Future of Cellular IoT
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The future of cellular IoT, particularly through LTE technologies, promises significant new business opportunities and applications, including lower costs, longer battery life, and improved network coverage. However, the fragmented ecosystem presents challenges for product creators to build reliable solutions without incurring excessive risks. Key recommendations include discounting hype, leveraging compatible platforms, and adopting current technologies to meet customers' needs immediately.
Future of Cellular IoT
- 2. THE FUTURE OF CELLULAR IOT
- 3. LTE TECHNOLOGIES FOR IOT WILL UNLOCK NEW BUSINESS VALUE NEW VALUE PROPOSITIONS NEW USE CASES Lower hardware costs Longer battery life Greater RF penetration Distributed sensor networks (agriculture) Mobile asset tracking (bikes, pets, kids) Emergency water valve shutoff (basements)
- 4. OVERVIEW SITUATION COMPLICATION QUESTION ANSWER New innovative cellular technologies like LTE for IoT and eSIM are becoming available and will unlock new product applications and huge amounts of business value within IoT alone. The cellular ecosystem is incredibly fragmented, and building vertically integrated products and customer solutions with a guaranteed 5-10 year lifespan is incredibly challenging. How can product creators build solutions that bring the value of these technological breakthroughs to their customers without exposing themselves to excessive development risk? 1. Discount the hype. New technologies often carry bold claims supported by unrealistic assumptions and use cases. Go hands-on with new tech to understand the value it can provide your customers. 2. Leverage future-compatible platforms and ecosystems. Work with proven technology integrators who can provide a hardware and software-compatible path to future technologies. 3. Don’t wait for the technology of tomorrow. Build your product with technology that works for your customers today.
- 5. HELLO! MY NAME IS WILL. About Me My name is Will Hart, and I am the General Manager of Developer Tools at Particle, which means I’m responsible for our hardware development kits, open-source firmware stack, IDEs, manufacturing, and fulfillment. I have a background in mechanical engineering with experience in electronics manufacturing, supply chain, and engineering management. Email - LinkedIn About Particle Particle (https://www.particle.io) is a scalable, reliable and secure Internet of Things device platform that enables businesses to quickly and easily build, connect, and manage their connected solutions. The company’s solutions are the most widely-used IoT platform with a developer community of 100,000 users in more than 170 countries with many in the Fortune 500. 1475 Folsom St, Ste 200, San Francisco, CA 94103 415-316-1024 (office) GM OF DEVELOPER TOOLS
- 6. CELLULAR IOT TODAY A FRAGMENTED ECOSYSTEM NAVIGATING THE FUTURE THE FUTURE OF CELLULAR
- 7. CELLULAR IOT TODAY A FRAGMENTED ECOSYSTEM NAVIGATING THE FUTURE THE FUTURE OF CELLULAR
- 8. CELLULAR IOT TODAY 2G VS 3G CELLULAR BANDS THE CELLULAR “STACK” NETWORK PROVIDERS
- 9. THE CELLULAR “STACK” IS DEEP AND COMPLICATED PLAYER IMPACT ON PRODUCT CHIPSET Hardware support for 2G, 3G, LTE MODULE Supported frequencies, price, size MVNO Carrier support, cost of data CARRIERS Coverage (not reception) NETWORK SOFTWARE Network support for for 2G, 3G, LTE THE INTERNET IoT can exist
- 10. IN IOT, COST AND COVERAGE DIFFERENTIATE 2G/3G HW Cost Power Consumption (Tx) Bandwidth* Network Status 2G $8-$12 Short bursts of power (2A peaks) 14.4 kbps Many operators plan to sunset between 2017 and 2020 3G $15-$20 Continuous power draw (~700mA) 3.1 Mpbs (215x more) No announced sunset timelines • Cellular chipsets provide support at the HW level • Carriers provide support at the infrastructure level * for most IoT applications, both are plenty
