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Reality Check: M2M: Driving exponential growth in connections

Editor’s Note: Welcome to our weekly Reality Check column. We’ve gathered a group of visionaries and veterans in the mobile industry to give their insights into the marketplace.
Over the past year, the wireless industry has given a lot more attention to connecting “things.” The number of machines communicating with each other wirelessly will soon dwarf the number of people connected via mobile devices. This next big thing in information technology has been clearly defined as machine-to-machine communications, or M2M.
The nature of personal communication has changed dramatically in the past few years. Instead of placing quick phone calls, users tend to send text messages via instant message or a text message. M2M solutions have long specialized in this kind of communication. The devices that have traditionally taken advantage of 2G and 3G cellular networks have done so with short-bursts of data, such as weekly power meter readings or hourly position-location pings from a fleet of freight trucks.
Now we’re seeing a new wave of “connections,” where the lines between personal and machine communications are blurring. E-readers, music players and even washing machines are examples of consumer devices that are being equipped with 3G capabilities to connect to the web and interact with other machines.
Some of these devices emit short data transmissions, some download larger files and others remain “always on,” constantly communicating with the network. From that perspective, the average utility meter, e-reader or garbage truck could be categorized as an M2M device. These machines are constantly signaling the cellular network, checking for updates to download or upload files, books and location information, for example.
M2M has specific needs
In general, we think of M2M as any device that uses electricity and communicates with another device: quite literally, machines talking to machines without a person actively creating that connection. There are a few requirements for M2M communications that set it apart from personal and other types of communication.
First is duration of use, or the lifetime of the device. Whereas the average consumer has grown accustomed to a new phone every year or two, the majority of M2M devices serving vertical industries such as energy, healthcare and fleet management require a longevity that could extend beyond 10 years.
System integrators and enterprise customers don’t want to replace their M2M modules or devices unless it’s absolutely necessary. For example, trucks with 3G-connected telematics devices or smart utility meters are expected to function at the same level for many years without needing replacement. Consequently, 2G and 3G-enabled M2M devices that are already installed will remain connected to their networks for a very long time
Several M2M-reliant industries, such as fleet management and asset tracking, also require ubiquitous coverage throughout a country or region. Whereas people are accustomed to the occasional dropped call or loss of service, many vital industries such as healthcare require security, location accuracy and network reliability to ensure quality of service. While 2G and 3G networks in many regions around the world already have nationwide coverage, it will take 4G networks several years to attain the same reach and reliability.
Most M2M applications require a relatively low amount of bandwidth. In many instances the network capacity and speeds offered by GPRS and CDMA2000 1x are more than sufficient for M2M applications. Using lower-bandwidth technologies is also attractive because M2M device costs and total cost of network ownership are key factors driving the selection of mobile connection technologies.

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