This blog highlights the IoT/M2M trend section from the recent GSMA Mobile for Development Utilities Annual Report. It is the fourth in a blog series spotlighting key findings from the report.
Unlocking new models and new revenues
As mentioned in our previous blog post on pay-as-you-go (PAYG) utility services, innovative business models have emerged thanks to the convergence of widespread mobile ownership, increasing access to mobile money services and the ability to connect assets through machine-to-machine (M2M) technology. Thanks to the ongoing cost decline of computing power, it has become increasingly possible to add electronic sensors connected through cellular networks to various utility assets, from stand-alone home solar systems to water pumps and latrines.
Cloud computing now also makes it possible to analyse large quantities of data to generate specific insights and trigger automatic actions. Such remote real time diagnostics often allow service providers to troubleshoot problems at a very early stage of development. Ongoing data collection from a specific asset and/or customer also enables the definition of typical usage patterns to predict failures or misuse, and in the case of solar PAYG, identify if an upgrade to a larger system is needed. Using online dashboards, service providers but also investors can track daily operations and/or revenues, making it feasible to run projects and less risky to invest in.
Our support to catalyse development and learnings
As a programme, we are excited to be able to support pilots in the energy, water and sanitation sectors to develop and implement new connected utility assets. Outlined in our Annual Report, below are examples of M2M integration by our Innovation Fund grantees:
| Model | Grantee | Partners | Location | Objective |
| Smart meters for urban utilities | Dialog Axiata | Lanka Electricity Company (LECO) | Sri Lanka | Develop and install 3,200 GSM-enabled smart meters in a designated Colombo green zone, 400 of which will also enable prepaid plans.
Develop an IoT platform with analytics to help LECO improve monitoring of the distribution network as well as customer service. |
| Upande | BRCK and Kericho Water and Sanitation Company (KEWASCO) | Kenya | Develop and implement a set of tools that includes alert modules and low-cost solar-powered data loggers, to test the value of a real-time monitoring system, to reduce non-revenue water losses. | |
| Smart meters for minigrids | Gham Power | Ncell and SparkMeter | Nepal | Install solar micro-grids to provide energy to mobile towers, households and businesses in rural Nepal and install prepaid meters to improve payment efficiency and optimise operations, such as reducing power under-utilisation and losses. |
| Sensors for urban slum latrines | Sanergy | Kenya | Develop and pilot GSM-connected sensors at entrepreneur-operated latrines in informal settlements to assess the value of automatic reporting and improve waste collections. |
It is particularly exciting to see M2M being piloted for improved sanitation. The current sanitation gap still stands at 2.4 billion people without access to improved sanitation and new models but also more investments need to be channelled in this space to further support sustainable services. As mentioned at our recent Tanzania Working Group, Sanergy went through an initial phase of testing three different types of sensors (pressure transducer, weight and passive infrared) to find the most suitable solution to their needs: determine the fill levels of their toilet cartridges, predict more accurately when waste collection is needed and to record when waste collectors visit latrines. This testing phase was critical to test sensors’ in situ durability, as well as their ability to provide accurate information on the fill levels of the cartridges. Having selected the passive infrared technology, identified as the most durable and practical solution for their use, Sanergy will next launch their full pilot to test and measure the impact of the sensors in 40 toilets.
Generally, the development of new hardware is inherently risky, and unforeseen problems can cause significant delays. Mobile networks’ unreliability in many emerging markets also adds another layer of complexity when devices and developers often need to adapt and implement a more robust code to cope with such failures. Beyond funding, we are also working with our partner Eseye to provide technical support to selected grantees.
Reaching the Sustainable Development Goals
As the 17 Sustainable Development Goals (SDG) aim to tackle some of the toughest global problems by 2030, M2M and cloud computing may increasingly play a central role in achieving them. We are only scratching the surface of what’s possible in terms of mobile innovation and new ideas unlocked by mobile technology which will continue to emerge in the coming years.
As an example, M-KOPA in Kenya is now experimenting with adding instruments to their home solar systems that measure barometric pressure, humidity, temperature and rainfall. This ability to capture solar intensity and other weather and climate-related data could benefit thousands of the region’s farmers in addition to insurance firms, meteorological planners and environmental agencies .
Other novel technologies especially looking at the IoT segment might also disrupt current applications relying on GSM connectivity. Using a standardised approach, mobile operators are promoting the ability of cellular technologies to make data accessible on multiple platforms. These cellular Low Power Wide Area (LPWA) technologies, designed specifically for the Mobile IoT will be able to support a range of mobile network bandwidths and performance requirements, suitable for many smart cities and smart utilities applications. In the coming months, we will also work on a “IoT for Utilities” report to present in more detail the latest trends and impact of M2M in our sectors, and information on the journey to M2M integration for service providers looking to leverage this technology.
For further information on IoT and mobile enabled utility models see pages 25-31 of our Annual Report.