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Iot Cellular Networks IoT Cellular Networks October 2017 INDEX 1. In Brief 2. Overview 3. Market Forecasts 4. Technology Landscape 5. Technology Comparative 6. Towards 5G 7. Altice Labs Positioning 8. Conclusions 9. References 2 IoT Cellular Networks 1. In Brief 01. In brief 1. IoT connectivity opens doors to new markets, but also allows for easy entry of new competitors through proprietary technologies in the unlicensed bands. 2. To provide LPWAN (Low Power Wide Area Network) connectivity operators may choose proprietary technologies, such as Sigfox or LoRa, 3GPP standardized systems such as EC-GSM, LTE- M or NB-IoT, or a mix of both. 3. LPWAN proprietary technologies have been in the field for some time, while standard solutions are already available but still starting. 4. The unlicensed spectrum used by proprietary technologies could represent a difficulty in terms of reliability and service level assurance due to the high number of competing technologies sharing the same spectrum, while licensed spectrum used by 3GPP standardized systems allows for the control of quality of service. 5. Proprietary solutions have lower prices and achieve higher levels of penetration with simpler deployments, while 3GPP cellular technologies offer the quality of mobile networks, enable higher throughputs and take advantage of existing operational and business systems. 4 IoT Cellular Networks 01. In brief 6. The prices of the communication modules continue to decrease, but are still far from the target prices, with Sigfox presenting hard-to-beat prices (around $1 per module vs $12 per NB-IoT module in 2018). (1) 7. Partnering with LPWAN vendors, such as Sigfox, fosters a fast entry into the market, but may limit the definition of the operator's strategy as it becomes dependent on third-party decisions. 8. The revenues from connectivity alone will be low, the significant gains will be in the offer of complementary services and applications for the different verticals. 9. Operators need to consolidate M2M managed connectivity business offers to support convergence of traditional cellular and LPWANs. 10. IoT massification requires suitable network management platforms to control the huge number of “things” with specific requirements that should rely on automated mechanisms to decrease operational costs. 5 IoT Cellular Networks 2. Overview 02. Overview: IoT The gap between the digital and the physical world is thinning. A massive spread of small ‘intelligent’ objects with communication capabilities is starting to materialise the Internet of Things vision. By 2020, tens of billion of devices will require convergent connectivity and intelligent data management services in order to facilitate the creation of smarter and innovative services to enterprises and end-users, fostering new business opportunities to operators. There are key market drivers for the IoT growth: • Devices are becoming cheaper • Network access is getting ubiquitous • New vertical services are born daily, creating new markets Operators must become key players in the IoT market in order to leverage new businesses in vertical domains that are typically out of their scope. 7 IoT Cellular Networks 02. Overview: IoT Benefits & Application Areas IoT is the basis of a new industry affecting transversally all Health & sectors of activity in the path to a connected society Wellness Environment & Smart Home • IoT enables optimized resource usage ensuring a sustainable SustainaBility growth for future generations. • Time and costs are decreasing through process optimization giving room for new savings. IoT • Better decision making can be achieved using insights MoBility Smart Cities coming from real-time data providing the means for enhanced governance. • Innovative services are easily created providing new Industry 4.0 functionalities and better user experiences improving generically the quality of life. 8 IoT Cellular Networks 02. Overview: Wireless Landscape Bluetooth WiFi • Business aspects guide the RFID ZigBee definition of requirements NFC impacting the access type Cellular selection. • 2G\3G\4G\5G 3GPP Cellular LPWAN: • Different wireless • LTE NB-IOT WPAN WLAN WWAN Wireless • LTE-M technologies support different Proximity Wireless Wireless Personal Area Local Area Wide Area • EC-GSM-IoT IoT scenarios. Network Network Network Proprietary LPWAN: • •SIGFOX The expected massification of •LORA devices with limited capabilities requires new up to 10 meter up to 100 meter technologies to provide up to 1000 meter suitable connectivity. up to 100 Km (2) 9 IoT Cellular Networks 02. Overview: Requirements that led to the specification of LPWAN • Low cost of communication modules: Low under 5$ for the radio chip set • LPWAN (Low Power Wide Area Networks) Cost • Reduced subscription fee: up