Moving Beyond Consumer SIMs for IoT

Transcription

1 Moving Beyond Consumer SIMs for IoT A SIERRA WIRELESS WHITE PAPER How Choosing a SIM Designed for the IoT Delivers Maximum Coverage, Performance and Ultimate Flexibility: EXECUTIVE SUMMARY In the Internet of Things (IoT), cellular-based deployments typically connect to the network using a Subscriber Identity Module (SIM) originally designed for mobile phones and other consumer devices. Unfortunately, IoT devices behave differently, have different technical requirements and use different business models than consumer devices. Using traditional SIMs for IoT applications increases complexity and is not an effective long-term solution to connecting billions of IoT devices. Unlike consumer devices, IoT devices operate independently, most often without human intervention, and may simply stop working if a connection fails. What s more, IoT devices often need to operate in challenging environments deep indoors, underground, in rural areas or urban canyons. They may be part of stationary or moving machines, working within a limited geographical region or across continents. Every deployment has its own unique requirements, and these very specific operating constraints add to the SIM challenge. Using traditional SIMs for IoT connectivity can result in lapses in coverage, interruptions in data transmission, and, ultimately, expensive service calls to rectify the issue. Using multiple service providers helps with coverage, but adds significant complexity and cost in managing multiple vendors, SIMs and platforms.

2 Sierra Wireless, the leading provider of cellular devices for the IoT, eliminates the need to use traditional SIMs by introducing a SIM designed specifically for IoT deployments. The Smart SIM from Sierra Wireless delivers multi-operator coverage, reliable performance and global pricing that IoT deployments need. In addition, Sierra Wireless provides, a central platform for commissioning, managing, and updating the SIMs which simplifies logistics and adds the flexibility needed to support long device lifecycles in the field, even if there are changes with providers and networks With the Smart SIM from Sierra Wireless, companies now have an IoT connectivity solution allowing them to start reaping the benefits of maximum coverage and performance with ultimate flexibility. I. Where We Are Today: Traditional SIMs in the IoT FIGURE 1. THE SIM STORES THINGS LIKE THE UNIQUE DEVICE ID, SUBSCRIBER INFORMATION, NUMERIC CODES, AND EXTRA CODES FOR OUT-OF-NETWORK PARTNERS, TO BE USED WHEN IN ROAMING MODE. The Subscriber Identity Module, or SIM, has, over the past 15 or so years, become an essential component in modern mobility. Billions of people now use SIMs every day, as they connect their mobile phones to cellular networks and make calls or use data services. More recently, SIMs have also become part of the Internet of Things (IoT), connecting IoT devices to cellular networks, to transmit and receive the data associated with machine-to-machine communication. As an enabling technology in mobile phones, SIMs are closely associated with portable and mobile applications, but in the IoT, SIMs are used in any kind of cellular-connected application, whether it involves movement or not. For example, you re just as likely to find a SIM in a telematics unit, mounted on a delivery truck, as you are to find one in a metering unit, attached to a gas pipeline, a control unit, or installed in a streetlight. Either way, the basic principle is the same: the SIM governs the cellular connection. Equipped with its own operating system, memory, and security features, the SIM interacts with the cellular network, identifying the device, authenticating it, and then opening a channel for communication. The SIM typically stores information like the unique device ID, subscriber information, numeric codes for accessing the primary provider s network, and extra codes for out-of-network partners, to be used when in roaming mode. THE NETWORK CENTRIC MODEL FOR SIMS Another characteristic of SIMs, resulting from their widespread use in cell phones, is that they re usually tied to a particular network in a domestic context, and supplied by the network operator as part of their service plan. When you get a new phone, the SIM is usually included with your service contract. If you switch to a new provider, you get a new SIM. The SIM is covered by your contract s roaming plan, so you can still get service even if you travel outside your provider s coverage area. In the IoT, it s pretty much the same. When selecting a service plan (and SIM) for IoT devices, companies have little choice but to use the same technologies deployed in consumer devices. This means they are forced to choose between the lower cost, lower flexibility local SIM and the higher, unpredictable cost of a roaming SIM. What s frustrating for organizations is that each of these categories has its drawbacks for IoT deployments. Companies often end up negotiating multiple contracts, to gain broader coverage, but this in turn adds complexity and reduces efficiency. 2 of 10