- 11. YOUR HW AND NETWORK MUST SUPPORT THE SAME FREQUENCIES AT&T 850/1900 MHZ VODAPHONE 900/2100 MHZ CHINA MOBILE 900/1800 MHZ AIRTEL 900/2100 MHZ T-MOBILE 1900/2100 MHZ REGIONAL SKUS GLOBAL SKU SARA-U260 850/1900 MHZ SARA-U270 900/1800/2100 MHZ SARA-U201 850/900/1800/ 1900/2100 MHZ HARDWARE SUPPORT CARRIER SUPPORT
- 12. ROAMING AGREEMENTS (2G/3G) CARRIERS LEVERAGE ROAMING AGREEMENTS TO PROVIDE WORLDWIDE COVERAGE YOU CARRIER T-MOBILE BIRTHI TELSTRA CHINA MOBILE ROAMING AGREEMENTS AT&T 100+ MORE COUNTRIES DIRECT CARRIER AGREEMENT
- 13. CELLULAR IOT TODAY A FRAGMENTED ECOSYSTEM NAVIGATING THE FUTURE THE FUTURE OF CELLULAR
- 14. LTE (WHICH APPARENTLY STANDS FOR “LONG TERM EVOLUTION”)
- 15. LTE OFFERS SIGNIFICANTLY IMPROVED COVERAGE COVERAGE (T-Mobile) LTE COVERAGE 2G COVERAGE
- 16. LTE CAN ENSURE LONG TERM (5-10 YR) NETWORK SUPPORT LONG TERM SUPPORT 2G SUNSET 3G SUNSET AT&T VERIZON T-MOBILE complete SPRINT 2020 or later unknown unknown 2021 or later in progress 2021 or sooner unknown
- 17. LTE M1 AND NB1 TARGET LOW BANDWIDTH IOT APPLICATIONS LTE CAT 6 LTE CAT 4 LTE CAT 1 LTE CAT M1 LTE CAT NB1 COST POWER CONSUMPTION TARGET APPLICATIONS VERY HIGH BANDWIDTH SMARTPHONES POINT OF SALE SENSORS AND ACTUATORS LOW POWER SENSORS BANDWIDTH 300 MBPS 150 MBPS 10 MBPS 375 KBPS 27 KBPS LTE FOR IOT
- 18. LTE M1 AND NB1 WILL BOTH BRING VALUE TO IOT Cost Bandwidth Mobility Power Latency Use Case LTE M1 $8 - $15 100kbps Supports cellular handoff between towers Higher Tx current, ————— Short sleep penalty 10 to 15ms Low bandwidth devices in frequent communication LTE NB1 (NB-IoT) $6 - $12 10kbps Does not support cellular handoff between towers* Lower Tx current, ————— Long sleep penalty (30s) 1.4 to 10s Stationary sensors transmitting several times per day
- 19. ESIM (WHICH STANDS FOR “EMBEDDED SIM”)
- 20. ESIM ENABLES LOW-FRICTION PROVISIONING ONTO CELLULAR NETWORKS NANO SIM (4FF) ESIM (MFF2) ESIM PROFILE DISCOVERY SERVER
- 21. ESIM WILL SIMPLY LIFE FOR MANUFACTURERS IoT-enabled product manufacturers would have the ability to build devices with “blank” SIMs that could be activated in the destination country. This functionality would make for easy equipment connectivity and allow manufacturers to offer new products in new market segments. “ ” “E-SIM FOR CONSUMERS” MCKINSEY AND COMPANY
- 22. ESIM WILL ENABLE NEW CONSUMER BUSINESS MODELS By adopting e-SIM technology, mobile network operators…would also have the ability to provide convergent offers with multiple devices (for instance, the smart car and smart watch) under a single contract with the consumer more conveniently than they would using physical SIM cards. “ ” “E-SIM FOR CONSUMERS” MCKINSEY AND COMPANY
- 23. CELLULAR IOT TODAY A FRAGMENTED ECOSYSTEM NAVIGATING THE FUTURE THE FUTURE OF CELLULAR
- 24. LTE COMPLICATIONS (41 BANDS)
- 26. CARRIER ADOPTION - M1 VS NB1 M1 ADOPTION NB1 ADOPTION USA CANADA CHINA EUROPE AUSTRALIA TELSTRA (M1) AND OPTUS (NB1) MEXICO SOUTHEAST ASIA M1 requires software update to existing cellular towers NB1 requires software update and new radio hardware
- 27. ROAMING AGREEMENTS (2G/3G) ROAMING AGREEMENTS WILL BREAK DOWN WITH LTE FOR IOT YOU CARRIER T-MOBILE BIRTHI TELSTRA CHINA MOBILE ROAMING AGREEMENTS AT&T 100+ MORE COUNTRIES DIRECT CARRIER AGREEMENT
- 28. ROAMING AGREEMENTS (2G/3G) ROAMING AGREEMENTS WILL BREAK DOWN WITH LTE FOR IOT YOU CARRIER T-MOBILE BIRTHI TELSTRA CHINA MOBILE ROAMING AGREEMENTS AT&T 100+ MORE COUNTRIES DIRECT CARRIER AGREEMENT T-MOBILEAT&T BIRTHI TELSTRA
- 29. ROAMING AGREEMENTS WILL BREAK DOWN WITH LTE FOR IOT CARRIEREach relationship might take 6-12 months to negotiate and will be governed under separate contracts with separate pricing, data volumes, device minimums, and terms of service.
