The world loosely described as ‘telemetry’ is often thought of as small, closed, highly technical, rather boring and not particularly profitable. Such thoughts were always a bit wide of the mark. Now they are just plain wrong. Wireless plus Internet is now set to transform this world into open systems environments where new value can be derived from integration with, for example, ERP systems and online databases. The prospect is for a whole new raft of ways for businesses and public services to make savings, streamline operations and improve customer services. As well as these, they are also raising the prospect of many new added value service opportunities in a marketplace where competition is currently low and customer churn almost negligible yet revenues will be substantial.

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The word ‘telemetry’ literally means ‘measuring from a distance’. It implies one-way communication for measuring things like temperature, water flow, revs and wind speed. In contrast, the term ‘M2M’ is generally defined as ‘machine-to-machine’ communications – which includes two-way communication. However it is also increasingly being used to define ‘machine-to-man’ and therefore ‘man-to-machine’ communication as well. 

The M2M market covers those forms of data communication not covered by normal office-based systems like PC-to-PC, PC-to-server and server-to-server. Its more glamorous cousins can be categorised as Messaging and Information Access, often also referred to as Browsing. Whereas Messaging comprises text, multimedia, instant and unified messaging and e-mail, Information Access is usually associated with Internet/intranet access but also includes streamed audio and video services. In a sense M2M is everything else, although some applications overlap more than one segment. M-commerce, for example, is part of information access in terms of what is being purchased, but part of M2M in terms of the mechanism for paying for it.

As befits a catch-all segment, the range of M2M applications is constantly growing. So why is it now becoming more interesting?

It’s a machine’s world

For a start, there are an estimated 6 billion microprocessors embedded in operating products worldwide. Many of these would add value if they could just communicate with external systems. What could a vending machine tell us? Certainly that it needs refilling, needs maintenance and has run out of change. Also, though, it can provide data to determine customer preferences and predict consumption. Even to provide the means for credit/debit card purchases – and therefore the opportunity for more expensive products to be vended. What could a washing machine tell us? Not only that it needs maintenance but also, particularly in a community environment where it might be a shared facility, it could call and tell you it’s finished your washing and needs emptying. A freezer could send an alert if it breaks down. A car could report if it’s been broken into or stolen.

Then there are those situations where there are currently no embedded devices but, if there were, new service opportunities could be created. For instance, trials have already started for monitoring implanted pacemakers in real time. Patients can be up and moving around with few restrictions on where they can go, yet still be monitored on a 24x7 basis from a specialist centre located almost anywhere. In one case, a UK patient is being monitored in Germany. Should a difficulty arise, a health team local to the patient can be dispatched immediately.

Modules 4 market

Wireless M2M communication is not intrinsically new. Analogue and digital radio networks are already used, particularly for fleet and dispatch services. Indeed GSM has increasingly been used over the last few years as a medium for M2M applications utilising either SMS (Short Message Service) or GSM dial-up over modems. However, the introduction of Internet technology using GPRS (General Packet Radio Service) as part of a mobile Internet solution has now added a powerful new dimension.

So too has the introduction of GSM modules. These are small devices that contain all that’s required to connect and send data over a GSM network. As such, they represent the telecom ‘guts’ of mobile phones and, indeed, are increasingly being used to build the phones themselves. They fit directly into a machine’s circuit board just like a microprocessor and they are now made and sold in millions. Indeed, according to our conservative estimates, by 2009 there will be more such devices in Europe embedded in products and talking to systems than there will be mobile phones, wireless PDAs and smartphones. Over 400m in Western Europe alone, in fact.

So what happens to the humble telemetry alarm? Instead of appearing on a panel in a dedicated control centre, it might now appear on an operator’s Palm computer, complete with location details and situation report in order that appropriate action can be taken immediately. That action might include sending an instruction back to the machine, or to others. An event can be recorded, data logged and an order for spare parts automatically raised. A control centre in a pocket.

With added GPS

Like wireless, global positioning capability can now be added to a product, physical asset or even a person for the cost of a low cost chip. Combining wireless with GPS means that whatever it’s attached to can be accurately tracked (outdoors at least). That’s not only a major benefit for mobile asset management and customer service, it can also dramatically improve security. A security provider can log the position of a parked lorry or car. If it moves out of that location unannounced, an alarm can be raised automatically and the vehicle tracked until intercepted. Similarly for people. Children might be tracked on their way home from school. If they deviated markedly from their normal route, an alarm could automatically be triggered – including on the person.

An M2M or telemetry application is often highly specific to a particular vertical market. Yet many of the system elements required to create a solution are increasingly similar. The opportunity (and challenge) is therefore to transform M2M from a largely closed, highly fragmented and specialist market into one where large amounts of data can be collected and instructions set cost-effectively from remote locations. The aim will be to cater for an increasingly wide range of products, processes and people on a single centralised, open systems platform – perhaps as part of an ASP offering.

The wireless M2M market is still immature – the Cinderella of the wireless data market. However that looks set to change dramatically over the next few years.

 © e-principles 2002

Robin Duke-Woolley

For details about our new report on the wireless M2M market click here