Automated Provisioning Drives Future of Machine Communications

Opinion piece by Jahangir Mohammed, CEO of Jasper Wireless.

When done right, provisioning and deploying wireless devices can have a big impact on a companyÃ's ability to scale its business simply and profitably. To that end, new machine-to-machine (M2M) wireless communications solutions are emerging to automate processes that were previously done by hand. Ultimately, the shift from manual to automated provisioning eliminates operational costs and complexities to streamline and simplify business operations.

Provisioning involves the steps a company takes to get its wireless device or component to its customers.

As the device moves from factory testing through distribution to activation, the manual processes used by most M2M companies place a significant burden on operations and often adversely affect a customerÃ's first experience with their products. In turn, companies commonly face the following provisioning challenges:

Dead-on-Arrival Devices

Before shipping their devices to end customers, M2M device manufacturers typically test their devices at the factory to eliminate dead-on-arrival devices. If the device uses cellular communications, the manufacturer must activate the wireless service for that device to get a complete test. And once the device is activated, the manufacturer starts paying for service.

A new class of M2M service providers has arrived that delivers free factory testing. Dedicated exclusively to M2M businesses, these service providers build factory testing into their service plans. Now, companies can test device connectivity at the factory, free of communications charges and activation phone calls.

High Effort Service Activation

To activate communications service for their devices, most companies wait to install the SIMs into the devices and then call or email their communications providers to activate a batch of SIMs. These companies need to keep track of 1) which SIMs are in which devices, 2) which SIMs are active and which SIMs are inactive, and 3) how long it will take the devices to reach the end customer.

An M2M service provider can automate the activation process. Companies can ship activation-ready devices, which can sit weeks or months in the distribution channel, free of communications charges. When the device is powered on by the end customer, its communications services are available immediately with no manual intervention. The SIM identifiers and rate plans are already pre-loaded into a Web-based control center, effectively removing any need for manual tracking.

Unrecoverable Costs

When SIMs are activated - usually during factory testing - device communications costs begin to accrue. Those costs, however, arenÃ't offset by revenue. Weeks or months may pass before end customers receive - and begin paying for - device communications. Until then, M2M companies bear the brunt of the communications costs while they move the devices from SIM installation through factory testing and distribution to the end customer.

How much can companies pay in unrecoverable communications costs? Take a look at the following scenario:

Number of Devices: 1,000

Monthly Communications Costs per Device: $7.00

Deployment Cycle: 6 Weeks

Costs Incurred: $10,500

In the example above, the M2M company will pay $10,500 before it can bill its customers. Companies provisioning more devices or with longer deployment cycles will pay even more. And what do they get in return? The factory-tested assurance that their devices will work out of the box.

Recognizing the unique fulfillment needs of the M2M industry, service providers who specialize exclusively in M2M communications have changed their billing and provisioning practices accordingly. For these M2M service providers, billing doesnÃ't start until the device is shipped to the end customer and data is transmitted for the first time, eliminating months of connectivity costs for every single device.

Global Coverage + Internet Technologies = Global Deployments

A service provider solely focused on device communications can save an M2M company significant operational costs, lower complexity, and increase margins. The new class of M2M service providers couples Web-based software solutions and GSM/GPRS coverage from leading mobile operators around the world to deliver one solution, from one vendor. The result is a simple, easy, and scalable global solution that drives costs and complexity out of the device provisioning process.

Jahangir Mohammed is CEO of Jasper Wireless, a licensed global machine-to-machine (M2M) mobile operator delivering the first and only service platform for connecting and managing machines around the world.

Posted to the site on 10th December 2007