M2 M Brett O Riley Comms Day 2008


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  • M2 M Brett O Riley Comms Day 2008

    1. 1. Machine to Machine (M2M) applications as a capacity and infrastructure demand driver Brett O’Riley Managing Director, Ochre Services Pty Limited CommsDay Summit, April 2008
    2. 2. Ochre Services Introduction <ul><li>Telecommunications infrastructure development, consulting and management company; </li></ul><ul><li>Perth, Western Australia headquartered, with offices in Singapore, Jakarta and Sydney; </li></ul><ul><li>Team brings a wealth of experience on submarine and terrestrial broadband infrastructure projects to the table; </li></ul><ul><li>Sales, finance, operations, technical design and project implementation skills; </li></ul><ul><li>ANZ Infrastructure Services (ANZIS) are the majority equity investor and partner in Ochre Services with Meyer Investments and Cable Infrastructure Investments; </li></ul><ul><li>ANZIS will also facilitate the debt financing arrangements with ANZ Bank or third party debt providers. </li></ul>Ochre Services
    3. 3. Ochre developed new capacity <ul><li>Ochre is addressing underserved markets with underlying demand. </li></ul><ul><li>Executing broadband development opportunities in Australia and Asia: </li></ul><ul><ul><li>Singapore – Jakarta – Perth, expected to be completed in 2010 </li></ul></ul><ul><ul><li>Western Australia Big Pipe, expected to be completed in 2009 </li></ul></ul><ul><ul><li>Oil & Gas opportunities around Australia and Indonesia; </li></ul></ul>Ochre Services
    4. 4. Cable System Overview Ochre Services
    5. 5. Ochre Services Infrastructure projects Ochre Services Four major symbiotic project elements: Ochre will facilitate the expansion of multi-gigabit Asia & Western Australia regional IP connectivity and increase the reliability for existing operators and users Singapore Indonesia Australia 2 FP cable system constructed from Singapore to Indonesia to Western Australia. SIA Submarine loop cable system to be constructed for established and new oil & gas fields. North West Shelf AS REQUIRED purchase on existing systems to facilitate connectivity for customers to State capital cities and USA. Trans Australia Western Australia Terrestrial high capacity single strand cable system to be constructed to provide WA connectivity.
    6. 6. Machine to Machine “M2M” Wikipedia definition <ul><li>The key pieces of a typical M2M system include: </li></ul><ul><li>A group of devices capable of replying to requests for data contained within those devices or capable of transmitting data contained within those devices autonomously. </li></ul><ul><li>A communications link to connect the device or group of devices to a computer server or another device. </li></ul><ul><li>A software agent, process, or interface by which the data can be analyzed, reported, and/or acted upon. </li></ul><ul><li>Software Intelligence. </li></ul><ul><li>Most often, M2M systems are task-specific. Meaning, a given system is purpose-built for just one specific device, or a very restricted class of devices in an industry. This is one of the indicators of the M2M market still being in its infancy, as a unified intercommunication standard has yet to evolve. Functions are duplicated -- each purpose-built system repeats many functions already implemented in similar systems. </li></ul><ul><li>“ Even in its infancy M2M is a major capacity growth force” </li></ul>Ochre Services
    7. 7. Capacity drivers <ul><li>M2M is a major driver of demand. </li></ul><ul><li>Capacity demand is still modeled by most analysts on the traditional “human subscriber” model. </li></ul><ul><li>This ignores bandwidth demand from “super ICT applications” that are driving exponential growth – multi-gigabit. </li></ul><ul><li>Ochre responding to growth in broadband demand from new ICT applications in specific industries: </li></ul><ul><ul><li>Oil & Gas industry </li></ul></ul><ul><ul><li>Resources industry </li></ul></ul><ul><ul><li>Scientific projects </li></ul></ul><ul><ul><li>Defence </li></ul></ul><ul><li>Mobile broadband technologies will also stimulate demand from transport and logistics services. </li></ul><ul><li>“ Capacity demand being under forecast – </li></ul><ul><li>machines don’t need to sleep” </li></ul>Ochre Services
