01 Introduction M2M Training

1 • Optimizing M2M Services on CDMA2000 Networks • October 11, 2011 • www.cdg.org

CTIA Enterprise & Applications 2011

October 11, 2011

Optimizing M2M Services

on CDMA2000 Networks


Agenda

Time Description

1:00 CDG Welcome

1:10 Section 1: Introduction to M2M

1:40 Section 2: Business Case for M2M

2:10 Section 3: Billing and Settlement

3:00 BREAK

3:30 Section 4: M2M Modules and Devices

4:00 Section 5: M2M WAN Architectures and Optimization

5:00 Close and End of Session


Describe the fundamental concepts, attributes and technologies to enable M2M services on CDMA2000 networks

Learn how to manage and optimize M2M services

Learning Objectives


Explain the concept of Machine to Machine communications

Describe the M2M value chain

Identify vertical markets

List the benefits of CDMA2000 networks for M2M applications

Section Objectives


What is M2M?

M2M stands for machine-to-machine, mobile-to-machine, and

machine-to-mobile communications.

M2M will:

– Make better use of the mobile cloud for application services

– Automate and enhance current business processes

– Enable value-added services

Large organizations have many applications that help plan and

monitoring projects, resources, etc. However, these applications

need to be populated with up-to-the-minute, relevant, and accurate

data

In home monitors, sensors and personal devices are now able to be

connected to extend their value and enhance personal living


The Internet of Everything

Based on the idea that everyday objects can be readable,

recognizable, locatable, addressable, and controllable via the

Internet

– M2M applications using connectivity-enabled devices that use a wireless

data link to communicate with a server

Wide area coverage: CDMA/GSM/GPRS/WiFi

Personal Area Networks/Home Area networks (PAN/HAN), Bluetooth,

ZigBee, RFID, wireless sensor networking (WSN) technologies

– Wireless Machine to Machine (M2M) devices

Sensors

Modules

– Connected devices/Integrated devices

Consumer electronics

– e-Readers

– Tablets


M2M Definition Debate

– Connections to remote sensing, monitoring and actuating devices,

together with associated aggregation devices. Machina Research definition, M2M SIG, Guangzhou, China June 2011

– “Machines” using network resources to communicate with remote

application infrastructure for the purposes of monitoring and control,

either of the “machine” itself, or of the surrounding environment. ABI Research, Maximizing Mobile Operator Opportunities in M2M report

– Where everyday objects and devices are online and able to interact

directly.

Harbor Research, Smart Devices and Services Connected by CDMA2000, white paper

– Machine to machine communications connects communications-enabled

remote machines or devices, allowing key information to be exchanged

automatically. Vodafone Global Enterprise, white paper


M2M Definition in this Presentation

This presentation uses the following M2M definition:

– Non voice-centric information exchanged automatically without

human intervention between machines, and to/from mobile

devices to machines.


M2M is Unique

Large number of connected devices

Long device lifetime

– 5 to 20 years

Low churn

High QoS requirements

Redundant security features

Ability to remotely manage

Low weight

Battery life dependant


Era Comparison: Handset vs. M2M

Handset Era M2M Era

Driven by people interacting with other people

More productive in the office and in the field

Driven by devices interacting with other devices

Sensors, meters, etc.

Focused on enabling powerful, high bandwidth, always-on computing, multimedia and personal communications

Solutions require device-specific applications with less bandwidth requirements than what handset users demand

Devices focused on features and functions

• Devices are focused towards services and applications delivered automatically with little human intervention or manipulation

• Devices are typically focused on a single application in one vertical market


Chip Supplier Function: Build specialized chips optimized for M2M

Should support multiple technology bands and RF technologies, affordable, low weight, small dimensions, vast connection interfaces with API and SDK support

Module Supplier Function: Design and produce modules for the end user

Examples: a tracking box, utility meter, security device, sensor, healthcare monitor

Connectivity Function: Provides managed connectivity between devices through a network

Examples: WAN, PAN, WLAN such as WiFi, Bluetooth, ZigBee

System Integrator

Function: Either integrate M2M applications/solutions with existing corporate business process or provide tailor made M2M solutions for industry verticals

Services: network management, device provisioning and configuration, asset management, health & status, account billing

Customer Function: Either buys services from system integrators or works directly with MNOs

Example: A gas and electric company such as San Diego Gas and Electric (SDG&E)

Service Customer Function: Uses the service

Example: A domestic energy consumer

M2M Value Chain


M2M Vertical Markets

This presentation provides examples using the Energy and Healthcare vertical markets


Cellular Networks are Optimal for M2M

Mobile networks are highly evolved and in place, with nationwide coverage

Abundant bandwidth ― anywhere, any time connectivity

M2M applications benefit from the scale of the mobile industry (e.g., R&D)

