M2M (Machine-to-Machine) refers to the transmission of data from one terminal to another, that is, machine-to-machine dialog. Experts in the field refer to M2M as the Internet of Things (IoT). If we introduce wireless connectivity into the process, the possibilities for IoT applications are endless. Imagine a "smart grid" that connects and communicates with a vast array of devices such as meters, appliances, automobiles, lighting, medical monitors, retail inventory, and so on, and the benefits would be enormous, such as increased productivity, energy savings, remote access, cost reduction, improved healthcare, and so on.
According to WirelessIntelligence, the number of wireless connections worldwide exceeded 4 billion by the end of 2008 (including subscribers with multiple SIM cards), a statistic that the mobile industry should be proud of. However, according to authoritative analysis, the M2M market holds more than 50 billion more potential connections. According to HarborResearch, the number of wireless M2M connections worldwide will increase from 73 million in 2008 to 430 million in 2013. It can be said that with this huge market opportunity, M2M is expected to become another important frontier in the field of mobile connectivity.
It is worth pointing out that CDMA technology plays an important role in supporting M2M communications. Moreover, EV-DO, the upgraded technology of cdma20001x, will have extremely high data transmission rates, which will complement M2M technology and create unlimited value for operators and end users.
M2M is a popular choice for operators
Fierce competition in the voice services market has led to homogenization of services and lowered ARPU. M2M provides operators with additional revenue by enabling machines to use the operator's network, ultimately increasing their profitability. Imagine if the nation's fleet of transportation trucks were equipped with wireless sensors and tens of thousands of homes had wireless meters, the amount of wireless data usage would be enormous. Many forward-thinking cdma2000 operators have already recognized this opportunity and are actively exploring the unlimited opportunities that M2M presents. With sensible pricing schemes and economies of scale, both operators and their customers can realize significant benefits from M2M.
Another core benefit of M2M-related services is low churn. Analysts who have long followed the growing M2M market point out that the churn cycle in this space is typically around seven years. Analysts believe that for cellular M2M applications, areas such as automotive transportation and fleet logistics, smart metering for public *** facilities, retail outlets, and security alarms for property management and healthcare will deliver the best return on investment in the short to medium term. For operators seeking new business opportunities in this promising area, the key is to prioritize markets that are expected to attract the most users in the shortest period of time.
M2M complements CDMA technology
The transportation market was one of the first areas to commercialize M2M. For more than 20 years, satellite-based mobile communication systems have been serving the long-haul transportation and logistics industries with their location tracking and ability to monitor the status of mobile assets (cabs, trailers, containers, etc.). Since then, M2M has begun to provide telemetry services over cdma20001x networks. With 1x cellular transceivers installed in mobile assets such as trucks, buses and heavy equipment, companies are able to exchange two-way data messages with drivers and monitor many aspects of a vehicle's location, travel time, fuel consumption and maintenance status from anywhere at any time.
One of the first successful M2M solutions to be commercialized in the healthcare sector was provided by CardioNet, whose groundbreaking solution integrates a cardiac monitoring device into a wearable wireless terminal that connects to a cdma20001x wireless network and ultimately to a medical monitoring network. When the monitor detects an abnormal rhythm in the patient's ECG, it automatically sends the data via the wireless terminal to the CardiNet monitoring center, where it can be analyzed and diagnosed in time for review by a medically licensed monitoring technician.
Looking to the future, ProteusBiomedical has successfully developed a pill with a built-in miniature sensor. After a patient takes the pill, the sensor can promptly send a report to the doctor or home computer via a wireless connection, enabling caregivers to more effectively monitor whether patients are taking their medications as prescribed.
Wireless smart grids could connect gas, water, and electric meters to each other, allowing them to, for example, tell users the best time to water their lawns and run energy-intensive appliances such as washers and dryers. Some experts have taken this concept a step further and are developing wirelessly connected thermostats that work on the same principle. The thermostats could securely transmit commands over a wireless network to detect potential power outages and automatically adjust HVAC (hybrid automatic voltage control) systems in homes and offices in affected areas.
While these solutions may sound like science fiction, the Smart Grid is becoming a reality, thanks to the extensive coverage provided by mature and highly reliable 3G networks, such as the cdma20001x technology that connects most machines to the Internet.
The future of M2M is bright
One of the most exciting developments in M2M communications technology is that it represents an entirely new business model that utilizes wireless connectivity to transform traditional concepts. the Kindle e-book reader terminal is an excellent example of this, and it has already attracted a great deal of public attention and has been a focal point of news coverage. the Kindle terminal is equipped with a built-in wireless modem that allows the user to access a wide range of devices, such as a computer, a computer, or an electronic device. The Kindle terminal comes with a built-in wireless modem that allows users to download books over Sprint's cdma2000 network.
Companies such as AnyData, Huawei, Motorola, Qualcomm and ZTE have introduced M2M modules that connect to machines over reliable, secure and ubiquitous cdma20001x wireless links.
Market research firm StrategyAnalytics expects the mobile M2M market to exceed $57 billion in 2014, after ending 2008 at just under $16 billion. The huge market potential has made many wireless carriers and terminal manufacturers bullish on the prospects for M2M, and they are also looking to add wireless connectivity to more and more standalone machines.