WHITE PAPER

Going Global with M2M: What You Must Know to Control CostsTo launch a successful global M2M deployment, service providers and

enterprise customers should first develop a plan that takes into account

diverse cultures, languages, regulations, technologies and pricing. This

Aeris White Paper outlines how differing regions and individual countries

can create challenges in certification, support, and cost control and

recommends actions to avoid these pitfalls.

GOING GLOBAL WITH M2M: WHAT YOU MUST KNOW TO CONTROL COSTS

Tab

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f Con

tent

s Introduction ..........................................................................................................1

Planning for Spectrum Availability ....................................................................1

Cultural Issues .....................................................................................................1

Certification Issues .............................................................................................1

Design Process .................................................................................................... 3

Global Deployment Issues ................................................................................. 4

Installation and Support Issues ........................................................................ 4

Service Provider Selection ................................................................................ 5

Cost ............................................................................................................ 5

Flexible Device Management .................................................................... 5

Network Performance ............................................................................... 5

Pricing by Country .............................................................................................. 5

The Aeris Solution .............................................................................................. 6

AerCloud Transforms the Value of Data ........................................................... 6

TOC

GOING GLOBAL WITH M2M: WHAT YOU MUST KNOW TO CONTROL COSTS

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INTRODUCTIONMachine-to-Machine (M2M) communications deployments are growing at a rapid pace around the world

as IT leaders discover the many benefits connected devices can bring to their businesses.

Global M2M connections will increase from two billion at the end of 2011 to 18 billion at the end of 2022,

with global M2M revenue rising to $1.2 trillion in 2022, from $200 billion in 2012, Machina Research reports.

But while international markets offer rich opportunities for success, companies should be aware that

there are pitfalls that can slow the time to market and add costs that can undercut the success of a new

deployment.

Differing regions and individual countries can present challenges with diverse cultures, languages,

regulations, technologies and pricing, all of which need to be addressed in advance. There are providers

that can reduce this complexity by offering a single, global solution.

Before going global, M2M service providers and enterprise customers should first devote time to a set

of considerations which can make the difference between success and failure. We’ve divided these steps

into planning, deployment, support, and costs, and we’ll address each below.

PLANNING FOR SPECTRUM AVAILABILITYU.S. businesses need to be aware that 2G GSM GPRS from AT&T, the largest provider of service in the U.S.

is being shut down on Jan.1, 2017, but the impact of this is already being felt in the industry, particularly

for the larger industries like security. The second largest GSM carrier, T-Mobile USA, has not yet made

any official announcement, but is likely to also shutdown their 2G GSM network within five years. Unlike

the 2G GSM sunsets occurring soon, 1xRTT 2G CDMA networks in the U.S. will remain active through

2020, 2022, perhaps longer.

Businesses should be aware of these changes as they look toward the future. For a detailed analysis of

the coming spectrum changes and alternatives, read The Definitive Guide to the AT&T 2G GSM Sunset

(which can also be found at http://info.aeris.com/atts-2g-gsm-sunset-website).

CULTURAL ISSUESThe most important cultural issue is language. You will need documentation in multiple languages if

you’re going into a country that’s not made up of an English-speaking population. Language will be key

to performing the multiple deployment tasks.

Patrick Bertagna, chairman, president, CEO, and founder of GTX Corp., a manufacturer of embedded

M2M GPS real-time personal location services, with extensive business experience abroad, says a local

partner speaking the local language can help handle the multiple requirements of setting up operations.

“If you’re going to deploy in a foreign country, it’s prudent to have a partner in that country that can handle

just simple things, such as language,” Bertagna said. “If you’re deploying in a country that’s non-English

speaking, or not native to your own language, you should probably consider having a local partner that

can speak the language.

“If you have a technical issue, you don’t want to aggravate that issue by having the difficulties and the

challenges of not being able to communicate in the same language,” Bertagna added. “You may not even be

able to deploy a human being there to see and touch the problem, so the partner can be very important.”

CERTIFICATION ISSUESAn M2M business expanding abroad must understand certification requirements for each country.

Something as simple as voltage may become an issue if not properly addressed. If you have a pluggable

While international markets offer rich opportunities for success, companies should be aware that there are pitfalls that can slow the time to market and add costs that can undercut the success of a new deployment.

GOING GLOBAL WITH M2M: WHAT YOU MUST KNOW TO CONTROL COSTS

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unit, you’ll need to make sure that you’ve accounted for the fact that you might have a 110-volt device

in the U.S. but you might need to have a different piece of hardware to connect up to the local electrical

system abroad.

Device certification is a cost that cannot be ignored.

If you have a device that’s been operating normally in the U.S. and you bring it to another country, there

may be some additional certification requirements that take time and have an associated cost. For example,

if you do a new design incorporating a chipset, or you are using a certified radio module, you may have

to set aside some time and money to ensure such features are certified locally.

