M2M Now Magazine March 2013 Edition by Prestige Media

M2M Now: ISSN 2046-5882

PROFIT FROM A WORLD OF CONNECTED DEVICES

MARCH 2013

VOLUME 3

BILLING FOR M2M

ISSUE 2

Time to look closely at your billing system!

TALKING HEADS

M2M is shifting to a new ‘battleground’, says Wyless’ McDuffie

SMART CITY CASE STUDY Portugal shows utilities the way to sustainability

CONNECTED HEALTHCARE GSMA leads the peloton to tackle global diabetes threat

PREDICTIONS FOR 2013 What’s coming next in M2M and Connected Devices?

+ BARCELONA SUPPLEMENT

Our 16-page CEO Guide to Mobile World Congress 2013

ENVIRONMENTAL M PROTECTION M2M tracks trees to protect Brazil’s Amazon rainforest!

ALSO INSIDE! Telit’s CEO: How to benefit from LTE! • Jasper deploys Policy Server • Dutch Super Grid Research Unit opens • Garmin expands Telematics API platform • The Contract Hot List • Market, People, Product & M2M News • Latest News & Videos at www.m2mnow.biz

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CONTENTS

Check Out Our Website!

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CONTENTS

COMMENT – by the Editor, Jeremy Cowan

Prepare the ground, you never know what will grow!

TALKING HEADS

MARKET NEWS

Strategic Research Unit in Holland; M2M market grows 14%

PEOPLE NEWS

Kroh new CEO at Orga Systems; TIA and ORBCOMM appointments

PRODUCT NEWS

Partners enhance home control; Telit and Qualcomm

CONNECTED DEVICES

GSMA partners to maximise mobile opportunity. We report from Brussels

TALKING HEADS

Dan McDuffie says he believes that M2M is shifting to a new ‘battleground’

CONTRACT NEWS

Jasper deploys Tekelec Policy Servers; MobileHelp® uses u-blox for GPS, 2G and 3G

THE CONTRACT HOT LIST & EVENT DIARY

Our unrivalled List of connected device Contracts; Plus What’s On in M2M

C-LEVEL VIEW

Telit’s strategy evolves as the M2M market matures. Jeremy Cowan reports

EXPERT OPINION

CASE STUDY

Cargo Tracck and Gemalto protect Brazil’s rainforest with M2M technology

EXPERT OPINION: BILL & CHARGE

Telcos should look closely at their M2M billing & rating systems, says Jim Dunlap

OPINION

Alexander Bufalino explains the ‘Family’ approach to 4G

C-LEVEL VIEW

CASE STUDY

Smart Grids in Portugal show utilities the way to sustainability

MWC 2013 BARCELONA SUPPLEMENT

Our 16-page guide to Mobile World Congress, and connected device developments

S12 PREDICTIONS

WELCOME TO BARCELONA

Be ready to be amazed by MWC’s Connected City. Plus New Horizons at new venue

C-LEVEL VIEW

Numerex’s CEO, Stratton J Nicolaides, says Service is our Platform

CONNECTED DEVICES

GSMA and International Diabetes Federation get on their bikes. Will you?

PREDICTIONS

S12

What’s ahead in connected devices and M2M in 2013? Some expert views

EVENT REVIEW

S14

Global attendance at DC event advances mobile and personalised health

Cover Sponsor: Wyless is a leading global M2M managed services provider. Its resilient platform, delivered in partnership with the world’s largest network operators, provides secure, reliable communications with wireless devices in over 120 countries. Powerful management tools offer real-time reporting and control over all devices connected to its network. Wyless delivers a comprehensive suite of managed services with unrivalled expertise, professional support and competitive pricing. Wyless enables its customers and partners to deploy M2M applications and services faster, cheaper and more effectively. www.wyless.com

CONTENTS

© WeKnow Media Ltd 2013 All rights reserved. No part of this publication may be copied, stored, published or in any way reproduced without the prior written consent of the Publisher. M2M Now is distributed free to selected named individuals worldwide who meet the Publisher's terms of Circulation Control. If you would like to apply for a regular free copy supplied at the Publisher's discretion visit www.m2mnow.biz If you do not qualify for a free subscription, paid subscriptions can be obtained. Subscriptions for 5 issues per year cost £125.00 worldwide (or US$210 / €160) including post and packing. M2M Now magazine is published 5 times a year.

Send your News to the Editor: j.cowan@m2mnow.biz • www.m2mnow.biz

M2M Now March 2013

COMMENT

Prepare the ground, you never what will grow!

Jeremy Cowan

If I’m at a party and I’m asked what I do, I don’t say I’m a journalist. Half the guests will slap you just for good measure, the rest just expect salacious gossip which I’m always the last to hear. And if I tell them I’m a telecoms journalist you can see them saying to themselves, ‘Oh my God. Why me? My one night out all week and now this …’ A few will ask what’s going to happen next in mobile phones. But, whether it’s mobiles or M2M, none of us really have a clue, do we? Sure, we know that we’ll launch this new wireless product or that new M2M service, but we’ve no idea if it will succeed.

Some of the greatest successes in communications have been unexpected. Take SMS, for example. Aside from Facebook and Clearasil, after two decades it’s still every teenager’s best friend. According to MobileFuture we sent 8 trillion texts globally in 2011. The first SMS was sent on December 3, 1992 from a PC via the UK’s Vodafone network, and it just said ‘Merry Christmas’. Initially, the marketing types said it would be used by secretaries to tell their bosses about diary changes. Wrong. Millions of bosses ignored SMS completely, until finally they learned from their children how to avoid expensive mobile calls. Operators loved it because the profit margins on SMS traffic were huge, and who was worried about latency? My point is this, while it’s entertaining to try and guess the next M2M ‘Killer App’, (see our Predictions for 2013 on page S12 in our Mobile World Congress supplement) it is probably also fruitless. Will it be a service in e-health, agriculture, automotive or smart cities? I don’t know and I suspect you don’t either. What really matters is creating the right pre-conditions for new services to blossom; such as effective global partnerships, scalable M2M platforms, repeatable business models, and standardisation for tomorrow’s services (not yesterday’s). Most of this we can prepare for ourselves. Meanwhile, I hope you enjoy the magazine and supplement.

EDITORIAL ADVISORS EDITOR & PUBLISHER Jeremy Cowan Tel: +44 (0) 1420 588638 j.cowan@m2mnow.biz DIGITAL EDITOR Nathalie Bisnar Tel: +44 (0) 1732 808690 n.bisnar@m2mnow.biz BUSINESS DEVELOPMENT DIRECTOR Cherisse Jameson Tel: +44 (0) 1732 807410 c.jameson@m2mnow.biz OPERATIONS & EVENTS DIRECTOR Charlie Bisnar Tel: +44 (0) 1732 807411 charlie@wkm-global.com DESIGN Jason Appleby Ark Design Consultancy Ltd Tel: +44 (0) 1787 881623

M2M Now March 2013

CIRCULATION Circdata Tel: +44 (0) 1635 869868 PUBLISHED BY WeKnow Media Ltd. Suite 138, 70 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU, UK Tel: +44 (0) 1732 807411 DISTRIBUTION UK Postings Ltd Tel: +44 (0) 8456 444137

Erik Brenneis, Head of Vodafone M2M

Alexander Bufalino, SVP, Global Marketing, Telit.

Robin DukeWoolley, CEO, Beecham Research

Baard Eilertsen, President & CEO, Maingate

M2M Now is distributed free to selected named individuals worldwide who meet the Publisher's terms of Circulation Control. If you would like to apply for a regular free copy supplied at the Publisher's discretion visit www.m2mnow.biz If you do not qualify for a free subscription, paid subscriptions can be obtained. Subscriptions for 5 issues per year cost £125.00 worldwide (or US$210 / €160) including post and packing.

Ann Hatchell, Bridgewater Systems

Tony Jackson, Director, Telecoms, Convergys Smart Revenue Solutions

Gwenn Larsson, Head of Marketing, Telenor Connexion

Marie-Paule Odini, HP CMS

Fergus O'Reilly, Chief Solution Expert, SAP Consume to Cash

COMMENT

MARKET NEWS

Strategic Research Unit for smart and super grids to open at DNV KEMA HQ Bjørn Haugland, DNV: Need for modernisation of electricity infrastructure

DNV is to open a new Strategic Research Unit at DNV KEMA’s global headquarters in Arnhem, the Netherlands. It will focus on the further development of smart grids and super grids; these are a prerequisite to integrate large-scale renewable energy in the future energy system.

Theo Bosma, DNV Research & Innovation: DNV’s 2,300 energy experts

Smart grids and super grids are essential for the further development of future energy systems. In November 2012, DNV KEMA announced a €70 million investment to create the world’s first laboratory in extreme testing for the upcoming super grids market.

“There is a global need for extra capacity and modernisation of electricity infrastructure to meet the growing electricity demand. By opening up a strategic research unit for smart grids and super grids in Arnhem, DNV is preparing the practices and tools we need to meet the growing demand as well as facilitate the integration of largescale renewable energy to the grids,”

said Bjørn Haugland, chief technology officer (CTO) of DNV and a member of the Supervisory Board of DNV KEMA. Theo Bosma, head of DNV Research & Innovation in Arnhem, said, “There are 2,300 energy experts in DNV. As far as known, this is the only research centre in the world that concentrates on smart grids and super grids exclusively.”

Global M2M market grows 14% on 2011 to reach €22bn in 2012 The DigiWorld Institute by IDATE has published its annual, global M2M market report. Among the report’s principal findings are: The M2M market is growing quickly. In 2012, the cellular market is expected to represent 140 million modules worldwide for a total market of €22 billion – of which €5.1 billion is for connectivity. M2M market growth was around 14% per annum in value and 36% in volume. Most revenues came from software and IT services – around two-thirds of the total market value. The world M2M market should grow by 30% in volume to represent almost 370 million modules in 2015. Asia-Pacific should dominate Europe and North America in volume only. The DigiWorld Institute expects that Europe will still lead in value, followed by North America. M2M market growth will be driven by three verticals: automotive,

consumer electronics and utilities. While they will theoretically drive the market, some barriers could obstruct growth in automotive and utilities M2M. Some applications in these verticals are recurrently delayed (as with the eCall regulation in Europe, and high-scale utility deployments) and have a potential impact on the traditional M2M market. Most smart meters will be connected to the cellular network through a concentrator, and large utility players will try to drive down the unit price. The embedded SIM (eSIM) has animated the debate on M2M and beyond. eSIMs refer to SIM cards welded into the modules at manufacturing and the capacity for remote activation and provisioning overthe-air (OTA). It offers the possibility of switching from one carrier to another one. Some hurdles to eSIM implementation exist in the M2M industry, but it could be a strong driver for market development. Telcos are still looking for

opportunities beyond connectivity. Despite low and declining ARPUs, M2M offers them attractive opportunities as projects offer high lifetime value, reduced churn and average deals for thousands of SIM cards. Connectivity alone should represent €8.2 billion in 2015 worldwide (€3 billion in Europe) and more than 5.7% of mobile data revenues for European telcos. MVNOs are being pushed out of the market and so are repositioning themselves as platform providers, while module providers are challenged to break even amid falling unit prices. "The M2M market is growing very fast but its development is not spread out homogeneously over the vertical markets," says Samuel Ropert, project manager and senior consultant at IDATE. "We predict an average growth rate (AGR) of 40% until 2016 (volume) for the automotive industry worldwide. Consumer Electronics has an AGR of 15% and will represent barely a third of the M2M volume for the automotive industry in 2016."

M2M Now March 2013

PEOPLE NEWS

Wolfgang Kroh replaces Ramez Younan as Orga Systems chief executive Wolfgang Kroh has been appointed as the new chief executive of Orga Systems GmbH. Kroh succeeds Ramez Younan who has left the company to pursue other Wolfgang Kroh interests. The Executive Board of Orga Systems now consists of Kroh and and the company’s chief financial officer (CFO), Johannes Nussbickel, who joined in 2011. Kroh is an experienced executive from the information technology and telecoms industry and was formerly chief executive of LHS Aktiengesellschaft. LHS was an independent vendor of customer care and billing solutions and Frankfurt Stock Exchange-listed company that was acquired by Ericsson in 2007 and fully integrated into the Ericsson Group in 2010. Kroh will bring broad general management skills and his long-standing international experiences in sales and marketing into this new role. Younan joined Orga Systems three years ago from Oracle. Under Younan, Orga Systems achieved financial growth, adding global customers and expanding into new territories and industries.

For all the latest News go to: www.m2mnow.biz

M2M Now March 2013

TIA brings in B&B Electronics’ Conley for oneM2M standards organisation B&B Electronics’ cellular device product manager and wireless expert, Bill Conley, has been called on by the Telecommunications Industry Association (TIA) to participate as a TIA delegate to the newly formed oneM2M (www.onem2m.org). This organisation of global standards bodies, launched in July 2012 by seven of the world’s leading information and communications technology (ICT) Standards Development Organisations (SDOs), aims to ensure global functionality of machine-tomachine (M2M) communication systems. oneM2M plans to develop the technical specifications that enable M2M devices to communicate worldwide. Conley’s TIA 2012 presentation on the need to simplify the cellular network certification process prompted TIA to broaden its focus to include issues such as certification and Bill Conley deployment, and brought about his delegate nomination. Conley demonstrated the complexities and inconsistencies that device makers and developers encounter while certifying M2M devices, and that users encounter while attaching and using M2M devices on various carrier networks. He then proposed a common cellular network provisioning and connectivity framework, including a central, industry-supported M2M certification centre that would encourage more collaboration between developers and carriers. Mr. Conley’s TIA presentation is entitled: A Framework for “Plug and Play” Industrial M2M Solutions. According to Cheryl Blum, TIA vice president, Mr. Conley’s ideas to eliminate

certification complexity struck a nerve with the audience that spilled into the hallways after his TIA presentation. “Conley’s wireless expertise and his intuition of how carriers and manufacturers can work together will help oneM2M achieve global standards,” said Blum. “We are reaching out to bring expertise from many M2M-related market segments to the oneM2M development table, and B&B can help us in vertical markets such as telematics, intelligent transportation, and industrial automation.” B&B Electronics has joined oneM2M, which now has over 130 members.

