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Making LTE fit for the IoT Presented by David Lister Vodafone Group

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Agenda

• A short history of m2m and predicted

growth

• “Industrialised” m2m

– the key sectors served today

– a very diverse range of requirements

• Predictions for the future

• M2M / IoT Characteristics and Volume

• LTE evolution to support future services

• Remaining challenges

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This isn’t all new ..

.. we deliver nationwide GB today and serve 11.1 million m2m connections globally up from 7.8 million last year

Vodafone coverage

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.. but this is

Projected m2m CAGR 36% over 10 year period

.. and emergence of LTE as technology of choice

>100 million LTE connections worldwide 250 commercial LTE deployments by end of 2013 1 billion LTE connections by 2018

4G Americas, May 2013

Ericsson, June 2013

0.0

0.5

1.0

1.5

2.0

2.5

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Con

nect

ions

(bill

ion)

Utilities Security

Automotive and transport Healthcare

Retail Government

Financial services Analysys Mason, May 2012

0

1

2

3

4

5

6

0

10

20

30

40

50

60

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

ARPU

(USD

per

mon

th)

Reve

nue

(USD

billi

on)

A growing market by revenue but declining revenue per connection

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.. And driven by the following trends

Operate efficiently Saves time and money

Enable new business models Increases revenue

Improve customer service Creates happier customers

Comply to legislation and

standards Achieves compliance

Live the greener agenda Drives sustainability

78% of businesses1 believe that m2m is core of successful business in the

future

[1] The M2M Adoption Barometer 2013, CircleResearch, June 2013

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Manufacturing & Industry

Consumer Electronics

Security

Automotive

Track & Tracing Payment

Health

Environmental Monitoring

Smart Metering

A diverse range of industry sectors which are well served by cellular

platforms today.

M2M Vertical Markets – “Industrialised M2M”

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Predictions for the Future1

Three

predictions for

the future

1. Costs will fall 2. Smaller organisations will catch up and

race ahead 3. Manufacturing and consumer sectors

will lead growth

Growth areas

[1] The M2M Adoption Barometer 2013, CircleResearch, June 2013

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Solution Characteristics - market volume - market

sector LTE Market Sector

Number of Devices

Industry Focussed ‘’Industrial’ m2m aligned with industry verticals

Mass Volume Internet of Things

Low volume

Medium / High volume

Increasing diversity

Enterprise Focussed B2B, relatively small volume but high value eg. video cameras, digital signage, smart-grid, etc

Mass volume and IoT B2B2C, Consumer Goods, Sensors, Alarms, ‘Long-Tail’, Tracking Objects, Connecting the microcontroller

Solution Characteristics

Low complexity/cost Very low power, years on a small battery Common standards Extended coverage Delay tolerant on downlink Delay sensitive on uplink Low data rate

Always connected Global roaming and mobility Coverage and availability SLA’s 2-way real-time communications Security Possibly supporting voice Cost sensitive Device Management

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Enterprise Focussed B2B, relatively small volume but high value eg. video cameras, digital signage, smart-grid, etc

Number of Devices

Solution Characteristics

Always connected Global roaming and mobility Coverage and availability SLA’s 2-way real-time communications Security Possibly supporting voice Cost sensitive Device Management

Low complexity/cost Very low power, years on a small battery Common standards Extended coverage Delay tolerant on downlink Delay sensitive on uplink Low data rate

Industry Focussed ‘’Industrial’ m2m aligned with industry verticals

Mass volume and IoT B2B2C, Consumer Goods, Sensors, Alarms, ‘Long-Tail’, Tracking Objects, Connecting the microcontroller

Half-Duplex Dedicated M-Pxxx control chn

Rel 9+ Category 3 100Mbps

Rel12 Category 0

1Mbps

Increasing diversity

Rel13

Solution Characteristics - market volume - market

sector LTE Release LTE Market Sector

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LTE Machine Type Communications (MTC)

= Standards Freeze Dates

Work Item on “Low-cost and Enhanced Coverage“ for MTC devices Rel10

Rel 11

Rel 12

Rel 13

Mar 2011

End 2014

~2016

June 2013

First LTE MTC devices based on Rel9/10. Congestion and Overload Control introduced.

Enhanced Architecture at Service Level Device Triggering Prioritisation

New Category of device defined for MTC based on work item outcome

MTC Enhancements to include energy and signalling efficiency

Study Item for low-cost, enhanced coverage, for MTC recommends: • Single receive antenna for MTC devices • Reduced peak data rate of 1Mbps • Reduced bandwidth with baseband data channel of 1.4MHz • Coverage Enhancement of 15dB • Further cost-reduction available with half-duplex

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It’s not just the core technology

• A common technology standard to

enable

– Economies of scale to reduce costs

– Global roaming

• Licenced Spectrum as licence-exempt

and white-space globally aligned

spectrum is not available

• Economic efficiency by re-using

existing cellular assets and low per-

device operating cost

• Scalable, spectrally efficient, security,

and longevity assured

• Cost effective coverage

– Sub GHz bands for propagation

– Regardless of technology a 3dB link

budget improvement is a ~50% reduction

in sites

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Research Challenges Remain

Courtesy of cartoonsbyjosh.com

• Data characteristics of IoT not well

aligned to characteristics of LTE – We’ll make it fit anyhow!

• LTE rollout for wide area

nationwide coverage will take

several years

– GSM/GPRS remains immediate

solution of choice

– How to transition from existing

established cost-effective solutions

• Radio front-end is complex for

multi-region support – Up to 40 LTE bands

– How to simplify and maximise

economies of scale

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Thank you