : network

QCT Study

UMTS Rel6 Network

Source: QCT S1-110258

Signalling

Power

56%

TrafficPower 44%

36% of

Total

NodeB

Power

ALU StudyM2M Use Case

Source: Signal Ahead Jan’10

Signalling and

Online Cost98%

2%User Traffic

Cost

Sierra Wireless Proprietary and Confidential – under Non Disclosure Agreement

• Today Tariffs = Data used

• Data used ≠ Resources used

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Then …why LTE ?

© Sierra Wireless 2013 4/19/2013

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Speed of course will matter for lots of devices

Longevity of network is critical

Network efficiency is way better

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LTE benefits

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M2M new device category in LTE

Less Complex for cost optimization

Not focused on speed but on efficiency and lower power consumption

Increase sensitivity by 20 dB (RP-121441 with more details see TR 36.888)

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Other (potential) benefits(2)

• Group support - bulk and group based call data records for billing

• More efficient & flexible mobility management

• Addressing (IPv6)

• Optimize for small periodic data bursts(1) (SP-120450)

• Connected long and short DRX cycles(1) (SP-120442)

• Mobile Terminated messages into a private address space

• More refined device access classes

(1) See TS.887

(2) See also TS 22.368 and stage 2 TR 23.888

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• Jamming (malicious or not)

• Network maintenance cost (natural disaster)

• Network Scalability

• Device Scalability (throughput, uplink channel)

• SLA / QoS management

• EcoSystem leverage (network, chips, testers …)

• Standardization & Interoperability

164/19/2013© Sierra Wireless 2013

Few words on unlicensed / whitespace

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Miniaturization

Network access cost

Network capacity

IPv6

Embedded SIM

Ready-to-use WAN device with the size, cost and flexibility better than WiFi

174/19/2013© Sierra Wireless 2013

Conclusion

Why will you not put it everywhere?

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Thank you !

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Page© Sierra Wireless 2013 19 4/19/2013

Page19 April

2013

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Intel Pentium

• 3 M transistors

• 100 MHz clock

Lessons from the past

19 April

2013

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1995 2011

Intel iCore 7

• 1.2 B transistors

• 3.5 GHz – 6 CPU

Windows NT

• ~7 M lines of code

• 4 MB of memory

Windows 7

• >50 M lines of code

• 4 GB of Memory

Linux …

• A free OS WHAT ?

Linux 3.x

• ~60% server market

Internet

• ~20 M pages

• 100,000 hard drives to store all books in the world

WWW

• ~1 T pages - ~250 M sites

• 20 hard drives

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Lessons from the past

Sierra Wireless Proprietary and Confidential

1995 2011

• 2G (no GPRS)

• Single band only

• Data 9.6 Kbps

• 64*46*7.6 mm

50 Million SMS per year

Virtually 0 Mobile data

7 Trillion SMS per year• 220,000 SMS per second

7 Exabyte Mobile data per year• 1 hard drive every 10 sec

• GPRS dual-band

• Data 48 Kbps

• 15*18*2.5 mm

• HSPA + tri-band

• Data 14.4 Mbps

• 25*30*2.4 mm

What might GSM look like in 2005 said people in 1995 ?

“there might be 50 M subscribers”

5 Billions

subscribers

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Worldwide Energy Consumption (Mtoe)

19 April

2013

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