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In 2010, M2M modules and devices experienced significant growth, with a 48% increase to 37 million. This trend is expected to continue with a 25% CAGR through 2015, fueled by lower costs of devices, Tier One carrier engagement, and affordable service plans. The transition from 2G to 3G technologies promises better performance and support for high-bandwidth applications, while mobile data traffic is predicted to increase significantly. Key players like AT&T and Verizon are leading the 3G/4G rollout, enhancing connectivity options for M2M developers.
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High Speed Air Interfaces Mike Ueland Telit Wireless Solutions
M2M is Hot! • Berg Insight reports that M2M modules and other devices grew by 48% to 37M in 2010. • Berg expects a 25% CAGR through 2015 • Growth drivers: • Lower cost modules/devices • Tier One carriers engaged • Lower cost service plans Source: The Global Wireless M2M Market, Dec 2010, Berg Insight
Historically M2M=2G • Coverage and service level consistency has been more important than bandwidth • 2G modules 1/3 the cost of 3G modules • AT&T in particular is encouraging many of their customers to use 3G for new M2M projects
What Happened to EDGE? • The recent rapid move towards 3G has potentially dealt EDGE a fatal blow • Performance/value ratio never served any application well
3G Networks Gaining Popularity Source: Qualcomm
3G Benefit to Carriers • Better spectral efficiency • Support high bandwidth applications • Longer voice talk time • Mapping of all services onto HSPA • Faster call set up time/lower latency • Smooth migration to LTE Source: Nokia Siemens
Smart Phones Driving 3G Rollout Source: Qualcomm & Informa Telecoms & Media (Q1 2010)
Mobile Data Traffic Increases • According to Allot Communications' Mobile Trends report, global mobile data traffic increased by 72% in 2009; YouTube accounted for 10% and VOIP 4%. • Cisco reports Global mobile data traffic will grow 26 times between 2010 and 2015, to 6.3 exabytes--a billion gigabytes--per month! • According to CTIA, SMS traffic increased from 7B text messages/month in 2005 to 173B text messages/month in 2010.
AT&T Mobile Data Growth Source: AT&T
Migration from 2G to 3G Source: Qualcomm
3G/4G Data Rates The potential impact of increasing bandwidth is revolutionary 21 hrs WCDMA (384kbps) 2 hrs HSPA (14Mbps) 4.8 min LTE (100Mbps) Source: GSMA
Effective Rates Source: ITU, Verizon, T-Mobile and Sprint
North America Taking 3G/4G Lead • US has 6% of global subs, 21% of all 3G subs • Verizon is aggressively marketing LTE • AT&T recently announced plans to speed up LTE deployment
Carrier 3G/4G Strategies • AT&T • Continue with HSPA+ deployments; begin LTE deployment 2H 2011. • Verizon • Available in 38 markets and over 60 major airports, and will cover nationwide 3G footprint with 4G LTE by the end of 2013. • T-Mobile • 200M POPs of HSPA+ 21; moving to HSPA+ 42 • Sprint • Using Clearwire’sWiMax network
Which Applications Will Benefit • Security • Mobile computing • Automotive • Remote monitoring • Digital signage
NA Cellular M2M Module Revenue Source: ABI Research, M2M Market Forecasts, 2Q 2009
What is the Impact on M2M Developers? • Developers will need to make trade-offs in the short term on connectivity choices • 3G devices require more power • 3G modules are bigger in size
What’s the status of the 2G network? • T-Mobile: Have indicated it will be available beyond 2020 • Verizon: 1xRTT being used to support voice in 3G • AT&T: Have not formally announced plans but for certain applications, requiring 3G
3G/4G Forecast • Second generation 3G modules will drive down costs in 2011 • 4G modules for M2M will become feasible in 2013 • 3G device costs won’t achieve parity with 2G devices for a number of years • There will be carriers that support 2G for a long time to come