ORBCOMM hires Patrick Shay as EVP for Sales and Marketing ORBCOMM Inc., a global satellite data communications company based in Fort Lee, New Jersey and specialising in twoway machine-to-machine (M2M) communications, has announced the appointment of Patrick Shay as executive vice president (EVP), Sales & Marketing. “We are pleased to bring Patrick on board,” said Marc Eisenberg, chief executive officer of ORBCOMM. “With his wealth of experience, we can anticipate a major contribution by him to our continued success. As we lead up to the launch of our next generation satellites, we expect Pat to play a leading role.” Mr. Shay has 25 years of leadership experience in the GPS and wireless markets. Most recently, he was vice president & general manager for DeLorme. Prior to DeLorme, Mr. Shay served as vice president & general manager of Data Services at Iridium Communications. Mr. Shay has also previously held vice president positions at Hughes Telematics, Sirius Satellite Radio and Rand McNally.

PRODUCT NEWS

IBM, STMicroelectronics and Shaspa enhance IoT heat, light and security control at home IBM (NYSE:IBM), STMicroelectronics (NYSE:STM) and Shaspa are collaborating to use cloud and mobile computing to enable consumers to manage and interact with their homes’ functions and entertainment systems. Together, the companies are using multiple user interfaces such as voice recognition and physical gestures to “create a smarter home”. A ‘smart home’ brings networking functions together, developing a gateway that connects a television, computer or mobile device with smart meters, lights, appliances, plugs and sensors within the home as well as services from outside. Analysts Parks Associates forecast that more than 8 billion devices will be

connected on the home network by yearend 2015.1 The three companies recently demonstrated a TV linked to ST’s Home Gateway, running software from business partner Shaspa, and connected to the IBM cloud. Through sensors, the system can monitor home parameters such as temperature, carbon dioxide level through a wireless or ‘batteryless’ IPv6 network. It can also monitor human motion within the home. The data can then be communicated to a smartphone or tablet via a wireless router, so that the home owner can offload much of the home management to the cloud, and interact with the system using event

and time-based preset scenarios. The companies anticipate that this initiative could allow consumers to use any device capable of running apps to manage a variety of personal activities such as viewing their home’s energy consumption; controlling security, heating and lighting systems; activating home appliances such as washing machines; monitoring health and assisted living conditions; or engaging in e-commerce. For example, a person with limited mobility could gesture to the TV to unlock the front door, turn up the heat or check vital signs. This project represents the future of electronics technology, as sensing devices and equipment respond seamlessly to user needs and requests, emulating the way humans sense their environment.

Reference: 1 http://www.parksassociates.com/whitepapers/parks-serviceproviders-wp2011 For the full article, go to: www.m2mnow.biz

New Qualcomm-based modules expand Telit’s 3G HSPA and HSPA+ offerings Raleigh, North Carolinabased Telit Wireless Dominikus Solutions, a global Hierl, CMO vendor of M2M modules at Telit and value-added services, Wireless has introduced the UE910 Solutions V2 HSDPA and HE910 V2 HSPA+ modules based on Qualcomm Technologies, Inc. chipsets. Each module is to be banded for European and North American markets. Both machine-to-machine (M2M) products feature dual-band 3G and GSM/GPRS/ EDGE support. The entry-level 3G UE910

V2 is based on Qualcomm Technologies’ QSC6270 chipset and delivers a top 3.6Mbps downlink data rate. The HE910 V2 is based on Qualcomm Technologies’ MDM6200 chipset and delivers up to 14.4Mbps downlink and 5.76Mbps uplink data rates. The new products are said to be fully compatible with Telit’s xE910 family and can be easily dropped into existing or planned designs for xE910 modules requiring no additional rework. Positioned at entry-level and mid-range respectively, the new Qualcomm Technologies-based

UE910 V2 and HE910 V2 modules enable the Telit xE910 family to enhance crosstechnology compatibility with its other global air-interface technologies. These are Telit’s new 3G products “launched in response to increasing demand for dualband HSDPA, and HSPA+ modules,” said Dominikus Hierl (pictured), chief marketing officer at Telit Wireless Solutions. “They come to address the need from application areas and regions requiring easy interchangeability between CDMA or UMTS lines of air interface technology, particularly in the US, and Europe.”

NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF

Garmin expands its Telematics API platform Garmin International, a unit of Garmin, a global leader in satellite navigation, has expanded its Telematics API platform and the integration of the fleet 590. This is the company’s first portable, connected fleet management GPS. With vital fleet-tracking abilities and driver-enabled capabilities, the fleet 590 delivers an integrated tracking and dispatch fleet system for business owners and their drivers. As a Telematics

navigation device designed specifically for the fleet service provider in mind, the fleet 590 integrates a black box, cable and antenna with Garmin’s user-interface.

Mitsumi and Greenvity to develop ‘robust’ energy management systems Greenvity Communications is partnering with Mitsumi Electric to provide modules and systems for electric vehicles, plug-in hybrids, battery-charging systems, smart meters and smart energy management systems. The products will leverage

Greenvity’s Hybrii® system-on-chips (SoCs) that integrate HomePlug Green PHY powerline communications and ZigBee® wireless technologies into a single chip. The two companies will collaborate in the development of Mitsumi’s DRT-A600 and DRT-A520 modules, as well as systems and software, “enabling robust and intelligent connectivity for a variety of home and building energy management and electric vehicle applications,” said a spokesman. The DRT-A600 and DRT-A520 modules will be powered by Greenvity’s Hybrii-XL GV7011 and Hybrii-PLC GV7012 single-chip solutions, respectively.

M2M Now March 2013

CONNECTED DEVICES

CONNECTED EUROPE EVENT, BRUSSELS:

GSMA says partnerships are key to maximising the ‘mobile opportunity’

Anne Bouverot, GSMA: We are now seeing the third wave with mobile networks delivering connectivity to devices ranging from health monitors and smart meters to connected cars

The GSMA recently hosted an event in Brussels, Belgium called Connected Europe: Supporting Growth with Mobile. The event highlighted the need for European industry and governments to work together to encourage mobile communications to drive growth, increase employment, stimulate innovation and improve sustainability.

Connected Europe also explored how mobile-enabled services can revolutionise core European sectors including transport, healthcare and utilities. (For more on the GSMA’s work in Thibaut Kleiner, EC: Described the healthcare, see pages digital contribution S8-9 in M2M Now’s to smart, Mobile World sustainable and Congress inclusive growth in Europe supplement.) Despite recent setbacks for the European mobile industry with decreasing revenues that will impact future investment, mobile communication is still a key European industry, comparable in size to aerospace and larger than pharmaceuticals, with total revenues amounting to around €174 billion. Speakers included Anne Bouverot, director general, GSMA; Thibaut Kleiner, member of the Cabinet of Vice-President Neelie Kroes, European Commission; Karsten Ottenberg, CEO, Giesecke & Devrient; and Morten Karlsen Sørby, EVP and Head of Strategy and Regulatory Affairs, Telenor Group. “Europe is experiencing successive waves of mobile connectivity,” said Anne Bouverot of the GSMA. “The first wave –

M2M Now March 2013

Europe’s GSM success – connected people on the move. The second wave brought mobile broadband at everincreasing speeds to hundreds of millions of Europe’s citizens and businesses. We are now seeing the third wave with mobile networks delivering connectivity to devices ranging from health monitors and smart meters to connected cars, transforming the face of industry and the lives of individuals.” Europe has the highest mobile penetration rate in the world, with total connections equalling 135% of the continent’s population in 2012 (versus 87% in Asia and 108% in North America). This is predicted to rise to 152% by 2017. Across Europe, it is forecast there will be 2.1 billion mobile connections by the end of this decade, an increase of more than 60% from 1.3 billion today. Advanced mobile broadband networks are delivering faster data rates, low latency and expanding coverage, with currently 326 million mobile broadband connections in Europe alone. Mobile connected devices in Europe are predicted to soar to almost 1 billion by 2020, with the total number of connected devices estimated to reach almost 6 billion.

How to connect Europe Private investment, enterprise and

innovation will be vital for building a Connected Europe, with partnerships between industry sectors and between industry and government. However, EU institutions can enable accelerated development of a Connected Europe by taking a supportive policy and regulatory approach that addresses key demands from the European mobile industry: • Connectivity – encourage investment in mobile broadband networks and reduce obstacles to their deployment • Content and services – enable development of innovative content, services and business models • Confidence – help build consumer trust in new services and encourage their take-up. Bouverot continued: “Europe has been an innovator and leader from the inception of mobile communications, although this leadership position has weakened in recent years. The third wave of mobile and the delivery of connected services present a new and substantial opportunity for future growth.” Sector

Euros

Healthcare

23 billion

Smart Cities & Utilities

46 billion

Automotive & Transport

48 billion

Table 1. Total revenues per year forecast for key industries in Europe through mobile connectivity by 2020

TALKING HEADS

A connected set of new products are being offered by Wyless in 2013. These end-to-end solutions are called Wyless Gears.

(Photos: Courtesy of Sue Welch)

Changing the M2M battleground in 2013 Dan McDuffie’s career spans more than 20 years in the telecom, internet and wireless industries. Wyless’ CEO began by working in the long distance communications industry with Comtel Group and served as senior vice president of Interoute, the pan-European fibre network operator. In 2006 he was Wyless’ first North American employee, becoming Group CEO in 2011. In his spare time he is a stand-in drummer for several over-the-hill ’80s cover bands (his words, not ours), and says he likes to think he can surf. Here, Jeremy Cowan, the editor of M2M Now, asks him to explain Wyless’ belief that M2M is shifting to a new “battleground”. M2M Now: Dan, the obvious question is; Why do you feel that the M2M battleground needs changing in 2013 and what is Wyless doing about it? Dan McDuffie: You know, Jeremy, the other day I took a look back at the interview that we did way back in September of 2011, my famous ‘SIM Card / Deck of Cards’ Cover shot and then at Steve Priestley’s interview last year, and in both pieces we spoke a lot about the evolution of the M2M business, about becoming more end-to-end, morphing from MVNO to MSP, et cetera. During 2012 we put a lot of the building blocks of our evolving business model into place. In my mind it’s all about leveraging our assets and at the same time building more and more services along

M2M Now March 2013

the horizontal value stack. We have a managed network, a software platform, a support infrastructure and an ecosystem of partners. Most important is that we have experience… nearly 10 years of experience in working with partners who are deploying M2M projects of all kinds, of every scale, all around the world. All of these assets and experiences can be leveraged into a modular range of services that are designed to address the needs of our partners and to deliver solutions to our customers. Today most of our peer group continue to push managed connectivity, and layer it with support. Many are really good at it, some maybe not so good, but we won’t name names! Tomorrow is all about solutions. So, that’s what we’re doing to change the

battleground, we are delivering solutions to the market, and this year we are bringing them all together into a coherent set of products. We are calling these end-to-end solutions Wyless Gears. It’s a modular set of products and services that starts at infrastructure and basic connectivity and moves across the entire value chain to hardware, engineering, software, support, billing, branding and even the physical installation of end devices. Our goal is to listen to what our customers and partners need and then provide it. If we can’t provide it, we guarantee that we have a partner who can, and we will make that solution available as a true partner. It’s an extension of the same basic multi-carrier philosophy that has been the cornerstone of our business for the past 10 years… we have moved from National operators to Global operators to what I call a Multi-Domestic strategy. It means that, no matter where you go, you need access to a blend of carriers in order to effectively deploy a global project with more scope and less risk. The same actually applies to many other aspects of the M2M Value chain… an open and agnostic service layer. It’s critical. So, we believe that this is the only way forward in an increasingly complex and ever-evolving market. Customers are demanding a full end-to-end solutions partner and we intend on delivering that promise to the market. If I’m right, and that’s the new battleground, then my goal is to be the first guy on it. In fact, we’re already swarming the castle, I can assure you! M2M Now: So what is the full range of services that a Managed Services Provider needs to offer their customers and partners? Dan: We have grown our products to include Engineering, Professional Services, which includes Project Management, Hardware and Embedded Software Engineering, Software Design and Value Added Services where we have a whole new range of services including handling billing and customer support on behalf of our customers. We have added network design and configuration as well as many elements of the supply chain, including hardware selection through warehousing and installation services. Then, on top of that, we continue to expand the feature set of our Porthos platform, offering not just a service delivery, but an entire ‘MSP in a box’. As we move into 2013 you will hear more and more from Wyless about our Gears strategy, putting more emphasis on the key elements that are required to provide a complete global end-to-end solution with a true modular and consultative approach to our partner’s requirements. We are moving from a transactional to a project-oriented business model. M2M Now: Picking up on some of the points that you have mentioned, the multi-carrier strategy comes through very clearly as one of the key plays in ‘changing the M2M battleground’, do

you see a limit to the number of MNOs that you can partner with successfully? Dan: That’s a tricky question because realistically the answer is, that you can’t have a strategic relationship with everyone. But, that said, if we don’t have a connection to a particular operator, we are doing ourselves, our customers and that operator a disservice. That’s three parties losing out.

