Presentation on theme: "Challenges and Opportunities for M2M"— Presentation transcript:
1Challenges and Opportunities for M2M DOCUMENT #:GSC15-PLEN-57FOR:Presentation for InformationSOURCE:CCSA (Huawei Technologies)AGENDA ITEM:6.12CONTACT(S):Dr. Zhong LuoChallenges and Opportunities for M2MDr. LUO Zhong (Noah)Deputy Director of Department of Industry StandardsHuawei Technology Co., LTDGlobal Standards Collaboration (GSC) GSC-15
2An Emerging Market01010eHealthPersonalSecurityAutomobileSmart CityLogisticsiHomeM2MMetering & Smart GridM2M (Machine to Machine) is defined as data communications between entities that do not necessarily involve direct human interaction. Also known as MTC (Machine-Type Communication) within 3GPP, USN (Ubiquitous Sensor Networks) in ITU-T, or as the “Internet of Things”.Corresponding improvements to network implementations supporting these solutions are required.Applications utilizing M2M are considered as critical to Smart Grid capabilities and energy efficiency.
3New Opportunities Identified M2M is returning to the forefront as an application for service providers.Drivers are both market-based and regulatoryM2M holds the promise of bringing benefit to both telecom operators and vendors:The opportunity may be a “blue ocean” for service providers... because low-bandwidth M2M services can be readily overlaid onto the current user services network.Vendors are expecting to profit from selling both M2M-capable devices, and from the network expansion brought about by increased throughput.
4Some Highlights on M2M Standards 200420082007200620052009SA1 M2M (TR )SA3 USIM M2M (TR )SA1 NIMTC (TS ), EMTCETSI TC M2MITU-T USN, Vehicle Network, FG Smart GridIEEEIEEEIEEEZigBee V1.0ZigBee 2006ZigBee 2007ZigBee RF4CE ZigBee IP stackIETF 6LowpanIETF RollRFC RFC4944ISO/IEC SGSNSA2 NIMTC (TR23.888)2010CCSA TC10 - new Technical Committee set up in early 2010, focusing on Ubiquitous Network standardization.
5M2M standards in CCSA (1)TC10 is the leading Technical Committee in CCSA focusing on Ubiquitous Network (UN) standardization in China. It’s intended to provide high-quality telecom standards to support the applications of M2M in different industries.This new TC was set up in February More than 200 delegates from all kinds of companies attended the first TC10 meeting in Beijing, including many potential industry users of the UN specifications.
6M2M standards in CCSA (2)4 Working Groups are set under TC10 and more than 20 technical specifications are expected to come out at the end of year 2011:WG1: Design, Architecture &Common RequirementsWG2: Requirements from Industry ApplicationsWG3: Network Improvement to Support the ApplicationsWG4: Extension between Telecom Networks and Sensor NetworksClose collaboration between TC10 and existing TCs in CCSA - a couple of joint research/standards projects between TC10 and the following TCs:TC1: WG2TC3: WG4TC5: WG3, 4, 7, 8, 9TC8: WG2
7Prioritization Issues Operators and Industry Current IssuesPrioritization Issues2G, 3G or LTE?Operators and IndustryMost SDOs take small steady steps towards new specifications, rather than rushing into new standards.Operators have not yet seen sizeable revenues from M2M , and so are cautious about investment in network capacity and/or capabilities to support it.Mobile Operators’ interest in deploying M2M applications immediately on 3G or LTE network is low.Because of the competitive price position of 2G devices, and low aggregate M2M traffic, operators appear willing to deploy M2M initially on existing 2G infrastructures.Industries without an embedded communication infrastructure tend to favor a Service Provider-centric solution. Service Providers provide them with application platforms, custom or standardized devices, and the data transmission pipe.Infrastructure industries such as electricity, petrol and railway, already have dedicated communication networks. It is possible for them to build M2M systems independent of the Service Providers’ networks.
8Challenges to Telecom Industry Business model and value chainSome carriers already have M2M applications in their networks. However, charging models still tend to be unsophisticated: “per meter per month” or “total Bytes transmitted”… impeding revenue opportunities.There are questions regarding the role of operators in the value chain. Most service providers do not expect significant revenue in the short-term.Problems remain in optimization of the network for M2M specific service.Device Price vs. Economies of ScaleThere is a ”chicken or egg” dilemma between the ability to drive down device/chipset costs and the need to deploy in vast quantities.
9Next Steps for M2MService Providers need to reduce the overall cost brought by introducing M2M business;Avoid network CAPEX only for the sake of M2MDrive cost reductions in M2M terminal devicesNetwork resource consumption for M2M terminals is different from existing voice/data devices, so optimization is needed to reduce the overall cost of the operators;Minimize the impact on the existing conversational/interactive services, currently the main profit source for service providersCharging models need to be refined, and potentially based on pre-subscribed features/capabilities, rather than connection time (MoU) or data volume (bytes);Competition with non-Telecom service and application providers will increase, so quick movement into the market is essential.