M2M and LTE

R&S LTE forum

Philippe Guillemette, CTO Anandamoy Sen, Senior Architect

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What is M2M

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Internet of Things
Through intelligent M2M connections

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Why M2M? The Benefits Are Clear to All

New Services Cost Savings/Improved Productivity
Faster uptime, greater flexibility with end-to-end solutions, lower energy consumption, risk reduction

New and innovative high margin revenue streams

M2M

Improved Safety & Security

Remote access, global real-time tracking, 24x7 monitoring, automated emergency response

Greater Customer Engagement

Remote control and continuous real-time monitoring for instant response

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The Business Opportunity is Massive

Today, there are 5x more people on earth than connected machines

By 2050, there will be 10x more connected machines than people on earth

2011

2012

by 2020
M2M connected devices

by 2050
M2M connected devices

7 billion people and 1.4 billion M2M connected devices Global M2M market worth

12B+
using data totalling

100B+

$100B

700 exabytes

M2M connectivity will impact all aspects of our daily lives

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Example
Custom Web Application ERP

Hardware Integration

Web 2.0 APIs

Intelligent Gateway M2M Cloud

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Challenges

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Challenges : complexity
Wireless Services Devices Vendor 2 Vendor 1
Developer

Backend Server Vendor 3

? ? COST
Machine

Security?
Developer

OEM

? ?

ERP Enterprise Applications

Developer

TIME

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Challenges : network usage

Signaling and Billing Overhead Study for UMTS Application sends 4MB/day, online 5 hrs/day, and goes dormant every 30 seconds 61% cost for signaling 37% cost to be online for 5 hrs 2% cost to send the data

Customer Cost per MB

Large M2M Market

> 100X

Highly Optimized $0.01-0.05 / MB

1 10 100 1000 10000

Usage (MB/Month)
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Challenges : network congestion

Daily Radius Server Signaling Load
3500

Traffic

Storms

Periodic Peaks
3000

Number of Transactions

2500

2000

Excess Capacity

1500

1000

500

Time of Day Trend

21:00 12:00 15:00 18:00 13:00 19:00 20:00 22:00 16:00 11:00 17:00 14:00 23:00 6:00 8:00 1:00 2:00 3:00 5:00 7:00 9:00 4:00 10:00 24:00

0 0:00

Source KPN
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Challenges : network
Today Tariffs = Data used Data used Resources used
QCT Study UMTS Rel6 Network
Signalling Power 36% of Total NodeB Power

ALU Study M2M Use Case

56%

Traffic Power 44%

Signalling and Online Cost 98%

2%

User Traffic Cost

Source: QCT S1-110258

Source: Signal Ahead Jan10

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Then why LTE ?

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4/19/2013

LTE benefits
Speed of course will matter for lots of devices Longevity of network is critical Network efficiency is way better

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M2M new device category in LTE

Less Complex for cost optimization Not focused on speed but on efficiency and lower power consumption Increase sensitivity by 20 dB (RP-121441 with more details see TR 36.888)
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Other (potential) benefits(2)

Group support - bulk and group based call data records for billing More efficient & flexible mobility management Addressing (IPv6) Optimize for small periodic data bursts(1) (SP-120450) Connected long and short DRX cycles(1) (SP-120442) Mobile Terminated messages into a private address space More refined device access classes

(1) See TS.887 (2) See also TS 22.368 and stage 2 TR 23.888

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Few words on unlicensed / whitespace

Jamming (malicious or not) Network maintenance cost (natural disaster) Network Scalability Device Scalability (throughput, uplink channel) SLA / QoS management EcoSystem leverage (network, chips, testers ) Standardization & Interoperability

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4/19/2013

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Conclusion
Miniaturization Network access cost Network capacity IPv6 Embedded SIM Ready-to-use WAN device with the size, cost and flexibility better than WiFi

Why will you not put it everywhere?

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4/19/2013

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Thank you !

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 Sierra Wireless 2013

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4/19/2013

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Lessons from the past

1995 2011

Intel Pentium 3 M transistors 100 MHz clock Internet

~20 M pages 100,000 hard drives to store all books in the world
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Intel iCore 7 1.2 B transistors 3.5 GHz 6 CPU 19 April 2013

WWW

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~1 T pages - ~250 M sites 20 hard drives Windows 7 >50 M lines of code 4 GB of Memory Linux 3.x ~60% server market

Windows NT ~7 M lines of code 4 MB of memory Linux A free OS WHAT ?

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Lessons from the past

1995 2011

2G (no GPRS) Single band only Data 9.6 Kbps 64*46*7.6 mm Sierra Wireless Proprietary and Confidential

GPRS dual-band Data 48 Kbps 15*18*2.5 mm HSPA + tri-band Data 14.4 Mbps 25*30*2.4 mm
7 Trillion SMS per year
220,000 SMS per second

50 Million SMS per year Virtually 0 Mobile data

7 Exabyte Mobile data per year

1 hard drive every 10 sec

What might GSM look like in 2005 said people in 1995 ? there might be 50 M subscribers

5 Billions subscribers
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Worldwide Energy Consumption (Mtoe)

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