1. M2M
Business models and opportunities

2. How big is the market?
• Over 100 million now
– Berg Insight
• 50 billion by 2020
– Ericsson
• 225 million connections by 2014
– Cisco –who also say 50 billion by 2020
• 4.3 billion connections by 2020
– Strategy Analytics
• 24 billion connections by 2020
– GSMA and Machina Research
• $4.5 trillion by 2020
– GSMA and Machina Research “50 billion is more likely to be the
number of devices that are ‘internet
capable’. The question is ‘will society
allow it?’”
Mike Short, VP, Telefonica

3. Conclusion…

8. What will affect the market?
Enterprise =/= Consumer
• Society – human behaviour
• Timing – chicken and egg
• Security and trust
• The right partnership choices – partly trust issue
• Human/machine interaction and prioritisation
• The right technology and infrastructure

10. Spare a thought for the carrier

11. 1 million vehicles, 14,000 metrics, $8 billion maintenance
– are they a vehicle or data management company

12. Roaming Camel?
M2M roaming is a serious issue

13. Things we know
• Human behaviour will make it invisible
• The eco-system is not complicated
• There is no single model
• There are many verticals
– Health, buildings, auto, advertising, monitoring, spying
• No reason for it to be different

14. Not just ONE device

15. Not just ONE market
Source: Machina Research

16. Not just ONE market
Source: Machina Research

17. Roles
• Telcos
• Service providers
• MVNOs
• Suppliers
Note to self:
• Advertisers Insert funny picture of cloud
• Security
• Provisioning
• Monitoring and reporting
• Billing

18. What is actually different?
• M2M is a great cultural fit
• The models will not be massively different
• Different collaboration and partnerships
– Who is the customer? Who is the provider of service?
• Scale will be vital

19. Show me the money!
Connected Home
Connected Family
value
Health and others
Nice to have
Commercial

20. Show me the money!
Greatest value –
Connected Home bundles, special
offers,
Part of Home –
Connected Family safety, security,
health
Health and others Vertical markets –
health, auto, travel
Nice to have Customer pays
Gadgets
Fleet management, Advertiser,
Commercial temperature, security, product pays
performance management
Supplier pays

21. What are the barriers?

22. Is a telco prepared?
• M2M is a great cultural fit
• The models will not be massively different
• Collaboration and partnerships will be more
• Scale will be vital

23. Is a telco prepared?
• M2M is a great cultural fit
• The models will not be massively different
• Collaboration and partnerships
• Scale will be vital

24. The future
• M2M fragments – becomes part of different verticals
• M2M disappears – stops being a market in itself
• Expectations change – customers will expect ‘M2M’
• The models change – from ‘value’ to ‘expected’
Read this: Stanford University and wipro

25. Resources
• Telco 2.0
– http://www.telco2research.com/categories/m2m
• Ericsson Labs
– https://labs.ericsson.com/developer-community/blog/internet-things-comes-alive-
smart-objects-interoperability
• Telecom Engine
– http://www.telecomengine.com/article/reports-china-leads-m2m-connectivity-
boom
• Pyramid Research
– http://www.pyramidresearch.com/store/operator-m2m-success-and-flexible-
pricing.htm?sc=SM0409_M2M
• Machina Research
– http://www.machinaresearch.com/
#M2M

26. Recent news
• M2M Data to Be Value-added Service for Telcos, Says Frost & Sullivan
– http://www.prnewswire.co.uk/cgi/news/release?id=352540
• M2M partnership aims to boost remote healthcare
– http://www.itpro.co.uk/639553/m2m-partnership-aims-to-boost-remote-healthcare
• Machina Research launches its M2M Leaderboard, ranking global MNOs
– http://www.machinaresearch.com/sitebuildercontent/sitebuilderfiles/machina_research_press_release_m2mleaderboard_22Feb12.pdf
• Machina Research offers ten predictions for M2M in 2012
– http://www.machinaresearch.com/10predictions.html
• Ford explains connected cars future
– http://www.telecoms.com/40805/ford-explains-connected-cars-future/
• Business Impact of Connected Devices could be worth US$4.5 Trillion in 2020
– http://www.mobileworldcongress.com/articles/mobile-world-congress-press-releases/connected-life.html
• Ericsson M2M solution supports fish farming project in China
– https://labs.ericsson.com/developer-community/blog/ericsson-m2m-solution-supports-crab-farming-china

28. www.billingviews.com
alex@billingviews.com
@billingviews