Key Steps Await Before The M2M Revolution

Can Really Begin

Dec 3, 2012 10:16 AM, Jrgen Hase, Deutsche Telekom
Different segments of the electronics industryfrom the power utilities to standards bodies to
mobile network operatorsmust cooperate more closely before the Internet of Things really
takes hold.

Jrgen Hase is the head of the Competence Center for M2M at Deutsche Telekom
Machine-to-machine (M2M) communication is revolutionizing numerous areas of the global
economy. But for M2M solutions to function without a hitch and to prevail globally in the future,
the industry will need to cooperate.

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The number of machines communicating with one another around the world is increasing at a
rate that can only be described as explosive. At present, more than 100 million vending
machines, vehicles, smoke alarms, and other devices are sharing information automatically. Berg
Insight analysts expect their number to increase to 360 million by 2016, while the market
researchers at Machina Research anticipate that around 12.5 billion M2M devices will be
communicating with each other by 2020. By then, automated M2M communication for all
manner of purposes will be used across the industry.
Many solutions are in use already. Copiers with an M2M module, for example, order fresh toner
and paper automatically. The application areas for this technology are enormous and are
appealing to companies because its success is swiftly reflected in falling costs and simplified
processes. Furthermore, falling prices for M2M modules, mobile data network expansion, and
statutory requirements add to the momentum of demand. For instance, the European Union has
decided that from 2015 all newly registered motor vehicles must be equipped with an e-call
automatic emergency call system that alerts emergency services automatically in the event of an
accident.
To ensure goods and people get to their destinations safely, companies already offer a range of
M2M solutions. Tracking modules like Telics Picotrack Endurance relay the actual location of
overseas containers worldwide. Tiny high-tech modules are fitted to the container shell. Powered
by batteries or solar modules, M2M solutions of this kind can operate independently for years.
Also using M2M technology, PX Technologies PX-iP smoke alarm sounds an acoustic alarm in
an emergency and texts or e-mails the emergency call center and emergency contact numbers
listed for the device. If none of the numbers answers or one of the persons called confirms the
fire, the call center alerts the fire and rescue service, which will then be on the scene faster. If
entire buildings are equipped with smoke alarms, the source of the fire can, moreover, be located
precisely. This information helps the fire service to put the fire out faster and minimizes the risk
that the fire department runs.
The Success Of Renewable Energy
M2M also helps to advance the development of renewable energy sources. Wind turbines and
solar modules mostly generate their power locally and in a volatile manner. That can lead to
problems if too much electricity is fed into the power grid, which then loses stability and
threatens to collapse. M2M devices fitted to the transformers at transformer stations can measure
continuously how much electricity is fed into the grids. If it is too much, they cut off the feed-in
automatically and ensure the networks security.
Electricity meters equipped with M2M technology provide another solution. These smart meters
do more than just identify electricity guzzlers in the home. As part of an intelligent power grid,
they coordinate feed-in and consumption. The washing machine, for example, will only run if

there is surplus energy in the system. This supply-oriented use is an especially interesting way to
establish battery-powered cars.
On average, cars are in use for two hours a day at most. For the remaining 22 hours, their
batteries can be recharged whenever there is a supply of surplus electricity. Furthermore, batterypowered cars not only could be recharged at a favorable juncture, they also could feed electricity
back into the grid at peak consumption times. Without M2M communication, the cost of
coordination would be inconceivable.
Cows That Text
By using M2M technology in agriculture, farmers will be better able to monitor their bulk goods,
grain, and fodder silos. Depending on how they are equipped, M2M devices measure the filling
level, temperature, humidity, and other parameters. The system stores this data continuously and
alerts the farmer by text or e-mail if irregularities occur. This is to avoid the risk of pests
proliferating or rot spreading in the silo.

1. Medrias HeatPhone notifies farmers when their cows are ready to conceive.
The use of M2M solutions in agriculture can benefit the profit margin by monitoring the stock. A
French company, MEDRIA Technologies, offers two monitoring solutions, the HeatPhone and
the VelPhone. The HeatPhone notifies farmers when cows are ready to conceive so they can
improve their herds reproduction rate (Fig. 1). The VelPhone warns farmers when cows are
about to calf (Fig. 2). Farmers then can continue with their work before the birth and must only
stop when they really need to do so.

