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SECOND LEVEL
STOCKHOLM, SWEDEN 2017
DANIEL SJÖSTRÖM
Daniel Sjöström
2017-09-24
Master’s Thesis
Examiner
Gerald Q. Maguire Jr.
Academic adviser
Anders Västberg
Industrial adviser
Viktor Dahl
KTH Royal Institute of Technology
School of Information and Communication Technology (ICT)
Department of Communication Systems
SE-100 44 Stockholm, Sweden
i
Abstract
In the Internet of things (IoT), many applications will require low-power
and low-cost to achieve long lifetime and scale (respectively). These types of
applications are referred to as massive IoT, as opposed to critical IoT, which
emphasizes ultra-high reliability and availability and low latency. One type
of network catering to massive IoT applications are Low-Power Wide Area
Networks (LPWANs), and presently, many LPWAN standards are trying to
assert their role in the IoT ecosystem.
The results indicate that all of the different types of explored LPWANs
support applications without strict downlink, payload size, and latency
requirements. For use cases without these specific demands (typically
sensors, meters, tracking, etc.), it is not a question of whether or not a
network fulfills the requirements, but rather how flexible the requirements
are. As a result the choice of network will be determined by non-technical
aspects and a cost versus functionality trade-off where unlicensed LPWAN
is typically cheaper. Hence, both categories of LPWANs offer a unique
value proposition; therefore, they can be considered complementary. This
notion is reinforced when looking at non-technical aspects such as ecosystem,
regulation, network ownership and control, and network coordination,
which differ quite significantly. Furthermore, unlicensed LPWANs are likely
to be the vanguard of a new type of competitor offering the core service of
connectivity.
iii
Abstrakt
Inom Internet of Things (IoT) kommer många applikationer att kräva låg
effekt och låg kostnad för att uppnå en lång livstid och skala. Dessa typer av
applikationer refereras till som massiv IoT, vilket står i motsats till kritisk IoT
som kräver ultrahög tillförlitlighet och tillgänglighet och låg fördröjning. En
typ av nätverk som ämnar tillgodose kraven av massiv IoT är Low-Power
Wide Area Networks (LPWANs), och idag försöker många av dessa hävda
sig inom IoT ekosystemet.
Acknowledgements
This work was carried out during 2017 at EY (Stockholm) and the school of
information and communication technology at KTH.
Contents
Abstract i
Abstrakt iii
Acknowledgements v
1 Introduction 1
1.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Problem definition . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.3 Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4 Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.5 Delimitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.6 Structure of thesis . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Background 7
2.1 LPWANs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 Regulation and standards . . . . . . . . . . . . . . . . . . . . . 8
2.2.1 Standardization terminology . . . . . . . . . . . . . . . 9
2.2.2 Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.2.3 US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.3 SigFox . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.3.1 Spectrum and Regulation . . . . . . . . . . . . . . . . . 13
2.3.2 Technology of SigFox . . . . . . . . . . . . . . . . . . . . 14
Physical layer . . . . . . . . . . . . . . . . . . . . . . . . 14
Network . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Co-existence and resilience . . . . . . . . . . . . . . . . 17
Cloud/backend . . . . . . . . . . . . . . . . . . . . . . . 17
Security & authentication . . . . . . . . . . . . . . . . . 18
Modules . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Base stations . . . . . . . . . . . . . . . . . . . . . . . . . 20
Roaming . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
SigFox Technical Summary . . . . . . . . . . . . . . . . 20
2.3.3 SigFox’s Non-technological Aspects . . . . . . . . . . . 22
Business model . . . . . . . . . . . . . . . . . . . . . . . 22
Intellectual property rights and compliance . . . . . . . 23
Commercial aspects . . . . . . . . . . . . . . . . . . . . 23
Reach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Actors and activity . . . . . . . . . . . . . . . . . . . . . 24
2.4 LoRaWAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.4.1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . 27
viii
3 Methodology 69
3.1 Research Process . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.2 Research Paradigm and research gap . . . . . . . . . . . . . . . 70
3.3 Assessing reliability and validity of the data collected . . . . . 70
4 Interviews 71
4.1 IoT Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
4.2 Talkpool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
List of Figures
List of Tables
2.1 Regulatory parameters for the EU 863-870 MHz SRD band and
sub bands [33] . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2 Atmel ATA8520E [56] with pricing information from [57]. . . . 20
2.3 Overview of SigFox’s technological characteristics according
