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M2M implications. Rudolf van der Berg rudolf.vanderberg@oecd.org. Disclaimer. This presentation is based on work by Logica for the Dutch Ministry of Economic Affairs. The views presented here are my own and may or may not represent those of the OECD and its member countries.

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m2m implications

M2M implications

Rudolf van der Berg



This presentation is based on work by Logica for the Dutch Ministry of Economic Affairs. The views presented here are my own and may or may not represent those of the OECD and its member countries.

billions of devices
Billions of devices
  • Ericsson: 50 billion devices by 2020
  • eCall: 14 million cars per year
  • Energy: 10bn sockets in North America
  • Nike+ shoe
  • Smart meters, grids, cities, dykes
  • Multiple communication modules per device? e.g. for a car?
2g 3g 4g and wpan for m2m
2G/3G/4G and WPAN for M2M
  • Not one clear winner
  • WPAN best for in and around the home
    • How to connect to a gateway to internet?
  • 2G/3G/4G best for dispersed applications
    • Near global coverage
    • SIM based zero configuration authentication
  • Policy implications in use of 2G/3G/4G
impact on business models
Impact on business models
  • The consumer is not the user
  • A company or government is M2M user
    • Controls parameters for millions of devices
    • Needs to contract connectivity for device
  • Change from one user, one phone to one one user, million phones.
  • M2M user have different requirements
    • Businesses are responding to some
business requirements
Business requirements

Business requirements difficult to fulfil:

  • Switch mobile networks without SIM swap
    • Logistics of switching 10,000 SIMs is a nightmare
  • National roaming to avoid dark spots and failure
  • Negotiate roaming with local operators
    • Gives small operators a chance of M2M contract
  • Seamless access to home gateways
  • Guarantees on life time of network (30 years)
a simple piece of plastic
A SIMple piece of plastic?
  • SIM-card locks M2M-user to network
  • If M2M users could be MVNO with own SIM-cards, they could roam and switch
  • Only public service providers have access to IMSI-numbers for SIM-cards
  • One option is to liberalise market and give private networks access to IMSI-numbers
    • See Logica for Dutch Ministry of Economic Affairs – Flexibelgebruik MNC’s
  • Get IMSI from regulator
  • Outsource platform and HLR (liketelco’s)
  • Contract telcos in each country
    • It’s easiestifyouneedonlyone country
    • Great opportunity forintermediairies
  • Contract withbroadbandnetworksfor access towifi?
    • New, but standards exist
  • Everyone can get a block of IP-addresses and Autonomous System Number
    • Allows Googles and Amazons to appear
    • AS42848 is European Commission
  • Dutch Ministry of Defense has own IMSI’s
  • UK and NL allow private organisations to use GSM in unlicensed DECT-guard band
technical solution not enough
Technical solution notenough
  • Over the Air update of SIM with new IMSI and crypto keys
  • Work on industry standard startedthisyearunderpressure of Apple
  • Control lies withtelcoforall parameters
  • Doesn’tsolveall business problems
other policy problems with m2m
Other policy problemswith M2M
  • Numbering (enoughphonenumbers?)
  • Privacy (think TomTom)
  • Sharing public/private sector information
  • Frequency policy (M2M willlock in frequenciesfor 30 years?)
  • M2M changes the market, with a new user emerging: The million device user
  • This user is currently locked in and can’t directly get access to numbers
  • One option may be liberalising the market.
  • M2M user willprobablyuseown SIM withown IMSI with OTA possibility
    • In case of case of acquisition or selling of part of business, SIMscanbeupdated