- 30. ESIM SUPPORT AND TIMELINE WILL VARY BY CARRIER The ease of use and ease of operator switching has the potential to weaken the network operator’s position in the mobile value chain, as customers may demand more freedom from contractual lock-ins, as well as more dynamic contractual propositions. “ ” “E-SIM FOR CONSUMERS” MCKINSEY AND COMPANY
- 31. CELLULAR IOT TODAY A FRAGMENTED ECOSYSTEM NAVIGATING THE FUTURE THE FUTURE OF CELLULAR
- 32. HOW CAN PRODUCT CREATORS BUILD SOLUTIONS THAT BRING THE VALUE OF THESE TECHNOLOGICAL BREAKTHROUGHS TO THEIR CUSTOMERS WITHOUT EXPOSING THEMSELVES TO EXCESSIVE DEVELOPMENT RISK?
- 33. 1. DISCOUNT THE HYPE
- 34. 1. DISCOUNT THE HYPE IDEAL ENVIRONMENT REAL LIFE USE CASE 10-15 years battery life 12-18 months battery life vs 1 message per 24 hours 5-10 readings per hour 10,000 mAh Li-metal battery + + 2,000mAh Li-Po battery 5% in 24h then 1-2% per month2% annual discharge rate + +
- 35. 2. LEVERAGE FUTURE COMPATIBLE PLATFORMS AND ECOSYSTEMS HARDWARE TIPS MODULES WITH 2G/3G FALLBACK INTEGRATED M1/NB1 HARDWARE FOOTPRINT AND PIN COMPATIBLE ROADMAPS “The MDM9206 modem is designed to support LTE category M1 (eMTC), upgradeable to dual category M1/NB-1 mode with an anticipated upcoming software update. “
- 36. 2. LEVERAGE FUTURE COMPATIBLE PLATFORMS AND ECOSYSTEMS LEVERAGE ESIM TO ENABLE FUTURE CARRIER MOBILITY ESIM (MFF2) LEVERAGE INTEGRATED HARDWARE + DATA PLATFORMS CARRIER TIPS
- 37. BROAD LTE ADOPTION 3. DON’T WAIT FOR THE TECHNOLOGY OF TOMORROW Start building with technology that solves your customers’ problems today 2017 2018 2019 2G 3G LTE 2G SUNSET (GRADUAL) 2G LEGACY CONTINUE MANUFACTURING 2G SOLUTION TO REMAIN COST COMPETITIVE IN SELECT MARKETS 3G REMOTE MARKETS ESTABLISH PRODUCT ADOPTION IN SECONDARY MARKETS WHERE IOT IS POORLY ESTABLISHED LTE WITH FALLBACK LTE DEPLOYMENTS IN EARLY- ADOPTER MARKETS WITH 3G FALLBACK AS COVERAGE IMPROVES LTE GLOBAL SKU ONCE LTE COVERS ALL PRIMARY MARKETS, COST- REDUCE WITH SINGLE LTE GLOBAL SKU
- 38. TO LEARN MORE ABOUT PARTICLE’S APPROACH TO CELLULAR, VISIT PARTICLE.IO
- 39. THE FUTURE OF CELLULAR IOT