3 Those connecting IoT applications are learning that the network centric model, which ties a SIM to a particular provider, doesn t always make sense for IoT devices. The next section looks at this in more detail, and outlines the reasons why IoT devices shouldn t be treated like consumer devices. TRADITIONAL LOCAL & ROAMING SIMS Local SIM: Coverage for a specific region, with expensive roaming rates The IoT Customer A company deploying fixed IoT devices within a limited geographical area. A German company, for example, that supplies fuel in the region around Frankfurt. They service a fairly well-defined region, which includes several rural areas, and install metering units that don t move once they re deployed, so broad regional roaming coverage would seem to be unnecessary. IoT Issue Incomplete Coverage Driving Further Complexity and Cost This approach typically involves operation on one network in a home country, but a single operator is almost never able to cover all of the deployment locations. There may be gaps in coverage and places where an alternative to cellular has to be found for connectivity. The traditional workaround here is for the company to source a second service provider for the 15- to 20 percent of locations that the primary provider can not cover. This drives up deployment costs and overall solution cost to manage multiple vendors, SIMs and platforms. The problem worsens if the company begins to grow, and wants to service a broader region. To get broader coverage, the deployment might renegotiate their contract, switching to a roaming SIM with support for international roaming. If the service uses 2G or 3G networks, then the deployment is also at risk of having a network phase-out. Roaming SIM: Coverage for a broader region or global deployment using an alliance of roaming partners The IoT Customer A company deploying telematics devices for a given region. A company based in Italy, perhaps, but supporting trucks with delivery routes throughout Europe. The telematics units are in constant motion, and regularly cross territory boundaries. IoT Issue Roaming Alliances While the Roaming SIM provides broader, more flexible coverage than the Local SIM, there may still be coverage gaps, depending on what the primary provider has been able to negotiate in other countries. For example, there might be very good networks available in Italy, but the Roaming SIM s alliance partnership in Rome may specify a network with less regional coverage. The Roaming SIM is programmed to identify and select alliance networks, regardless of quality in a given location, so time spent in Rome may mean time with poor connectivity. Roaming charges can vary, too, depending on the details of the roaming alliance, leading to unpredictable bills. New service plans might need to be negotiated if the IoT deployment extends beyond the original roaming 3 of 10

4 plan. For example, if the German telematics company expands its business to North Africa or the Middle East, a new set of providers, with their own SIMs and their own roaming alliances, will likely be needed. II. The Challenge: IoT Devices Aren t Mobile Phones While mobile phones and IoT devices both use SIMs to access cellular networks, the similarity essentially ends there. Mobile phones are consumer devices that interact with people, while IoT devices are machines that typically only interact with other machines. Also, unlike consumer devices, IoT devices are often deployed in large fleets that need to be kept online and managed by the service provider remotely. The reality is that IoT devices have technical and operational challenges, in terms of coverage, quality of service, and longevity, that today s connectivity plans and the traditional SIMs that support them simply can t address. IOT DEVICES NEED THE BROADEST POSSIBLE COVERAGE IoT devices can be deployed anywhere in the world, and are always in roaming mode, even when fixed in place In the consumer space, mobile phones spend most of their time in a particular region and travel outside that region infrequently. Roaming is the exception, not the norm. Traditional SIMs and networks have been designed to minimize these roaming costs, usually at the expense of performance and reliability. For IoT devices working with traditional SIMs, the charges associated with roaming can be crippling. An IoT device can be deployed in any geographical region, far away from the factory or the corporate headquarters that represents home. The IoT devices used in automotive and transport applications are in near-constant motion, passing through any number of cellular coverage areas on a regular basis. Even IoT devices that are fixed in place, and never change their location, are still roaming, from a cellular point of view, since they ve been commissioned for use somewhere other than home. In the IoT, roaming is a constant. IOT DEVICES NEED 24/7 OPERATIONS CAPABILITIES WITH VERY HIGH SERVICE AVAILABILITY & UP-TIME RATES IoT devices can t use voice-only connections, and need consistent access to data-capable connections for continuous operation Today s smartphones may make extensive use of data, but voice calls remain an important part of every cell-phone s functionality. People still equate good cellular performance with fewer dropped calls, and if they find themselves in an area where data connectivity isn t very good, it s not critical they just try again later, when they re in a different location with a better connection. 4 of 10

5 For IoT devices, however, data connectivity is critical. What s more, IoT devices operate independently, without human intervention. If an IoT device finds itself with a voice-only connection, it may be stuck, since there s no one there to re-establish the connection. The device may be saddled with a useless connection and, unable to send data for an extended period. Most businesses can t afford to operate with IoT devices that go dark and can t transmit, nor can the business models support service calls to fix connectivity issues in remote locations. So it s essential that IoT devices can consistently find and keep a high-quality connection. IOT DEVICES ARE DEPLOYED FOR THE LONG TERM, WHILE TECHNOLOGY CONTINUES TO EVOLVE IoT devices can operate for years, yet need to keep pace with changes in service The average mobile phone has a lifespan of about two to three years. Cell-phone users can easily swap out the SIM, in a process that takes just seconds, and whenever they buy a new phone, they re also getting the latest SIM technology. The average IoT device might stay in the field for more than a decade, in a hard-toreach location, with an embedded SIM that s difficult to access. Swapping out SIMs, to support a different provider or upgrade to a newer generation of cellular, can mean an expensive field-service call, and may require special tools and the expertise of a trained technician. Also, having to stock different SIMs, for use in different geographical locations, can increase the cost of operations and make it harder to manage inventories. The next section looks at a new approach, developed by Sierra Wireless, that lets IoT devices break free from the cell-phone model, for increased flexibility, performance, and efficiency. III. The Smart IoT SIM from Sierra Wireless: Tailor-Made for IoT Connectivity Sierra Wireless is the global market leader for cellular devices in the IoT.* We support large-scale IoT deployments in every relevant vertical market, and have seen the connectivity challenges facing customers as they manage large scale deployments. The solution to IoT connectivity for many of these customers is the Sierra Wireless Smart SIM and connectivity service. The Smart SIM has a patented embedded agent designed specifically for enabling IoT connectivity, anywhere in the world. This section looks at the technology that makes the Smart SIM unique. * ABI 2015 report. 5 of 10

