Defragging M2M
For a start, fragmentation is still an issue, driven by the fact that M2M apps and modules tend to be highly diverse and specialized.
The GSMA's embedded module initiative that hopes to mitigate the issue, and the GSMA is tackling the fragmentation issue on three fronts, according to Chambers: certification of devices, provisioning and efficient management of devices and capacity.
"If you're going to have that many devices, you can't just treat the network as an open pipe," he says.
The GSMA intends to publish guidelines for M2M modules - the first of which are due by the end of this year - that will pave the way for certifying devices, which in turn will lower costs and boost economies of scale. Chambers also cites the GSMA's work on embedding HSPA in laptops and netbooks as a model for developing M2M certification.
"Our laptop initiative helped operators understand the laptop/netbook ecosystem, the value chain and the operators' role in that," Chambers says.
Another significant - and familiar - barrier to M2M adoption is the upfront cost, which can still look intimidating, says St George. "You can get the business model to work in the long term, but the upfront cost is hard for companies to swallow."
Disappointing ARPUs
However, perhaps the biggest challenge for carriers may be looking past the current hype regarding the potential M2M payoff - which, says Brisbourne of KORE, is going to be disappointing for many operators.
"Carriers are being dazzled by the hype over the 'billions and billions of machines' that will need cellular connectivity, which is an interesting stretch, when considering that today in the world, we have about 55 million true cellular M2M connections," says Brisbourne. "To move from there to billions is a pretty steep hockey stick. I think it's going to take a longer runway than people may think."