There are several types of certifications needed to get to market:

Government agencies that grant regulatory approval and decide policy for the wireless networks include

the Federal Communications Commission (FCC) in the U.S., the European Commission in Europe, Anatel

in Brazil, and COFETEL in Mexico.

There are also associations that determine additional requirements that devices on the network must

meet, including the PCS Type Certification Review Board (PTCRB) in the U.S. and the Global Certification

Forum (GCF) in Europe.

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Different technologies can have different approval processes and this is something businesses should be

aware of when deploying a GSM or a CDMA device. The FCC has a set of requirements that are common

to all radio products, including wireless radio products. And there are some requirements specific to the

cellular industry as well.

The GSM carriers require certification from PTCRB, which performs a series of tests that the carriers

establish as a good baseline for all GSM devices in the U.S.; it is similar to the GCF certification that is

conducted in the EU and for other GSM countries. But there are some tests that are unique and regardless

of whether you have successfully passed the GSF, you still need to go through the PTCRB.

On the CDMA side, particularly if you are doing a design from a chipset, there are some CDMA Development

Group (CDG) certifications that you need to go through. There are companies that provide that as a

service, but you should be aware that it will require additional time and money. These approvals don’t

touch on product-related certifications that the application might have to obtain. For example, if it’s a

consumer product, there might be underwriters, labs, or UL testing required. If it’s a medical device, there

might be some medical testing or certification process that is unique.

You have to worry about that only from the perspective of your specific application. And if you have

an industrial application, like an irrigation monitor or a business security device, some of those other

regulations might not be relevant or appropriate.

DESIGN PROCESSAnother consideration that can affect the cost of doing business abroad is the design process.

Depending on the level of integration that you want for your application, the cost can change. If you have

a design that must be implemented from a cellular chipset level, it will take you a long time (usually

between 18 to 24 months) to get your product developed, designed, certified, and put into production.

If you use a radio module, a pre-certified radio module can reduce that time. The average time is 15 to 17

months. If you use an embedded modem with a pre-certified card, it can cut the time to 6 to 8 months.

And if you use a standalone communications product, typically it will take only 2 to 4 months to get your

application to market.

Of course, cost comes into play here. A standalone product is more expensive upfront, but it gets you to

market more quickly. On the other hand, at the other extreme, if you develop something from scratch

from a chipset, your product cost is low, but will it will incur costs by taking longer to get it to market,

GOING GLOBAL WITH M2M: WHAT YOU MUST KNOW TO CONTROL COSTS

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along with higher costs for testing and certification.

Most companies find a balance somewhere in the middle. They either pick a radio module which is

pre-certified for incorporating the design or they use a certified embedded modem. Using a module is

typically done by folks who have a special need for their application; for example, if they have a sensor or

a specific interface on their product that needs to be supported, they will pick a radio module because

they have to design the rest of the product around it.

This is a choice that customers can make and it affects the time to market, the certification, and all of

the things that you would traditionally expect from putting together a complex application for a machine-

to-machine environment.

GLOBAL DEPLOYMENT ISSUES You should expect cellular regulations to differ regionally or even by country. What applies to the U.S. will

generally cross over into Canada, although there may be some specific requirements from the Canadian

FCC equivalent. If you are within Europe, generally speaking, there is a set of requirements that will apply

all over Western Europe, but might be different in Eastern Europe countries, the Middle East and Africa.

Deploying a 4G application around the world offers a different set of challenges entirely. LTE spectrum

fragmentation is a significant problem today. You must use multiband radios to provide coverage around

the world and of course the cost higher. More, LTE coverage is still low in many places, so you need to use

the right band and radio module for the countries in which you intend to deploy.

INSTALLATION AND SUPPORT ISSUES Understanding the different needs of your product from a support and installation perspective is very

important.

If you expect to deploy your application in remote locations, or multiple metropolitan markets, you will

have myriad support needs and procedures. If you require a technician to be dispatched, it can get quite

expensive. So you should take these issues into account during the design and development process.

You should consider incorporating the ability to do some kind of remote firmware update over the air.

Otherwise, ensure that the process for debugging is simple enough for your customers to do it themselves.

For example, having a radio installed in a pluggable carrier or sled of some sort can increase your cost

GOING GLOBAL WITH M2M: WHAT YOU MUST KNOW TO CONTROL COSTS

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ahead of time, but often it will save far more in later support requirements.

Finally, and this is the important one for international markets: check the device support model. Ensure

in advance that you can get service internationally anywhere that your device is deployed?

Bertagna believes support is one of the most important cost considerations. “I can’t emphasize enough

about having the ability to remotely troubleshoot your products, to be able to do a firmware upgrade

remotely,” he said. “You want to have the least amount of human intervention as possible. That’s where

costs really come into play, is when you need to dispatch a human being to the problem. Even remotely,

just having someone on the phone across the country for 20 minutes is costly.