6 FIGURE 2. SMART IOT SIM FROM SIERRA WIRELESS MULTI-OPERATOR COVERAGE To ensure IoT devices can connect whenever and wherever they need to, the Smart SIM from Sierra Wireless is pre-loaded with a unique SIM profile enabling it to access multiple mobile network operator alliances. This provides the Smart SIM access to more networks than any single operator can provide. Multi-operator IoT connectivity means you and your IoT devices are not restricted to a single roaming alliance. Mobile IoT devices have access to more networks in more locations, and are connected more often as they move. Fixed-in-place IoT devices have a much higher probability of receiving service where they re deployed, and every existing IoT device benefits from being able to extend its 2G/3G lifespan as these networks are reclaimed. HIGHEST QUALITY OF SERVICE (QOS) Instead of using a limited, predefined list of roaming networks, network selection is based on the best available network and data connection. The Smart SIM from Sierra Wireless actively monitors data connections, re-establishing connectivity when required. PATENTED BEST-NETWORK SELECTION The Smart SIM from Sierra Wireless has embedded in it a patented agent that dynamically and autonomously selects the most pertinent network, according to the device s operational logic. There is no list of preferred networks; the agent runs a unique procedure for network scanning and selection, ensuring the best available network is used, regardless of location and time. Options with the scanning configuration make it easy to meet the specific needs of a deployment. DATA-CENTRIC CONNECTIONS The Smart SIM from Sierra Wireless differentiates between a voice-only connection and a data-centric connection. The agent embedded in the Smart SIM monitors QoS criteria to ensure data is able to be sent through the network. If a failure is detected anywhere within the network, the agent triggers network re-arbitration, thus maximizing service up-time. The result is very high service availability, with the kind of continuous operation required by IoT deployments. A UNIQUE OFFERING Figure 3. shows how the Smart SIM from Sierra Wireless compares to the other IoT options that is, the local and, roaming SIMs originally designed for use with mobile phones. Where the others impose restrictions and add complexity, Sierra Wireless introduces flexibility, scalability, and operational simplicity. The next section takes a closer look at the benefits of using the Smart SIM from Sierra Wireless. 6 of 10

7 FIGURE 3. GLOBAL IOT CONNECTIVITY OPTIONS TECHNICAL CAPABILITY MNO LOCAL SIMS MNO ROAMING SIM Coverage restricted to alliance Costs sky-rocket outside of footprint >1 MNO needed for coverage & cost LACK FLEXIBILITY & COVERAGE Smart SIM Provider & Mobile Core Network Operator interconnected with most MNOs across the globe. Geographically restricted Many MNOs needed for coverage Very complex SIM logistics TOO COMPLEX FOR IOT DIFFICULT TO MANAGE OPERATIONAL SIMPLICITY EASY TO SCALE IV. A World of IoT Benefits: Maximum Coverage & Performance with Ultimate Flexibility The Smart SIM from Sierra Wireless provides access to more networks, for alwayson service at the right price, and can be relied upon to find the best data-capable connection, for continuous operation. The result is maximum coverage & performance with ultimate flexibility. Global Connectivity Sierra Wireless has agreements in place with leading providers worldwide, and the SIM can connect to any of their networks. Since there s usually more than one network option available in a given area, the resulting coverage map is more complete, especially in rural areas and when operating deep indoors. Also, having multiple connectivity options increases the odds of finding a signal, even in the event of network outages from local providers. 7 of 10

