Quick Reference for M2M Services - Tech Mahindra

Quick Reference for 

M2M Services 

Gururaj Phadnis, 

NTSS-CSU, Tech Mahindra 

Abstract: Hype of Machine-to-Machine (M2M) is everywhere. 

Enterprises and Telcos are seeing M2M as a new avenue for 

sustained revenue. M2M eco-system is fragmented with 

burgeon of vendors of different sizes. Many Telcos have 

gone ahead with partnership with M2M MVNOs and 

providing services to subscribers. For new entrants this ecosystem 

is perplexing. This paper provides quick reference of 

various options for launching M2M services. 

© Tech Mahindra Limited 2010

Table of Contents 

Introduction .................................................................................... 2 

M2M Service launch Process ........................................................ 2 

M2M Service launch – Key Considerations ................................... 2 

Support and Maintenance ............................................................. 3 

References .................................................................................... 3 

© Tech Mahindra Limited 2010 

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Introduction 

We have seen the use of devices in communication since the invention of telephone systems. 

Both communication networks and devices have gone under massive transformation over years. 

Devices have become smarter and many options for network connectivity are available. Hype of 

Machine to Machine communication (M2M) is everywhere. Many leading analyst have 

acknowledged to the growth of M2M. The M2M eco-system is very fragmented. Some of the 

challenges include numerous devices of different types, plenty of device vendors and no specific 

standards to follow. Every player is eyeing for the opportunities to make money in M2M. The 

major players in M2M include (a) Enterprises (b) Network operators (c) M2M service providers 

(MVNO) (d) Device Manufacturers (OEM) (e) Chip set vendors. 

M2M eco-system is fragmented and perplexing for new entrants. This paper provides guidelines 

for companies who are planning to start their own M2M services. It outlines a staged approach 

right from business case generation to planning and execution. 

M2M Service launch Process 

Be it enterprises or network operators when they think of starting new M2M services they have 

to go through various turbulences. There are some challenges and multiple options at each step 

for addressing specific needs of the users. M2M is not standardized as compared to other 

telecommunication networks. Hence it is important to understand the gamut of M2M eco- 

system and carefully make choices. Tech Mahindra simplifies the process by taking through a 

systematic approach at each step and help customers to launch M2M services quickly. 

Business Case generation is the foremost 

process in launching any new services. 

Some of the key M2M business case 

consideration would be: 

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What kinds of services/applications are 

planned and roadmap. E.g Healthcare, 

fleet management, security, energy etc. 

What kinds of customers are targeted 

B2B or B2C? 

What kinds of devices are targeted? 

Identifying different investment heads 

Assessing the existing infrastructure, if 

any and planning out the additional 

investment required 

What kind of partners you are going to 

engage with? 

Expected revenue and breakeven 

window

Next step after business case is strategizing different activities. There are plenty of options for 

enabling M2M services. M2M deployment planning heavily depends on what kind of option is 

selected. Please refer to the below chart for various options. Each route has its own advantages 

and disadvantages. 

Below are some guidelines for vendor selection: 


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As shown above M2M service providers are adopting different engagement models. Some of the 

popular models are partnership between network operators and MVNO, partnership between 

network operators and device management solution providers, enterprise directly working with 

OEMs. Below is a list of recent partnerships; 

• Jasper Wireless provides M2M services partnering with AT&T, KPN, VimpelCom 

• Telenorconnexions and SPRINT Partnered with Axeda Corp for providing M2M PaaS 

• Verizon and Vodafone - Uses nPhase platform for providing M2M services 

• 3UK - Uses platform from Stream communication 

• T-Mobile - Partnered with Wyless 

• Roger Wireless - Partnered with Jasper Wireless and Numerex 

• TELUS, Globalive and SaskTel Uses device management platform from SmartTrust 

M2M Service launch – Key Considerations 

The service providers will have to keep in mind some of the challenges as mentioned below. 

