making sense of m2m - cdma2000 · ntt docomo, apac – domestic and international, through mvno...

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010

Making Sense of M2M

Venkat EswaraDirector, Applications Services Marketing

Motorola NetworksMotorola, Inc.

October 2010


Ecosystem and Business Model

Motorola’s Approach

Case Studies

Market Opportunities

Summary


The Internet of Things

Source: Beecham Research


Opportunities for Mainstream Adoption


Verizon Wireless, NA– Enables GM OnStar consumer telematic

service

– Partnership with Qualcomm

– Strategy:

• Wholesale connectivity provider to MVNOs and VARs

• Serving large corporate customers such as GM

– ODI (Open Development Initiative) for device developers to certify on Verizon Network

–Supporting wholesale and retail models

Market AdoptionEarly Deployments Showing Promise

Orange, EMEA– Launched the International M2M Center

(IMC) in 2009

– Acquired Data & Mobile, fleet management solutions provider

– Low cost M2M connectivity across its own footprint of 29 mobile networks and through partners’, covering 151 countries

– Segments: meter reading, city monitoring, fleet management, security monitoring, automotive networking, home automation, and health

– Over 2M SIMs by 2010

NTT DoCoMo, APAC– Domestic and International, through

MVNO Telargo

– Strategy – M2M for differentiation

– Segments - advanced metering infrastructure, EPOS, vending, fleet management, remote monitoring, pet and personal tracking, and remote content delivery

Sprint, Clearwire , NA– M2M traffic uses core voice/data

network infrastructure (CDMA, iDEN)

– Clearwire using WiMAX for M2M

– 4 channel strategies: open, wholesale, indirect, and direct

– Segments : utilities, fleet management solutions, and consumer electronics

Source: ABI Research, Current Analysis


Value Chain and Ecosystem

M2M Enabled ProductM2M TerminalM2M ModuleChipset

Devices

WiMAX/LTECDMA/EV-DOHSPAGSM/GPRS

Networks

Health CareSmart MeteringTelematicsFleet

Management

Applications

POS TerminalsRemote Product Management

Security Alarms

Integrator

Hosting & Service Platform Supplier

Distributor

Go-to-market strategies critical for value chain players to justify investments


Drivers and Challenges

Drivers– Adoption of wireless technologies

– Operational efficiencies with Telematics and Telemetry

– Leveraging scale for silicon from cellular/mobile industry

– Technical advances in 3G enabling high data centric M2M opportunities such as remote video surveillance, remote information display and multimedia content delivery

– Shift to Data-centric services for MNOs

– Governments and regulatory bodies mandating M2M - telematics and telemetry services

Challenges– Cellular M2M applications can be complex and

not core-competency for Service Providers (non MNOs)

– Limited knowledge of M2M and customer support

– Cost of M2M solutions can be an inhibitor for some applications

– Ex: Using SRW (short range wireless) and PLC (powerline carrier) vs cellular connections

– Slower adoption of 3G mobile networks to enable video enabled M2M services

– Cost differential between 2G and 3G inhibit adoption of 3G M2M services

– Business Model – Scale vs Profitability


Business Model for MNOsMaking M2M viable

SCALE, SCALE, SCALE

Opportunities– Lower cost of service delivery

– Leverage service delivery platforms

– OSS/BSS for provisioning, billing, network management, trouble-shooting and customer support

– Network optimization and off-peak services to cater to M2M

– Lower customer acquisition cost

– Lack of device subsidy

– Share marketing/advertising cost with channel partners

– Lower churn

– Additional Revenue Opportunities

– Data Analytics

– VAS

– Service Bundling

Source: Current Analysis


Ethernet overMicrowave

PDH/SDH Microwave

Carrier Ethernet over

SDH/Dark Fiber/WDM

IP/MPLS Network over

SDH/ Dark Fiber/ WDM

Internet

• Authentication• Security• Network

Recovery• Billings Systems• Monitoring• Service Delivery

Platforms• Service Level

Agreements (SLAs)

• QoS Management

• SIM management

Proposition for MNOsGo2Market Strategies and on-deck capabilities

Customer relationship model by ASP

Brand Strategy co-marketing and co-selling model

MNO ASP

M2M Vertical Market


Management Agent

M2M OpportunitiesMillions to Billions Devices

Phone, EDA, STB hosted apps.

Locally or enterprise hosted apps.

1s - 10s of nodes 100s of nodes 1000s of nodes

Web hosted apps.

Active Lifestyles In-Home Monitoring

AssetTracking

Structural HealthMonitoring

Surveillance

Local Host

Set Top Box

AMI/AMR

Human Centric Device Centric

Gateway

Need for Scalable and Cost Effective Service Delivery Platforms


Motorola’s E2E Offering

Applications

• Service Delivery Platforms

• Decentralized Edge Processing

• Ecosystem Partners & support 3rd party application development

• Revenue and Differentiation

• Reliability

Devices

• Multi-tiered• Specialized• Zero Time, Zero

Effort Proposition

OSS/BSS

• Flexible• Simplified• User Analysis

Services

• Professional Services• Network Optimization• Multi-vendor focus• MNO, Enterprise

Experience• Managed/Hosting

Services• Interoperability Across

Platforms & Languages

Network

• CDMA Family, GSM Family, WiMAX, LTE

• Coverage, Capacity, Reliability

• RF Planning Expertise

Service

•Reduced downtime•Fast response, Audit trails, etc•Usage patterns and analytics

Costs

• Efficient operations• Reduced & prioritized site

visits• Service Delivery Platforms

Revenue

•Business Models•Ecosystem•Manage Risk –Hosting/Managed Services


Case Study - Fleet Management Solution

SITUATION MOTOROLA SOLUTIONPoor service quality / efficiency

Extensive data collection method

Poor truck utilization

Excessive paper work

Improved efficiency

Automated data collection

Reduced fuel consumption due to improved truck utilization

Significant reduction in accident rates

Bluetooth connectivity with Intelligent Mail Device

Security & Safety

• Emergency alert

• Asset Tracking

o Location

o Stolen Vehicle Tracking

• Accident risk reduction

RESULTS25% improvement in number of daily jobs completed

27% higher fleet utilization

13% reduction in fuel and maintenance costs


Mobile Game DayM2M in Motion - Leveraging LBS, Mobile Video & M-Commerce

Section‐based Trivia, Fantasy Team Contests

Ticket Upgrades, Concession & Souvenir Coupons

Attendee Location‐Aware Data Collection

Fan Loyalty/ExperienceTrack arrival and location of VIPs for concierge

Section‐based trivia and fantasy contests

Section winner gets discounts on concession/souvenirs/tix

Section winners announced end of “period/quarter/half/inning”

Revenue OpportunitiesPush adds/coupons for discounts “this period/quarter/half/inning”

Discounts on concession/souvenirs

Fan Attendance and Seat Utilization

Last‐minute or mid‐game seat upgrades

Free upgrade to Fans on “loyalty” basis

Push future ticket promotions: Season ‐> Weekend Pack ‐> 6 Pack ‐> 3 Pack ‐> # Games etc


Summary

Access Aware - Solutions to be designed and optimized for the demanding telematics and telemetry markets

End-User Centric - Collaborative approach to meet global differences in end-users’ unique needs

Service Delivery Platforms – Cost effective service delivery platforms to lower customer management cost

Motorola has expertise and experience to resolve technology, businessand ecosystem complexities to enable M2M solutions

Business Models - Adoption and management of flexible business models is critical

making sense of m2m - cdma2000 · ntt docomo, apac – domestic and international, through mvno...

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