“Without a solid relationship-

I mean, you have to draw the line somewhere, we’re not going to necessarily need two mobile operators in Latvia (sorry in advance to the operators in Latvia!), but at the same time we have this philosophy that if a customer really needs a connection to a mobile operator somewhere then we’re just going to do it, it just becomes a time vs. money ROI discussion between ourselves, our customer and the operator and we really truly look at it that way.

building strategy … you are sunk. It’s ‘Business 101’.” Dan McDuffie

I don’t think anybody else is crazy enough to say they will connect to any cellular carrier, anywhere, given the right set of circumstances, but we’ve backed it up with results, so please don’t challenge me; my Project Managers will hate you for it! So, during 2012 we connected to many more carriers, ending the year with over 15 separate MNO connections, and in some cases up to five or six managed connections into each of them. At any given time we are working on three to four more connections, sometimes new managed APNs or MPNs into operators we already have infrastructure with, for a new project, and sometimes to entirely new MNOs. I have no doubt that we’ll be connected to 20 separate cellular operators by the end of this year. That to me is part of the new battleground as well because, let’s be frank, the more places we are with our multi-domestic strategy, the more projects we will get involved with. And when you go beyond just selling and fighting in the connectivity layer to delivering real solutions, then the more projects you have and the higher value you are creating, not just for your company, but for your customers and your partners along the value chain and this includes the MNOs. They’ve all invested billions in their infrastructure and we owe them a lot for building the superhighways that all of our innovative solutions travel over. I want to give them my business and at the same time, provide solutions for them to drive more business on their networks. M2M Now: Do you see any particular vertical markets and solutions that will get more focus in 2013 and beyond? Dan: That’s a difficult question Jeremy, because all of the verticals are just booming, we’re literally seeing it come from everywhere. Of particular focus and interest to Wyless are ‘green projects,’ driver behaviour, and telemedicine. But we’re seeing new innovations in security and also working on lots of new high bandwidth applications including into the enterprise mobility space, which blurs the lines

M2M Now March 2013

TALKING HEADS

between M2M and traditional mobile services. We’ve talked about many of these in the past, of course.

Wyless has moved to a Multi-Domestic strategy, offering an open and agnostic service layer

In the eHealth vertical we have a perfect storm finally coming together… an ageing population and continuing cost pressure on in-hospital care, so that remote homecare, self-diagnosing kiosks in pharmacies, and healthcare apps will become the norm. I think Sam Lucero of IHS (www.imsresearch.com) puts the case for remote healthcare services very clearly with a CAGR of 80.7% for M2M connectivity services revenue over the next few years. It’s clearly a market that cannot be ignored, and Wyless has long been partnered with some of the leading healthcare companies in delivering these next generation services and we will continue to do so. In the green agriculture segment, we have an article in your January 2013 edition of M2M Now that really sheds some light on that growing mark; irrigation control, water savings, all that fun and innovative stuff. But I have to say, Jeremy, that I truly love this business of M2M that we’re in, and the promise of every vertical that is in it, because of the immense and innovative changes that they bring across virtually every industry.

M2M Now Jargon Buster So, we are really horizontal across all the verticals, and APN = Adaptive Private Network CAGR = Compound Annual Growth Rate MNO = Mobile Network Operator MPN = Mobile Private Network MSP = Managed Service Provider PR = Public Relations ROI = Return on Investment SIM = Subscriber Identity Module

continuing to try to expand at least as quickly as the market is expanding around us. I’m at the point where if I see someone doing something new and innovative in the space and we are not involved in either that project or something similar I get really upset! It’s also pretty rewarding seeing the MNOs now run these M2M-focused Ads during Sunday Football in America, where they’re lauding the power of wireless networks to change the world. I like the fact that when you lift up the covers on a lot of that business, you find Wyless inside. M2M Now: Traditionally you have focused on Europe and the USA. What can you tell us about your global expansion plans? Dan: Well, let’s just say that the global strategy is currently in full play. As I write this I have one of my

M2M Now March 2013

VPs heading to Panama, another one is booking a trip to Jakarta, a group of Project Managers just back from Tokyo, a partner just back from South Africa with a new project in hand, a key partner with a parking meter installation in Israel, a green energy project in a new Smart Building in Singapore, and the list goes on and on. Our target expansion markets this year are Latin America and Asia, and later this year we are going to start making a concerted effort to push into Africa and the Middle East. I’m not sure what’ll be left after that, maybe some Pacific Islands! M2M Now: So, what you’ve outlined here, Dan is an extremely broad strategy. How do you keep up with it all? Dan: It’s pretty stressful, Jeremy, I can assure you! I do get accused of throwing more and more in the mix just to keep people on their toes, and not a week goes by without one of my senior managers rolling their eyes and saying, ‘So now we’re doing that?’. Actually, for me it comes down to two things; good people and good partners. Without a solid relationship-building strategy that comes from within and emanates without, you are sunk. It’s ‘Business 101’ but it’s amazing to me how many companies in the industry don’t get it, they are all about me, me, me. In this new era of ever-increasing cycles spinning faster and faster, without constant evolution and an everexpanding partner strategy, you are tomorrow’s dinosaur. I’d like to say that we have chosen our partners carefully, but truly they have chosen us, and together we’ve built a relationship based on trust, council, and an open, strategic plan that is a win/win/win. Customer, Supplier, Partner. The lines between those three are getting fuzzy here at Wyless, and that’s when you know you’re doing something right. What keeps me up at night is the tremendous responsibility that our customers, suppliers and partners have given us. I’m terrified at letting them down, and it’s what keeps us going here at Wyless and what I hope continues to drive us outside of our comfort zone. I want to take on more and more of that responsibility, embrace the discomfort, and truly add immense value to our ecosystem. You all know who you are, you are on our web site, in our PR, in our offices and we are in yours and we thank you for your trust, your council and your business. It’s good to be well connected.

CONTRACT NEWS

Jasper Wireless deploys Tekelec’s Policy Server to enable global machine-to-machine services

Doug Suriano: Tekelec’s Policy Server will ensure that Jasper can quickly scale its deployment of connected devices

Jasper Wireless, a leading connected devices platform for M2M and consumer electronics, is deploying Tekelec’s Policy Server (PCRF) to provide the scalability and flexibility M2M services require. Tekelec’s PCRF sets rules governing when devices transmit information in order to minimise congestion and maximise

capacity over 3G and LTE networks. It can apply different qualities of service to different machines and implement flexible service plans based on transactions, connections, time of day, location, applications, or data usage. “Our operator partners rely on us for bestin-class solutions and that’s a big reason why we selected Tekelec," said Jasper Wireless' CTO, Daniel Collins. "Our highly configurable solution offers automation of operational processes, including custom device provisioning, instant activation, real-time diagnostic tools and detailed

MobileHelp® medical alert utilises u-blox GPS and 2G/3G capabilities u-blox, the Swiss positioning and wireless chip and module company, has been chosen for global positioning and embedded 2G/3G wireless technologies by MobileHelp, a provider of M-PERS (MobilePersonal Emergency Response System) technology in America. Based on u-blox’ LISA 2G/3G wireless modem and MAX GPS modules, the comprehensive system includes compact, portable alert devices that function in and around the home, and while travelling. “As the population ages, more and more

people are choosing to remain independent for as long as possible,” said Robert Flippo, president of MobileHelp. “With the help of u-blox’ reliable, low-power positioning and wireless technologies, our MobileHelp medical alert systems are giving a whole generation of people the freedom to live in their homes and travel independently, knowing that simple and fast emergency assistance is just a push button away.” MobileHelp devices deliver instant positional information to an emergency response centre at the touch of a button.

billing and usage reports, to ensure customers benefit from an enhanced user experience.” “Jasper’s services are helping mobile operators capitalise on an M2M revenue opportunity that will grow to nearly US$1.2 trillion by 2020 according to the GSMA,” said Doug Suriano, CTO of Tekelec. “Tekelec’s Policy Server will ensure that Jasper can scale its deployment of connected devices and services quickly and profitably.”

MobileHelp® can deliver personalised medical data to an emergency response centre

The system is integrated with nationwide wireless voice, data and satellite GPS technology to provide real-time medical monitoring services, location tracking, and instant voice contact with trained emergency response operators.

NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF

Vodafone approves global use of M2M smart services kit Kontron’s M2M Smart Services Developer Kit has passed the extensive 2G and 3G tests carried out by the Vodafone Test & Innovation Centre and is now approved to operate globally on Vodafone cellular networks. OEMs can use this applicationready machine-to-machine (M2M) platform to connect their distributed systems via GSM-based 2G/3G networks to the Internet-of-Things (IoT) and to embedded cloud applications. Kevin Rhoads, vice president, Embedded Products Business Unit at Kontron, said,

“Customers are (now) in a position to deploy our M2M Smart Services Developer Kit globally. We continue to offer wider deployment options for our customers with cellular connectivity on various Tier 1 carriers worldwide.”

First order for new smart grid technology signed in Denmark The energy supplier, Østjysk Energi (DK), has signed a contract on a complete wireless smart metering system, including 30,000 smart meters. This makes Østjysk Energi the first utility to order the new smart grid-platform, OMNIA from Kamstrup.

Installation manager, Brian Hansen, from Østjysk Energi explained: “In the selection process we were interested in usability as well as system performance and security aspects. Especially data security must be weighted when implementing a futureproof smart metering system. Our main focus, though, has been on the functions that will give us an advantage in terms of grid optimisation and improved maintenance work.”

M2M Now March 2013

THE CONTRACT HOT LIST

M2M Now March 2013

It's free to be included in The Contract Hot List (below), which shows the companies announcing recent contract wins or product deployments. If your contract is not listed here just email the details to us now marked "Hot List" <j.cowan@m2mnow.biz> Vendor/Partners All Stop Vending Axiros Efacec ACS (Smart Grids) Eurotech Gemalto Gemalto Gemalto Giesecke & Devrient Harris Utilities SmartWorks IBM Kamstrup Kontron Kordia Mitsumi Sony Telit Wireless Solutions u-blox

Client, Country USA Technologies, USA Vision Net, USA City of Griffin, Georgia, USA ThingWorx, USA Svyaznoy Bank, Russia Yokosuka, FUJITSU TEN, ERTICO, Japan Cargo Tracck™, Brazil CIBC, Canada Braintree Electric Light Dept, USA Shaspa and STMicroelectronics, USA Østjysk Energi, Denmark Vodafone Group, International O3b Networks, New Zealand Greenvity, USA InterDigital, USA Digicom SpA, Italy MobileHelp, USA

Product/Service (Duration & Value) To use ePort® for cashless payment and telemetry hardware platforms Contract to bring remote device manager service to Tier-3 markets To provide PRISM™ Real-time Outage Management System (OMS) Pre-integration partnership to simplify and cut costs of M2M deployments Deploying the first large scale prepaid card offer for customers in Russia Launch eCall testing facility to help auto makers meet EU eCall standards Wireless connectivity in a programme to thwart illegal Amazonian logging Chosen as TSM for CIBC's NFC credit card payment services offering Deploys MeterSense to turn smart meter data into business intelligence Collaborate to enhance IoT control of home heating, lighting and security First order for new smart grid technology signed in Denmark M2M Smart Services developer kit approved for use on Vodafone networks Installation of a Tier-1 satcomms terminal for Telecom Cook Islands (TCI) Partner to provide 'robust' energy management systems JV to combine consumer electronics expertise and wireless M2M research Modules to optimise T-LOG, a meter reading device for gas, LPG & water GPS and wireless enabled instant assistance during medical emergencies

Key: CIBC =

Canadian Imperial Bank of Commerce

eCall =

Emergency response for drivers

NFC

European Union

TSM =

Joint Venture Near Field Communications Trusted Service Manager

Awarded 12.2012 12.2012 1.2013 12.2012 12.2012 1.2013 1.2013 12.2012 1.2013 1.2013 1.2013 1.2013 1.2013 1.2013 1.2013 12.2012 12.2012

Kontron's Smart Services developer kit has been approved for global use on Vodafone networks

More information on all these and other News stories can be found at www.m2mnow.biz

DIARY

Event Diary

Don't forget to add the following events to your organiser. As M2M Now is Official Media Partner for many of these events we look forward to seeing you there.