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a) Different machines with different protocols and access networks 

In a typical M2M communication not all devices are cellular enabled. For e.g. in smart 

metering the last leg of the communication link can be any low cost protocol like RS 

232, RS 485, ZigBee, WiFi etc. Since the nature of these protocols are very different 

from each other M2M services provider need to plan it accordingly. 

b) Numerous Devices – lots of connections and messages 

The numbers of devices going to be connected in M2M are huge when compared to 

devices in the cellular network. M2M devices will be exchanging lot of messages of 

low weight age. In order to avoid surplus messages flowing through cellular network 

M2M gateway situated at access network should handle the data traffic locally. The 

central M2M platform should be agnostic to access network types and behavior. 

c) Low cost remote device management and configuration 

Since Average Revenue Per Unit (ARPU) is in the order of $2 to $8 it becomes costlier 

to manually service the device for repairs and upgrades. The COTS DM platforms 

which are generally used in cellular network would be costly to deploy hence a low 

cost remote device management system should be designed explicitly for M2M. 

d) Device Certification 

It is a mandate that every device that is going to be hooked onto the cellular network 

needs to undergo operator’s certifications like GCF, PTCRB in the respective 

geographies. M2M service provider should plan to handle the overheads of device 

certifications. There are independent test houses who certify devices on network 

provider’s behalf. In case M2M service provider has tied up with Telco then M2M 

developer kits are provided for quick development of M2M applications. 


e) Widespread M2M applications 

M2M applications are wide spread. M2M service provider should clearly identify what 

applications or service he is going to provide and design the M2M platform 

accordingly. M2M platform should be as generic as possible to develop any kind of 

M2M application be it fleet management, smart metering, health care, automotive 

etc. 

f) Security of devices and data 

Since M2M devices will be remotely located it becomes important to provide physical 

as well as data security. M2M service provider should design the platform taking care 

of the environmental influence on device physical as well as data protection. 

g) Low cost deployment 

M2M device churn would be very low compared to other communication devices like 

mobile phones. Devices once installed will be in service for 5 to 10 yrs at least. 

Sometimes the device location would not allow manual service e.g. devices in the 

hazardous areas like nuclear chambers, explosive material storage, oil extraction 

plants, etc. Since ARPU is very low the M2M service provider should design a low cost 

platform with reduced CAPEX and OPEX. 

Support and Maintenance 

For any business to succeed support services is very important. Service Level Agreements are 

getting tighter. Sometimes they are getting tied to reverse payments or penalties. It is crucial to 

understand what kind of support will be provided to end customers. Service providers need to 

budget and plan it accordingly. Incase M2M service provider (MMSP) decides to build their own 

platform then E2E responsibilities should be owned by him. MMSP should be equipped with 

tools and platforms to debug and indentify problems at network and device level. Since there 

will be lot of overheads, MMSP can outsource support services to 3rd parties like System 

Integrators. Incase MMSP decides to partner with MVNO or Telco then SLA with end customers 

should be agreed along with MVNO/Telco. 

References 

http://www.jasperwireless.com/news/in-the-news.html 

http://www.telenorconnexion.com/news/press-releases/axeda 

http://newsroom.sprint.com/article_display.cfm?article_id=1400 

http://www.vodafone.com/start/media_relations/news/group_press_releases/2010/vodafone__verizon.ht 

ml 

http://www.stream-communications.com/enterprise_grade_3g 

http://www.wyless.com/index.php/partners/network-partners 

http://www.jasperwireless.com/110309.html 

http://www.smarttrust.com/newsroom/press/SaskTel 

http://www.smarttrust.com/newsroom/press/pr-090805 

http://www.smarttrust.com/newsroom/press/pr-100112 


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About Tech Mahindra 

Tech Mahindra is part of the multi-billion (USD) Mahindra Group, in partnership with British 

Telecommunications plc (BT), the world’s leading communications service provider. Focused 

primarily on the telecommunications industry, Tech Mahindra is a leading global systems 

integrator, Business Process Outsourcing provider as well as Business transformation consulting 

organization. Tech Mahindra has recently expanded its IT portfolio by acquiring the leading 

global business and information technology services company, Mahindra Satyam (earlier known 

as Satyam Computer Services). 

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Quick Reference for M2M Services - Tech Mahindra

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