th
11
Executive Brainstorm
November 2010, London
Your M2M customer
wants to be MVNO
Rudolf van der Berg
[email protected]
November 2010
Disclaimer
Logica has no formal opinion on the matters discussed here. We deliver our
services to all players in the M2M market, be they telco or customer, in a variety
of roles. Each customer receiving the best service possible. This means we also
come across and give advice on competing opinions.
© Logica Business Consulting 2010. All rights reserved
No. 3
Why an MVNO?
The M2M deployer needs to be independent of the telco to
solve it’s business problems.
Independent through own HLR and IMSI’s
© Logica Business Consulting 2010. All rights reserved
No. 4
The M2M reality
Procurement law required a semi-public customer to change mobile
operators for their 10,000 devices, but they couldn’t
€1 million+ swap for project and logistics, taking 6-24 months, reaching
mobile, hard to reach and restricted access devices
© Logica Business Consulting 2010. All rights reserved
No. 5
Logica’s research on M2M
Dutch Ministry of Economic Affairs asked for research into switching costs
of large scale M2M deployers
Our advice: to liberalize access to IMSI-numbers (Mobile Network Codes)
so that private users can be free of their telco
© Logica Business Consulting 2010. All rights reserved
No. 6
M2M is different
Lifecycle of an M2M device is 30 years and has problems starting at
manufacturing and everywhere throughout lifecycle
M2M is large scale, millions of devices on all continents
© Logica Business Consulting 2010. All rights reserved
No. 7
4 problems: Roaming (1/4)
It’s impossible to negotiate good global roaming deals. Telco’s are local
Roaming is Sudoku multivariate analysis. Different numbers same result
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No. 8
4 problems: Coverage (2/4)
Coverage for static use is horrible and changes constantly
Every network has gaps that fortunately don’t overlap between networks.
National roaming needed
© Logica Business Consulting 2010. All rights reserved
No. 9
4 problems: Switching (3/4)
Switching operators is impossible
Not just renegotiating contracts, also mergers, acquistions or divestments
© Logica Business Consulting 2010. All rights reserved
No. 10
4 problems: Innovation (4/4)
No innovation by the operators
It is not in their interest to save their customers money, if it will cost them
money. Ie wifi offload.
© Logica Business Consulting 2010. All rights reserved
No. 11
M2M user needs to be MVNO
Uses it’s own IMSI number, with own operator code (MCC+MNC)
Regulator needs to open up IMSI-ranges and possibly cartels
© Logica Business Consulting 2010. All rights reserved
No. 12
Over the Air updates
OTA was researched by 3GPP and banned by the GSMA
OTA doesn’t remove dependence of deployer on M(V)NO for roaming,
IMSI’s, switching and innovation
© Logica Business Consulting 2010. All rights reserved
No. 13
The scary challenge
Be the best enabler to your M2M customers, giving them full freedom and
satisfaction
If you need lock-in for your business, you’re not someone that companies
should do business with
© Logica Business Consulting 2010. All rights reserved
No. 14
Want to know more?
Rudolf’s blog:
http://internetthought.blogspot.com with articles on M2M, the Telecom Cool Wall,
Common Error’s of Telecom CEO’s, FTTH, Why all telecom marketing and
product management is wrong, The best ISP in the world
The report (in Dutch):
http://www.rijksoverheid.nl/bestanden/documenten-enpublicaties/rapporten/2010/09/06/onderzoek-flexibel-gebruik-mnc-s/mnc-sversie-2-5-final.pdf
The management summary (in English):
http://www.slideshare.net/Raindeer/management-summary-of-onderzoekflexibel-gebruik-van-mncs
© Logica Business Consulting 2010. All rights reserved
No. 15
Thank you
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