V2X for Auto Safety and Mobility Europe 2013 February 20-21, 2013 Le Meridien, Park Hotel, Frankfurt, Germany www.telematicsupdate.com/vehicleto-vehicle-conferenceeurope/index.php

M2M Telematics: Fleet Management & Usage Based Insurance February, 20-21, 2013 Copthorne Tara Hotel, London, UK www.smi-online.co.uk/m2m28.asps

Mobile World Congress 2013 February 25-28, 2013 Barcelona, Spain www.mobileworldcongress.com

M2M Now March 2013

Embedded World 2013

M2M Forum 2013

February 26-28, 2013 Nürnberg, Germany www.embedded-world.eu

May 14, 2013 Milan, Italy www.m2mforum.it/eng

Smart Utilities Scandinavia 2013

CommunicAsia 2013

April 17-18, 2013 Stockholm, Sweden www.smartutilitiesscandinavia.com

MVNOs World Congress April 22-24, 2013 Rome, Italy www.mvnosworldcongress.com

M2M for the Security Industry May 8-9, 2013 Copthorne Tara Hotel, London, UK www.smi-online.co.uk/m2msecurity1.asp

June 18-21, 2013 Marina Bay Sands, Singapore www.communicasia.com

Smart Utilities Scandinavia 2013 will be held in Stockholm

C-LEVEL VIEW

Oozi Cats is CEO of Telit Communications PLC

Telit’s strategy evolves as the M2M market matures It’s been a busy year for Telit Communications PLC, with the integration of several businesses acquired in 2011 plus the launch of m2mAIR, its managed service. So, when M2M Now caught up with Oozi Cats, the company’s CEO there was no shortage of things to discuss. M2M Now: It’s now six months since Telit launched m2mAIR. What reaction have you had from the market as a whole, and how do your clients view it? Oozi Cats: Very positive – m2mAIR is being very well received as we expected. We continue on track, helping more and more of our customer base to engage us with m2mAIR services. When you look at some of the causes for slower than expected adoption of M2M, you start seeing that a great number of the really innovative M2M applications come from small companies with minimal resources to address the demanding relationships in the M2M value chain. The m2mAIR value proposition was designed with these customers in mind. It helps them get all the M2M value added services they require for their applications, including pricing that is competitive with those reserved for very large customers; getting them started with the very best at very low administrative cost since it is all coming from us. Our channel partners like it as well, because most of these Telit customers are buying modules and other services and products from them, so this gives them an opportunity

to expand their relationships with their valued customers. M2M Now: Has anything about m2mAIR changed since it was launched? OC: Indeed – we have further enhanced our service proposition with several new and value-rich features and our module management topping the list. One of the features allows our customers to locate their application in the field even without GPS. These are all solutions that provide our customers with real-time, business-critical information on where their devices are, their network coverage, and diagnostics. Plus they can quickly troubleshoot the most common issues. They can use this information plus their business operating parameters to set alerts and limits to contain overages and eliminate unwelcome surprises from data run-away devices – for total cost control. Really designed to streamlined logistics, operations, and troubleshooting. One of the key components we have added to m2mAIR to achieve this level of control is called Intelligent Performance Analyzer or IPA. It is an

M2M Now March 2013

C-LEVEL VIEW

M2M Now March 2013

innovative service that allows customers to set specific deployment wide performance indicators enabling monitoring of behaviour of an entire M2M deployment with individual real-time alerts designed to identify problems even before they start to affect that customer. And we recently announced the acquisition of CrossBridge, a US-based telecommunications services provider focused on the M2M space which in the coming months we will be fully integrating into the m2mAIR business unit effort. Having already acquired GlobalConect, the acquisition of CrossBridge Solutions is consistent with our philosophy of providing additional products and services to our target customers as described above, in a manner that helps them reduce their time to market and better manage their technical risks. CrossBridge Solutions has a long history of providing M2M services dating back to private radio days and the Ardis® network. Because of this rich history, the CrossBridge Solutions team is the best in industry experience which will allow us now to offer more comprehensive coverage in M2M solutions to m2mAIR customers. The key success factor for m2mAIR is its market positioning. We are completely aware of this requirement and now have some of the best minds in the industry helping us execute a market plan with exacting accuracy. M2M Now: In the mobile computing arena Telit recently launched the PCIe form factor and now the NGFF. Can you describe these products and their significance for our readers? OC: As cellular data speeds approach DSL’s and other wired Wide-Area-Network (WAN) technologies, the industrial and commercial PC markets start to warm up to the adoption of cellular as a replacement connection for their hardware. It is, after all, a lot simpler to connect a PC to the internet by just plugging it into power than having to run wires from patch panels or access points, securing approvals from IT managers and other issues. Couple high-speed with competitive data rate plans and all adoption barriers disappear. That is why we have expanded our relationship with Intel on the development of these industry standard data card form factors, and why we plan to continue adding to both the mPCIe and NGFF M.2 product families in the years ahead. Particularly as LTE deployments become more prevalent and the IT industry moves to supply

more cellular-based residential broadband internet connection boxes and gateway products.

“… that takes care

M2M Now: What is the strategy behind this launch?

if it is an issue.”

of the 2G issue – Oozi Cats, Telit

OC: Until recently, a large network equipment provider and chip set provider had over 50% market share of the data cards used in Mobile Computing products, primarily using the Mini PCIe data card format. However, this supplier has exited the market and that represents a potentially disruptive development in the supply chain, which requires confidence in long-term, high-volume supply as well as a strong global and local support structure. So, since we are the industry’s only pure-play M2M module supplier, we have licensed the new M.2 LTE and HSPA+ reference designs in a move to meet the demands from notebooks, Ultrabooks™, tablets, routers, cameras, gateways and other electronic OEMs, in addition to the industrial and commercial markets we started serving last year with the mPCIe form factor. The 30x42mm M.2 data cards support GNSS, are certified for Windows™7 & 8 and include remote firmware update switching. To accelerate time to market for the PC OEMS Intel has validated these M.2 cards for use with the Intel Tablet and Ultrabook™ reference designs. M2M Now: Since these are used in mobile computing is Telit moving towards 3G or 4G, or are you still content to use 2nd Generation (2G) mobile communications? OC: 2G is still doing well everyplace else other than the US. In the rest of the global markets we don’t hear of short-term plans to sunset 2G. We have, in fact, upgraded our top-selling 2G modules with brand new chipsets and technology which will guarantee supply for the long term. These new generations of modules are very energy efficient which, coupled with their very small physical dimensions, are now enabling some very exciting emerging application areas such as wearable technology. In the US we are seeing strong demand for our xE910 form factor which supports 2G/3G, CDMA/HSPA. And we are seeing many customers now coming to market with 3G solutions based on the 910 form factor, like the recently launched HE910 HSPA+ or the UE910 V2 for HSDPA. M2M Now: How will M2M users and service providers benefit from Long-Term Evolution to 4G (LTE)?

M2M Now March 2013

C-LEVEL VIEW

“For those adopters that have not yet started to look at short range, this is probably a great time to start.” Oozi Cats, Telit

OC: For most M2M applications, 3G speeds are more than enough and with coverage now beginning to match historical 2G coverage in the US we believe 3G will take on the role 2G once had of being the standard fall back for less densely populated and rural areas. The US has been a leader in deploying LTE and we see the highest level of interest for LTE in that market. Other than automotive applications which take three to four years to develop and mobile computing where demands are at the cutting edge, we don’t see LTE volumes for M2M growing until 2014/15. Most customers are choosing HSPA and CDMA 1xRTT for new designs as coverage is ubiquitous, costs are reduced and applications requiring voice are well served. LTE will enjoy a healthy boost as silicon prices begin to become more competitive and the requirement to provide legacy 3G connectivity ceases. LTE will be, for the vast majority of global cellular infrastructure deployments, an urban and metropolitan proposition for a good time to come. However, the higher data rates, faster latency, lowering prices points and the improved processing power available in such M2M designs will inevitably mature the M2M landscape. This is in much the same way as how the voice and SMS cell phone has been eclipsed by the ever increasing use cases consumers and businesses find daily for the smartphone. M2M Now: Who are the early adopters of LTE in M2M? OC: Automotive OEMs have to start designing in technology now for model years many years out. So you see many of them adopting LTE now in response to the need to support internet-based infotainment and intelligent navigation systems. So we should expect to see higher end vehicles equipped with LTE connectivity from 2014 onwards. We expect that IP TV, streaming video content will be a rich space for LTE but it is unclear how it becomes an M2M play. Mobile computing, of course, will continue to demand ever quicker and faster connectivity. Fixed Internet Home Gateways are likely to surface strongly soon to replace and compete with DSL and Cabledelivered internet services. M2M Now: How long will 2G remain relevant as a service technology? Would you still recommend a design on 2G? OC: In the US, the movement in M2M from 2G to 3G is already under way, and in 2013 we will ship a lot of 3G modules in the US and elsewhere. Generation transition should definitely NOT take centre stage for product evolution plans for M2M adopters. This is understandably a concern particularly in the US but with our family concept, customers are protected in all

M2M Now March 2013

risk dimensions pertaining to cellular generational transition issues. Take a device freshly designed for 2G, based on the GE910 or CE910. When the adopter feels it is time and conditions with rate plans and coverage hit the necessary points, all they have to do is drop in the HE910 or LE910: whichever and whenever it makes sense. And that takes care of the 2G issue – if it is an issue. We believe M2M adopters should really at this point be taking more time to understand other dimensions related to M2M integration. One is the rising play that short range wireless will continue to have as markets demand more things connected and fewer wires to connect them with: sensors, actuators, readers, and so on. So, for those adopters that have not yet started to look at short range, this is probably a great time to start. Similarly, it is time to develop a more thorough understanding of location awareness for devices. We are at a crossroads where positioning and GPS are no longer synonyms. Technology providers like Telit are redoubling efforts to bring about this revolution that decouples satellite location from positioning. Soon it will not be enough to be only satellite location-aware. Satellite fixes cannot be reliably obtained in garages and inside buildings. Additionally, satellite-only positioning devices can be disrupted by jammers. So, whereas satellite will continue being an important component of positioning, it will quickly be replaced by much smarter technology that can look at a group of different sources to give devices an accurate and reliable fix no matter what. And finally, I would definitely start looking at the services necessary to support adopters through all this. This is a good time to question the make-up of the services that I can get, and what will I get from my M2M services and connectivity providers in the years to come. This is perhaps the area where most changes will happen and where adopters need to spend a great deal of time looking for answers to questions about the progress of the services structure they either already use or plan to be using going forward. M2M Now: Will M2M lead automatically to the Internet of Things (IoT)? When will we see this happen? OC: Yes, we believe it will. The blog by Steve Hilton, analyst for Analysys Mason‘s carried by M2M Now on December 18th last, is for us spot on. I believe we are on the very verge of its start. The convergence with Cloud technology and Big Data will definitely have a lot to do with when and how fast this happens.

The ideal

footprint

No.

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C ASE STUDY

Cargo Tracck and Gemalto protect Brazil’s Amazon rainforest with M2M technology The Amazon rainforest in Brazil is vital to stabilising the earth’s environment, producing oxygen, absorbing greenhouse gases and providing natural habitat for 30% of the world’s plant and animal species. However, strong global demand for rainforest wood combined with the enormous profitability of illegal logging operations is fuelling decimation of this precious global resource at an alarming rate. Ten of the The Challenge devices were covertly

More than 4,000 square miles of Brazilian rainforest has been destroyed in the last two years alone, with 224,000 square miles decimated since record keeping began in 1980.

installed in remote active harvesting

With current lumber prices at an eight year high, lumber gangs unlawfully felling trees for profit have become increasingly pervasive – and with devastating environmental consequences.

areas deep in the jungle

Traditionally, satellite and radio monitoring were effective at policing the massive Amazon rainforest, which is roughly the size of the United States. But as sophisticated thieves abandoned clear-cutting for stealthy new logging strategies that target small tracts of the most prized trees, new monitoring methods and strengthened protection were needed. So, IBAMA, Brazil’s environmental protection agency, enlisted the help of Cargo Tracck to develop new technology to help locate and identify thieves and bring them to justice.

Successful ‘sting’ operation In June 2012, with international attention tuned to Brazil and the United Nations’ Rio+20 Conference

M2M Now March 2013

on Sustainable Development, Cargo Tracck and Gemalto devised and executed a successful pilot programme and sting operation that demonstrated how powerful machine-to-machine (M2M) technology can be used to catch thieves in action and stop deforestation. Designed by Cargo Tracck, the discreet tracking solution uses Gemalto’s Cinterion® BGS2 M2M module that is said to be tiny and powerful, to enable cellular communications between trees and law enforcement. New Radiation Data Exchange (RED) technology boosts the range of wireless communications extending the reach to extremely remote areas that lack mobile network coverage. Smaller than a deck of cards, the tiny tracking device is camouflaged in a resin case made to blend in with the tree trunks. Ten of the devices were covertly installed in remote active harvesting areas deep in the jungle. In addition, specialised night-vision cameras were installed in nearby trees to capture visual evidence of illegal logging activities. The sophisticated power management system of the Cinterion module enhanced power efficiency,

allowing the device to operate reliably in the field for over a year without recharging batteries. Then, when lumber gangs harvested a tagged tree, the solution immediately began sending alarms to law enforcement officials.

sold and processed at sawmills. The Cargo Tracck device provides a new, cost-effective solution for real-time, remote monitoring and it delivers new hope for preserving one of Brazil’s most precious resources.

Cargo Tracck’s geo-location algorithms, along with the RED boosters provided unprecedented location accuracy, delivering tracking data and alarm notification to officials as soon as harvested trees passed within 20 miles of a cellular network. This allowed officials to remotely track trees, and to intercept and arrest thieves in the act of selling timber at sawmills, which ultimately led to quicker prosecution.

With Gemalto’s ultra-compact Cinterion module, the device is small enough to remain undetected in logs, rugged enough to operate reliably in rainforest heat and moisture, and powerful enough to track trees through remote and dense forests. Combined with the sophisticated software developed by Cargo Tracck, the solution allowed tracking even in areas with little or no GSM coverage. Addressing these geographic and environmental challenges had previously eluded law enforcement using satellites and other traditional methods.

M2M successful when other systems fail Deforestation of the Amazon causes significant environmental and global economic damage. Environmental consequences include soil erosion and climate change, estimated by the Skoll Foundation to cause roughly one-fifth of global carbon emissions. Economically, the illegal lumber trade depresses world timber prices and accounts for up to US$7 billion in lost capital for producing countries every year.

Today, Gemalto’s Cinterion M2M technology is integrated in a variety of solutions that enable machines, devices and even trees to communicate on mobile networks to improve processes, productivity and efficiency. The Cargo Tracck solution highlights how Gemalto M2M technology can be applied to help deter crime and protect the environment.

To adequately fight illicit logging and make criminals accountable, it is vital to catch thieves in the act. It is exceedingly difficult to track timber after it has been smuggled out of the country or

The technology is also used to enable secure POS transactions; remotely manage assets, buildings and industrial operations; improve productivity of fleet operations as well as to power specialised industrial personal digital assistants for workforces.

For more information go to: www.gemalto.com/m2m/explore/index.html

Gemalto (Euronext NL0000400653 GTO) specialises in digital security with 2011 annual revenues of €2 billion and more than 10,000 employees operating out of 74 offices and 14 Research & Development centres, located in 43 countries. Billions of people worldwide increasingly want the freedom to communicate, travel, shop, bank, entertain and work – anytime, everywhere – in ways that are enjoyable and safe. Gemalto’s expertise lies in personal mobile services, payment security, authenticated cloud access services, identity and privacy protection, eHealthcare and eGovernment efficiency, convenient ticketing and dependable machine-to-machine (M2M) applications.

