M2M hungering for 3G speeds

Operators are now more willing to open their networks to telematics applications, Brisbourne said. Carriers are accustomed to selling 3G as a monthly subscription, selling plans from $10 to $80 a month that give customers anywhere from 5 MB to unlimited data use. The telematics industry, however, uses data in much different ways. A police department may use security cameras for crowd control in large gathering places, which would require large amounts of bandwidth but only when a major event or demonstration occurred, Brisbourne said.

“They may need to use it only a few times a month, so they certainly don’t want to pay a monthly subscription charge,” Brisbourne said. After negotiations with operators, though, they’ve agreed to abandon typical one-device-one-subscription models for M2M applications, Brisbourne said, allowing Kore to buy data access wholesale and partition it among its dozens of telematics customers.

Another obstacle between M2M and 3G was the smaller footprint of EV-DO and UMTS networks compared to 2G networks. Many M2M applications, such as fleet management and smart metering need to work not just in the city but in the far rural corners of the country. While 2G networks offer that kind of penetration, only recently have 3G networks caught up. Brisbourne cited Verizon’s recent acquisition of Alltel as a big step, creating a nationwide carrier with EV-DO penetration in both rural and urban markets.

Finally, the cost of 3G M2M modules has come down. The cheap price of GSM/GPRS and even CDMA radio chips have made them optimal for applications such as smart grids in which a huge volumes of low-cost connections are necessary. Paring down the cost of the wireless components in a M2M module has been key to their proliferation as evidenced last week by T-Mobile’s announcement that it would offer embedded subscriber identity modules to M2M customers. Brisbourne said the cost of 3G M2M modules has finally fallen to the point that they’re viable for many telematics applications.

Earlier this week, AT&T announced its latest initiative in the M2M space, a deal with Hertz that will connect 1500 vehicles in its car sharing program. Though not necessarily a 3G M2M application, AT&T’s automotive platform goes far beyond vehicle tracking. The module keeps Connect by Hertz customers in 24-hour contact with the rental agency as well as allows Hertz representatives to lock, unlock and start the car remotely, track its location and track drive time and car return information.