M2M-Application and Issues in India

Machine-to-Machine (M2M) communication refers to technologies which allow wireless and wired systems to communicate with other devices of the same ability.

According to GSMA, by 2020 global M2M connections are expected to reach 13 billion, with Asia Pacific accounting for 41% of the total connections driven by emerging markets.

Growth of 4G technology will drive M2M adoption with Telecom Operators expected to increase their CAGR by partnering with M2M service providers. Hence they are building partnership with M2M providers in specific vertical market sectors to improve their service portfolio. The Global Mobile M2M module market was worth $ 1.5bn in 2012 and it is expected to grow rapidly in the next fiscal year.

As India being the 3rd largest country in number of subscribers having broadband connections and 100% FDI in telecom sector, many foreign companies are ready to invest in M2M. In India M2M started taking a leap when Vodafone joined hands with Mahindra for Reva e20 car.

Operators M2M drivers:

·         New revenue opportunity :Offset revenue decline from legacy services and increase focus on data revenue

·         Competitive advantage :A key differentiator for operators in a highly competitive environment

·         Launch of 3G and 4G :Enables sophisticated service delivery that require increased bandwidth

Application of M2M:

Three verticals are viewed by operators as most promising to monetize M2M offerings

·         Transport and logistics: Fleet management, asset tracking, logistic planning and optimization for enterprises.

·         Utilities: Smart metering and smart grid initiatives in electricity, gas and water being pushed by government regulations.

·         Automotive: On-demand infotainment, safety and security services, remote vehicle diagnostics and usage based insurance for private individuals

Offerings by Telco:

1.       Vodafone- Recently Vodafone announced to buy Italy-based automotive security and telematics firm, Cobra Automotive Technologies. The acquisition of Cobra Automotive Technologies will help Vodafone make progress in connected technologies for automobiles. Also “Cyan”, System and software design company has signed a teaming agreement with Vodafone's M2M (Machine-to-Machine) team to create joint propositions, develop opportunities and submit proposals to customers to enable either party to address the smart metering market in India.

Some of the industries by Vodafone M2M are in

·         Automotive

·         Consumer Electronics

·         Energy and Utilities

·         Health

·         Manufacturing

·         Transport and Logistics

2.     AT &T

AT&T has partnered with

·         Jasper Wireless - to form AT&T Control Centre that helps companies manage large scale deployments

·         Axeda – to form AT&T Resource Centre to accelerate the development and deployment of M2M applications.

Some areas where AT&T provides its M2M capabilities to use are

·         Fleet and Asset Management

·         Vehicle Tracking

·         Smart Meters

·         Smart Grid

AT&T approach in India:

·         In May 2013, AT& T entered into an alliance with India-headquartered IT services company Wipro Technologies to develop M2M solutions for various industries.

·         In October 2013, Company announced a new global alliance with General Electric (GE). GE machines will use our network and cloud to help workers be more productive. Workers will be able to remotely track, monitor, record and operate GE machinery, virtually anywhere in the world.

·         In February 2014, AT&T announced a new global alliance with IBM that will focus on building new solutions for city governments, transportation officials and midsize utility companies. Cities can better evaluate patterns and trends to improve urban planning.

·         AT&T is interested in providing Heavy Equipment and Asset Tracking Project in Indian Market.

In India, except Vodafone all players are taking very slow steps for M2M deployment. Lot of players are in debt due to high spectrum bidding prices so they might take back seat for M2M will provide communication services only while System Integrators like TCS, Wipro may take lead.

Issues for M2M Deployment:

·         Bring Standards For M2M in line with global standards

·         Allocating Spectrum for M2M local area network Layer

·         Revisit National Numbering Plan to accommodate M2M

·         To ensure the Always on requirements – Inter-Operator Roaming and Inter-Network Mobility

·         To ensure Interoperability

·         Guidelines for Bundled Services

·         Address Privacy and Data Protection

·         Address KYC (know your customer) and customer traceability issues.

·         Address Security and Lawful Interception for M2M

·         To have policy around Customers ethical Issues

·         Close coordination with relevant global organizations

From above issues it is clear that lot of work has to be done in this field. Government is taking rapidly steps with the formation of TSDSI "Telecommunications Standards Development Society, India"  which aims at developing and promoting India-specific requirements, standardizing solutions for meeting these requirements and contributing these to international standards, contributing to global standardization in the field of telecommunications, maintaining the technical standards and other deliverables of the organization, safe-guarding the related IPR, helping create manufacturing expertise in the country, providing leadership to the developing countries (such as in South Asia, South East Asia, Africa, Middle East, etc.) in terms of their telecommunications-related standardization needs.

So it is important to develop a clear framework to tackle these liabilities. Let’s hope all these steps will lead to fruitful output.

 Devendra Patil

Marketing and Finance

2013-2015