1. We make ICT strategies work
Daniel Kellmereit,
CEO, Detecon Inc.
May 2nd, 2013
M2M in the Mobile Industry

2. Introduction
The application of M2M technology leads to improvements in productivity, efficiency
and transparency across industries; however so far we only see a fraction of what is
possible.
20130502TELECOMCOUNCIL_M2M.PPTX
Medicine &
health
Agriculture/
farming
Smart home
Connected
car
Smart metering
Consumer electronics
Logistics
Public transportation
ePayment
The
promise
of M2M
The Limited Application of M2M
– 2 –
SecurityIndustrial
Automation

3. Challenges
A number of challenges have slowed down a more exponential growth of m2m solutions
and the m2m market in general.
©Detecon
– 3 –
20130502TELECOMCOUNCIL_M2M.PPTX
Challenges in M2M Adoption
Regulation
Complex
value chain
Cost
Technology
maturity
Fragmented
Solutions
Technical
issues
 Customized
solutions
 Vertical specific
 Complex, industry-
specific charging
 Inflexible SIM/module
setup
 Custom devices for
individual applications
 Network coverage
and performance
 Privacy/security in
certain sectors
 Prolonged certification
process
 Roaming Regulation
 Standards,
architecture &
interoperability,
 Security and device
management
 High level of
customization
 Lack of scalability
& modularity
 Pricing models
 standardization
 Multiple industries and
competitive players;
 Information not readily
shared or available

4. FactorsM2M Growth Drivers
©Detecon
– 4 –
20130502TELECOMCOUNCIL_M2M.PPTX
M2M Growth
Drivers
Rise of Cloud
Falling Hardware
costs
Diverse
business
applications
Big Data/BI
Ubiquitous
network
access
Maturing provider
ecosystem
Today we are on the verge of mass market adoption across industries; this change is
fuelled by several factors like falling hardware & connectivity costs and ubiquitous
network access.
 Multiple options for high-
performing wireless networks
 Drop in mobile data costs
 Ease of adding wireless
technology to devices
 Cloud becomes a mass market
 Costs for developing and delivery
of applications is reduced
significantly
 Devices store more and more
information in the cloud
 Drop in memory,
processor & sensor prices
 Growth of mobile device
market
 Large amounts of
unstructured data
 Rise of new technology to
process and manage and
store data
 Improvements in analytics
platforms Ecosystems of providers is
becoming more efficient
 Packaged services
 Emergence of open
platforms
 Growing developer
communities

5. Market Opportunity
The M2M market will grow exponentially in the coming years, Building Infrastructure,
Telematics and Healthcare are expected to be the largest verticals.
©Detecon
– 5 –
20130502TELECOMCOUNCIL_M2M.PPTX
Sources: Machina Research, Detecon Research
202120202019201820172016201520142013 2022
600
700
500
400
300
200
100
0
USD B
8%
5%
3%
12%
3%
34%
35%
Rest (8 %)
(4) Utilities (5 %)
(6) Industrial Automation (3 %)
(3) Healthcare (12 %)
(5) Smart Cities (3 %)
(2) Telematics (34 %)
(1) Intelligent Buildings (35 %)
 In 2022, Intelligent Buildings will be the biggest area
for M2M applications, followed by Telematics and
Healthcare.
 The fastest growing area will be Telematics with a
CAGR of 24%.
M2M Size and Growth Areas of Growth
Connectivity
Related
Revenues
M2M
Platform
Revenues
Installation
Revenues
Device
Service Wrap
(Revenues wrapped
around connectivity)

6. Frame TemplateM2M Value Chain
©Detecon
– 6 –
20130502TELECOMCOUNCIL_M2M.PPTX
The M2M value chain is highly fragmented and complex; end-to-end solution
development requires standardization and horizontal platforms.
Chipset/SIMs Modem/Module Equipment
Application
Business
Intelligence
Connectivity
Device
Platform
Application
Platform
 Core chipset,
unique
identity for
each M2M
device
 modems
& modules,
provide reception
capability
 Customer
equipment such
as smart meters
or vending
machine
 Data
connectivity,
mostly provided
by telecom carriers
System Integration & IT Services
 Operations
and business
support platform
 Platform to
manage and
analyze data
 Runs the core
business
processes
 Planning, implementation, integration and management of solutions and add-on consulting services
 Data analytics
and business
performance
management
BI/ Software
M2M Value Chain
Hardware
Connectivity

7. Frame TemplateNew Growth Areas
©Detecon
20130502TELECOMCOUNCIL_M2M.PPTX
Success in M2M requires the capability to profitably serve a very large number of low
traffic data subscriptions while moving beyond connectivity services.
revenue
per
application
type
application
type
M2M - mobile long tail business?
– 7 –
Cloud
Computing
$55b Business
Intelligence
$13.8b Big Data
$11.7b
Leverage connectivity footprint to move
into higher margin services:
 Cloud Services
 Business Intelligence
 Big Data
by either partnering and/or building own
platforms.
Possible Positioning Strategies
2015 non-connectivity
services forecast
Sources: Detecon Research, IDC, GSMA

8. Frame TemplateHigh Margin often equals High Process Complexity
©Detecon
– 8 –
20130502TELECOMCOUNCIL_M2M.PPTX
The most attractive new services also tend to have high process complexity. Carriers
should try to leverage core competence areas to be able to compete.
Margins
Customization (process complexity)
SIM/Chipsets
Biz application
Managed services
low high
low
high
Professional servicesIT Integration
Modem/Module
Equipment
Connectivity
Device platform
Application platform
BI
Hardware
Connectivity
BI/Software
IT services
Current carrier/alliance
offerings
Future potential – extended offerings
Sources: Detecon Research

