Challenges posed by IoT Devices onto Mobile Networks, and presentation of a framework to overcome these challenges

1. 1© Sierra Wireless 2013
M2M Service Optimization
A Framework for Optimized M2M Solutions on Cellular Networks
Nicolas Damour, Senior Manager Business & Innovation
September 2013

2. 2© Sierra Wireless 2013
A Framework for Optimized M2M Solutions on Cellular Networks
• Sierra Wireless Corporate Profile
• Chances and Challenges for M2M Services
• M2M Service Optimization Framework
M2M Service Optimization - Agenda

3. 3© Sierra Wireless 2013
Sierra Wireless
Corporate Profile

4. 4© Sierra Wireless 2013
The global leader in M2M devices and cloud services
Industry’s most comprehensive offering
Proven technology innovators and trusted partner
Sierra Wireless - Corporate profile
R&D
R&D
R&D
Head office:
Vancouver, BC
Founded in 1993
Yearly1 revenue: $421 million
Publicly listed:
NASDAQ (SWIR)
TSX (SW)
Approx. 850 employees worldwide
Customers in 130+ countries
1. Last Twelve Months as of June 30, 2013

5. 5© Sierra Wireless 2013
Vancouver
Corporate Headquarters
San Diego
Melbourne
Tokyo
London
Munich
= R&D, Marketing, Sales, Operations
= Manufacturing
= Sales and Support
Beijing
Hong Kong
Shanghai
Toulouse
Paris
Johannesburg
Bangalore
Taipei
Belo Horizonte
Sierra Wireless - Global footprint
Shenzhen

6. 6© Sierra Wireless 2013
#1 in M2M market globally Blue-chip customers & partners
Sierra Wireless - Market leader
Source: ABI Research
34%
23%
19%
24%
Cellular M2M Embedded Module
Market Share in 2012
Sierra
Wireless

7. 7© Sierra Wireless 2013
Sierra Wireless - Device-to-cloud offering
Leading-edge
intelligent devices
Secure cloud
services platform
Value creation
& competitive barriers+ =

8. 8© Sierra Wireless 2013
Sierra Wireless - Customer example: Nespresso
M2M CloudProgrammable
Modem
Custom Web Application
Web APIs
• Asset Data Management
• Device Management
• Subscription Management
Hardware
Integration
ERP
Network
Operator

9. 9© Sierra Wireless 2013
Sierra Wireless - Global carrier partners

10. 10© Sierra Wireless 2013
M2M Services
Chances & Challenges

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M2M Services - A major opportunity
Source GSMA
US$ 1,172,000,000,000
revenue opportunity for MNOs in 2020
North
America
$241 billion
Europe
$305 billion
Latin
America
$92 billion
Middle East
Africa
$87 billion
Asia
Pacific
$447 billion

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M2M Services - Embedded and Carried Devices
Carried devices
2 billion in 2012
4 billion in 2020
Embedded devices
200 million in 2012
2-50 billion in 2020

13. 13© Sierra Wireless 2013
M2M Services - Challenges
Increasing network congestion
Decreasing ARPU – Worse AMPU

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M2M Services - Network congestion
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Radius Server Signaling Load
NumberofTransactions

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M2M Services - Network congestion
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Time of Day Trend
NumberofTransactions

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M2M Services - Network congestion
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Radius Server Signaling Load
Time of Day Trend
NumberofTransactions
Periodic Peaks

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M2M Services - Network congestion
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Time of Day Trend
Traffic Storms
NumberofTransactions
Periodic Peaks

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M2M Services - Decreasing ARPU and AMPU
QCT Study
UMTS Rel6 Network
Source: QCT S1-110258
PS
Signalling
Power
56%
PS Traffic
Power
44%
36% of
Total
NodeB
Power
ALU Study
M2M Use Case
Source: Signal Ahead Jan’10
Signalling
and
Online
Cost
98%
2%
User Traffic
Cost
Rogue
Roaming Devices
Signalling
and
Online
Cost
100%
1MB = $0.50 in 2008 1MB = $0.05 in 2011
(source Nielsen)

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M2M Services - Solutions?
Defensive guidelines, rates and contracts
Industry and standardization efforts
What until then?

20. 20© Sierra Wireless 2013
M2M Services - M2M Service Optimization
Maximize usage of network resources
Protect the network against traffic storms
More control to the carrier and to the customer
- Technical control (network access)
- Business control (differentiated services)
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M2M Service Optimization
Description of the framework

22. 22© Sierra Wireless 2013
M2M Service Optimization - Ground principles
Smart Network instead of Dumb Pipe
Open Solution usable with all M2M devices
Still offer full service to the customer
Easy to integrate with applications & network

23. 23© Sierra Wireless 2013
M2M Service Optimization - Architecture
Cloud
Gate
Device Gate: Client Software
• Controls client user data flow
• Accesses server according to policies
• Receives policies from server
Cloud Gate: Server Software
• Controls server user data flow
• Contacts device according to policies
• Deploys policies to device
Device
Gate
User Data
Control Data

24. 24© Sierra Wireless 2013
Which metrics are used to control the communications
• Local (device) metrics
– Date and Time
– Device-specific usage metrics (PDP activations, UL/DL data, …)
– Metrics from radio network (eg. location: home network, roaming; …)
• Global (core) metrics
– Date and Time
– Fleet-wide usage metrics (fleet-wide uploaded data, …)
– Metrics from core network
M2M Service Optimization - Usable metrics

25. 25© Sierra Wireless 2013
Ease of use is key to help M2M projects
• Easy integration
– Easy network-side integration
‒ For basic features: no integration needed (over-the-top)
‒ For advanced features: standard API on single point of integration
– Easy device-side integration
‒ For basic features: no need to change existing applications (default behavior)
‒ For advanced features: easy-to-use application framework
• No cellular networks expertise required
– Rules are defined by the carrier
– Usage at the application level through abstracted QoS classes
M2M Service Optimization - Easy to use

26. 26© Sierra Wireless 2013
M2M Service Optimization - Example
Metering Example Use Case
Service Classes
• Standard Service Class Periodic readings
• Real-time Service Class Consumption thresholds passed
• Real-time Service Class Remote equipment triggering
• Maintenance Service Class Bulk Maintenance Information
• Maintenance Service Class Firmware/Software upgrades

27. 27© Sierra Wireless 2013
M2M Service Optimization - Benefits summary
Maximize usage of network resources
Protect the network against traffic storms
More control to the carrier and to the customer
- Technical control (network access)
- Business control (differentiated services)
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28. 28© Sierra Wireless 2013
Thank You