“A lot of these M2M contracts aren’t generating very high revenues, or what we call RPU, revenue per

unit,” Bertagna added. “So when you’re collecting two or three or five dollars a month per device, and you

need to spend 40 or 50 dollars to troubleshoot it, you can see that the economic models don’t work. So

make sure that you have a good service and support strategy in place, and that your hardware can be

upgraded and supported remotely as well as possible.”

SERVICE PROVIDER SELECTIONYour choice of a service provider partner can be all-important. So what are the factors to consider when

selecting a service provider?

Cost

Cost can be determined by many factors, which should be taken into account when evaluating a service

provider.

Choose a provider that will allow you to pool devices across a rate plan. Pooling will lower your costs and

help you better align your rate plan to your business model. If you can get pooling from the service provider

who can match the rate plan to your business model, you will achieve more efficiencies and lower cost.

Make sure you understand all of your provider’s fees for “special network services,” and ensure you know

what services are included. These can include API setup and implementation, voice set up, number leases,

static IP fees, VPN client, VPN hardware, SMPP short code setup, ICMS setup, custom APN.

Look for flexibility from providers that allow them to make changes to your rate plan in the middle of

a billing cycle to avoid charges for overages, or charges applied for service usage not covered by the

pre-paid rate plan. If you have such a provider, you will need to plan spikes (for updates or other special

events) well in advance.

Be aware of other practices that can result in higher costs, such as slow troubleshooting, fees for

certification charges, and fees for changes needed to complete deployment.

Flexible Device Management

Perhaps you have a seasonal application that needs to be suspended or a device that may not need to

be turned on for months after manufacture. You need a provider that will allow you to suspend devices.

It is expensive to turn devices on and off and most operators force this cost on their M2M customers.

Ask your provider if you will be charged when the device if off, how to avoid human intervention with the

device, and if they offer automatic billing activation.

Network Performance

Superior performance is essential. For example, if you’re using SMS, for a mission-critical application,

can the provider give you better performance, success, and latency for that need? If the provider cannot

and you have to do retransmissions, you’re going to add cost.

Ask your provider what percentage of its network traffic is M2M? Naturally, many operators dedicate

I can’t emphasize enough about having the ability to remotely troubleshoot your products, to be able to do a firmware upgrade remotely.” - Patrick Bertagna, chairman, president, CEO, and founder of GTX Corp. the cellular device.

GOING GLOBAL WITH M2M: WHAT YOU MUST KNOW TO CONTROL COSTS

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more resources to their greatest source of revenue. If the vast majority of their revenue is from consumer

traffic, you can be assured that consumer traffic will get priority you’re your M2M transmissions.

Will you get attention for units that are generating only a few dollars of revenue per month compared to

the hundreds that they might get from a handset or a smart phone? As there will be lower revenue for

the provider of service, will they still give you the attention you need?

PRICING BY COUNTRYOne of the most complex elements of deploying global M2M programs is pricing a country-by-country

basis. Rates and other costs that are affordable in one country might not be in another.

THE AERIS SOLUTIONClearly deploying a global M2M program is highly complex. It is important that you are aware of all

the issues involved, however, Aeris Communications can make the process of planning, deploying and

maintaining a M2M program seamless for you. Working with Aeris, you will have a single SIM for deployment

in more than 190 countries. We eliminate for our customers the time-consuming and expensive process

of selecting multiple carriers for each country. We give you a single portal for managing your global

deployment, which means one login for billing, support, APIs, VPN and more.

Mohsen Mohseninia, Aeris Communications vice president of Market Development for Europe, believes

Aeris offers significantly lower costs for businesses looking to do business abroad.

“Aeris provides fast time to market in terms of certification and deployment, with coverage through

national and international roaming,” he said.

Aeris has a global reach in more than 190 countries with a platform allowing it to connect 550 cellular

carriers using 2G and 3G CDMA, GSM, and LTE to companies serving healthcare, telematics, utilities,

retail, and other sectors.

The company provides faster time-to-market with more efficient processes for certification and

deployment, shortened development cycles, simpler hardware integration, and with coverage through

national and international roaming.

Aeris uses cellular radio access networks to bring the data and services into its core network, which has

been built for machines only. The core Aeris network sits the company’s portal, called AerPort, which allows

customers to manage their devices from anywhere at anytime. The company also offers an architecture

platform called AerCloud, which enables businesses to quickly and easily build applications that access

high-value business information which can transform their business, easily and cost effectively.

AERCLOUD TRANSFORMS THE VALUE OF DATAAeris also offers an architecture platform called AerCloud, which enables users to quickly and easily build

applications that make the gathering and management of data more robust.

Aeris provides 24/7/365 support for its customers, with cradle-to-grave connectivity, and global service

that goes across CDMA and GSM networks. Using Aeris SIMs cards, customers can enjoy connectivity

going from the U.S. to Europe, to Asia.

Contact Aeris at info@aeris.net or 1-888-GO-AERIS for more information.

Copyright © 2014 Aeris Communications, Inc. All Rights Reserved.