to SigFox and other sources. . . . . . . . . . . . . . . . . . . . . 21
2.4 The available offerings from SigFox’s official web shop [70]. . 25
2.5 The SigFox partner network [72]. Note not all SigFox entities
are registered as a SigFox partner, and some companies may
appear in several categories. . . . . . . . . . . . . . . . . . . . . 26
2.6 LoRa modules, all uncited data is from Semtech [87] . . . . . 36
2.7 Overview of LoRaWAN’s technological characteristics
according to the LoRa Alliance, Semtech and other sources. . . 38
2.8 A selection of LoRaWAN deployments. . . . . . . . . . . . . . 41
2.9 Technological EC-GSM-IoT characteristics . . . . . . . . . . . 51
2.10 3GPP LTE UE category evolution, adopted from Nokia [127],
Radio-electronics.com [130] and Qualcomm [126]. . . . . . . . 54
2.11 Commercially available LTE-IoT modules . . . . . . . . . . . . 55
2.12 Technological LTE-IoT characteristics according to various
sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
2.13 Use case categories and characteristics according to GSMA
[22]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
2.14 Use case categories and characteristics according to Ericsson
[20] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
List of Abbreviations
Chapter 1
Introduction
Laya, Ghanbari, and Markendahl claim that the three terms above are
used interchangeably, and although they complement each other, they are
not equivalent [2]. They offer the following definitions [2]: M2M is the
communication between machines and central management applications.
MTC has a similar definition; the difference is that at least one party must be
a machine, but not all. Within the field of telecommunications, MTC is more
or less regarded as the segment of M2M carried over cellular networks . IoT
was coined in 1999 by K. Ashton to describe "a world of seamless connected
devices that would save us time and money" [3]. Unlike MTC and M2M, the
term IoT includes access to the broader Internet.
"A global infrastructure for the information society, enabling advanced services
by interconnecting (physical and virtual) things based on existing and evolving
interoperable information and communication technologies." [5]
Another point of view regarding the terms IoT and M2M is expressed
by Nick Hunn [6]. Hunn suggests that the term IoT was a moniker given to
M2M in an attempt to either revive a flagging M2M market by introducing
a more exciting name or to democratize M2M beyond its vertical sectors [6].
Hunn claims that the acronym was brought back from obscurity into the
mainstream by Ericsson in their annual report of 2009, and their discussion
paper titled "Towards 50 Billion Connected Devices", published in 2010
2 Chapter 1. Introduction
Hunn goes on and offers a definition of M2M and IoT with respect to the
value of data, number of things, and cost of deployment over time, conveyed
in Figure 1.1 [6]. That the number of connected things increases because the
cost of deployment decreases is self-explanatory. A more intricate proposal
is that the value of the data will decrease before it starts to increase [6]. This
is explained by the fact that as the cost decreases, sensors will become less
application specific, therefore the data per sensor will decrease [6]. Instead,
the value of the data will arise from long-term accumulation of data or by
combining data from multiple sensors, which both take time to achieve [6].
1.1 Background
Ericsson defines two segments within IoT: Massive IoT and Critical IoT.
Massive IoT refers to applications that require large numbers of devices, low
cost, low energy, and little data per message [10]. In contrast, Critical IoT
requires very low latency, high reliability, and availability [10]. However,
these two are considered as the extremes ends of the spectrum, and there are
1.1. Background 3
This thesis will explore networks that cater to the long range Massive
IoT segment, indicated as Low-Power Wide Area Networks (LPWANs) in
Figure 1.2. Thus far unlicensed proprietary LPWANs (LoRa, SigFox, and
others in Figure 1.2) have commercial deployments. These proprietary
players are arguably the vanguard of the IoT paradigm defined by Hunn,
as depicted in Figure 1.1. In response, the cellular industry has via the 3rd
Generation Partnership Project (3GPP) scrambled to standardize equivalent
licensed cellular LPWANs (Narrowband (NB)-IoT in Figure 1.2). To use
more dramatic terms, one could describe the current situation as a prelude
to war between the cellular hegemony and new entrants.
Some MNOs are quite clear about their choice: According to Vodafone’s
director of innovation and architectures Matt Beal, NB-IoT will "crush"
proprietary LPWANs such as SigFox and LoRa [13]. In Sweden, MNOs have
to some extent already started to explore their options. Hans Dahlberg,
Vice President of Telia Global IoT Solutions, says that Telia awaits cellular
LPWAN connectivity and are unlikely to make use of unlicensed LPWANs,
according to Iain Morris at LightReading [14]. Tele2 recently deployed a
LoRa network in Gothenburg [15], and Ervins Kampans, CTIO of Tele2
Estonia, claims that Tele2 has positioned itself at the "forefront of NB-IoT
commercialization in Europe and worldwide" [16].
