Can LPWA IoT Networks

Capitalize on 5G Confusion?

An IHS Markit Technology Webinar

© 2017 IHS Markit. All Rights Reserved. #LPWA

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© 2017 IHS Markit. All Rights Reserved. 2

Today’s speakers
#LPWA

Can LPWA IoT Networks Capitalize on 5G Confusion?

Sam Lucero Marco Argenton Allen Tatara

Senior Principal Analyst Product Marketing Manager Sr. Manager Webinar Events
M2M and IoT Cellular IoT Solutions (Moderator)

IHS Markit Telit IHS Markit

© 2017 IHS Markit. All Rights Reserved. 3

 #LPWA

1 Definitions & Market Trends

2 Problems & Challenges

3 New Options & Solutions

4 Deployment Applications

5 Conclusions

6 Audience Q&A

© 2017 IHS Markit. All Rights Reserved. 4

 LPWA at a glance LPWA Technology Comparison

LTE Cat-M1 LTE Cat-NB1

Feature LoRaWAN SIGFOX
(eMTC) (NB-IoT)

Spectrum rights Licensed Licensed Unlicensed Unlicensed

The IoT is causing wireless standards to blur Frequency band 1.8 - 2.7 GHz Sub-GHz Sub-GHz Sub-GHz

Low-power performance Good Very good Very good Very good

Range
Uplink throughput Moderate Low Low Very low
LPWA Cellular
Downlink throughput Moderate Low Low Ultra low

M1/NB1 Mobility Yes No No No

Localization No No Yes Yes

D2D OTA update Yes No Yes No

Range, rural (highly variable) <35 km <35 km <40 km <50 km

Mesh Mesh
Range, urban (highly variable) <1 km <5 km <5 km <10 km

Module cost Low Low Lower Lowest

Low power Wi-Fi Security Excellent Excellent Limited Limited

Vendor ecosystem Good Good Limited Good

LPW SRW
Modem complexity Moderate Low Low Low

Speed Robust connection Moderate Good Good Good

Source: IHS Markit LPWA Market Report, 2017

© 2017 IHS Markit. All Rights Reserved. 5
 LPWA is designed for “massive” IoT

Large numbers of low data rate,

NOT high-speed or low latency devices
Infrequently transmitting devices

LPWA unlicensed LPWA NB-IoT LPWA LTE-M Short range LTE Cat 1 High speed LTE & Wi-Fi

100 50 < 200 1 10 600

bps kbps kbps Mbps Mbps Mbps+

© 2017 IHS Markit. All Rights Reserved. 6

LPWA: a market hitting the tipping point
5G NR
integration
• Long history, minimal growth

• Market inflection with Sigfox, LoRa

• 3GPP response 3GPP standard

2020s

LPWA
• Eventual incorporation into 5G radio standard

Unlicensed,
Proprietary, public networks 2017
private networks

2015
2000s

© 2017 IHS Markit. All Rights Reserved. 7

LPWA market is growing quickly, and China is a key factor

Source: IHS Markit LPWA Market Report, 2017

© 2017 IHS Markit. All Rights Reserved. 8
Considerations driving cellular IoT/5G

Coverage Security

$
Power
consumption Cost Interoperability

Data / Scalability Use case

throughput
© 2017 IHS Markit. All Rights Reserved. 9
New opportunities for cellular IoT

Traditional cellular IoT challenges New cellular IoT opportunities

Massive IoT
Industry
• Cheaper
fragmentation
• 10+ year battery life Smart cities
• 100K devices / cell
• Deep coverage
Complexity:
technology and 5G
business
Mission-critical
• Sub-1ms latency
Autonomous vehicles
Technology not • High reliability and
fit for purpose availability

© 2017 IHS Markit. All Rights Reserved. 10

 LTE will continue to evolve alongside 5G
Study item Work items Work items

3GPP R13 3GPP 5G NR R14 3GPP R15 3GPP R16 R17 + 5G Evolution
Early deployments &
3GPP R15 3GPP R16
5G NR R15 trials
Launches Launches

2016 2017 2018 2019 2020 2021 2022

LTE continues to evolve as 5G standard is developed; Gigabit LTE, LTE IoT & NB-IoT deployments

eMTC FeMTC eFeMTC

NB-IoT eNB-IoT FeNB-IoT
Reduced complexity Single-cell multicast TDD support 5G NR-based IoT
Lower power Device positioning Higher spectral efficiency
Future advanced enhancements such as
Deeper coverage Higher data rates Early data transmission
non-othogonal access, grant-less access,
Higher density VoLTE improvements Wake-up radio
and multi-hop mesh
eMTC / NB-IoT
In unlicensed spectrum based on 3GPP

© 2017 IHS Markit. All Rights Reserved. 11

 #LPWA

1 Definitions & Market Trends

2 Problems & Challenges

3 New Options & Solutions

4 Deployment Applications

5 Conclusions

6 Audience Q&A

© 2017 IHS Markit. All Rights Reserved. 12

Market trends

SECURITY SEGMENT Moving away from 2G

ADOPTION RATE OF LPWA

2017–2022: CAGR of 51.3% for Cat.M1, 107.2% for NB1
(LICENSED)

