BEREC Report on M2M and permanent roaming
Machine-to-machine (M2M) communications are increasingly vital across various sectors, focusing on applications like location tracking, proactive maintenance, and technical incident reporting. With technological advancements, the importance of M2M communications is expected to grow, particularly in the context of permanent roaming, where devices remain connected to networks outside their home country. BEREC has noted a rise in dedicated M2M wholesale agreements, essential for ensuring connectivity. The main solutions for wholesale access in the M2M market include wholesale roaming direct access, resale access, sponsored IMSI roaming, and local profiles in countries with restrictions on permanent M2M roaming.
Standard cellular mobile technologies are the most popular for wholesale M2M services, followed by LTE-M and NB-IoT. While most MNOs and MVNOs have access to these technologies, some MVNOs face restrictions. M2M communications can also utilize satellite connectivity or unlicensed frequencies. Permanent roaming is particularly relevant for services like automotive and shipping. However, many access seekers, especially MVNOs, face challenges negotiating permanent roaming agreements, often due to competition from large MNO groups with their own IoT businesses.
Pricing models for wholesale M2M services vary, with volume-based charges, IMSI fees, or a combination of both being common. Minimum financial commitments are also prevalent. Quality of Service (QoS) and Service Level Agreements (SLAs) are not widespread but may become critical for time-sensitive services like autonomous driving and medical applications. MVNOs and smaller MNOs have raised competition concerns, such as high costs and access restrictions, calling for regulatory intervention. In contrast, large MNO groups oppose such intervention, citing challenges from low-cost MVNO competition.
The importance of a pan-European footprint for M2M services is both an opportunity and a challenge, with separate negotiations complicating the achievement of a complete footprint. Numbering issues have also been highlighted, with calls for harmonized administrative rules among Member States to manage numbering resources effectively.