(Image Credit: iStockPhoto/studiocasper)
Competition in the Low Power Wide Area (LPWA) sector that supports the growth of the Internet of Things (IoT) is intensifying. In recent years, a number of niche, industry- and technology-specific solutions have emerged using unlicensed spectrum. While these approaches have accelerated deployments, they also created fragmentation, interoperability challenges, and security concerns.
In August 2015 the 3rd Generation Partnership Project (3GPP) announced plans to standardize a new technology in 2016—Narrowband IoT (NB‑IoT)—designed to address many of the issues facing the industry. Below we explain what NB‑IoT offers and consider how it may shape this fast-evolving market.
LPWA and a fragmented market
IoT devices typically have distinct communication needs: they are widely dispersed, rely on very low-power sources, transmit small payloads (often around 1 kb) infrequently—sometimes only once per day—and tolerate high latency. These requirements contrast sharply with those of current 3G/4G cellular networks, which are optimized for high throughput, low latency, and higher power use.
As a result, roughly a dozen niche technologies, including LoRa, SIGFOX, and Weightless, have emerged to serve LPWA use cases. Each seeks market share, but the resulting fragmentation creates several challenges for operators:
- IoT is forecast to grow substantially over the coming decade; operators risk marginalization if they delay addressing it.
- High-frequency propagation used by many 3G/4G systems struggles to reach underground devices and often provides poor indoor coverage.
- SIGFOX, LoRa, and Weightless operate in sub‑GHz license‑free bands and have gathered industry support while pursuing their own standardization paths.
- Many existing machine‑to‑machine (M2M) solutions use GSM/GPRS technologies. Those devices can be expensive and are not spectrum‑efficient long-term; operators are refarming this spectrum for LTE and VoLTE, making competition with dedicated LPWA providers more difficult.
- LTE‑based IoT devices remain relatively costly—typically in the $25–$30 range—whereas many LPWA devices are closer to $10, an important difference for massive deployments.
Emergence of NB‑IoT
At a September 2015 meeting of 3GPP’s Radio Access Network group, participants decided to standardize NB‑IoT, a narrowband radio technology purpose-built for LPWA requirements. That decision signaled 3GPP’s commitment to the IoT market.
NB‑IoT operates in licensed spectrum, enabling secure, reliable connections with predictable quality of service—critical for applications such as connected cars, healthcare monitoring, security alarms, and emergency services. As a 3GPP standard, NB‑IoT also benefits from network interoperability and roaming support, and it can eliminate the need for local gateways: instead of aggregating and pre‑processing sensor data at an intermediate device, sensors can send data directly to a backend. NB‑IoT can also leverage existing operator infrastructure, lowering deployment costs and simplifying rollouts.
Competition in LPWA broadened further in early 2016 when the Wi‑Fi Alliance introduced HaLow (IEEE 802.11ah), a low‑power technology operating in the 900 MHz band while remaining compatible with established 2.4 GHz and 5 GHz Wi‑Fi bands. HaLow targets smart home, smart city, and industrial applications.
NB‑IoT’s arrival represents a major competitive shift: it challenges unlicensed LPWA providers and may prompt greater collaboration among non‑cellular vendors. Given the proprietary nature of many existing solutions and the fragmentation of the market, NB‑IoT has strong prospects for widespread adoption.
What the future holds
With multiple technologies vying for adoption, several outcomes are likely over the next few years:
NB‑IoT becomes dominant, marginalizing others
GSM and related cellular technologies already capture a large share of the mobile market, and many mobile operators are GSMA members. As operators seek to integrate IoT into their portfolios, NB‑IoT is a natural choice for many. While some operators will explore pre‑standard solutions and proof‑of‑concept deployments in the near term, the momentum behind NB‑IoT is likely to grow.
One or more unlicensed LPWA technologies are standardized and co‑exist with NB‑IoT and HaLow
Unlicensed‑spectrum technologies remain attractive for applications with less stringent requirements on latency, reliability, or guaranteed QoS, especially when cost is a priority. Sectors where unlicensed LPWA solutions may continue to be suitable include:
- Agriculture—large‑area monitoring of fields and forests
- Logistics—tracking refillable containers and bottles
- Smart buildings—local sensor networks for functions like smoke detection and pet monitoring
- Smart cities—parking availability, waste-bin levels, and streetlight monitoring
Current LPWA technologies gain traction and NB‑IoT fails to catch on
This scenario is considered less likely given the strong backing NB‑IoT enjoys from the cellular industry.
Because IoT covers a wide range of use cases, no single radio access technology will address every requirement. Harmonization across technologies will take time. Unlicensed options such as SIGFOX and LoRa currently have a lead in deployment and developer familiarity, but NB‑IoT and HaLow present significant challenges to non‑cellular LPWA solutions. Expect a competitive, dynamic market over the next two to three years as these technologies jockey for position.
Do you think NB‑IoT will disrupt the LPWA market? Share your thoughts in the comments.