OECD work on Internet of Things and M2M SIM cards

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Presentation on the need to liberalize IMSI numbers for M2M SIM-cards

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OECD work on Internet of Things and M2M SIM cards

  1. 1. OECD work on Internet of Things The liberalisation of the SIM-card
  2. 2. Disclaimer The views expressed here are my own and may not reflect those of the OECD or its member countries.
  3. 3. OECD work on IoT • ICT Applications for the Smart Grid. Opportunities and Policy Implications • Smart Sensor Networks: Technologies and Applications for Green Growth • International Energy Agency: Technology Roadmap: Smart Grids • OECD-NSF Workshop: Building a Smarter Health and Wellness Future • Renewable energy and smart grids: new challenges for competition policy • Smart Electricity Grids • Policies to support smart water systems. Lessons from countries experience • And more (to come)
  4. 4. M2M, Connecting billions of devices • Study published January 2012 DSTI/ICCP/CISP(2011)4/FINAL • Analysis of M2M impact on – Competition (liberalisation needed) – Spectrum (lock in of bands) – Privacy and security (streetlights privacy sensitive) – Numbering (you may run out) – Access to (Public Sector) Information (share) • Only touch on competition here. The rest is equally important!
  5. 5. What Network?GEOGRAPHICALLY DISPERSED Application: smart grid, meter, city remote monitoring Technology Required:PSTN, broadband, 2G/3G/4G, power line communication Application: car automation, eHealth, logistics, portable consumer electronics Technology Required:2G/3G/4G, satellite GEOGRAPHICALLY CONCENTRATED Application: smart home, factory automation, eHealth Technology Required: wireless personal area (WPA), networks, wired networks, indoor electrical wiring, Wi-Fi Application: on-site logistics Technology Required: Wi-Fi, WPAN GEOGRAPHICALLY FIXED GEOGRAPHICALLY MOBILE
  6. 6. Mobile networks • 2G/3G/4G networks standardized by 3GPP globally most prevalent networks • Allow communication everywhere, where there is a road. • 220 countries, ~800 operators • Roaming supported • Connect once, connect everywhere • IMSI as the basis, SIM for authentication
  7. 7. Current market failures M2M • 20 year lock-in with mobile operator – Changing SIM is undoable for million devices • No competition in roaming • No way to route around network failure – 20% devices unavailable >10 mins/day – National roaming is solution. • Mobile networks only cover 80% M2M devices – National roaming 2 networks cover 98% • No innovation to bypass mobile operator
  8. 8. SIM = Control • SIM allows zero user-configuration authentication to networks. (it just works) • SIM contains IMSI-number and encryption parameters/keys. • SIM is property of mobile network • Networks verify authentication with owner of SIM (correct crypto, bills paid etc.) • Governments only give IMSI-numbers to telco’s, not car companies or others.
  9. 9. Control of SIM saves Billions • Proposal to give M2M end user (car company, energy) control of SIM – Makes M2M user == Orange == AT&T (except for spectrum license) • Would solve all market failures – Choice between 1, 2 or x networks/country • Roaming only exists in telco’s imagination – Easy switchover. • Allow access on network B on day 1, switch off network A on day 1+ (allow for testing) – Innovation like access to Wifi with EAP-SIM • Saves billions and generates new services
  10. 10. Market reaction This is an excellent document ! Congratulations on the authors for their foresight. It deals with one of the key issues we are facing as GPS-based toll operator (i.e. locked in with the SIM card suppliers.) (Reaction to OECD – International Transport Forum Policy Brief on Internet of Things and Transport)
  11. 11. Market reaction • 2 major car manufacturers now gathering all data necessary to become independent • Consumer electronics company: “everyone wants this” • Several telecom service providers see enormous new business • Governments slowly moving to liberalisation.
  12. 12. Impact of liberalisation • M2M customer in control – ‘million device user’ – Private Virtual Network Operator • Competition between network operators – National and international – Change operators in hours/days • Customer-led innovation – ie. new data roaming for laptops/tablets – Paying for x pictures uploaded to Facebook
  13. 13. Soft-SIMs • Everyone has a proposal/patent on Soft- SIM and eUICC – 3GPP working on proposal • Development blocked by stakeholders – Afraid of Apple/Google • Proposals designed with operator in control • User can only do what operator wants
  14. 14. Soft-SIMs don’t scale • The million device user wants control – Determine which network the device works on – Change operator when network is down or border is crossed (which is actually the same) – Bypass the telco and its cost structure • eUICC doesn’t allow this – No change of operator when network is down or crossing border – Can’t support move of million devices in a day from one operator in once country to another operator in another country. • Million device user wants Soft-SIM but only when it can control it.
  15. 15. Contact • Rudolf van der Berg • Rudolf.vanderberg@oecd.org

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