This document summarizes a presentation given at an 11th Executive Brainstorm meeting in November 2010 in London. It discusses the issues facing machine-to-machine (M2M) customers, including the problems with roaming, coverage, switching mobile operators, and lack of innovation from operators. The presentation argues that for an M2M deployer to solve its business problems, it needs to be independent of telecommunications companies and function as its own mobile virtual network operator (MVNO) by using its own IMSI numbers and operator codes.

1. 11th Executive Brainstorm
November 2010, London

2. Your M2M customer
wants to be MVNO
Rudolf van der Berg
rudolf.van.der.berg@logica.com
November 2010

3. © Logica Business Consulting 2010. All rights reserved
Logica has no formal opinion on the matters discussed here. We deliver our
services to all players in the M2M market, be they telco or customer, in a variety
of roles. Each customer receiving the best service possible. This means we also
come across and give advice on competing opinions.
No. 3
Disclaimer

4. © Logica Business Consulting 2010. All rights reserved
The M2M deployer needs to be independent of the telco to
solve it’s business problems.
Independent through own HLR and IMSI’s
No. 4
Why an MVNO?

5. © Logica Business Consulting 2010. All rights reserved
Procurement law required a semi-public customer to change mobile
operators for their 10,000 devices, but they couldn’t
€1 million+ swap for project and logistics, taking 6-24 months, reaching
mobile, hard to reach and restricted access devices
No. 5
The M2M reality

6. © Logica Business Consulting 2010. All rights reserved
Dutch Ministry of Economic Affairs asked for research into switching costs
of large scale M2M deployers
Our advice: to liberalize access to IMSI-numbers (Mobile Network Codes)
so that private users can be free of their telco
No. 6
Logica’s research on M2M

7. © Logica Business Consulting 2010. All rights reserved
Lifecycle of an M2M device is 30 years and has problems starting at
manufacturing and everywhere throughout lifecycle
M2M is large scale, millions of devices on all continents
No. 7
M2M is different

8. © Logica Business Consulting 2010. All rights reserved
It’s impossible to negotiate good global roaming deals. Telco’s are local
Roaming is Sudoku multivariate analysis. Different numbers same result
No. 8
4 problems: Roaming (1/4)

9. © Logica Business Consulting 2010. All rights reserved
Coverage for static use is horrible and changes constantly
Every network has gaps that fortunately don’t overlap between networks.
National roaming needed
No. 9
4 problems: Coverage (2/4)

10. © Logica Business Consulting 2010. All rights reserved
Switching operators is impossible
Not just renegotiating contracts, also mergers, acquistions or divestments
No. 10
4 problems: Switching (3/4)

11. © Logica Business Consulting 2010. All rights reserved
No innovation by the operators
It is not in their interest to save their customers money, if it will cost them
money. Ie wifi offload.
No. 11
4 problems: Innovation (4/4)

12. © Logica Business Consulting 2010. All rights reserved
Uses it’s own IMSI number, with own operator code (MCC+MNC)
Regulator needs to open up IMSI-ranges and possibly cartels
No. 12
M2M user needs to be MVNO

13. © Logica Business Consulting 2010. All rights reserved
OTA was researched by 3GPP and banned by the GSMA
OTA doesn’t remove dependence of deployer on M(V)NO for roaming,
IMSI’s, switching and innovation
No. 13
Over the Air updates

14. © Logica Business Consulting 2010. All rights reserved
Be the best enabler to your M2M customers, giving them full freedom and
satisfaction
If you need lock-in for your business, you’re not someone that companies
should do business with
No. 14
The scary challenge

15. © Logica Business Consulting 2010. All rights reserved
Rudolf’s blog:
http://internetthought.blogspot.com with articles on M2M, the Telecom Cool Wall,
Common Error’s of Telecom CEO’s, FTTH, Why all telecom marketing and
product management is wrong, The best ISP in the world
The report (in Dutch):
http://www.rijksoverheid.nl/bestanden/documenten-en-
publicaties/rapporten/2010/09/06/onderzoek-flexibel-gebruik-mnc-s/mnc-s-
versie-2-5-final.pdf
The management summary (in English):
http://www.slideshare.net/Raindeer/management-summary-of-onderzoek-
flexibel-gebruik-van-mncs
No. 15
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