9. Connectivity
Verticals /
Applications
M2M Devices
Middleware
Platform
Standardized M2M devices
M2M Standards
M2M Standardization
While standardization efforts will accelerate market growth, the real breakthrough could
be a clearing effect on platform and device level as seen in the mobile industry.
©Detecon
– 9 –
20130502TELECOMCOUNCIL_M2M.PPTX
Sources: Detecon, European Telecommunications Standards Institute (ETSI)
Logistics,
Transport
eHealth
Utilities,
SmartGrid
Vehicles
Medical
equipment
Smart
meters
Connec-
tivity
Connec-
tivity
Connec-
tivity
M2M
Platform
M2M
Platform
M2M
Platform
Logistics,
Transport
eHealth
Utilities,
SmartGrid
M2M platform
Horizontal
scaling across
 platform,
 architecture,
 application
 frameworks
 global
communication
standards
Current –
Vertical Standardization
Future –
Horizontal and Vertical Standardization
hundreds
few
hundreds
few
ConnectivityConnec-
tivity
Vehicles
Medical
equipment
Smart
meters
Developer
community

10. Carriers - Way Forward
While standardization initiatives are ongoing, Carriers should not wait and continue to
orchestrate vertical and horizontal solutions through partnerships for platform building.
20130502TELECOMCOUNCIL_M2M.PPTX
Sources: Detecon Research
Standardization efforts will
accomplish limited all-encompassing
set of M2M standards
Carriers may miss the boat if waiting
for standards; consumer needs will
drive market forward
Carrier
Best Practices
SIStrategy
DeliveryHardware
Horizontal
Partnerships
Vertical
Partnerships
Carriers should orchestrate
partnerships and develop managed
services capabilities
 Orchestrate vertical partnerships to develop level of expertise in
key verticals and offer both packaged reseller and partner-
provided application
 Enhance vertical offerings through a developer community
 Orchestrate partnerships across value chains provide device
management and application platforms
 Horizontal solutions should feature pre-integration of
common business platforms (such as SAP)
 Transform from utility capacity-based model to
managed services model with end-to-end responsibility
 Ensure global coverage through global roaming
arrangements and common service levels
 Develop SI expertise; provide application and solution
development, integration, and deployment
 Position in-house integration department as a central
component of the M2M offering
 Position as an end-to-end solutions provider
 Offer supplementary consulting services with specialized
partners on strategy, business case, application roadmap
and the development of reference architectures
 Implement rapid device certification process, customer
support and developer module kits
 Provide support services such as helpdesk, warranty
management, device refresh and reporting

11. High ROI Use Cases
Expensive assets with high utilization and high cost of downtime provide some of the
most profitable business cases today, as the industry matures, we will see very different
use-cases.
©Detecon
– 11 –
20130502TELECOMCOUNCIL_M2M.PPTX
Sources: Detecon Research
Use case UK Rail Use case Rolls Royce
Situation
 In UK, train leasing contracts based on a metric of train
movement (decoupled from the number of physical trains)
 Opportunity for leasing company: Maximize train utilization
time
Solution:
 Collect live data with cellular M2M from instruments on the
trains to bring trains in for maintenance on an as-needed or
predictive basis, rather than on a schedule
Benefit:
 Improved operational efficiency
 Reduced number of trains needed– lower CAPEX/OPEX)
Situation:
 Aircraft downtime is very expensive
 Many maintenance issues come up on short-term basis
Solution:
 Collect live data from the jet engine with satellite-based
technology to schedule maintenance on a predictive basis
 Remote real-time detection and diagnostics of engine
failures
Benefit:
 Improved operational efficiency
 Real-time engine data for instant countermeasures
 Improved safety through remote diagnostics

12. M2M in Automotive
The automotive industry can leverage M2M technologies in multiple ways, therefore we
currently see a number of large strategic initiatives in this field.
©Detecon
– 12 –
20130502TELECOMCOUNCIL_M2M.PPTX
Components & Features:
 M2M SIM
 Telematic Box
Provides:
 In Car Wifi & OTT Services
 Remote Car Diagnostics
 eCall
Car (Driver)
Components & Features:
 CRM with Customer M2M Integration
 Stock Management M2M supported
Provides:
 Remote Car Diagnostics
 Marketing & Sales Support
 Real Time Inventory Management
Workshop
Diagnosis
Data
Car & Driver Profile
• Prevention [Trigger: Low Battery]
• Planned Maintenance (Calendar Integration)
• Marketing & Sales Campaigns [Trigger: Car Profile]
M2M
M2M
BI
BI
 Low Battery Life
 Route in GPS System
 Meetings (Outlook)
Unstructured Data Structured Data
Components & Features
 CRM with Customer M2M Integration
Provides:
 Proposal for Car Renewal
 Campaigns
Dealer
Push Message:
Caution – Black ice in
approx. 25 miles.
1
Sources: Detecon Research
1
Case for Big Data
2
BI
3
Proposal for Car
Renewal based on
Driver Profile
3
Low Battery Alert
Change Battery
before Travelling
3

13. Contact Information
DETECON, Inc.
33 New Montgomery
20th Floor
San Francisco, CA 94105
U.S.A.
Phone: +1 (415) 904-7919
Email: info-usa@detecon.com
©Detecon