1. M2M implications Rudolf van der Berg rudolf.vanderberg@oecd.org

2. 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.

3. 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?

4. M2M applications by type Dispersed Smart Grid, Meter, City Remote monitoring Car automation eHealth Logistics Portable consumer electronics Concentrated Smart Home Factory automation eHealth On-site logistics FixedMobile

5. M2M networks by type Dispersed PSTN Broadband 2G/3G/4G Power line communication 2G/3G/4G Satellite Concentrated Wireless Personal Area Networks Wired networks Indoor electrical wiring Wifi Wireless Personal Area Networks FixedMobile

6. 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

7. 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

8. 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)

9. 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 – Flexibel gebruik MNCs

10. How? Get IMSI from regulator Outsource platform and HLR (like telcos) Contract telcos in each country –Its easiest if you need only one country –Great opportunity for intermediairies Contract with broadband networks for access to wifi? –New, but standards exist

11. Precedents 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 IMSIs UK and NL allow private organisations to use GSM in unlicensed DECT-guard band

12. Technical solution not enough Over the Air update of SIM with new IMSI and crypto keys Work on industry standard started this year under pressure of Apple Control lies with telco for all parameters Doesnt solve all business problems

13. The options compared Telco SIMOTA updateOwn MVNO Switch telcoSIM-SwapTelco initiatedMVNO initiated National roamingForeign SIM, all networks generally Foreign IMSI1, 2, 3, or 4 networks, M2M user decides Negotiate roamingTelco determines network and price M2M user negotiates network and price Home gatewayMaybe, telco chooses M2M user negotiates access 30 year life timeIf telcos cooperate If network isnt shut down

14. Other policy problems with M2M Numbering (enough phone numbers?) Privacy (think TomTom) Sharing public/private sector information Frequency policy (M2M will lock in frequencies for 30 years?)

15. Conclusion M2M changes the market, with a new user emerging: The million device user This user is currently locked in and cant directly get access to numbers One option may be liberalising the market. M2M user will probably use own SIM with own IMSI with OTA possibility –In case of case of acquisition or selling of part of business, SIMs can be updated