Machine-to-Machine (M2M) communication
refers to technologies which allow wireless and wired systems to communicate
with other devices of the same ability.
According to GSMA, by 2020 global
M2M connections are expected to reach 13 billion, with Asia Pacific accounting
for 41% of the total connections driven by emerging markets.
Growth of 4G technology will drive M2M
adoption with Telecom Operators expected to increase their CAGR by partnering
with M2M service providers. Hence they are building partnership with M2M
providers in specific vertical market sectors to improve their service
portfolio. The Global Mobile M2M module market was worth $ 1.5bn in 2012 and it
is expected to grow rapidly in the next fiscal year.
As
India being the 3rd largest country in number of subscribers having broadband
connections and 100% FDI in telecom sector, many foreign companies are ready to
invest in M2M. In India M2M started taking a leap when Vodafone joined hands
with Mahindra for Reva e20 car.
Operators
M2M drivers:
·
New revenue opportunity :Offset revenue decline from
legacy services and increase focus on data revenue
·
Competitive advantage :A key differentiator for operators in a highly competitive
environment
·
Launch of 3G and 4G :Enables sophisticated
service delivery that require increased bandwidth
Application of M2M:
Three verticals are viewed by
operators as most promising to monetize M2M offerings
·
Transport
and logistics: Fleet
management, asset tracking, logistic planning and optimization for enterprises.
·
Utilities: Smart metering and smart grid
initiatives in electricity, gas and water being pushed by government
regulations.
·
Automotive: On-demand infotainment, safety
and security services, remote vehicle diagnostics and usage based insurance for
private individuals
Offerings by Telco:
1.
Vodafone- Recently Vodafone announced to buy Italy-based automotive
security and telematics firm, Cobra Automotive Technologies. The acquisition of Cobra Automotive Technologies will help
Vodafone make progress in connected technologies for automobiles. Also “Cyan”, System and software
design company has signed a teaming agreement with Vodafone's M2M
(Machine-to-Machine) team to create joint propositions, develop opportunities
and submit proposals to customers to enable either party to address the smart
metering market in India.
Some of the
industries by Vodafone M2M are in
·
Automotive
·
Consumer
Electronics
·
Energy and
Utilities
·
Health
·
Manufacturing
·
Transport
and Logistics
2.
AT &T
AT&T has partnered with
·
Jasper
Wireless - to form AT&T Control Centre that helps companies manage large
scale deployments
·
Axeda – to
form AT&T Resource Centre to accelerate the development and deployment of
M2M applications.
Some areas where AT&T
provides its M2M capabilities to use are
·
Fleet and
Asset Management
·
Vehicle
Tracking
·
Smart Meters
·
Smart Grid
AT&T approach in India:
·
In May 2013, AT& T entered
into an alliance with India-headquartered IT services company Wipro
Technologies to develop M2M solutions for various industries.
·
In October 2013, Company
announced a new global alliance with General Electric (GE). GE machines will
use our network and cloud to help workers be more productive. Workers will be
able to remotely track, monitor, record and operate GE machinery, virtually
anywhere in the world.
·
In February 2014, AT&T
announced a new global alliance with IBM that will focus on building new
solutions for city governments, transportation officials and midsize utility
companies. Cities can better evaluate patterns and trends to improve urban
planning.
·
AT&T is interested in
providing Heavy Equipment and Asset Tracking Project in Indian Market.
In
India, except Vodafone all players are taking very slow steps for M2M deployment.
Lot of players are in debt due to high spectrum bidding prices so they might
take back seat for M2M will provide communication services only while System Integrators
like TCS, Wipro may take lead.
Issues for
M2M Deployment:
·
Bring
Standards For M2M in line with global standards
·
Allocating
Spectrum for M2M local area network Layer
·
Revisit
National Numbering Plan to accommodate M2M
·
To ensure
the Always on requirements – Inter-Operator Roaming and Inter-Network Mobility
·
To ensure
Interoperability
·
Guidelines
for Bundled Services
·
Address
Privacy and Data Protection
·
Address KYC (know
your customer) and customer traceability issues.
·
Address
Security and Lawful Interception for M2M
·
To have
policy around Customers ethical Issues
·
Close
coordination with relevant global organizations
From
above issues it is clear that lot of work has to be done in this field. Government is taking rapidly
steps with the formation of TSDSI "Telecommunications
Standards Development Society, India" which
aims at developing and promoting India-specific requirements,
standardizing solutions for meeting these requirements and contributing these
to international standards, contributing to global standardization in the field
of telecommunications, maintaining the technical standards and other
deliverables of the organization, safe-guarding the related IPR, helping create
manufacturing expertise in the country, providing leadership to the developing
countries (such as in South Asia, South East Asia, Africa, Middle East, etc.)
in terms of their telecommunications-related standardization needs.
So
it is important to develop a clear framework to tackle these liabilities. Let’s
hope all these steps will lead to fruitful output.
Devendra Patil
Marketing and Finance
2013-2015