Last week we spoke to Stream Communications, initially to discuss its new IoT-X PaaS (platform as a service). During the course of our discussion, we were told by Nigel Chadwick, Stream Director, that there would be an announcement soon regarding IoT-X and a low-power radio M2M network backhauled by satellite. Well this week we’ve seen that announcement, and it looks like it might be quite significant ‘ particularly for the cellcos.
Dedicated or specialist industrial networks have existed for many years now. However, an increasing number of networks are springing up that are snatching business from the traditional SIM-based MNO model of M2M communication. Last week we saw Sigfox and Arqiva partner for an IoT network in the UK, treading on BT and Neul’s toes. This week we see Stream Communication’s IoT-X integrate New Forest Communication’s (NFC) Orion platform into its global IoT connectivity offering.
IoT-X fuses Stream’s customer-facing APIs with its private APN backhaul infrastructure and existing data agreements with MNOs. Essentially, it allows customers to plug their own devices (usually SIMs) into Stream’s OaSys management platform, to handle connectivity, billing and fault management through an internet dashboard and app. OaSys can support GPRS, 2G, 3G, 4G, satellite, and now low power radio networks such as NFC’s Orion.
A conversation with Chadwick revealed that adding Orion’s functionality to the IoT-X platform was no easy task. Handling multiple protocols is already a complicated process, but ‘the additional development coding, dealing with millions of sessions and ensuring complete control and visibility of connection paths,’ was a complex enough feat to merit a £100,000 grant from Scottish Enterprise towards the costs of the R&D.
Orion operates primarily in the 433MHz frequency, and was initially designed as a site management technology to track tagged assets in a small geographic area. Active RFID tags are attached to things like pallets, people and vehicles and communicate with an Orion gateway device, within a range of around 1km. The gateway backhauls the location and status data via Ethernet, 3G, 4G or satellite to an internet dashboard that the customer can access to monitor their assets. Gateways can also be deployed on vehicles, as part of NFC’s national recovery network.
Matt Walker, CEO of NFC, told us that its systems were highly flexible in terms of customer requirements, allowing customers to choose the exact feature set for the tags that NFC would manufacture. He also explained that the Orion system expanded in size so quickly because Orion customers were offered the choice of a closed ecosystem, where only their own tags would communicate with their own gateways, or the option to let their tags communicate with all Orion gateways ‘ regardless of location. As most customers were interested in asset management and tracking, the latter option was vastly more popular than the former. This has only served to improve the Orion hotspot coverage, which will now also benefit from the location data that Stream can add.
The NFC tags can monitor temperature, motion, vibration, lift, tilt and shock. Battery life is dependent on the communication pattern chosen (daily transmissions, hourly, twice per minute, etc.) and the type of battery. Coin cell batteries can last up to 5 years ‘ helping to mitigate the upfront cost of the tag, in addition to avoiding the per-SIM monthly costs of a SIM alternative.
Each tag on the Orion network will cost around 12p per day, which NFC says is around a quarter of the price of most equivalent tracking systems. The smaller coin cell batteries can power tags as small as 40x15x5mm, making the tags harder to detect in security focused deployments.
Satellite communication is used ‘to answer tracking briefs where the application is beyond the scope and coverage of the world’s GSM networks [i.e. at sea, in mountains]. It is inevitably more expensive, but there are times when the ability to track assets with accuracy and reliability is almost beyond price.’ NFC even has an asset recovery team that use airplanes to locate stolen assets.
Walker adds that ‘this is a significant step for NFC, enabling the IoT-X platform as ‘Orion Network Ready.’ NFC has just signed a major contract for the Orion network in an oil related venture overseas.’
Kevin McDowall, Stream Founder said ‘this is significant. Firstly it continues to expand our IoT-X platform into new wireless connectivity options, opening up incredible prospects for reliable ‘drop-in’ private networks suitable for Smart Cities. Secondly, it provides end to end connectivity and management thereof, enabling sensors and other end-point devices to be efficiently and cost effectively connected. This is a major step forward for M2M and IoT as far as connectivity platforms go.’
Stream and NFC are the primary members of M2M Group; a UK based collaborative organization focused on M2M connectivity. This deal brings the two networking technologies closer together, offering a more attractive package to potential customers. Given the forecasts for the IoT, we anticipate that platforms such as IoT-X will prove lucrative opportunities for their operators in the near future.
There are of course a large number of public sector applications for these PaaS, including smart metering, waste management, security and safety alarms, street lighting, environmental monitoring systems – even digital signage. Traffic management and public transport optimization is another key focus of such a technology, as is smart parking. It wouldn’t surprise us to hear of large government contracts involving systems like IoT-X.
Stream Communications launched in 2000 and during work with Inmarsat last year it realized the value of its internal communication platform that formed IoT-X ‘ which Stream sees as an extremely valuable platform for third parties looking for IoT and M2M connectivity.
Satellite connectivity is a better medium for secure backhaul, according to Chadwick. Cellular connections can be hampered by obstructions or poor signal reception, while satellite’s ubiquitous coverage allows backhaul via any gateway able to point an antenna at the sky. As the satellite network is not a public network, it also affords better security for transmission ‘ the real value of the system for businesses, says Chadwick, who added that Stream’s infrastructure was extremely reliable yet flexible enough to accommodate existing consumer systems.
IoT-X changes Stream from an MVNO managing SIM-based connections to a dedicated technology platform. Chadwick says this allows a much higher ARPU and a better valuation for the privately owned company.