Machine-to-machine (M2M) communication has unleashed a new age of innovation and opportunities by linking large numbers of previously unconnected things and sharing their data. M2M communications find applications across various segments, including transportation and healthcare.
While the term internet of things (IoT) is often used synonymously for M2M, there are significant differences between the two technologies. For one, M2M solutions typically rely on point-to-point communications, using embedded hardware modules, and either cellular or wired networks. In contrast, IoT solutions rely on internet protocol-based networks to interface device data to a cloud or middleware platform. Further, in the majority of cases, IoT devices require an active internet connection while M2M devices do not necessarily rely on internet connectivity.
Global M2M scenario
As of May 2015, there were 468 mobile operators offering M2M services across 190 countries. Moreover, the number of worldwide M2M connections is also growing exponentially, with some industry estimates suggesting 50 billion connected devices by 2020, across every major market vertical. Further, various countries have announced public-funded M2M projects. In 2006 the European Union (EU) mandated that 80 per cent of European consumers should have smart energy meters installed in their homes and offices by 2020, using information technology to monitor and reduce energy consumption. Another key M2M initiative announced by the EU is “e-call”, which seeks to reduce the number of fatalities from automobile accidents by ensuring quick emergency response. This is achieved by communicating the details of accidents through in-vehicle equipment to connect to public answering points. Meanwhile, a number of southern and eastern European countries have deployed connected sales register systems for monitoring tax revenue. The system includes a cash register machine, a point-of-sale (PoS) machine, a GPRS terminal, a GSM connection and a centralised server at the authority data centre. The set-up can also be linked to small retail outlets, stand-alone vending machines, parking voucher payment machines, etc. to monitor their daily turnover.
Meanwhile, in Brazil a number of recent regulatory developments have significantly improved the prospects of M2M
communications. M2M service providers are being registered under the mobile virtual network operator category and have also been granted several tax benefits. The government has also reduced the tax on SIM cards for M2M devices by 80 per cent, providing a stimulus for operators to develop M2M services. With these policy initiatives, it is expected that M2M connections in Brazil will reach 35 million in 2018, at a compound annual growth rate (CAGR) of 32 per cent (2012 to 2018). The rest of Latin America (excluding Brazil) is expected to grow at a CAGR of 25 per cent over the same period.
Many developing countries have also announced projects related to M2M. For instance, in several African countries, tax authorities are planning to make it compulsory to deploy connected sales register systems to monitor sales and stop any possible revenue leakage.
Growing traction in India
In India, the Department of Telecommunications (DoT) released the National Telecom M2M roadmap in May 2015. India has become one of the few countries to take a holistic view of the M2M landscape through the release of a full-fledged M2M policy. The roadmap serves as a single-point reference document for all M2M ecosystem partners in India. It also spells out the specific M2M standards in the Indian context, in line with global standards. The importance of M2M was also highlighted in the National Telecom Policy, 2012.
A large number of M2M projects have been announced by the various central government ministries, including the 100 smart cities project by the Ministry of Urban Development and the 14 smart grid pilot projects by the Ministry of Power. Moreover, the Ministry of Road Transport has mandated that all commercial passenger vehicles of more than 22 seating capacity should be enabled with GPS, emergency calls, etc.
Among telecom operators, Vodafone has been at the forefront of offering M2M solutions in India. In October 2015, Vodafone Business Services partnered with construction equipment maker JCB India to manage its machines through remote monitoring services. As part of the collaboration, Vodafone will provide M2M solutions to power JCB’s Livelink, a telematics system that facilitates remote monitoring of its construction equipment and provides information on service, operation and security of the equipment. Vodafone had earlier partnered with a domestic healthcare company to send information collected by the blood glucose metering devices to mobile phones of doctors and immediate relatives of patients.
Key challenges in M2M deployment in India
In the Indian context, the key challenge in M2M deployment is with regard to spectrum requirement. M2M covers various industry verticals and uses different frequencies for various kinds of service offerings – ranging from short-range communication on high frequencies like Bluetooth, ZigBee and 6LoWPAN to low-frequency ranges for radio frequency (RF) mesh etc., in the neighbourhood network connectivity requirements. Hence, there is a need to fine-tune free spectrum bands and also delicence certain bands for enabling M2M communications. Another key requirement is that of large-scale investments in building communications infrastructure. There is a need to provide ducts for communication cables, similar to power and water, while planning and designing a building.
Moreover, since M2M will connect millions of devices, assigning an address for identification of each device becomes a formidable challenge as all kinds of addressing schemes currently prevailing in the telecom space will run short of addresses. To this end, a new M2M numbering scheme is under consideration by DoT.
The initial quantum of M2M traffic and the corresponding ARPUs are also expected to be extremely low for the Indian market. Consequently, there is a need to devise separate roaming arrangements/interconnect agreements among telecom service providers. There are also concerns related to the non-availability of M2M services in the north-eastern states and Jammu & Kashmir in the case of imported devices pre-fitted with foreign SIM cards. This is due to the restrictions placed on international roaming in these areas.
Conclusion
M2M communications have the potential to bring about substantial social and economic benefits to consumers, businesses and governments by facilitating automated information exchange between devices. However, given the diverse nature of M2M applications, some sectors will be more successful in leveraging the potential of M2M than other sectors. For M2M to gain wider acceptance, service providers and other players in the ecosystem must aim to deliver applications that could add tangible value to people’s lives.