M2M Now March 2013

BILL & CH ARGE

EXPERT OPINION:

Telcos should look closely at their M2M billing and rating systems, says Cycle30 Cycle30 may not be a familiar name yet to every reader, but as a spin-out from General Communication Inc., (GCI) this two year-old business has an enviable pedigree in developing billing and order-to-cash solutions for various communications sectors. It also has a stern warning for anyone tempted into M2M services without checking that their billing system is up to scratch. Just over two years ago a new name appeared at the leading communications industry events focused on billing and payment. Unlike most startups, though, Cycle30 was able to hit the ground running with a proven suite of software products.

Jim Dunlap, Cycle30: Billing is critical to your business, but it isn’t easy

Cycle30 was spun out of the IT department of Alaskan-based cable and telecommunications network operator, General Communication, Inc. It didn’t emerge empty-handed, Cycle30 went out into the world with 70 employees and found a base in Seattle, Washington. Since then the staffing has grown to over 90 people. The young company has also benefited from US$50 million-worth of intellectual property and technology assets. The creation of Cycle30 was a result of GCI’s strategic decision to acquire three broadcast TV stations in Alaska. But relations remain close, and GCI is still Cycle30’s largest customer.

M2M Now March 2013

Regular readers of M2M Now will have seen that innovative M2M solutions are starting to disrupt existing markets and to open up whole new ones. So the need to be able to effectively monetise new services remains constant. Even the most ground-breaking M2M solution has to be able to accurately and flexibly bill customers. Cycle30’s philosophy is to empower its customers to stick to what they do best. So the company can offer accurate, timely revenue assurance while M2M service providers focus on the tasks of acquiring and retaining customers and delivering the best possible service.

Cycle30 provides its customers with a completely hosted platform for flexible and scalable billing of machine-to-machine (M2M) solutions. It includes flexible charging, rating and balance management for both recurring and usage-based charges.

Jim Dunlap, Cycle30’s president, is responsible for the company’s strategic direction, operations and financial performance. He has 20 years of leadership experience in retail, consumer products, utility, and telecom, having held senior roles at Campbell Soup Company, Nordstrom, and GCI, where he was chief information officer, before founding Cycle30.

Services offered include invoicing, device provisioning, inventory management, customer care and end-customer self-care via the web. Indeed, the solution can manage billing, not only

According to Mr. Dunlap, “Unlike traditional billing and ordering systems you need to deploy, maintain and host yourself, the Cycle30 platform is ready today, so you can get to market quickly.”

Machine-to-machine services

for direct customers, but for original equipment makers (OEMs) it can manage multiple tiers of endcustomer billing.

As Cycle30 is keen to point out, however, providing machine-to-machine communication services is about a lot more than connectivity. Communications companies need to take a close look at their infrastructure. For new entrants to the M2M services market, there’s a good chance that their current infrastructure is not ready for the new products, nor is it prepared for the way that the services need to be delivered. From the moment of customer contact and order, the Cycle30 platform aims to support enterprise customers by managing and accounting for the revenue associated with their products and services. It does this all the way through invoicing, reconciliation and collections.

Will you react in time for M2M? Said a Cycle30 spokesman, “If you don’t adjust your company’s infrastructure as soon as possible, you could miss out on the M2M market altogether within the next two years. And in regards to billing within organisations — having a system that can take on the functionality of your new products — it takes years to get the ball rolling with updating your billing system. So, if you want to launch new

services within your organisation, it could take 9-12 months. That timeline is far too long, and your new service will never get launched.”

“Find someone that can overhaul your infrastructure to

He continued, “For example, companies in the M2M space are selling M2M parking meters that are generating a new revenue stream. If you are a communications provider that wants to work in this market, ask yourself this, ‘Is my rating and billing system ready to take on this new functionality?’.”

ensure you have a platform for flexible and scalable billing of M2M services.” Jim Dunlap,

Jim Dunlap puts it succinctly when he says, “Cycle30 is an order-to-cash billing and rating service provider, not a software vendor or system integrator. That means we’re here to empower operators to focus on their business and not their billing system. Running a billing operation is critical to your business, but it isn’t easy. Why not leave your day-to-day billing operations to experts?”

Cycle30

“Don’t wait any longer to get involved with M2M. Find someone that can overhaul your infrastructure to ensure you have a platform for flexible and scalable billing of machine-to-machine services,” he adds. “You need a billing system that’s ready to execute now. Stop waiting.”

A spin-off from GCI, Cycle30 set up in Seattle where it is growing fast

M2M Now March 2013

DEVICES & DATA

EXPERT OPINION:

From the device to the data centre An exciting trend is emerging for machine to machine (M2M) technology and the Internet of Things (IoT). Georgina Elrington spoke with Judson Althoff, Oracle’s senior vice president of worldwide alliances and channels and embedded sales, to find out how the data flow from internet-enabled devices will aid business decisions, bring competitive advantage and speed time to market. M2M Now: In your opinion, what does the device landscape look like today?

Judson Althoff, Oracle: Investing in tools to link end-to-end devices with solutions that the market needs

Judson Althoff, Oracle: There are roughly three billion Java-embedded devices and around 6 billion total connected devices out there today. But, frankly, this is the tip of the iceberg when you start looking at the impact of machines communicating with machines (M2M) and the Internet of Things, both of which are in their infancy when you cast them against where they will be three to five years from now. One trend that I’m really excited about is that they are colliding with Big Data and that’s feeding a strategy here at Oracle regarding our device-todata-centre work. It’s our belief that to succeed you need to think about the two together, beginning the process with the end in mind, and build out a true device-to-data-centre platform and strategy. M2M Now: What do you think are the main challenges facing the businesses involved? JA: There is a need for an integrated M2M solution that will bring true value to your customers. The challenge here is that you need an ecosystem, and this is one of the reasons why I think that the M2M industry has yet to really explode. In my job I have the pleasure of meeting a number of device manufacturers who are creating incredible technology, but they’re looking at it solely from a device view. In order for devices to integrate with traditional core ERP, middleware and database solutions, the ecosystem needs to be creative. That’s actually one of the areas where we’re stepping up to help facilitate growth in the industry. With a network of 25,000 partners and nine million Java developers around the world, we’re investing

M2M Now March 2013

in tools to link together end-to-end devices with the types of solutions that we think the market needs before it can take off. We’re also working with more than 10,000 independent software application companies to address vertical markets, encouraging collaboration with device manufacturers to build on top of a platform, like our Oracle-engineered systems, that can truly scale. Another challenge relates to the time to market. The burden of the development cycle for intelligent devices can make it difficult to get a product to market before its very concept becomes obsolete. Also, consider the plethora of devices where logic needs to be transported from one to another. This concept explodes even further when you start thinking about the fabric of all these devices collaborating, such as in the automotive sector where the M2M capabilities are increasing every day. Intelligent integration is required to manage the exploitation of the volumes of data feeds. Oracle is attacking this at every layer of the stack and can bring tremendous value in harnessing the power of Java, as well as help shorten the time to market. M2M Now: Can you tell us more about the ecosystem? JA: Effectively, we’ve done for the enterprise what Apple did for the consumer device market: We’ve married the hardware and software together. Our Java community can really attack the problem of creating an intelligent, aware and alwaysconnected device ecosystem, industry by industry. For example, in the financial services sector we’re building secure elements, from the data centre to the device, into everything from mobile phones to digital wallets. This approach can also be applied to the healthcare, transportation management and industrial control markets.

M2M Now: What and where are the opportunities for M2M businesses? JA: Visit any consumer electronics store and you’ll see that everything from a power strip to a washing machine is becoming a smart device. So, right the way through from the module manufactures to the appliance manufacturers, there’s potential to harness technology. However, today’s Big Data problems are an effect of the six billion devices out there. When those become 50 billion, and then 100 billion, the magnitude of associated data issues will increase consequentially. Wiring M2M and Internet of Things communities together with vertical market solutions is where the systems integrators will benefit greatly. Another hugely valuable element for corporations is the ability to pull from vast, and often disparate, data sources to extract a more accurate story on a customer, supply chain or growth projection in a product lifecycle. We’re going to see a tremendous amount of investment in this space that will help correlation and integration. Tools such as real-time intelligence and analytics can already be implemented using engineered systems, like Oracle’s Exadata Database Machine, and these will be integral in turning internet-enabled devices into real business opportunities. M2M Now: Do you have any real life examples you can share with us?

JA: Yes, the oil and gas mining sector is a good example of how Java, on the front end of devices and a connected data centre strategy, can provide great business value. Many of the sensors and devices in this sector, such as drill bits, operate in ruggedised environments that are too extreme for human access.

“Intelligent

One of the inherent capabilities that we’ve built into these devices is the ability to update them remotely. You can actually change the data requests, send new business logic to tweak microcode, issue software upgrades and even pull populated data for intelligence to, for example, identify potential drilling sites.

feeds. Oracle is

M2M Now: And finally, how does Oracle fit into the grand scheme?

Oracle

integration is required to manage the exploitation of the volumes of data attacking this at every layer of the stack.” Judson Althoff,

JA: As well as helping companies get to market faster with a better product, we can help them deliver products that will be part of a bigger picture. While we believe that no single company can truly deliver complete device-to-data-centre solutions, we do feel that we’re the only company with the technology platform to enable those solutions to be created, from Java on the smallest devices, all the way through to the Big Data, backend and load systems. There’s a phenomenal opportunity and we’re just excited to be a part of it and investing in the growth of the market itself.

M2M Now March 2013

OPINION

The ‘Family’ approach to 4G Sparked by publicity in the US around the possible sun-setting of 2G services, the discussion of which generation – 2G, 3G or LTE – is next for machine-to-machine (M2M) has taken centre stage in many circles and industries, says Alexander Bufalino of Telit Wireless Solutions. The situation in the US is unique. In a nutshell, US carriers have run out of spectrum to operate. With major chunks of spectrum allocated to Defence or tied up in court battles, the only timely solution for carriers is a technology-based one which provides the ability to service customers with the spectrum they already have – enter LTE. To put this in perspective, in GSM/GPRS, every Hertz of spectrum provides about 0.4 bps data rate. Contrast that with about 16 bps for current LTE and 30 bps with LTE+ arriving in a couple years, and the haste to roll out LTE becomes easy to understand. But M2M adopters already have a tool to mitigate this

risk and keep moving forward. At Telit we call it the ‘Family Concept’; these are M2M modules which look and feel the same to the adopter’s application – in form factor, protocols and programming interface, but on the cellular side each talks to the cellular service of choice. When time and conditions with rate plans and coverage hit the necessary points, all that adopters have to do is drop in the next cellular technology, whichever it is and whenever it makes sense. M2M adopters can, therefore, do what is best for them according to business plans and other constraints; If 3G is the best solution for them, they can go for it, if 4G/LTE then the same applies.

SPONSORED COLUMN

The author is, Alexander Bufalino, SVP of Global Marketing at Telit Wireless Solutions

Alexander Bufalino joined Telit in 2005. Prior to Telit he worked for several years for SIEMENS AG and the spin-off company Enocean. He held the position of Sales Director in Europe at SIEMENS wireless modules, the m2m business segment.

Make sure you’re listed in the 2013

M2M Now Directory www.m2mnow.biz M2M Now has recently published the most comprehensive Online Directory of companies involved in machine-to-machine communication services worldwide. These include: Application Developers, Connectivity Providers, Module & Terminal OEMs, Device & Component Manufacturers, Gateway & Router Suppliers, Platform Providers, System Integrators, Analysts & Consultants. Any organisation directly involved in M2M and connected devices can be listed. Platinum listings give readers full Contact Information (including Email and URL), and are searchable A-Z, by M2M Market Segment, or Industry Type. Annual cost for a Platinum listing is £250 for 12 months. This Online Directory is available to the ’000s of visitors worldwide who use M2MNow.biz – probably the world’s fastest-growing M2M website.

SECURE COMMUNICATIONS

Think M2M is just another

Two years ago, buzzwords and phrases such as ‘M2M’ (machine-to-machine) and ‘IoT’ (Internet of Things) had received increased attention thanks to significant media coverage from the likes of The New York Times and Read Write Web, and vocal support from large companies, including Verizon, AT&T and Cisco. The concept is not new, it’s simply reached primetime, says Dave Wagstaff of Lantronix. The ‘Machine’ in M2M and the ‘Things’ in the Internet of Things are the billions of devices that are currently deployed in hospitals, factories, power generation plants, businesses, stores, vehicles and others worldwide. And the more we leverage technology to become more social, more local, and more tailored to our individual needs, the more exciting M2M becomes. The author is Dave Wagstaff, chief solutions architect, Lantronix

What’s really driving M2M today? Is it technology? Without some of the major breakthroughs in the past few years, M2M would still be a pipe dream. There are several reasons why M2M is getting so much play.

Key driver of global M2M adoption SoLoMo + BYOD. Ridiculous? Maybe. But the hightech arena has never fallen short on absurd acronyms. In this case, it actually makes sense: 1. So; As in Social. (Think Facebook, LinkedIn and YouTube) 2. Lo; As in Local. (Think Google and localised search and services) 3. Mo; As in Mobile. (Think smart phones, tablets and notebooks) 4. BYOD; As in Bring Your Own Device. (Think iPad)

Global wireless networks are becoming faster by the day. Device components and modules are available at record low prices. Security is more bullet-proof than ever. Carriers (wireless operators such as Verizon and AT&T) are finally on board and recognise the potential – and larger, more established players are jumping into the ecosystem.

The rapid adoption of mobile devices, especially tablets such as the iPad, has piggy-backed on and accelerated the use and consumption of social media. Users of all ages, geographies and usertypes (business or personal) leverage their devices to access and tailor custom content to their local and more immediate needs, in a format and manner, and on a device that best suits their personality and desires.