to 1$ per device per year (target) technologies are the answer to enable a cost effective deployment and maintenance of services • Robust propagation characteristics: requiring large coverage and long battery life Extended possibility to communicate with representing a market opportunity for Coverage underground and inner buildings communication service providers. • LPWAN only allows low data rate communications Long • Battery life time around 10 years: being inappropriate for multimedia services. Battery Life reduce operational expenses • It is a scale-based business requiring a massive deployment and user acceptance in order to Massive • Large network capacity: NumBer of become profitable. thousands of devices per cell Devices 10 IoT Cellular Networks 3. Market Forecasts 03. Market Forecasts: IoT and LPWAN Machina Research forecasts (3): • The total number of IoT connections will grow from 6 billion in 2015 to 27 billion in 2025, a CAGR (Compound Annual Growth Rate) of 16%. • 11% of connections in 2025 will use LPWAN connections, such as Sigfox, LoRa or NB-IoT. • By 2025, IoT will generate over 2 zettabytes of The GSMA predicts that the IoT ecosystem revenues data, but it will account for less than 1% of cellular will see significant growth in the mobile industry data traffic. being the area with the strongest expansion. (4) 12 IoT Cellular Networks 03. Market Forecasts: LPWAN revenues Analysys Mason predicts (42): • LPWAN connectivity revenues will be low, reaching only USD 5 billion in 2025. • LPWAN applications will typically exchange low quantities of data and therefore average revenue per connection (ARPC) will be less than USD1 per year for some applications. • The overall ARPC for LPWAN connections is forecasted to be only USD1.5 per year 13 IoT Cellular Networks 03. Market Forecasts: LPWAN modules cost • The existence of communication modules at a reduced cost is a fundamental premise for the massification of IoT devices. • Gartner expects a strong cost reduction in communication modules, in particular in the Sigfox and LoRa devices. (1) 14 IoT Cellular Networks 4. Technology Landscape 04. Technology landscape: LPWAN Technologies EC- •LoRa – proprietary / LoRaWAN open standard of LoRa GSM- LTE-M Alliance, operate over ISM bands (5) IoT •SIGFOX – proprietary, developed by SigFox company, operate over ISM bands (6) •3GPP - open standards, operate over LTE and GSM licensed bands: NB- •EC-GSM-IoT - GSM enhanced technology to IoT support low power wide area needs; •LTE-M (formally known as eMTC) - LTE evolution for IoT communications enabling a wide range of service; •NB-IoT – New LTE solution to support ultra-low bitrate applications. •Other technologies: DASH7, Weightless, RPMA,… 16 IoT Cellular Networks 04. Technology landscape: LoRa Overview Recent Activities • March 2015 - LoRa Alliance was launched at MWC . The board of directors approved the LoRaWAN 1.0. (7) • March 2015 - Bouygues Telecom has announced it will roll out one of the Data Rate Range Confident. Battery Life Unlicensed Proprietary Available first implementations of LoRa low-power WAN technology. Bouygues has <50Kbps < 15 Km AppSKey >10 Years spectrum /Open Now been trialling LoRa in Grenoble since 2013. (8) • June 2015 - LoRaWAN 1.0 released. (9) LoRa Alliance Description • June 2015 - A group of tech companies including operators Orange, KPN and Swisscom and manufacturing giant Foxconn have put $25 million into Actility, an IoT startup focused on the LoRaWAN standard. (10) • LoRa is a patented spread-spectrum radio modulation developed by Cycleo (Grenoble, France) and acquired by • June 2015 – Senet (NaaS provider) announced the deployment of US Semtech in 2012. LoRa uses a wideband CDMA approach. nationwide LoRaWAN network, based on Semtech LoRa technology. (11) • LoRaWAN is the MAC protocol for a network of LoRa • September 2015 - Orange has confirmed its commitment to the Internet of nodes. It is an open LPWAN standard maintained by Things by announcing its investment in a network based on LoRa technology. (12). the LoRa Alliance. • October 2015 - Semtech announced The Lace Company, a global wireless • LoRaWAN™ Certification Program to ensure product network operator, has deployed an Internet of Things (IoT) network, compliance. enabled by LoRa® RF technology covering more than a dozen major cities in Russia. (13) • November 2016 - The LoRa Alliance has launched a new release of the Operators implementing technology LoRaWAN technology specification, version 1.0.2. (14) … • February 2017 – Roaming started being supported, enabling IoT devices … to communicate through multiple operator LPWA networks .(14) 17 IoT Cellular Networks 04. Technology landscape: SIGFOX Overview Recent Activities • January 2015 - Tele2 partnering with Aerea, the Netherlands’
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