Networked Society

Through Machine-to-Machine Communications

What will be the role
for operators?
IT/IP Business Competence Development Programme - June 12th 2013

KTH Royal Institute of Technology

Andrés Laya
Research Engineer

2

Part I – Introduction to M2M




Overview of M2M
Common Applications
M2M Characteristics
M2M and the Forecasts
Challenges

Part II – Application Cases




Access Control and Time Reporting for Homecare
e-Home Care in Västerås town
Stockholm Royal Seaport
Building Automation in Halmstad
Final remarks
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Q1 What is Machine-to-Machine? 4 .

· Controlling and monitoring applications.M2M a Definition Machine-to-Machine (M2M) communications refer to the exchange of data between devices: · With minimal human intervention. 5 .

Pros: cheap. and Applications”. secure. Wireless Cellular Solution – dedicated cellular link: . mobility. . not energy efficient. lack of ubiquitous coverage. secure. scalable. .Cons: low data rates. roaming. expensive to maintain. interference. low power. Standards. .Cons: expensive operation. Wireless Capillary Solution – shared short-range network: .Pros: reliable.M2M Networks Wired Solution – cabling between devices and gateways: .Cons: expensive.Pros: excellent coverage. little delays. no mobility. not scalable. Mischa Dohler and Jesús Alonso-Zárate 6 . From “M2M in Smart Grids & Smart Cities Technologies. high data rates.

Devices (Sensors/Actuators) Processing Management Application Any type of network that facilitates end-to-end conectivity 7 .

Q2 What profitable applications are feasible with M2M? 8 .

• Vehicle to Vechicle communications.• • • • • • Smart Parking. Self-driving vehicles. Pay-as-you-drive Insurance. Smart Traffic. Fleet Managment. Transportation 9 . Key technical aspects: • Vehicle to Infrastructure communications. Automatic maintenance scheduling.

• Remote patient monitoring. HEALTH 10 . • Automatic report for medicine intake.• Realtime symtoms report.

SMART CITIES 11 . Utility metering. Facility Management.• • • • • • Smart bin collection. Smart lights. Building Automation. Dynamic traffic lighting.

• • • • Smart Grids. AUTOMATION 12 . Industrial automation Manufactoring automation Telemetry.

on/off or readings from meters Duty cycling to report information For many applications. mobility is not a major concern Heterogeneity in terms of information priority Energy efficiency and network lifetime 13 .M2M • • • • • • • • • Characteristics Huge amount of devices Need for Interoperability Autonomous operation Mainly uplink data to report sensed information Small data transmissions.

2013] [IoT European Research Cluster “Vision and Challenges for Realising the Internet of Things”] • • Low revenue per connection (ARPU) Network has to be dimensioned for a number of devices transmitting few bits.1% corresponds to 1.7 Billion M2M devices out of 10 Billion total [Cisco. 14 .M2M and the Forecasts This 5.

Energy-efficient mechanism for autonomous devices. • Specific Requirements • • • • • Reduce mobility signaling.M2M Technical Challenges • There is a need to • • • • Provide connectivity to large number of devices Prevent traffic peaks: congestion control. Interoperability. Priority Alarm Handling. 15 . Time controlled transmissions. Small data transmissions. Provide charging mechanisms suitable for M2M.

Interoperability between M2M products vendors and networks.M2M • • • • Business Challenges Existing solutions are typically dedicated to single applications. Difficulties to analyse value. 16 . Business model focused on provider-customer model.

Reduce expenditures. Expanding coverage of mature technologies. Large scale applications and incentives from public funding.M2M Values and Drivers • Values • • • Low ARPU But high revenue per application. Particular to each application: • • • Smart metering and UE 2022 mandate. Consumers can be part of the aftermarket in the co-creation of values. Declining costs in hardware and connectivity. • Drivers • • • • Saturation of human market. Health and change from episodic to continuous-care. Data represents valuable information: • • • Improved and customized services. 17 . Optimize working times.

Q3 How can TeliaSonera make profit from M2M? 18 .

org/plugtests/COAP2/Presentations/03_ETSI_M2M_oneM2M. • Emerging trend • Global partnerships. Boswarthick (ETSI) http://www.. • Application Service Management SIM.etsi. Revenues lay in service enablement and support of data management.pdf 19 . • Creation of new applications.• Indirect relationship with M2M applications (Connectivity provider). How will telcos evolve? D.. Modules. Application Service Enablement DATA Service Management Connectivity Connectivity Devices Devices Future revenues • Support business decisions with data intelligence. solutions and services. • Secure and Manage data. Beginning to understand the role of the data.

Part II • • • • • Phone Keys Remote Monitoring Smart City Building Automation Final remarks Application Cases 20 .

com/solution?g=Consumer&n=Phoniro 21 .bluegiga.Homecare Access Control and Time Reporting • Digital key using mobile phones • Handles access authorization and processes time registration data • Homecare authorities can prove service delivery • Relatives can monitor who enters the home of the patient • Big values: – Reducing complexity in keys management – Providing accurate reporting times www.

