2014 saw some important developments in the telecommunications sector, as operators continued to come under pressure from Over-The-Top (OTT) services. With the reality for Mobile Network Operators (MNOs) being falling revenue from calls and text messaging, operators are now looking toward offering new enterprise services. Rethinking mobile networks as business service delivery systems means operators can extend reach, and increase revenue from a large underutilized market.
The M2M opportunity
New technologies are now arriving that enable operators to offer an increasing amount of business services. One area in particular that is seeing a lot of interest from both businesses and operators is Machine-to-Machine (M2M). M2M is expected to revolutionize many industries, including logistics, workforce management and manufacturing. Some analysts estimate the M2M market to be worth well over $80 billion. For operators, this is a lucrative opportunity to recoup the lost revenue from calls and texts with the delivery of these new services.
With the GSMA predicting that there will be at least 1 billion cellular M2M connections by 2020, the next five years will see a dramatic increase in carrier M2M opportunities. Currently, developed markets are leading the cellular M2M space. Already in the USA, one in 10 mobile connections is a M2M link. As a result, the growth of cellular M2M will see a greater demand for location-based services (LBS). Now, thanks to one new technology – SIM-based LBS - operators can launch these services from their existing 2G, 3G and 4G LTE networks.
SIM-based LBS
SIM-based LBS is a simple algorithm that runs on a SIM card. It uses the data from multiple cells to accurately pinpoint the position of a mobile device. As a result, SIM-based LBS allows MNOs to quickly launch new location-based services with minimal capital investment. With no need for additional transceivers, SIM-based M2M devices can be smaller, lighter and cheaper to deploy, which is obviously great news for business.
Additionally, because SIM-based LBS works over a GSM network, it brings a number of significant advantages over Global Navigation Satellite Systems (GNSS), such as GPS. As GNSS solutions require a line of sight between a device and satellite, indoor and urban accuracy can often be inaccurate, thereby reducing the quality of service. In urban environments especially, satellite signals suffer from the multipath problem, which sees the location of a mobile device shift as the signal bounces off nearby surfaces. Overall, SIM-based LBS allow operators to offer enterprises a M2M location-based service that has a major differentiator to satellite options.
What services can an MNO offer with SIM-based LBS?
Combining superior indoor accuracy with support for third party APIs mean SIM-based LBS is a very flexible technology for businesses looking to launch M2M location-based services. By complying with GSMA’s OneAPI initiative, SIM-based LBS solutions can provide tracking and monitoring features across different countries and over different spectrums – a key feature for industries such as transport and logistics. Moreover, because it uses the data from multiple cells, SIM-based LBS allows operators to offer customizable geo-fences that can be used to track high-value goods and provide data to improve internal operations. For instance, logistic managers can place geo-fences around specific areas and buildings to send notifications when a delivery has arrived. Workforce managers can use the same system to update company records and automatically send alerts to customers when an engineer is nearby.
Integrating SIM-based LBS with SMS also allows operators to deliver automatic notifications and further increase their revenue. With SMS still the universal form of instant mobile messaging, it makes a perfect companion to this new technology. Logistics companies can use this combination to accurately track deliveries and monitor their progress through the delivery network. SIM-based LBS is therefore not only able to offer new services, but can breathe new life into existing ones too.
The future for operators
As the role of the MNO continues to evolve from communication provider to connectivity provider, it will need to find new and innovative ways to monetize its networks. With M2M connections and the Internet of Things increasing the number of mobile connections, operators will need to start looking at technologies that enable them to offer new services with minimal investment in hardware. Operators that act quickly can capitalize on the growing demand for M2M services. However, for operators that stand still, the future will most likely mean a return to the ‘dumb pipe’ scenario.
About the Author: Stevie Ooi has over 10 years of knowledge and experience in the telecommunications and location-based services (LBS) industries. Prior to founding W-Locate in 2010, Stevie was the Director of Special Projects at AGIS, where he worked closely with companies such as Nokia, Samsung, Sony and O2. In 2008, Stevie founded MarketingWorx Pte to provide SIM-based value added services (VAS) from mobile operators. It was during this time that Stevie saw the need operators had for SIM-based LBS, which inspired him to form W-Locate two years later.
Everyone is talking about M2M and the IoT. If you want to learn more about the strategies you can implement today, hear case studies and get insight from the leaders and innovators in this space, be sure to register and attend M2M Evolution Conference & Expo taking place January 27–30, 2015 at the Miami Beach Convention Center. Stay in touch with everything happening at the event -- follow us on Twitter
Edited by
Maurice Nagle