8 One Contract With the Smart SIM from Sierra Wireless, there is no need to negotiate separate contracts with each provider. All the operator agreements are pre-integrated onto the SIM, so there s no extra setup time or additional steps for configuring new providers in new regions. There s one contract, and one management platform that covers your IoT deployment wherever it needs to go. IoT deployments can expand quickly, and capture new opportunities in new regions, without having to spend time arranging new connectivity agreements. Predictable Costs Because the Smart SIM is covered by networks worldwide, our rate plans are geographically based not network based. This means you are charged a single rate per region not a different rate for each network. Superior Data Connections Constantly monitoring the data connection and selecting the best network in any given location means consistent, resilient transmissions, so IoT devices can stay online 24/7. Longer Lifecycles Many IoT devices still connect to 2G networks. As 2G networks begin to be replaced, the Smart SIM still has options. The SIM isn t tied to a particular provider, so it can connect to any remaining 2G network in the area. Also, as IoT devices transition to LTE, the SIM is compatible with those networks. Remote updates provide an added level of flexibility and help eliminate obsolescence, making it possible to keep pace with the inevitable changes associated with providers and networks. Simplified Logistics A SIM that can be deployed anywhere in the world makes it easier to ship and commission devices anywhere they re needed. Having worldwide, multi-operator connectivity, with one contract and one control platform, means seamless operation for every aspect of the deployment, from policy management and diagnostics to auditing, provisioning, and ongoing maintenance. Competitive Advantage Lower operating costs and fewer management headaches makes it easier to focus on what really matters. Connectivity becomes the least of your worries, so you can spend time on other things, like differentiating your product and introducing unique services. 8 of 10

9 TABLE 1. THE SMART SIM VERSUS OTHER SIMS SMART SIM ROAMING SIMS LOCAL SIMS COVERAGE Cumulative coverage of all operators Best network selected dynamically Improved 2G/3G continuity Preferred operator list on SIM with attachment ranking Attaches only to home network when in home country Steering to preferred networks can slow performance One network, one country High roaming charges Risk of 2G/3G phase-out CONNECTIVITY AVAILABILITY RATE Multiple technical routes to reach any network Higher end-to-end resilience Flexible network switching for increased availability rate One technical route for all covered networks Lower end-to-end resilience Switches only when network is unavailable or down One access network, one backend route, one infrastructure SIM MGMT TOOLS One management portal for service, SIM, geography, and consumption API library Advanced diagnostics Help desk Portal and API set is operator-dependent Limited troubleshooting tools in roaming context (operator-dependent) Rudimentary portal and APIs, if any Limited helpdesk support, if any ROI SIMPLIFIED: REAL COST OF A TRADITIONAL SIM* Cost per MB $1.00 Issues per 1,000 SIMs 10 Avg cost of resolution $250 Actual cost per MB $3.50 WHAT IS THE ROI OF AN IOT SPECIFIC SIM? All of these benefits lead to a much higher return on investment (ROI) and a competitive advantage for our customers versus traditional SIMs and connectivity services. SIMs that require less maintenance and truck rolls save you money. When looking at the total cost of connectivity, customers must look beyond the cost per MB to the cumulative cost to support field issues. It is not uncommon to see an issue rate of 1% in an IoT deployment. As seen in the sidebar, this can push the cost per MB from $1.00 all the way up to $3.50. The very high reliability of the Smart SIM from Sierra Wireless means lower support costs, fewer truck rolls, resulting in lower operational costs and faster return on investment. Lower operating costs and reduced management headaches make it easier to focus on what really matters. Connectivity becomes the least of your worries, so you can spend time on differentiating your product and introducing unique services. * Example for ROI illustration. Issue rates and resolution costs are highly dependent on use case. 9 of 10

10 V. Conclusion When a cellular network receives a service request from a subscriber, the subscriber identified by the SIM may be a person using a mobile phone or an IoT device, operating on its own, without human intervention. This is an important distinction, because people using mobile phones behave differently, and have different needs than independently operating IoT devices. In other words, when it comes to connecting mobile phones and IoT devices to cellular networks, different rules apply. The Smart IoT SIM from Sierra Wireless is the only SIM designed for IoT deployments. It enables superior IoT performance by providing the best coverage, connecting to most networks in all countries, the best QoS, balancing service quality versus signal strength, and the most flexibility, with connectivity that s always operator-independent. The result is a SIM that lets IoT deployments break free from the cell-phone model. With the Smart IoT SIM from Sierra Wireless, IoT devices do what they need to do, with the broadest possible coverage and the greatest degree of freedom. About Sierra Wireless Sierra Wireless is building the Internet of Things with intelligent wireless solutions that empower organizations to innovate in the connected world. We offer the industry s most comprehensive portfolio of 2G, 3G, and 4G embedded modules and gateways, seamlessly integrated with our secure cloud and connectivity services. OEMs and enterprises worldwide trust our innovative solutions to get their connected products and services to market faster. Sierra Wireless has more than 950 employees globally and operates R&D centers in North America, Europe, and Asia. For more information, visit Sierra Wireless, the Sierra Wireless logo, AirPrime, AirLink, AirVantage and the red wave design are trademarks of Sierra Wireless. Other registered trademarks that appear on this brochure are the property of the respective owners Sierra Wireless, Inc