section 2: business case for m2m - cdma2000 · 2 • optimizing m2m services on cdma2000 networks...
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1 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
Section 2: Business Case for M2M
2 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
Examine how module price curves are benefiting the M2M market
List various user types in the e-Health vertical
Describe the number of players that have an opportunity in e-Health
Illustrate how the dynamics have changed in M2M
List ten things you should know about M2M for 2011 and beyond
Section Objectives
3 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
M2M Business Benefits M2M solutions deliver many compelling benefits
Measures that drive investments in M2M vary greatly across
different industries and applications
Source: Harbor Research, Inc., September 2010
4 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
M2M Module Price Comparison CDMA2000 1X modules are becoming more price competitive
The market for CDMA2000 modules has been characterized
by falling prices over the past few years
Source: Harbor Research, Inc., September 2010
5 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
Identifying the Potential of the e-Health Vertical
User types:
– Personal fitness/health
– Worried wells
– Telemedicine
– First responders
– Connected medical environments
– Remote monitoring
– Assisted living
– Trials
These user types are projected
to have roughly 774 million
connected devices by 2020
M2M connections by service type 2010 to 2020
Source: Machina Research
6 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
WAN Dominates the Wireless Connection Space
Mobile networks are expected to host roughly 86 million connections
– Fixed installations are usually short
range to a home hub
– Greater demand for mobility, faster
data speeds and remote monitoring
M2M wide area connections by technology 2010 to 2020
Source: Machina Research
7 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
MNOs to Realize Revenues in the Billions
M2M mobile traffic revenues by service type
2010 to 2020
Source: Machina Research
8 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
e-Health is a Good Opportunity for Many Players
M2M mobile traffic revenues by M2M player
2010 to 2020
Source: Machina Research
9 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
New Dynamics for M2M (1 of 3)
Mobile Telephony M2M
User Individuals Machines
Key success factor Price, coverage Transparency
Usage Mobile Often fixed
Traffic volumes Significant Typically low
Timeliness Time critical Often non time-critical
Reliability Best efforts Often mission critical
Sale B2C, B2B B2B2C, B2B, B2C
10 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
New Dynamics for M2M (2 of 3)
Mobile Telephony M2M
Payment Pre-pay, post-pay subscriptions Multiple approaches
Connection
volumes Significant
Expected to be enormous
Estimated at 50 billion by 2015
Activation At point of sale Multiple possibilities, depending on
payment approach
Activity period
Typically 30/ 60/ 90 days for pre-pay
During contract period for post-pay
Device connectivity may not be used for 1 to 2 years
Device may need to be remotely activated
Complaints Users complain if there are problems Problems must be detected remotely
Device
management
Users manage devices, potentially including rebooting
Devices must often be controlled, and problems diagnosed, remotely
ARPU $20 to 28 Low, often $0.75
11 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
New Dynamics for M2M (3 of 3)
Mobile Telephony M2M
Switching providers User either purchases a new handset, or unlocks
phone
Potentially involves a module swap or remote provisioning
Network usage Some badly written
applications are inefficient
Potential for very high signalling volumes
Network technologies Users upgrade devices in step with network
technologies
Network switch off could be an issue within the expected lifetime of certain devices
12 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
Top 10 things you need to know about M2M for
2011 and beyond (1-5)
1. The total opportunity will be huge
2. Addressing the opportunity requires tailored solutions
3. Impossible for one company to serve all verticals:
partnerships will abound
4. Traffic: M2M (generally) does not need new, high
capacity networks
5. QoS guarantees may be pre-requisite for some
industrial applications
13 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org
Top 10 things you need to know about M2M for
2011 and beyond (6-10)
6. Energy and e-Health are the targets for investment
7. Distribution channels, billing, brand, etc. are all
significant assets for MNOs
8. MNOs can increase margins with network capabilities
9. Revenues for a wide range of industry players
10.The industry is in a period of disruption