But perhaps the biggest reason behind the excitement in M2M is the BYOD phenomenon (or, as IT managers refer to it, the “BYOD Nightmare!”). Who’s to thank? Let’s at least start with Apple, Facebook and Google.

This obsession with information has created havoc for IT professionals in the near-term – but like all disruptive technologies, it will drive the most exciting changes in the longer-term. And that change is in the form of true M2M.

M2M Now March 2013

The chip-sized xPico™ is designed for quick integration with minimal engineering effort

“The total number of M2M wireless (device) connections will soar to 359.3m in 2016.”

Let’s talk numbers The numbers are staggering, regardless of source. Berg Insight reports the total number of M2M wireless (device) connections will soar to 359.3 million in 2016. Additionally, research shows shipments of cellular M2M devices increased 35.3% in 2011 to a record level of 50.8 million units. Adjusted for churn, this resulted in net additions of 29.3 million M2M connections in 2011, taking the worldwide number of cellular M2M subscribers alone to an estimated 108.0 million. Ericsson has repeatedly cited a number of “50 billion devices in market, ready to be connected.” Network connectivity itself is being expanded with new technologies such as IEEE 802.11n, ensuring data safety with improved security protocols and improved business models enabled by lowering the cost of network access. This synergistic effect is now playing a key role in allowing devices to be connected to the internet, to truly reap the rewards of M2M communications. But the sheer volume of potential devices for connectivity isn’t the exciting part. Nor is the adding of ‘intelligence’ to these devices so they can be remotely managed and controlled. Most exciting, and important, is the end-result – the customer and end-user benefits derived from the secure transmission of vital information across networks for collection, analysis and decision-making.

staggering. For example, hospitals can now network-connect infusion pumps, which send information back to the hospital IT system, with pharmaceutical information validating the correct dosage levels for a particular patient. Consider industrial applications, where a technician can check on the status of a robotic welding machine, no matter where in the world the equipment is located.

Headquartered in California, Lantronix®, Inc. is a global provider of secure communication technologies that simplify remote access, management, and control of electronic devices regardless of location

At Lantronix, we’ve spent the last 20 years making M2M a reality. We’ve worked with cities to improve traffic flow (which saves time and improves safety), we’ve worked with government contractors to use M2M to remove humans from dangerous flight missions — and every day, we’re working on concepts to make the average person’s life just that much easier. But there is so much more information that if ‘mined’ or ‘harvested’ could fundamentally change the way companies and individuals conduct business. This is the basic promise of M2M – getting the right information to the right people at the right time.

Business opportunities While it’s exciting to think about all the ‘futuristic’ M2M applications for consumers-at-large, the business opportunity for M2M is equally

PremierWave™ EN provides connectivity in a compact form factor, enabling OEMs to add Wi-Fi or wired Ethernet networking to their products on a single PCB design

M2M Now March 2013

C ASE STUDY

Smart grids offer key to sustainability in utilities Mobile connectivity is enabling utilities to more effectively manage the supply and demand of consumers’ energy and water use. A good example of this is EDP’s Smart City Project in Portugal, Évora InovCity, developed in partnership with equipment and service suppliers, including Portuguese mobile operator, Optimus. It is, they say, a big step forward for the management and control of power distribution, combining renewable production and efficient network operation with improved customer service.

This small scale model of the city of Évora shows the reach of the InovCity project

The InovCity project is showcased at a dedicated showroom in the city of Évora. This picture shows the main components of the solution

By promoting energy efficiency, demonstrating an average reduction in energy consumption of 3.9% for consumers, micro-generation and electrical mobility, InovCity has become a prime example of sustainability for Europe. The project has been selected from more than 200 other smart grid projects by the Joint Research Centre (JRC) of the European Commission as the single case study for the assessment of smart grid projects in Europe. InovCity is currently collaborating with the JRC on further smart grid analysis. It has also been labelled as a core project in Europe for smart grids by the European Electricity Grids Initiative and won Utility of the Year Award 2012. Incorporating the deployment of 30,000 smart meters (known as EDP Boxes) in the Portuguese municipality of Évora, it is the first urban area in Portugal to hook up to the intelligent energy grid. The project provides the electricity grid with information and devices to automate grid management, improve service quality, reduce operating costs and promote energy efficiency and environmental sustainability. It also enables the monitoring and management of the state of the entire electricity distribution grid, significantly reducing the duration of service interruptions and the number of affected clients.

This newly built platform allows the development of new products and services by suppliers and energy service companies, including the offer of price plans adapted to customers' consumption profiles and requirements. It also enables EDP to more efficiently support the implementation of a network of charging points for electric vehicles. Discussing the project, EDP’s head of solution development for the smart grid project, Paulo Libano Monteiro, explained that they had learned four key lessons from the deployment. “Firstly, it is essential to engage the customer by presenting the benefits in a clear way,” he said. “Secondly, the management of the communications infrastructure as the scale increases is also critical for the future success of smart grids, as is the need to fine tune data processes so that the full benefits of the solution can be taken advantage of. Automation and a highly integrated approach to commercial and operational processes are vital. Lastly, you must remember that there are no easy deployments when it comes to innovative solutions; they take time and hard work.” Optimus’ head of M2M business unit, Carlos Lourenco, agrees that tight integration at the partnership level is the key issue for the successful deployment of smart grid initiatives: “Traditionally operators are very capable of processing large volumes of activations, provisioning, billing and after sales processes but projects such as this require a deep cooperation among the different partners in the ecosystem in order to make a successful deployment with minimum overheads, considering that the overall value proposition is high but the income per unit is very low. It is not just a matter of Optimus supplying the communications element for example, but constantly working together with EDP to prevent and solve issues as they arise so that the benefits and customer services that the end user receives are very clear.”

A general view of the InovCity showroom in the city of Évora

M2M Now March 2013

For example, the operator engineering support and massive project rollout experience would be an upside to be taken into account along with its willingness for building up an interesting and sustainable business case.

The leading global M2M managed services provider

It’s good to be well connected. Your M2M solution is more than just data connectivity. We understand that. So we not only built the world’s most advanced global M2M platform, we also built our business upon the most important connections of all – our relationships with our partners, carriers and customers. That’s why Wyless is the trusted M2M partner of Fortune 500 companies and startups alike. We’re the easiest company to work with. We listen to our customers and take pride in every connection. Wyless offers truly uncompromising M2M solutions, delivering worldwide wireless connectivity via the most secure and resilient network infrastructure. We provide unrivaled management tools and empower you with end-to-end managed services, technical expertise and dedicated support. So connect with the experts and together we’ll take your applications to the next level. You have found your true M2M partner. We can’t wait to discuss the possibilities.

+1 617 949 8900

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www.wyless.com

MARCH 2013

PROFIT FROM A WORLD OF CONNECTED DEVICES

SPECIAL MWC SUPPLEMENT

C-LEVEL VIEW

CEO GUIDE TO MOBILE WORLD CONGRESS 2013

MWC 2013 PREVIEW Something mobile is in the air

Service is our platform says Numerex’s CEO

M-HEALTH SUMMIT Global attendance in DC advances mobile health

CONNECTED DEVICES Mobile healthcare: GSMA cycles into Connected Europe M

MWC 2013, BARCELONA

All the latest M2M News, Views, Videos, and Reports from Barcelona at www.m2mnow.biz

ALSO ONLINE! ONLINE

WELCOME

Jeremy Cowan

Are you ready to be amazed by MWC’s Connected City?

Anyone in the business of M2M, NFC or Connected Devices who is concerned that the annual bunfight at Mobile World Congress isn’t relevant to them should take a few minutes to visit www.mobileworldcongress.com/ . Conference streams on Day One are focused on ‘Building the Eco-system for NFC services’ (surely, long overdue in some markets); Big Data, Big Questions, Big Value?; and, Business Transformation – Reshaping the Operator.

SUPPLEMENT CONTENTS S2

Welcome to Barcelona

Mobile World Congress 2013 Preview

Service is our Platform, says Numerex CEO

Mobile healthcare in Connected Europe

S12

What lies ahead in M2M and connected devices?

S14

Review: mHealth Summit, Washington DC

Day Two tackles the Future of Mobile Communications; and Connecting the next billions to the Internet. Day Three covers Health: Achieving Scale through Partnerships; and Day Four sees discussion of Connected Living and Mobile Money. Central to the exhibition at the brand new, larger and better equipped Fira Gran Via venue (for details, see opposite) will be ‘The Connected City’. If you enjoyed last year’s Connected Home, stand by to be amazed as you enter what feels like a real city street, complete with a car showroom, office, town hall, department store, mobile shop, apartment, electrical store, hotel and café. And there will be a whole host of live demos to see. If you can’t make it, don’t worry. M2M Now will be reporting online from Barcelona. Just bookmark www.m2mnow.biz, or follow us on Twitter @m2mnow or @jcm2m. Keep in touch, and tell us what you find.

Jeremy Cowan, Editor, M2M Now

See the latest events listed online at:

www.m2mnow.biz

MWC 2013 explores 'New Mobile Horizons' at new Barcelona venue Even the landscape of Mobile World Congress will look different than it has in the past. While the Mobile World Capital Barcelona remains your host, the event is relocating to a new facility at the Fira Gran Via that is said to be ‘state-of-the-art’. The mobile ecosystem is expanding at lightning speed, with endless innovation and new applications of mobile technology. From contactless payments and augmented reality to embedded devices and connected cities – mobile technology is changing the landscape.

For more details go to: www.gsma.com

The impact that mobile communications will have on the world is limitless, says a spokesman from the Association for the Global System for Mobile communications (GSMA). At Mobile World Congress 2013 (February 24-28) you can see: • CEOs from the world’s most influential companies will share their visions of the mobile landscape, while inspiring attendees in the Thought Leadership Conference

M2M Now March 2013

• More than 1,500 of the industry’s leading suppliers of mobile devices, services and technologies will be part of one of the most important Exhibitions of the year • More than 12,000 application developers will gather for App Planet, looking to be educated, energised, and challenged • The world’s largest consumer brands will be joining for mPowered Brands, where the GSMA accelerates marketers’ knowledge of mobile as a marketing medium • The GSMA will recognise the industry’s greatest achievements, new technologies, innovative devices and ideas through the 18th Annual Global Mobile Awards • This year the organisers expect more than 70,000 senior mobile professionals will network and exchange ideas during the four-day event, any one of which may significantly change the landscape of mobile. The GSMA invites readers to join them in Barcelona for Mobile World Congress 2013 as they explore the New Mobile Horizon. MWC 2013 CEO GUIDE

EVENT PREVIEW

Mobile World Congress 2013 There’s something in the air... and it’s mobile In stark contrast to the rather depressing effects of short daylight hours, chilly weather and maxed out credit cards after the festive season, there’s a feel-good factor to February. Every year, a welcome dose of sunshine awaits those who flock to attend one of the world’s biggest and best-loved industry events, Mobile World Congress in Barcelona. Setting the scene for the next 12 months, attendees at Mobile World Congress 2013 (MWC) [www.mobileworldcongress.com] will be privy to firsthand experience regarding the health and opportunity of the bourgeoning mobile industry. While last year’s event was the biggest to date, it is expected that MWC 2013 will set new records. Hosted in Barcelona, the mobile world capital, the four day show has moved to a new location. The much larger Fira Gran Via boasts an additional 270 wifi hotspots than the previous venue and will accommodate 1,500 exhibitors showcasing new technologies from all over the world. An impressive conference agenda features new business models, insight and directives. There will be dedicated areas for app developers, and those responsible for mPowered brands will benefit from special sessions where they can glean deeper insight and network with like-minded peers. The popular Forum Series, which was introduced in 2011, also returns to focus on single industry topics such as the mobile cloud and LTE. This hugely successful annual event is produced by the GSM Association (www.gsma.com), a global trade group for the mobile industry, which represents the interests of mobile operators in more than 220 countries. It comprises nearly 800 operators and more than 230 companies in the broader mobile ecosystem, including: handset makers, software companies, equipment providers and internet companies, as well as organisations in industry sectors such as financial services, healthcare, media, transport and utilities.

What’s on the New Mobile Horizon? The impact of mobile on business seems limitless. Latest figures indicate an industry annual growth rate of 43% per annum and, currently, mobile broadband technologies will account for about 25% of global connections in the first quarter of 2013. This year’s MWC conference programme (www.mobileworldcongress.com/conference-overview/) will challenge and educate, provide essential insights on the latest technological developments, market opportunities, next generation services and devices set to shape the mobile landscape. Thought leaders and industry experts from influential companies, within the expanding mobile value chain, will participate in more than 40 conference sessions with thought-provoking keynote presentations as well as interactive panel sessions. So, whether you’re looking for ways to cope with Big Data or want to get a feel for the future of communications destined for smart cities, the cloud, mPowered brands and all the elements of connected living including mobile wallets and automobile automation, you’ll find it all at Mobile World Congress in Barcelona this year. The M2M Now team (www.m2mnow.biz) will be on the ground at the show reporting live with video interviews, features and tweets @m2mnow and @jcm2m. Mobile World Congress 25-28 February 2013 Fira Gran Via, Av. Joan Carles I, 64 08908 L’Hospitalet de Llobregat Barcelona, Spain

MWC 2013 CEO GUIDE

M2M Now March 2013

C-LEVEL VIEW

Service is our platform, says Numerex’s CEO The M2M value chain remains complex. But it boils down to delivering quality and service to customers, says the chairman and CEO of Numerex, Stratton J Nicolaides. M2M Now: What is M2M’s impact on the daily lives of people and businesses today? How is it a society game changer? Stratton J Nicolaides: M2M technologies enable the so-called ‘Internet of Things’ (IoT), which is an overall framework that encompasses communications between things and people, as well as between things and things (M2M). In July 2012, the International Telecommunication Union (ITU) released its definition of IoT as “a global infrastructure for the Information Society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving, interoperable information and communication technologies.”