2. Medrias VeriPhone M2M detection system determines when a cow is about to deliver.

Both of these solutions are based on different devices that share information. Farmers install a
data collector in the stable or in the pasture. Sensors fitted to or in the cows then relay the
animals vital data to this data collector. For the HeatPhone, farmers establish a behavior profile
for each animal. Data that departs from the normal regularly recorded pattern indicates
hyperactivity that is typical of animals in heat. The data collector then alerts farmers
automatically by texting them. For the VelPhone, sensors measure the cows body temperature.
The system collects this data, evaluates it, and texts its findings to farmers up to twice daily. The
system also notifies farmers when calving begins.
M2M Improves Fitness
M2M solutions also will be used to assist athletes during training. Clothing and equipment with
built-in sensors collect fitness data and relay it without delay to a Web portal and, if required,
publish it on a social network. The portal then presents athletes with the processed data and gives
advice on how to improve their fitness. In addition, the devices will, as a rule, include a GPS
module. Runners can then plan their routes better and measure the distance they have covered or
their speed.
Mobile Network Operators Must Cooperate
These examples are generating a growing public interest in M2M solutions because almost every
area stands to benefit from the use of this technology. Just as we today think we have a mobile
application for everything, the future Internet of Things will truly have a suitable M2M app for
nearly all users needs. A number of hurdles remain to be cleared before this stage is reached,
however. M2Ms success will depend to a large extent on how simple and reliable the solutions
are. Clear service agreements and uniform standards will play an especially important role in this
process, and mobile network operators (MNOs), will need to intensify their cooperation.
Deutsche Telekom, Orange, and TeliaSonera have already set up a cooperation body, the GMA or
Global M2M Association. Its aim is to improve quality of service and M2M communication
standards. To do so, MNOs establish network interoperability, harmonize software interfaces,
and jointly certify M2M modules.
The M2M Alliance, with members that range from Telekom via Vodafone to Telefnica and
include nearly all of the major European MNOs, pursues similar objectives. The more MNOs
follow suit, the likelier it will be that mobile network operators around the world will be able to
provide a fast and reliable global network for M2M solutions.
E-commerce Platform Enables Worldwide Sales
The M2M market is strongly fragmented. This is an extra hurdle to clear because smaller firms
and startups mainly offer many of todays M2M solutions, and they face a gigantic international
market that has so far barely been tapped. They frequently lack the resources required for
marketing their products around the world.

The major mobile network operators can help them to cope with this challenge. Deutsche
Telekom, for example, provides a special e-commerce platform, its M2M Marketplace, for this
purpose. Other Internet portals on which M2M products are available exist, but they frequently
offer only products for certain industries or the products of one manufacturer for sale.
In contrast, M2M Marketplace is independent of manufacturers and global in alignment. It
thereby provides smaller manufacturers and developers with an opportunity to market their
products globally. Smaller firms are not alone in benefiting from using the e-commerce platform
as a sales channel, however. The Urmet Group, which specializes in M2M products, is already
established in the market and uses the online sales channel to complement its direct sales.
Marketing is not the only challenge that smaller manufacturers and developers face. Existing
M2M solutions cannot be applied to other industries one-to-one. That is why customers need
customized solutions designed to suit their requirements and would prefer to source them from a
single provider. Smaller firms can only fulfill these requirements by cooperating in a network,
and that is why Deutsche Telekom has launched a partner program to enable project partners to
find each other. These partnerships aim to bundle different competences for projects and thereby
to offer customers end-to-end solutions from a single source.
All this shows that the challenges are many and varied and require a new culture within the
market. Latest survey findings indicate, though, that taking them up is very much worthwhile.
Machina Research anticipates global sales totaling $927 billion by 2020. At present the
industrys annual sales amount to $118 billion, the market research company says. These figures
may vary from survey to survey, but even conservative estimates leave no doubt that the market
is set to grow strongly in the years ahead.
Whether these forecasts are accurate will depend to a large extent on how the industry deals with
its present challenges. If it does so successfully, the mobile network operators, the hard- and
software providers, and the users will benefit, and the Internet of Things will then be as much a
matter of course as the mobile Internet is today.