1.3 Purpose
The purpose of this thesis is to compare the value propositions of SigFox,
LoRaWAN, EC-GSM-IoT, NB-IoT, and eMTC to conclude which ones are
needed and which not.
1.4 Goals
The goals of this degree project are:
• Ascertain the need for different LPWANs, and therein the need for
licensed or unlicensed LPWANs, by mapping use case requirements
to the following categories:
1.5 Delimitations
The choice of which unlicensed LPWANs to explore was based on
commercial relevance and availability. According to Aris Xylouris at
Analysys Mason, the two proprietary LPWNAs with the highest number of
deployed networks are SigFox and LoRaWAN [17]. Furthermore, SigFox and
LoRaWAN each have a different technology, business model, and approach
regarding their intellectual property, which in turn makes a comparative
assessment all the more interesting.
Chapter 2
Background
This chapter conveys information about each LPWAN based upon publicly
available information. SigFox is presented in Section 2.3 and LoRaWAN in
Section 2.4. Cellular LPWAN, included in Sections 2.6 and 2.7, is preceded
by an introduction to the development of cellular technology in Section 2.5.
Finally, the results of previous use case analyses are explored in Section 2.8.
2.1 LPWANs
Raza, Kulkarni, and Sooriyabandara state that LPWANs are designed to meet
the requirements of Massive IoT [19]. As such, LPWANs features wide-area
connectivity for delay tolerant, low power, low data rate devices [19].
Furthermore, Raza, Kulkarni, and Sooriyabandara argue that proprietary
LPWANs developed by new entrants are gaining much attention since
they both complement and supersede legacy wireless technologies [19]. In
response, rather than waiting for 5G-IoT, the cellular industry has raced to
develop cellular LPWAN techniques that can operate on top of their existing
cellular network.
The forecasts for number of devices to utilize IoT LPWANs varies quite
significantly. In Ericsson’s latest mobility report, published November
2016, Ericsson anticipates a total of 29 billion devices by 2022 including
everything ranging from phones, IoT devices, and tablets to PCs, fixed
phones, and laptops [20]. Ericsson further claims that 16 billion of these
devices will be short-range IoT devices (Bluetooth, Wi-Fi), and 2.1 billion
will be wide-area massive- and critical IoT devices [20]. In comparison, 2016
had 400 million wide-area massive- and critical IoT devices [20]. According
to the latest forecast by GSM Association (GSMA) (a special interest group
(SIG) representing MNOs worldwide), the number of LPWAN devices are
predicted to overtake 2G, 3G, and 4G as the leading form of IoT connectivity
by 2022 with 1.4 billion connections [21]. In an earlier report in 2016, GSMA,
anticipated 5 billion LPWAN devices by 2022 [22]. According to SigFox, the
LPWAN market is expected to grow 90% annually and reach $24.5 billion in
8 Chapter 2. Background
generations, and does not take any position on whether or not a specific
IMT recommendation is labeled as 3G or 4G, see for example [24]. However,
broadly speaking, IMT-2000 is commonly referred to as 3G, IMT-Advanced
as 4G, and IMT-2020 as 5G.
• ITU writes that "Open Standards" are standards made available to the
general public and are developed (or approved) and maintained via a
collaborative and consensus driven process. "Open Standards" facilitate
interoperability and data exchange among different products or services and
are intended for widespread adoption. [25]
2.2.2 Europe
In Europe, the entities of interest are the European Telecommunications
Standards Institute (ETSI), the European Conference of Postal
and Telecommunications Administrations (CEPT), and Electronic
Communications Committee (ECC). The Swedish Post and Telecom
Authority (PTS) explains that CEPT, founded in 1959, is a cooperation
between European post and telecom regulatory bodies, and is since 1992
exclusively involved in regulatory issues [28]. PTS also writes that ECC
is CEPT’s committee for electronic communications [28]. According to
CEPT, ECC was formed as the result of the merger between ECTRA
(responsible for general telecommunications matters) and ERC (European
Radiocommunications Committee) [29]. In 1988, PTS writes that ETSI was
founded with the purpose of taking on CEPT’s standardization efforts,
and it is today a cooperation between telecom authorities, operators,
manufacturers, service providers, and users [28].
to the relevant ETSI standard to ensure coexistence, SRDs can operate license
free in Europe in some bands [31]. Furthermore, ETSI states that once
compliance has been demonstrated, there is no need for an end user license
or any paperwork, and a compliant device may be used freely throughout
Europe [31].
