LTE-M and NB-Iot: Using 5G Technologies to Reduce Iot Connectivity Costs

LTE-M and NB-IoT: Using 5G Technologies to Reduce IoT Connectivity Costs

INDUSTRY BRIEF

The cost of cellular deployment, initially developed for high speed, high data volumes, is considered too expensive for widespread IoT use due to excessive power consumption and complex protocols that AT A GLANCE: lower battery life. It has taken some time for these technologies to be Narrowband IoT simplified or stripped down for widespread, low-power IoT usage. (NB-IoT) and LTE-M A static solar sensor doesn’t need the same capabilities as a mobile have set new standards smart iPhone. for LPWA networking by prioritizing low cost, low power, minimal Cost always has been a concern for IoT collecting, storing, and analyzing infrastructures, robust applications at scale. Operating expenses business-critical data at levels of scaling reach over massive have to be low enough to support the and granularity previously unseen. distances, and scalability massive growth expected in the coming to cover a large number decades. Sustained battery power may Present-day cellular mobile technologies of devices. be needed for hard-to-reach devices to are designed to work on costlier, increase their operational longevity while consumer-oriented data networks lowering maintenance costs. In so many where the premium is placed on fast cases, the power requirements may be connections that can transport large low, but capacity has to be maintained to amounts of data, whereas low-cost support many devices per square mile in low-power wide area (LPWA) networks dense urban areas. can support devices requiring low mobility, low power consumption, long- Addressing this concept are several new range abilities, and heightened security. low-power technologies that are trying One of the benefits of LPWA is that to win over global enterprises. Overall, data transfer rates, as well as power these connectivity strategies will afford consumption, are very low. Device a diverse range of business sectors connectivity, in this case, requires to seek out operational efficiencies less bandwidth than standard cellular, and competitive advantages through which means that LPWA networks can

© 2018 AERIS COMMUNICATIONS, INC. 1 operate with far better power efficiency. New Protocols to Additionally, LPWA networks can Improve Connectivity, support more devices at a lower cost Reduce Overall Costs than consumer mobile technologies. NB-IoT is the newest entry to the IoT LTE-M is a bi-directional, standards- based protocol within the same Let’s examine a couple of new data scene. With its standards-based LPWA spectrum as LTE. It provides carrier- transport technologies that support IoT technology, NB-IoT has a global grade security, long battery life, low the ever-growing needs of operators reach with better bi-directional data data needs, and low-cost modules. This and IoT solution providers: NB-IoT than any of its unlicensed counterparts. protocol has many active followers, and LTE-M. Each has its own set of And, unlike LTE-M, NB-IoT is based including, Altair, Ericsson, Qualcomm characteristics and each is used for a on Direct Sequence Spread Spectrum Technologies, WNC, Sierra Wireless, specific set of IoT applications. And, (DSSS) modulation, which ‘widens’ Telit, and Xirgo, as well as a host of with the oncoming of 5G, each will the signal to reduce interference. It U.S. carriers. One of the strengths of provide even more functionality, at also might make it a bit harder to go LTE-M is that it does not need a new a better price point, than previous national (since it can’t yet hook into the infrastructure as it can piggyback protocol iterations. LTE network without infrastructure changes). NB-IoT has several large on existing LTE networks. As such, organizations, including Huawei, a carrier can update software on its Ericsson, Qualcomm, and Vodafone, network, get LTE-M functional, and actively involved with this standard. not spend any additional funds on infrastructure or support services. The NB-IoT LPWA solution is optimized for applications that need LTE-M, however, is a much simpler to communicate small amounts of product than standard LTE, only data over long periods of time. NB-IoT using 1.4 MHz channels instead of usage results in lower latency with a varying bandwidths up to 20 MHz that higher transmit power limit (200 kHz LTE uses. Data rates for LTE-M are bandwidth), which improves range and somewhat higher than NB-IoT, but it reliability, even underground or inside can transmit larger blocks of data due to buildings. And since it operates in a the higher throughput. licensed spectrum, it is secure with highly reliable data transmission, assuring a Additionally, using an extended high quality of service. NB-IoT devices discontinuous repletion cycle (eDRX), and hardware are at the lower end of the the data collection devices can transmit cost spectrum and improved efficiency data on a non-continuous schedule, as helps batteries last more than a decade, set by the end user. The device, when allowing for long-term deployments. not sending data is not off, but just With its simpler underlying technology, asleep. When data is scheduled to be costs for NB-IoT modules will continue sent, the device does not need to be to decrease as demand increases. The re-activated to join the network, it just technology roll-out, with a commercial wakes up. Having intermittent data module and network, is here now. send-schedules, which are not active T-Mobile already has announced that its 24x7, can save battery life, leading to NB-IoT network is ready for commercial significant cost savings. LTE-M had an use, and AT&T has much of its national American roll-out in the second half of footprint ready for NB-IoT. The other 2017, followed later that year by Mexico. major carriers in the U.S. are expected to provide the same in a few more quarters.

Mobile IoT: 3GPP standard Low-Cost Module technology for LPWA 3GPP Standards LTE Better Coverage Global Coverage Long Battery Life

Low Data Needs Secure NBIoT Two-Way Scalable Communication

Cost and Coverage Will Decide Winners and Losers At Aeris, we believe that the future will see the expansion The bottom line for customer choice will come down to cost of NB-IoT and LTE-M over the other proprietary LPWA and coverage. Until standards emerge, many players, both technologies in the field. One of the reasons will be cost. licensed and not, will compete in the enormous IoT marketplace. Another will be coverage. Like LTE-M, network upgrades The issue for companies will be to decide whether to be locked will enable NB-IoT growth through already existing towers, into a low-cost, proprietary system or to go with an IoT service making it an IoT force to be reckoned with. And while many provider linked into multiple carriers, thus providing seamless other technologies might be highly applicable for many IoT reliable, low-cost connectivity coverage. deployments, tower distribution, or lack thereof in the U.S., will limit coverage and growth. NB-IoT, with fewer such restrictions, will be the big player in the expanding LWPA sandbox.

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