Through the availability of advanced services heretofore inaccessible due to cost, form factor or telecommunications network constraints, the IoT is radically transforming the way we produce and consume. M2M plays a key role in this transformation and aims at generating new revenue, improving productivity (operational efficiencies) and helping meet legal and regulatory requirements. It is part and parcel of the new economic fabric and a formidable growth engine. In addition to helping fuel the economic expansion, it is becoming the catalyst of the green economy by improving the monitoring of all kinds of pollution. China and Europe, at the highest levels of government, have recognised M2M’s importance and have set in motion sizeable domestic and regional initiatives to better the lives of their denizens. For instance, in 2011, the Chinese government identified M2M as a key strategic priority in its 12th National Five-Year Development Plan (2011-2015). In 2012, the European Union launched a massive public consultation on the IoT to better understand what framework is needed to unleash the potential economic and societal benefits of the IoT – in addition to the IoT/M2M-focused work currently underway within the European Research Cluster on the Internet of Things (IERC), the Lighthouse Integrated Project IoTArchitecture, the IoT Initiative, the European Telecommunications Standards Institute (ETSI) and other European groups and organisations. M2M Now: The terms M2M and IoT seem to be used interchangeably. Do you see a difference?

Stratton J Nicolaides is the CEO of Numerex

SJN: The concepts are related and yet not quite the same. As the Commission of the European Communities stated in its 2009 report, the Internet of Things – An Action Plan for Europe: “IoT covers different modes of communication: things-to-person communication and thing-to-thing communications, including machine-to-machine (M2M) communication that potentially concerns 50-70 billion ‘machines’, of which only 1% are connected today.” While the former cannot happen until a human is involved, the latter requires very little or no human intervention. As a matter of fact, the recently-formed oneM2M partnership defines a machine-to-machine solution as “a combination

M2M Now March 2013

MWC 2013 CEO GUIDE

of devices, software and services that operate with little or no human interaction” (See section 1.5 of the oneM2M partnership agreement). M2M is an enabler of IoT which, starting with SCADA (System Control and Data Acquisition), was born within the industrial market. A few M2M examples include corrosion monitoring of oil pipelines, billboard remote control, vending machine management, fleet tracking, bridge structure integrity surveillance, tank level monitoring, pollution watch and control, and so on. More often than not, M2M companies operate in the business-to-business (B2B) market. Some European M2M experts closely involved in the work of the European Telecommunications Standards Institute in M2M architecture, protocols and applications (Boswarthick, Elloumi and Hersent in M2M Communications – A Systems Approach, 2012, Wiley & Sons) see this current stage of M2M deployments, where M2M addresses predominantly B2B applications, as the ‘emergent phase’. The other side of IoT, that is communications between things and people, which could be named ‘consumer IoT’, belongs to the business-to-consumer (B2C) market. Consumer IoT solutions are aimed at providing a direct benefit to the consumer and rely also on ‘embedded intelligence’ (as provided, for example by accelerometers, ambient light and proximity sensors). Entertainment devices; e-readers; smartphone-centered applications; consumer location-based services are a few examples of consumer IoT products. Overall, consumer-IoT customers are the end users. This is a paramount distinction, which has profound implications for technology and marketing. In this regard, it is worth mentioning that some M2M market reports provide metrics and information that blend B2B and B2C data into amorphous statistics that blur the market dynamics. However, the distinction is not always clear-cut since M2M and consumer-focused IoT are overlapping domains. For instance, alarm monitoring (security) services can be marketed as B2B solutions and then resold in the B2C market. Also, consumer IoT solutions require a supporting M2M ecosystem, which is therefore an inherent component of any B2C IoT solution (B2B2C). Numerex’s customers are B2B companies. We support their objectives and provide them with an allencompassing range of capabilities that they can integrate into their own monitoring systems or resell to the end users. M2M Now: It has long been said that one of the hurdles for the M2M industry was the complexity of the M2M solution. Has the situation changed? SJN: The M2M value chain remains a complex one. A company contemplating the launch of an M2M solution on its own faces non-trivial challenges, most of the time

MWC 2013 CEO GUIDE

outside its core expertise. An M2M solution requires many functional components that must interact with harmony and precision, which makes it an intricate undertaking. Incidentally, this explains the present quest on a global level for an M2M standard that would provide a common service layer. On the positive side, however, the oneM2M partnership and various M2M-related initiatives within the ITU have drawn the attention of a wider business audience to the industry’s potential. All major telecommunications conferences in the US, Europe and Asia now dedicate a space where issues specifically related to M2M can be addressed and debated. Wireless carriers are vocal about their expectations concerning M2M growth and revenue, which contribute to increasing the awareness about the M2M capabilities.

“Big Data requires translation, transforming the raw sensor readings into ‘smart data’.” Stratton J Nicolaides, Numerex

Turnkey development and seamless integration are key features sought out by the would-be M2M user. A handful of M2M companies around the world are now targeting these needs and requirements. Numerex is one of them and well positioned as a single source provider, from M2M solution ideation to development and deployment. M2M Now: Looking at M2M’s international coverage, how is Numerex addressing the globalisation of M2M? SJN: We believe that the ability to provide seamless connectivity and service across diverse geographic boundaries is a prerequisite for the M2M growth opportunities to materialise on a global scale. The M2M industry has benefited from improved global network coverage and lower roaming costs, but more remains to be done (think, for instance, of the LTE spectrum fragmentation around the world). The GSMA, the European Union (Digital Agenda for Europe) and other Standards Development Organisations (SDOs) are helping resolve some of these fundamental challenges. However, this is arguably a work in progress. As far as Numerex is concerned, we are not staying put on the sidelines. In 2010, we launched Numerex WordPass™, a suite of cellular-based network services designed to enable the management of M2M smart devices in over 200 countries with flexible network plans and an easy-to-use single SIM interface. Also, we have developed partnerships with a host of domestic and international cellular and satellite carriers, and formed a number of alliances with global and foreign companies in the M2M space including Arkessa in the United Kingdom and Transatel in France. We are always exploring additional sources of international collaboration to offer ubiquitous coverage and solutions to our customers throughout the world. M2M Now: What is the relationship between M2M and Big Data? SJN: IPv6, which was developed by the Internet

M2M Now March 2013

C-LEVEL VIEW

“By emphasising quality and service we focus on what is vital for the customer, who does not want to be left stranded in the middle of a test or full-blown deployment.” Stratton J Nicolaides, Numerex

Engineering Task Force (IETF) and officially launched by the Internet Society and major websites on June 6, 2012, is another critical enabler of the emerging IoT. There is no short way to say the unfathomable number of IPv6 addresses; suffice to say that we now have more than enough IP addresses to track anything located on the earth, anywhere, anytime. This also means that M2M is now in a position to produce an avalanche of data. While Big Data generates unique opportunities, it also brings about significant challenges. First, there is the perennial issue of privacy and security. The need for data protection is well understood by M2M-focused SDOs around the word, and ranks high in terms of their priorities. At the national (for example, the US Telecommunications Industry Association), regional (the European Telecommunications Standards Institute) and world (the International Telecommunication Union) levels, experts are actively developing M2M security standards. At the same time, an increasing number of M2M players are deploying solutions that meet ISO 27001, the international standard that ensures compliance within many business dimensions related to information security such as hardware, software and overall processes. Numerex’s ISO 27001 certification bears testimony to the overwhelming priority we put on security and privacy. Second, Big Data requires translation, transforming the raw sensor readings into ‘smart data’. As a result, M2M must play a central role in the so-called DIKW model (Data, Information, Knowledge and Wisdom), in order to help the customer decipher the ‘unstructured data’. Incidentally, ‘Smart Data Delivered™’ summarises what Numerex is about. The need for M2M analytics is accelerating. Whereas some elements of the M2M value chain are getting commoditised, there is significant value to be created

M2M Now March 2013

at the edge of the M2M ecosystem. The ‘new M2M’ is about guiding the customer into intelligent action. M2M Now: We see a proliferation of platforms in the M2M world. Numerex is heavily involved in all these dimensions, so where do you think this trend is going? SJN: Numerex offers the whole gamut of platforms that can be used at different levels for the development of M2M solutions including among others ‘Platform as a Service’, ‘Software as a Service’, and ‘Network as a Service’. Our M2M platform environment is characterised by a high level of elasticity, scalability and reliability. As a result of the substantial investments we have made in infrastructure and people, we can easily and rapidly tailor our platform capabilities to the needs of our customers . Beyond the service delivery platform, the ability to support and collaborate across the various links of the value chain, i.e., the actual ‘service’, continues to be the overriding customer requirement. This is where we concentrate our energy and efforts. We believe that the M2M industry is about to come full circle. We have witnessed in the last few years a busy quest for the right platform, adding all kinds of features to the service delivery framework. While this has undeniably generated impressive success stories, it is only one component, however central, of the customer interest and loyalty. By emphasising through-and-through quality and service, we focus on what is vital for the customer who does not want to be left stranded in the middle of a test or full-blown deployment. It is fair to say that, at Numerex, ‘Service as a PlatformTM’ is an accurate way of describing what we offer. For all intents and purposes, service is our platform. MWC 2013 CEO GUIDE

CONNECTED DEVICES

Mobile healthcare in Connected Europe The GSMA is working with the International Diabetes Federation to raise awareness of diabetes. As Jeremy Cowan found at the launch in Brussels, the partnership also aims to show how mobile technology can help promote a healthy and active lifestyle. The GSMA is organising the mHealth Grand Tour cycle ride, which will start in Brussels on September 5 and finish in Barcelona on September 18, 2013. The Grand Tour is intended to bring together diabetes patient communities and the mobile and healthcare industries to raise awareness of diabetes and to promote healthy and active living, and showcase how mobile technology can help address the challenge of managing the condition and reduce the cost of care. In conjunction with this announcement, the GSMA has also launched its mDiabetes campaign, which will explore how mHealth can support and transform diabetes treatment. “In Europe, more than 55 million people, or 8.5% of the population, live with diabetes and it is widely recognised as the number one cause of death across the region,” said Michael O’Hara, the GSMA’s chief marketing officer. “The mHealth Grand Tour will help build visibility of this public health crisis, as well as demonstrate how innovative mobile-based solutions can help people address diabetes and related conditions and liberate them to lead active lifestyles. It will also be a tremendously exciting experience and we are encouraging as many teams as possible to take part.”

Cycle from Brussels to Barcelona to raise awareness of diabetes

For the mHealth Grand Tour, the GSMA will partner with the International Diabetes Federation European Region (IDF Europe), an umbrella organisation that promotes diabetes care, prevention and research, and advocates for the rights of the 55 million people living with the condition in Europe. “Through this Grand Tour we want to raise awareness of diabetes, which affects an increasing number of citizens across Europe and worldwide. We also want to show how essential healthy lifestyles and physical activity are in diabetes prevention and management,” commented João Nabais, president of IDF Europe. The 14-day Grand Tour will cover 2,100 kilometres over four stages, with more than 22,000 metres of climbs, incorporating breath-taking scenery and quiet country roads. In the spirit of Europe’s Grand Tours, the route will take riders through places of interest across Belgium, France and Spain, affording participants the opportunity to enjoy the sights and

M2M Now March 2013

local culture. There will be a maximum of 100 people on the road at any time, so teams can do the ride as a relay, or in parts. (To register a team, visit www.mhealthtour.com) Brussels has been chosen as the start point to raise awareness among policy makers, while Barcelona is part of the Mobile World Capital initiative. And, by a happy coincidence, the European Association for the Study of Diabetes is meeting in Barcelona a few days later. Jose Perdomo, director of eHealth at Telefónica Digital, a member of the GSMA mHealth Leadership Board, said: “We know from our own trials that mobile technology can transform the quality of life for patients with conditions such as diabetes, and, at the same time, foster efficiency for healthcare providers and payers. We welcome initiatives such as the GSMA’s mHealth Grand Tour, which will help demonstrate the capabilities of how mobile technology can manage chronic conditions in real-life circumstances.” Diabetes UK, the UK’s leading Diabetes charity, has confirmed it will be entering a team. The charity recently won the Third Sector Excellence Award for Use of Digital Media for its Diabetes UK Tracker mobile app, which takes the daily chore out of logging levels such as blood glucose, carbohydrates and calories. “New technology and mobile-based solutions, such as the Diabetes UK Tracker app, can play a vital part in empowering someone with diabetes to be able to manage their condition in the way that suits them,” said Svetlana Kirov, Diabetes UK’s deputy director of Fundraising. “We welcome keen cyclists who are up for this challenge to join the Diabetes UK team to help us raise funds to continue our important work. The money raised through the Grand Tour will help us to make life better for the 3.7 million people in the UK with diabetes and the 7 million people at high risk.” “Anyone can participate in the mHealth Grand Tour by joining a charity team, a mobile or healthcare industry team, or by entering their own company team,” said O’Hara. “This is not a race – the teams are there for

MWC 2013 CEO GUIDE

mutual support and to help foster a collegiate atmosphere on the ride. Riders can travel at their own pace and we expect the teams will mix it up on the road, which will be part of the fun and the experience.”