In Table 2.1, the duty cycle may be increased to ≤ 1% for bands h1.1, h1.2,
and h1.3 if the band is limited to 865-868 MHz [33]. The duty cycle is defined
as "the ratio, expressed as a percentage, of the maximum transmitter "on" time
monitored over one hour, relative to a on hour period" [32]. Hence, ≤ 1% equates
to less 36 seconds time on air (TOA) per device per hour. The duty cycle
restriction may be lifted if the devices employ adaptive frequency agility
(AFA) or listen before talk (LBT). However, considering the scope of this
thesis, these methods are irrelevant since neither LoRaWAN [37] or SigFox
employs them. All of the bands in Table 2.1 have been adopted by all of the
CEPT member countries (i.e., most of the EU), with the exception of Georgia
(none adopted), Sweden (h1.1, h1.2, h1.3 not adopted), Russia (h1.4, h1.6,
h1.7 not implemented), and Ukraine (h1.5, h1.6, h1.7 not implemented) [33].
12 Chapter 2. Background
2.2.3 US
In the US, the Federal Communications Commission (FCC) regulates
communication including wireless transmission. According to Mazar,
regulation regarding radio frequency devices (without an individual license)
is stipulated in the FCC Electronic Code of Federal Regulations (e-CFR)
part 15, and ISM regulation in part 18 [36]. Real Wireless writes that
for transmission within the 902-928 MHz ISM band, which SigFox and
LoRaWAN use in the US (see Sections 2.3.1 and 2.4.2), e-CFR part 15 §15.247
[38] is the relevant provision and is summarized below [30]:
– At least 50 channels: 1 W.
– Less than 50 channels, but at least 25 channels: 0.25 W.
2.3. SigFox 13
2.3 SigFox
This section describes SigFox in terms of technical- and non-technical aspects.
SigFox writes that the SigFox protocol is designed to comply with ETSI
and FCC regulations [39]. Furthermore, SigFox chips may support both
FCC and ETSI compliance, such as the Atmel ATA8520 (see Table 2.2), or
only compliance with one set of regulations, such as the ETSI compliant
14 Chapter 2. Background
Physical layer
Raza, Kulkarni, and Sooriyabandara state that the physical layer is based
on ultra-narrow band (UNB) technology in regional sub-GHz ISM bands
[19]. KeySight claims that the number of supported uplink channels are
360 UNB 100 Hz channels [43], and that multiple access is realized through
frequency hopping spread spectrum (FHSS) [43]. Raza, Kulkarni, and
Sooriyabandara and Laya et al. explains that to increase the likelihood of
successful reception, each device transmits three times on different and
randomly selected UNB channels [19] [44].
There are several reasons why UNB may increase the attainable range.
One is that UNB receivers listen to an equally narrow portion of the
spectrum and therefore capture less noise, which in turn increases the range.
Another inherent benefit in UNB is that receivers employ very steep filters,
which effectively cancels out sideband noise. Moreover, using FHSS with a
small signal bandwidth (100 Hz) and a relatively large listening bandwidth
(200 kHz) mitigates frequency-selective fading according to Real Wireless
[30]. Furthermore, SigFox claims that, compared to wideband techniques,
allocating the energy in a UNB channel increases the signal to noise ratio
[45]. Last but not least, a small bandwidth translates to a long symbol period,
thereby increasing the energy per symbol, and therefore the range. The
downside is that a long symbol period results in a low a data rate. Indeed,
such is the fundamental trade-off in any radio system; an increase in data
rate (bandwidth) will decrease the energy per bit, and therefore decrease the
range.
