The M2M Puzzle

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The M2M Puzzle putting the pieces together.

• Michael Murphy
• Clearwire
• Mike.murphy_at_clearwire.com

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The question of the connected device puzzle
An often quoted forecast
17 billion connected devices by 2012. (IDC)
but
Billions of endpoints await connection
Individual items 1 trillion
Pallets and cases 100 billion
Individual items
Home CE and appliances 10 billion
Pallets and cases
Why arent there 17 billion connected devices
today?
Home appliances
Machinery 1 billion
Machinery
Automobiles 100s millions
Automobiles
CE/Handheld devices 100s millions
Handheld devices
Computers
Computers 10s millions
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What needs to change in the next 3 years to bring
this forecast to reality?
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Is growth in human or machine attended devices?
Human oriented
machine oriented
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M2M, by segments
M2M
It doesnt move
It moves
Telematics
Telemetry
Other
Automation Control
Security
Muni Transport
Civilian fleets
Emerging opportunities
Patient Monitoring, Diagnostic Metrics, Medical
Records, Remote Diagnosis
SCADA, Industrial based M2M, Field Equipment MC,
Elevator Monitoring
Security and Alarm, Imaging, Remote Surveillance,
CCTV, Motion Detectors, Gates etc, Home Security
Predictive Maintenance, Diagnostics, Remote
Electronic Toll Collection, RFID Applications
Local Government
Vending/Kiosks
Dynamic Digital Signage
Emergency
Telemedicine
Inventory Management, Remote Monitoring, Alarm
Status, Security and Accounting
Broadcasting, Advertising and Information
Display, Retail, Leisure, Hotel, Transport,
Finance, Traffic Info, Parking Directions, Bus
Info, Billboards
Patient Monitoring, Diagnostic Metrics, Medical
Records, Remote Diagnosis
EMS Agencies, In-Vehicle Computing, Messaging,
Remote Diagnostics, Sensor Integration, Real Time
Tracking, Real Time Traffic Information, Database
Management
ATM/POS
Metering
POS Deployments, Credit Card Transactions,
Tableside Payment
Automated Meter Reading Electric, Gas, Water,
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Segment Sizing
Analog gt Digital
Wireline gt Wireless
Manual gt Automated
Mechanical gt Electronic
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Why arent they connected today? Primary pieces
of the puzzle M2M

1. Cost per bit (Network economics)

2. Ease of Integration, management
3. Monthly cost per device (Billing mechanisms)
4. Network available where a device is used
5. Device cost (eg radio cost, NRE,
certification, etc)
6. Network features (Mobility, Broadband,
security, other)
Other network lifecycle, channel issues,
regulatory
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M2M Network perspectives
Wireline/fixed WPAN WLAN WMAN WWAN Satellite
Cost per bit Low Low Low Low Med Med-high
Ease of integration Easy Moderate Moderate Moderate Moderate-high Moderate-high
Monthly costs Low Low Low-mod Low-mod Moderate Moderate-high
Network availability Moderate Moderate moderate Moderate very good Very good
Device costs Low Low-moderate Low-moderate Low-moderate Low-high Low-high
Network Features Low low moderate Very high High Moderate-very

• Bottom line, before WiMAX, M2M network decisions
  were limited to
• Fixed, short range, proprietary, cellular or
  satellite.
• WiMAX adds to the mix some key aspects
• Lower cost per bit without infrastructure capex
• Large coverage areas
• Low CPE costs
• Network characteristics that unlock new value
  mobility and broadband.

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• Thank you!
• Questions?