GSMA launches mDiabetes campaign The GSMA has also announced the launch of its mDiabetes campaign. Through this initiative, the association will engage with its operator members to better understand the commercial models for mDiabetes solutions that have launched or are in development, and to identify and address key market barriers, with the ultimate goal of stimulating the creation and delivery of clinically meaningful mDiabetes solutions. “Diabetes is a global epidemic and is only set to worsen. 371 million people worldwide live with the condition and this figure is expected to increase to 552 million by 2030,” added O’Hara. “Diabetes care continues to pose challenges of affordability, complexity and access the world over. In contrast, mobile access is ubiquitous. There are more than three billion mobile subscribers around the world, and with the increasing adoption of smartphones and new and innovative ‘connected devices’, and the proliferation of mobile broadband networks globally, mobile is poised to play an increasing role in healthcare.” The campaign will encourage operators to develop mobile solutions for diabetes care, based on sound commercial models; facilitate greater interaction of the GSMA and its members with healthcare professionals, device manufacturers, pharmaceutical companies and patient support groups; generate awareness of the opportunities identified for mDiabetes intervention among end users including healthcare professionals and patients; and encourage the delivery of mDiabetes

service trials, initiatives, studies and product and service launches. Speaking to M2M Now at the launch in Brussels, Sophie Peresson, IDF Europe’s regional director said, “Prevalence (of diabetes) in the Middle East is high at about 20% of the population, and typically it takes 10 years (from onset) to diagnose. And the incidence is also high in the USA. Yes, lack of exercise can be a factor, but it’s high in Cambodia too, which may be down to the lack of a good, balanced diet. Developing countries of all kinds are experiencing problems.” The search for clear answers on the causes of, diabetes is another reason for raising awareness through the mHealth Grand Tour. Mobile technology can play a part in remote patient diagnosis, and then help diabetes sufferers manage their condition. At the simplest level, mobile devices can be used to send treatment reminders via SMS. But far more may be achieved in treatment compliance by linking to a blood glucose monitor, and in supporting behavioural change in areas such as diet and exercise. As, Jeanine Vos, executive director, mHealth at the GSMA told M2M Now, “Mobile isn’t the golden bullet for diabetes. I don’t think there is one. But it can provide ongoing dialogue between patients and healthcare professionals. The GSMA also has a role to build bridges between the pharmaceutical industry and mobile network operators, and we’re engaging with policy makers.” The GSMA represents the interests of almost 800 mobile operators worldwide and more than 230 handset makers, software companies, equipment providers and internet companies, as well as organisations in financial services, healthcare, media, transport and utilities.

Regional overview of diabetes: • Africa: 78% of people with diabetes are undiagnosed • Europe: has the highest prevalence of type 1 diabetes in children • Middle East and North Africa: 6 of the top 10 countries by diabetes prevalence • North America and Caribbean: 1 adult in 10 has diabetes • South and Central America: 12.3% of all deaths were due to diabetes • South-East Asia: almost one-fifth of the world’s people with diabetes live in just seven countries • Western Pacific: 132 million adults have diabetes, the largest number of any region (Source: International Diabetes Federation: Diabetes Atlas. Demographics. www.idf.org/atlasmap/atlasmap)

MWC 2013 CEO GUIDE

M2M Now March 2013

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PREDICTIONS

What lies ahead in connected devices and M2M in 2013? What can we expect in the year ahead in the world of machine-to-machine (M2M) communications and connected devices? M2M Now asks some leading industry figures. Open Systems & Operator Alliances

Gurmeet Singh Ahuja, MindTree

Gurmeet Singh Ahuja, M2M expert and programme director at MindTree Ltd, says that one trend to watch out for will be in Open Systems. “Efforts continue to be made by ETSI, the European Telecommunications Standards Institute to standardise M2M systems, and the oneM2M initiative which has brought seven global Standards Development Organisations (SDOs) together. In 2013, we will see compliant products, solutions and services being offered that bring openness into the system. We will also see an increase in M2M adoption by bringing down the total cost of ownership of the M2M device or solution by reducing the cost of every element. Through system openness end users will be offered many more choices, which will enable faster adoption of inter-operable M2M services.” Matt Hatton, director of Machina Research, says operator alliances will expand and their roles become clearer. “To support global M2M offerings MNOs are increasingly forming into alliances. The most prominent currently are Vodafone with its partner

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M2M Now March 2013

markets, and two groupings that emerged during 2012: the Global M2M Association (Deutsche Telekom, Orange and Telia Sonera) and the grouping around the Jasper Wireless platform (including NTT DOCOMO and Telefonica), the ‘J-7’. During 2013 we expect a lot more operators will join these emerging alliances and that the roles of these organisations will become more apparent, such as with joint bidding, IMSI-swapping, and Service Level Agreements. “In 2012 there were a lot of initiatives around open standards. M2M is a fragmented field with numerous different technologies, industry-specific standards and a diverse range of stakeholders. It is likely that standardisation in 2013 will achieve modest objectives rather than developing an all-encompassing set of M2M standards. Many companies won’t wait for standards,” Hatton maintains. Jürgen Hase, VP of the M2M Competence Center at Deutsche Telekom, and chairman of the M2M Alliance, says “M2M is not a locally based business. In 2013, we will witness a number of strategic alliances, which will shape the future of the M2M market. They will work to overcome a major challenge in the long run: to provide seamless services in all countries. Furthermore, alliances are necessary to improve quality of service and establish M2M communication standards.”

MWC 2013 CEO GUIDE

M&As or MVNOs?

Big Data

According to John Horn, president of RACO Wireless, M2M was a disruptive force in 2012. “In 2013 industry consolidation will be prominent. M2M is ripe for an explosion of growth, made possible by the amalgamation of resources to improve scope and scale. Through mergers & acquisitions (M&As) activities and financial backing, single companies will develop capabilities that meet the wide-ranging needs of their growing customer bases,” he tells us.

Data analytics, or so-called 'Big Data', will seize the M2M agenda, Matt Hatton of Machina Research believes. “During 2012 there were a few tentative moves in this direction such as Telefonica’s Dynamic Insights business unit, but 2013 will see many of the issues crystallise. We believe that a huge amount of the value of the M2M market lies in the analysis and manipulation of the data generated by diverse sources.”

MindTree’s Ahuja, sees the market’s response to growing demand slightly differently. "We will see the emergence of a multitude of mobile virtual network operators (MVNOs) offering only M2M services, and they will take advantage of open systems, reducing costs and receiving help from mobile network operators to use their network in an optimum way. M2M Roaming which today is a big challenge, will be the 'need of the hour' for the transportation, logistics and automotive vertical markets. Operators and M2M service providers will have to work together to make M2M roaming possible.” “While M2M adoption gained momentum in 20112012,” adds Ahuja, “the trend has been to provide a packaged service to the end customers with one of the M2M value chain members playing the role of system integrator. Mobile network operators are strategising towards re-farming 2G spectrum and looking to migrate to 3G / 4G services completely. It is, therefore, a safe bet that the OEMs will use 3G modules, he says. 3G modules will increase the initial cost of the device, but will help reduce the total cost of ownership as the average life cycle of M2M is much higher.”

Vendors & Integrators Module vendors will start to compete with MNOs, according to Matt Hatton. “The M2M module market is becoming more competitive, pushing module OEMs to find new ways to differentiate and compete other than simply on cost. During the last year or two we have seen all of the major module vendors (Cinterion/Gemalto, Sierra Wireless and Telit) launch cloud-based device management platforms, to provide end-to-end services for M2M service users. They are in a good position to provide a simple, onestop-shop for devices and connectivity, particularly for smaller contracts. However, it is dangerous for vendors to overstep the mark and start competing directly with their MNO customers. “Programmable SIMs/eUICC will start to take off,” Hatton says. “One area where standards are important and should be finalised in 2013 is eUICC. There is a lot of interest in remote SIM management for M2M and we expect pre-standardisation commercial deployments in 2013. Several issues need to be resolved to see full-scale inter-operator IMSI swapping, not least the Subscription Manager role.”

MWC 2013 CEO GUIDE

Big Data is also on the predictions list for Jürgen Hase at Deutsche Telekom. “M2M is about to enter the next evolutionary stage: at the moment we collect data, but the real benefits of M2M will become apparent by analysing this data. Today, it is already possible to detect attrition in production facilities by analysing data in real time. Combined with machine learning algorithms, such applications will recognise more and more patterns and allow completely new insights into our businesses.

Matt Hatton, Machina Research

Successful M2M Applications Deutsche Telekom’s Hase singles out two. Automotive will be the main driver of M2M adoption in Europe. “The European Union has decided that, starting in 2015, all newly registered motor vehicles must be equipped with an emergency call (eCall) system. Automotive manufacturers will focus on integrating embedded SIMs to comply with this regulation. Furthermore, telematics and connected entertainment services are additional M2M solutions, which will be subject to mass production. “Healthcare will be a key driver of M2M in the USA,” he adds. “Using M2M devices, a patient’s state of health can be monitored continuously. A computer checks readings such as blood pressure, pulse or blood sugar level and notifies a doctor or care workers in the event of an emergency. As American health insurances recognise the potential long-term savings, they will subsidise a great number of M2M solutions in 2013.” InMedica, medical technology research division of IMS Research reports that the fastest growing group of consumers of wearable fitness devices are those who have an interest in tracking their everyday activity. InMedica predicts that in 2013, the share of activity monitors in the wearable fitness devices market will increase to 44%, from 32% in 2012. Although he doesn’t select individual applications, John Horn, of RACO Wireless is confident that, “rapid industry growth will continue its sizzling trend. The need for greater convenience and productivity will create demand for M2M technology like never before seen. With companies achieving as much as 40% Return on Investment in the first year of usage, M2M will quickly become a ‘must-have’ solution. An extended list of 2013 Predictions can be found at www.m2mnow.biz

Jürgen Hase of Deutsche Telekom

John Horn, RACO Wireless

Tell us if you think these predictions make sense or not. Email: jc@m2mnow.biz

M2M Now March 2013

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EVENT REVIEW

Global attendance at 2012 mHealth Summit advances mobile and personalised health A record breaking 4,050 participants convened at the 4th annual mHealth Summit in Arlington, Virginia, outside Washington, DC, on December 11, 2012. M2M Now was there to hear from leaders drawn from 56 countries and all 50 of the United States. The delegates assembled for four days of networking, knowledge sharing, deal-making and demonstrating the latest mobile health (mHealth) technological offerings. The summit delivered 300 exhibiting companies, themed pavilions and 90 high-level panel sessions. All were focused on advancing mobile health and discussing the challenges surrounding wireless integration into the greater healthcare system – for the delivery of quality, affordable healthcare in the US and around the world. As the largest international health conference and expo situated at the intersection of business, policy, technology and research, the summit is the global convener of the expanding mobile health ecosystem. Participants included those from research, government, advocacy, non-governmental organisations (NGOs), providers, payers, technology innovators, entrepreneurs, and venture capitalists.

Keynote speakers included: Mark Bertolini, CEO and President of Aetna; Gary Shapiro, CEO & President of the Consumer Electronics Association (CEA); Peter Tippett, Chief Medical Officer and Vice President Verizon Enterprise Solutions; Harry Totonis, CEO of Surescripts; Francis Collins, Director of the National Institutes of Health; and Dr. Nafis Sadik, UN Foundation board member. The summit also offered executive spotlights from: AT&T, Deloitte, Intel, Philips Healthcare, American Liver Foundation, McCann Health and the Director General of Ghana Health Services. S14

“This gathering of stakeholders from around the world, who represent each aspect of the mobile health ecosystem is unprecedented,” said Richard Scarfo, director of the mHealth Summit and vice president of Events at HIMSS Media. “As we close the 2012 mHealth Summit, we are confident that the conversations around challenges such as scalability, interoperability, security, privacy, and data analytics will help drive momentum for finding solutions on how to deliver 21st century mobile healthcare globally.” “Quality health services and public health is a global imperative and it’s efficient, effective, and safe delivery through mobile technologies is going to take a united effort,” said Patricia Mechael, executive director of the mHealth Alliance, a founding partner of the mHealth Summit. "The global health track and partnerships forged and networking facilitated at the summit were some of the important ways we are continuously learning, fostering innovation, sharing information and moving the field forward.” Key themes that emerged • Common global interests. The domestic and international communities are looking to mHealth to provide solutions for scalability to increase access and quality of healthcare delivery while reducing costs • Mobile connectivity is driving personalisation and consumerisation of health, enabling greater patient empowerment and bridging the gap for improved provider and patient communications, interventions and consumer engagement

M2M Now March 2013

Themes that were trending in the conference sessions, and on the exhibit floor were companies and discussions focused on: - A global health spotlight on maternal, women’s and child health; - Policy barriers to overcome to advance the integration of mHealth for better health; - Neutral approaches to privacy and security – and who owns your personal health data; - The data shift: from collecting data to analytics; - What does the physician of tomorrow look like?; and - Opportunities and challenges around areas such as: HIPAA secure messaging systems, patient monitoring, point solutions for physicians and patients, and chronic care management (particularly with the ageing boomers); and - Innovation in wellness and fitness apps, plus mobile app design and development. Among the announcements at the event were: • The Sharecare and the Wireless-Life Sciences Alliance joined forces to advance connected health innovations. • Diversinet introduced mobiHealth Wallet with new patient-centered health information. • iHealth partnership with Evernote and Practice Fusion to bring doctors and patients better data for healthier living. • Qualcomm Life announced that new companies and customers had joined its ecosystem, including Ingram Micro, MD Revolution, HealthyCircles, Valued Relationships, ActiveCare and Tri-City Medical Center. • Verizon Foundation, while more than 20 years old, it is relatively new to large-scale healthcare philanthropy. At the Summit, it announced plans to invest almost $13 million in a new programme aimed to measurably improve accessibility to care and clinical quality for children, women and seniors. The goal is to reduce healthcare disparities and improve patient self-management of chronic disease. Initial partners, selected on the basis of geographic reach, capacity to manage the technology solution, and ability to deliver metrics related to patient care, patient engagement, and cost savings, are The Children’s Health Fund, The Society for Women’s Health Research, The National Association of Community Health Centers; and the University of California, San Diego.

MWC 2013 CEO GUIDE

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