    8. 8. Bandwidth Hungry Examples <ul><li>Apple I-Phone </li></ul><ul><li>4D Seismic </li></ul><ul><li>Driverless trains </li></ul><ul><li>Square Kilometre Array </li></ul><ul><li>Vending machines </li></ul><ul><li>Location based services </li></ul><ul><li>“ Remember the Steam Engine” </li></ul>Ochre Services
    9. 9. Investment climate: <ul><li>Available financing - Australia has $1.3 trillion of superannuation under management, looking for long-term stable returns; </li></ul><ul><li>Focus on infrastructure projects - can deliver stable returns when supported by long-term off-take agreements from credible customers; </li></ul><ul><li>Oil & Gas & Resources industries – Strong growth and focus driven in Asia-Pacific by demand from China and India particularly; </li></ul><ul><li>Excellent returns - global oil prices reaching new highs - US$110 per barrel. </li></ul><ul><li>“ Commodities demand driving ICT innovation to lower production costs and improve efficiency” </li></ul>Ochre Services
    10. 10. Oil & Gas industry drivers in more detail: <ul><li>The high capacity, low latency and reliability provided by optical systems has been identified as key to improving oil & gas production rates; </li></ul><ul><li>Sustained access to high capacity digital systems has a direct effect on operating efficiency. </li></ul><ul><li>“ Gulf of Mexico for BP is the industry benchmark” </li></ul>Ochre Services
    11. 11. Evolution & growth of technologies for Oil & Gas Ochre Services
    12. 12. Comparing Transport & Technology options Ochre Services External Aggression 10s of Tb/s Unlimited Fibre Weather Security 25 Mb/s < 15Km Wimax Weather Security >155Mb/s < 50 Km Microwave High Latency Weather Security 1-2 Mb/s Unlimited VSAT Risk Factors Bandwidth Distance Technology
    13. 13. Submarine industry advances for oil & gas <ul><li>New submarine cable technology capabilities – purpose designed termination equipment, branching unit capability, power issues, wet mate connectors, and riser access; </li></ul><ul><li>Successful projects implemented in the USA and North Sea with specialised installation experience; </li></ul><ul><li>Range of vendors: </li></ul><ul><ul><li>Tyco </li></ul></ul><ul><ul><li>Huawei </li></ul></ul><ul><ul><li>Nexans </li></ul></ul><ul><ul><li>Alcatel-Lucent; </li></ul></ul><ul><ul><li>“ Supplier capability developing but in its early stages” </li></ul></ul>Ochre Services
    14. 14. Direct and indirect cost benefits <ul><li>Reduced manning; </li></ul><ul><li>Reduced down time; </li></ul><ul><li>Shore side experts can support multiple platforms; </li></ul><ul><li>Improved production - fields see improvements of 1% or more; </li></ul><ul><li>One operator estimates >US$ 1 million per month savings for 8 off-shore platforms; </li></ul><ul><li>Ability to re-man faster after abandonment; </li></ul><ul><li>Operators expect to save at least one day versus current re-manning schedules; </li></ul><ul><li>Gulf of Mexico platforms produce 200,000 to 250,000 bbl/day = US$20-25 million of saved lost revenue per day at US$100/bbl. </li></ul><ul><li>“ Availability commands a significant premium” </li></ul>Ochre Services
    15. 15. Future M2M direction <ul><li>Moore’s Law and wireless technology advances will continue to stimulate industry wide opportunities; </li></ul><ul><li>Backbone networks will require more and more resilience and capacity; </li></ul><ul><li>Oil & gas focus on remote operations with unmanned subsea or floating platform infrastructure; </li></ul><ul><li>Centralised operational management important across all industries; </li></ul><ul><li>End customers looking for multi-gigabit capacity; </li></ul>Ochre Services “ M2M will increase in importance as a capacity growth driver”