Showstoppers MNO in charge of the application management phased out the service. 2011 KTH PhD dissertation. 22 . claiming: • Small market • Lack of suitable phones • Complex product for the sales force • Long sales cycles in the public sector Change in business model Source: Jan I Markendahl “Mobile Network Operators and Cooperation : A Tele-Economic Study of Infrastructure sharing and Mobile Payment Services”.

e-Homecare in Västerås town • Patient needs assistance several times per day • With ICT technology some physical visits can be replaced by video conversation – Checking if medication is taken – Reminders – First contact in case of alarms • Big values: – 300 e-home care customers – will result in 2 M€ annual cost saving P.” 20 February 2013.se/aktuellt/Documents/BoIT2%25200%2520_20feb2013. Lokala projekt 2012 . “BoIT 2. presentation for SABO. www. Forsström.sabo.0.pptx 23 .

24 . Laya “Business Model Challenges For Internet Of Things: Findings From e-home Care.Once again. the e-home care service represent: – A very small. Markendahl and A. Customers do not pay for a broadband subscription e-Homecare is part of the overall homecare package Installation done by homecare staff The town IT service department: – Buys broadband connectivity capacity – Acts as service provider – Is responsible for the technical solution. price sensitive market segment – Customers that require a lot of customer care • Customers tend to mistrust the ISP installation New Setup E-home service provider Actor within the town External actor Home care authority Internet service provider Leasing capacity Urban broadband network Landlord Installation by home care staff Service fee E-home service provider • End-users (the elderly) Home care authority IT service of the town Leasing capacity Broadband fee as part of monthly rent Service fee Broadband fee as part of monthly rent End-users (the elderly) Internet subscription Installation staff • • • Urban broadband network Landlord Source: J. Smart Access Control. 2013 IMP Conference. Smart Cities And Homes”. Showstoppers • Less than 30% of people of age above 70 have Internet • For the ISPs.

fixed or private Uniform data access point over any network from any equipment Connectivity Even when sharing. 25 . service providers want to control the customer interface. Fragmentation is expected.Smart Cities The case: Stockholm Royal Seaport Actors tend to think on terms that Our services should be provided by our infrastructure E N E R G Y T R A N S P O R T H E A L T H M E D I A Cellular. even if these services are technically very similar.

Smart Houses & Facility Management The case: Halmstad town • Stovepipe within the very same industry sector • Parallel applications are present • Typically provided with entirely vertical solutions: • Network deployment and operation • Connectivity • Billing • Customer relationship 26 .

The common infrastructure is operated by a neutral actor. 27 .The proposed solution is a horizontal and open business model using a shared common infrastructure. a communication operator.

Clear. installation ISP role unclear. many sectors Yes. Clear. How to exploit? Yes Stovepipe Not there. installation MNO left. new setup Big. Already here e-Home Care No main issue.Key Factors CASE Technical issues Business model Mobile phones for access control & time reporting No main issue. one sector Yes. Already here Stovepipe Not there. new actor in charge Big. How to exploit? Yes Smart Cities Stockholm Royal Seaport Smart Houses and Facility Management Values Entry barrier 28 .

Consumer not directly involved with communication provider Change in Mindset 29 . Traditional models are based on provider-consumer.Solutions based on mobile communication do not have a proper M2M connectivity model. Consumers Consumers Change in the Relations Application Providers Information Brokers Mobile Operators Mobile Operators } Service Providers M2M services are often part of a complex value constellation.

• • Successful cases have been addressed with tailored approaches. the Phoniro application in Facility management. For example. An open research challenge is the study of applications in context. 30 . analysing the inter-application coordination. • Solutions involved changes in the traditional business thinking.Some Remarks • Easier to assess the benefits of small and isolated solutions. Including shift from stovepipes solutions to common infrastructure. • Shared infrastructure should work for horizontal components that are common across diverse vertical businesses. But M2M is heterogeneous. from end devices to technologies and applications. Coherent vertical application should be build out of this horizontal components.

how are they going to deploy industry-specific applications? ¿? 31 . but no major player still making profits.The Takeaways • Possibility to enter in the core business of any type of service. Vehicles. • Market penetration will follow different time-cycles Consumer Electronics are renewed every 1-2 years. appliances and industrial devices have longer life-cycles (5-10 years) • • How to use the manage data to deliver information? this is the business! How to achieve economy of scale? Apple and Google application model to M2M. • Some solutions are out there. If considering the independent software vendors.

net/service/internet/picov/get?DocNo=28701-EN/LZT1380878 DZNet .pdf Ericsson – Service Enablement http://archive. Technologies.Tapping M2M: The Internet of Things http://www.The Massive M2M Business Opportunity Sanjay Poonen. Jesús Alonso-Zárate.kth. and Applications Mischa Dohler. http://cttc.Further reads Forbes .es/resources/doc/121203-m2m-tutorial-alonso-boswarthick-dohler-globecom2012-4961955251780189470.com/m2m/report laya@kth.zdnet.com/sites/sap/2013/02/18/the-massive-m2m-business-opportunity-part-1/ Machine-to-Machine in Smart Grids & Smart Cities.eiu. http://www. David Boswarthick.se - http://wireless.ericsson.forbes.se/m2m/ . Standards.Rise of the machines: Moving from hype to reality in the burgeoning market for machine-to-machine communication http://digitalresearch.com/topic-tapping-m2m-the-internet-of-things/ The Economist .