Tekelec pushes for SMS in M2M networks

The next big M2M innovation might just be an old standard. Messaging and signaling infrastructure vendor Tekelec (NASDAQ:TKLC) is trying to make a case for SMS as the mechanism for transferring small amounts of data across wireless telematics networks.

The majority of M2M connections today operate over GSM networks and send only minute amounts of data, yet in order to transmit their information, they open up IP data channels, send their data, and then shut the connection down. While that sort of transaction would be optimal for a device sending a large amount of information such as a video camera or for one that is sending a constant stream of information, it's a highly inefficient way to send a small burst of data, which is what the majority of the sensor, asset-tracking and metering devices on M2M networks do today, said Alan Pascoe, Tekelec senior product marketing manager.

IP data links can be fickle, especially in mobile scenarios. A GPS module in a truck traveling 60 mph could lose its IP connection before it has time to transmit its data, for example, Pascoe said. "Is it worth the time to set up an IP data connection every few minutes when you’re only sending a handful of kilobytes?" Pascoe said. "The thing about IP data networks is the IP connection isn’t always on. You have to find the device and set up a session. SMS, on the other hand, is always on."

Carriers use SMS for machine-to-machine communications purposes all of the time. They use it to initiate premium SMS downloads, they use it to update settings and firmware on devices, and in the case of laptop cards to authenticate and provision devices. For operators, it would be only a matter of extending capabilities they use for internal operations to their customers, Pascoe said.

The challenge for Tekelec now is to convince carriers to do just that. Pascoe readily admits it's not something on their radar screens. "This hasn't been high on our discussion list with operators," he said. And as M2M moves into the 3G and eventually 4G networks, consuming larger quantities of data, SMS won't be a very elegant solution. But just as M2M will expand upwards into higher-bandwidth applications, the older low-bandwidth applications will spread outwards, Pascoe said.

GPS tracking will find its way into more cars. M2M modules will be embedded in more home security systems and even home appliances. Smart meters will proliferate to every household. There will be millions upon millions of devices, transmitting only minute amounts of information but nonetheless crowding the network with IP sessions. Then the efficiency of SMS might become much more apparent, Pascoe said.