BUILDING & SECURITY Highest growth: 47.1% CAGR in next 5 years

MOVE AWAY FROM

In some markets, focus on LTE Cat.1 (with VoLTE) …
2G & 3G

LTE CAT.M1 Lower cost, limited speed, voice capabilities (future)

LPWA is NOW: no conflict with upcoming 5G;

5G & LPWA
no compatibility issues

© 2017 IHS Markit. All Rights Reserved. 13

Problems & challenges: multiple standards serve multiple needs
5G embraces several aspects and different requirements in three major scenarios:
eMMB | mMTC | uMTC

Massive Massive
Massive Control
Content Sensing
«massive MTC» «ultra-reliable/
«extreme MMB» critical MTC»
Use case: Use case:
Use case:
Speed, Gb/s  Tb/s bit/sec over 10 years
Low latency,
on AAA batteries
response 1ms

NO CONFUSION: LPWA is paving a path to 5G!

The game-changing 5G radio interface is capable of delivering ultra-high speed (Gbps+) and millisecond-grade latency,
but it isn’t necessary for all applications in the ecosystem.
Are we overlooking the benefit of LPWA for battery-dependent devices with all this noise?
© 2017 IHS Markit. All Rights Reserved. 14
 Security: critical communications and simple sensors
Specific requirements and needs can be split
into two major areas:

Data collection
Emergency/ and reporting/
uMTC Real-time sensor mMTC
mission critical notifications deployments massive low-end IoT
low-latency application

In cases, such as video-surveillance, eMMB plays a major role for security in 5G;
so far, one technology fits some of them, but with no real optimization

In the future, cellular communication will support both use cases, expanding the possible solutions/applications. Will
they be able to coexist? Do we risk once again a jeopardized ecosystem?

© 2017 IHS Markit. All Rights Reserved. 15

 #LPWA

1 Definitions & Market Trends

2 Problems & Challenges

3 New Options & Solutions

4 Deployment Applications

5 Conclusions

6 Audience Q&A

© 2017 IHS Markit. All Rights Reserved. 16

Solution: network slicing
As the name implies, it is a process by which wireless carriers can ‘slice-up’ a single (physical) 5G network into
multiple virtual (end-to-end) networks that are individually optimized to service the requirements of
various connected IoT devices

Self-driving cars, High bandwidth

drones Low latency

Network
Slicing
Tablets,
High bandwidth
smartphones, Massive control
Medium latency
VR/AR, streaming uMTC

Massive content
eMMB
5G
IoT, m2m sensors Low bandwidth
Massive sensing
Backhaul
Medium latency
mMTC & Core

© 2017 IHS Markit. All Rights Reserved. 17

 #LPWA

1 Definitions & Market Trends

2 Problems & Challenges

3 New Options & Solutions

4 Deployment Applications

5 Conclusions

6 Audience Approach

© 2017 IHS Markit. All Rights Reserved. 18

All 5G slices are relevant in a smart home security scenario

Video surveillance
Massive content
eMMB
5G
Advanced security / Massive control
alarm / protection uMTC
Connectivity
Management

Massive sensing
Fire
monitoring
mMTC
IoT PLATFORM

Powered by

Carbon monoxide
monitoring

Flood detection

© 2017 IHS Markit. All Rights Reserved. 19

 #LPWA

1 Definitions & Market Trends

2 Problems & Challenges

3 New Options & Solutions

4 Deployment Applications

5 Conclusions

6 Audience Q&A

© 2017 IHS Markit. All Rights Reserved. 20

Conclusion

• LPWA enables a migration path for 2G and 3G-based IoT deployments

• LPWA expands the overall addressable IoT market for cellular IoT

• Current LPWA technologies will be supported to the end of the next decade,
or even beyond

• 5G will eventually incorporate LPWA attributes

• 5G will expand the addressable IoT market to “mission-critical” use cases

• 5G also entails enhancements to the core network that will benefit IoT applications

© 2017 IHS Markit. All Rights Reserved. 21

 #LPWA

1 Definitions & Market Trends

2 Problems & Challenges

3 New Options & Solutions

4 Deployment Applications

5 Conclusions

6 Audience Q&A

© 2017 IHS Markit. All Rights Reserved. 22

Audience Q&A
#LPWA

Can LPWA IoT Networks Capitalize on IoT Confusion?

Sam Lucero Marco Argenton Allen Tatara

Senior Principal Analyst Product Marketing Manager Sr. Manager Webinar Events
M2M and IoT Cellular IoT Solutions (Moderator)
Sam.Lucero@ihsmarkit.com Marco.Argenton@telit.com Allen.Tatara@ihsmarkit.com

IHS Markit Telit IHS Markit

© 2017 IHS Markit. All Rights Reserved. 23
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© 2017 IHS Markit. All Rights Reserved.