Automatic Merchandiser

NOV-DEC 2015

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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communication, has commonly been using the 2G and 3G technologies. With the deadline approaching for the frst major provider to completely shut down its 2G network, operators must ensure their telemetry devices can either switch to using 3G or another 2G provider. "The 2G sunset is a big deal as most vending telemeters were issued with a 2G radio," explained Chuck Reed, senior director of sales and marketing for vending at CPI. Brendan Kehoe, vice president and general manager of Streamware, Crane Merchandising Systems also believes the decommissioning of these 2G networks could affect a substantial number of connected vending machines, as many as 200,000. "We have a total of 10,000 units which will be affected by the shutdown," said Kehoe, who uses the example of analogue to digital TV to explain what will happen. "Each generation is a new technology. When TV stations switched to digital, analogue no longer worked. That is what will happen with devices connected to the 2G networks that are turning off." Kehoe encourages operators to check with their cash- less provider. "For example, our device knows what kind of service it is connected to," he said. Once it is confrmed the unit is using a 2G network that is going away, the opera- tor can work with the cashless provider on a solution. For Crane users, that might be a simple fx like switching to the T-Mobile network by changing the SIM card or swapping out the modular radio. Kehoe says both are simple tasks that can be performed by the route driver. "Crane used a modular design for the Navigator platform specifcally because of these kinds of technology changes. The ability to change or add modules and features over time gives us tremendous fexibility and extends the useful life of the device," he said. Years in the making This isn't the frst the industry has heard of the sunset of 2G, however. Rinaldo (Ron) Spinella, executive vice president and general manager of unattended payments solutions of Apriva, and Mike Gron, CEO of PayLab Networks, both brought up the topic years ago. In 2013, Spinella talked about the ongoing evolution of wireless networks to newer 3G and 4G technology, and how this transition would affect cashless vending. "The old wireless cellular technology is gone. 2G is now fading to make room for 4G," said Spinella. Since many telemetry units use cellular technology, Spinella suggested operators start educating themselves about whether their hardware was able to use 3G and 4G. In the next year, Gron warned the industry of the impact an ever-increasing mobile society would have on vending. He said that 2G had been the go-to choice for manufacturers of connected devices with 90 percent of all North American M2M connections operating on the 2G spectrum. Technol- ogy has continued to evolve and demand for connectivity has grown exponentially. The original 2G spectrum rolled out by carriers 20 years ago can no longer support the cur- rent and future demands placed on their networks by voice and increasing data connections. "M2M solutions, and vend- ing in particular, will be disproportionally affected by 2G's end-of-life transition because of the signifcant number of currently deployed devices operating with embedded 2G modems," said Gron. Gron believes 3G will be around for a long while, how- ever. "The lifespan of the new 3G spectrum will outlast any device you invest in," he tells operators now. However, other AT&T; Verizon Sprint T-Mobile AT&T; shutdown in progress Verizon shutdown in progress Shutdown completion 2016 Shutdown completion 2021 Sprint committed to 2021+ T-Mobile committed long-term Source: RacoWireless, The Sunset Of 2G White Paper The Sunset Of 2G 38 Automatic Merchandiser VendingMarketWatch.com December 2015 T E C H N O L O G Y U P D A T E

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