Technical advances in air interface standards ― faster transmission rates and

low installation costs have substantially increased the number of devices able

to connect to a cellular network

– 2001: Smart Energy meter $12/meter/month

– 2005: Smart Energy meter $5/meter/month

– 2011: Smart Energy meter $0.50/meter/month

Companies have the ability to track, monitor, and service devices throughout

their entire lifecycle

– Remote software upgrades and repair

– Supply chain automation

Government mandates are requiring the use of telematics and telemetry


Three Significant Benefits of CDMA for M2M

1. Low total cost of ownership (TCO)

– CDMA2000 offers low cost-per-byte for data, making it a less

expensive option for many applications, particularly those that

require significant bandwidth and mobility

2. Expeditious time to market

– Shorter and faster approval cycles combined with easier

deployment and lifecycle management enable CDMA2000 modules

to be released as they are developed

3. Technical advantages

– CDMA2000 is inherently secure, reliable, efficient and built to

provide ubiquitous coverage with optimal RF & IP data

connectivity


CDMA offers Lower Total Cost of Ownership

Comprised of 3 major components:

Hardware Costs Certification Costs System Usage Costs

• Reduce: Fast Track carrier &

industry module certification

programs (ATL, CCF, ODI). Test

once, and use anywhere.

• Reuse: Integrated device

certification leverages module

test results with minimal delta

testing (CDG 195)

• Reinforce: Maintain

regulatory-type approvals

(FCC) for integrated devices

based on market needs

• Reduce: CDMA2000 module

costs continue to decline 50%

year over year

• Over 580 million devices

worldwide are driving price

points lower

• CDMA2000 1X module pricing

on par with GSM/GPRS

• Reuse: Module re-use in

multiple M2M integrated

devices in multiple markets

ensure longer shelf-life and

lower support costs

• Reduce: Lower cost per bit on

CDMA2000 networks

• Fewer base stations needed

• Less retransmission

• Optimized Data Rounding

(1kb/mth vs. 1kb/session on

GSM)

• Lower entry level System Access

Fee (SAF) on CDMA vs. GSM


Time to Market & Deployment

Shorter & Simpler Approval Cycle

– Focus is on safe for network & minimum regression testing for integrated devices

– No need to re-do full industry testing (e.g., PTCRB on GSM) on final integrated

device

– 50% reduction in approval timelines compared to GSM/GPRS

Easier Deployment & Lifecycle Management

– Over-the-Air Service Provisioning (OTASP) vs. SIM programming

– Lower environmental & security concerns for non-SIM based CDMA2000 devices

– No need to manage multiple APNs on the device due to a single set of carrier

configurations (PRI) that can be pre-configured and/or pushed via OTA

Module OEMs typically develop and launch CDMA2000 modules in

parallel to their GSM product line

– CDMA2000 has a standardized set of device requirements for the global community

(CDG 176, 195) reducing fragmentation/customization

– Core functionality for CDMA2000 modules are the same across multiple operators.

Carrier specific configurations are easily maintained and integrated


Technical Advantages of CDMA2000

CDMA2000 is an IP-based network optimized for data

– High-speed and low-latency improves real-time data performance

– Greater session persistence, optimized for longer idle session timers

– Greater use of public vs. private IP addresses with static & dynamic IP

address management, including VPN support

– Inherent support for Mobile IP in roaming scenarios

– Higher spectral efficiency increases reliability and capacity to connect

more devices

– Improved link budget to provide better in-building and rural coverage

– Wide coverage and soft handoffs result in uninterrupted connectivity

– More efficient power management, paging techniques and sleep modes

extend battery life

– Forward and backward compatibility ensure network and device longevity


More Technical Advantages of CDMA2000

Enhanced end-to-end security and privacy

– CDMA2000 is inherently more secure due to its military origin

CDMA’s spread spectrum transmissions and unique noise-like signature make

eavesdropping extremely difficult

Transmissions are scrambled using a 42-bit PN (pseudo random) “Long Code”

– Improved encryption algorithms, authentication, hashing, data protection,

anonymity and security protocols ensure “best-in-industry” security

Cellular Authentication and Voice Encryption (CAVE) algorithm is used to generate

a 128-bit “Shared Secret Data” (SSD) sub-key for authentication with the

following unique variables:

– 64-bit authentication key (A-key), 14-digit (56-bit) alpha numeric Mobile

Equipment Identifier (MEID) and random binary number (RANDSSD)

Advanced Encryption Standard (AES) algorithm, Authentication & Key Agreement

(AKA) protocol and Kasumi algorithm are used for encryption, privacy,

confidentiality and message integrity

Secure Hashing Algorithm-1 (SHA-1) is used for hashing and integrity

Temporary Mobile Station Identifier (TMSI) is used for anonymity

VPN, SSL and IPsec security features are used to ensure end-to-end security


Security Advantages of CDMA2000

CDMA’s enhanced security is applied to:

Enable authentication to prevent unauthorized access

Ensure end-to-end network security

Prevent cloning

Eliminate eavesdropping

Preclude message interception or manipulation

Prevent denial of service and man-in-the-middle attacks

Provide anonymity

Guarantee message integrity

Safeguard privacy

Support Public Key Infrastructure (PKI) and digital signatures

Security features of CDMA have never been compromised


Healthy M2M Ecosystem in CDMA

Additional resources can be found at www.cdg.org/m2m

http://www.cdg.org/m2m


1. How does this presentation define Machine to Machine communications?

2. Who are the players in the M2M value chain?

3. How do vertical markets fit into the value chain?

4. True or false: The primary benefit of using CDMA for M2M is low total cost of ownership.

Section Review

01 Introduction M2M Training

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