Network
The network topology, shown in Figure 2.2, is a star network as stated by
Raza, Kulkarni, and Sooriyabandara [19], in which each gateway realizes a
cell. Raza, Kulkarni, and Sooriyabandara note that an end node is not tied
to a single gateway. Instead, each end node’s transmission is picked up by
all gateways in range [19]. Hence, SigFox writes that there is no need for a
handover procedure since that capability already is inherent in the SigFox
network [39]. Centenaro et al. write that SigFox claims that each gateway
can handle up to a million connected devices [46]. Although bi-directional
communication is supported, Raza, Kulkarni, and Sooriyabandara observe
that the radio access is asymmetric because only 4 downlink messages per
day per device is allowed and downlink communication can only occur if
an uplink communication (immediately) precedes it as the end device can
open a receive window and listen for a while after it has sent a message
[19]. According to Nicolas Lesconnec of SigFox’s developer relations, SigFox
supports acknowledgment: When sending a uplink message, a device can
request a downlink acknowledgment [48].
16 Chapter 2. Background
Laya et al. state that SigFox employs no carrier sensing [44]. Similarly,
SigFox’s founder and CSO Christopher Fourtet mentions that there is no
channel management and hence no means of collision-avoidance [49]. In
other words, SigFox is a contention-based protocol, in which end nodes
are "free running" as Fourtet puts it [49] and transmit asynchronously (as
mentioned by Raza, Kulkarni, and Sooriyabandara [19]). Furthermore, as
pointed out by Raza, Kulkarni, and Sooriyabandara and Laya et al., each
message is transmitted three times on random channels [19][44]. Moreover,
SigFox states that UNB reduces the likelihood of collision compared to
wide-band techniques [39]. Allegedly, this is because more UNB signals
can simultaneously co-exist and be carried over a given bandwidth than
wide-band signals [39]. Finally, SigFox claims that the likelihood of collision
is close to zero [39].
SigFox claims that its lightweight protocol has eliminated the need for
signaling and reduces the required overhead [45]. Allegedly, this reduced
both design cost and power consumption [45]. Furthermore, less overhead
means that more data can be carried in each message [45]. SigFox claims
that 14 bytes of overhead are required for a payload of 8 bytes [45]. Along
the same line of reasoning, Laya et al. note that SigFox has a Media Access
Control (MAC) layer equivalent to an unslotted (pure) ALOHA and argues
that it is an energy-efficient and cost-efficient scheme [44]. Laya et al. explain
that asynchronous transmission does not involve listening to the channel
(which would require power) [44]. Laya et al. explain that asynchronous
transmission also removes the need for time synchronization in the network;
therefore, there is no need for expensive oscillators in SigFox devices [44].
This observation is in agreement with one of the rationales behind SigFox as
expressed by Fourtet:
"Network should not ask modems for long disciplining processes. But it should
be at the service of modems to compensate for their imperfection, contributing to
their low cost" [49].
2.3. SigFox 17
Cloud/backend
SigFox explains that a SigFox solution must connect to the SigFox cloud
to retrieve messages and, if necessary, to manage devices and users
[52]. Moreover, the SigFox cloud supports services such as device
information (signal quality, events, statistics, and more), billing, user-
and fleet management, network management suite, service maps, and so on
[52].
Access to the SigFox cloud services and tool suite depend on the type
of user according to SigFox [52]. These types range from an administrator
(who manage users/fleet, contracts, see service maps, etc.), distributor (who
18 Chapter 2. Background
creates contracts), and operator (whom has access to a radio planning tool
and a network monitoring suite) [52].
Similarly, the RF module company "TD next" writes that each end node is
associated with a device ID and a porting authorization code (PAC) and that
both of these are required to register the SigFox device in the SigFox cloud
[53]. TD next writes that the SigFox ID is stored in the module memory
when it is manufactured [53]. Both the device ID and PAC code are sold with
the connectivity module used in the end device, and these values are either
printed on the packaging or embedded in the device [53]. Furthermore,
TD next emphasizes that the device’s SigFox ID is unique and it will not
change during its lifespan [53].
TD next further explains that the PAC code corresponds to the device
ID, and its purpose is to manage the ownership of SigFox devices [53],
specifically it is used to establish ownership of the device, or to port
(transfer) ownership of the device. Once it is used, it is discarded and a new
PAC code is generated, so that future porting is possible [53].
Modules
A chip, or system on chip (SoC), or integrated network transceiver circuit,
will typically realize the physical layer and the MAC layer. Vendors
generally provide a reference design (which may be tweaked and added to
in terms of functionality) for each of their products. This is valuable because
building upon an already working reference design enables a designer to
rapidly get a new end-product to the market rather than needing to develop
the platform from scratch. Additionally, the network transceiver chip
may include a microcontroller that implements some upper protocol stack
and security. If the chip includes application layer software or supports
application development (often via AT commands), then the chip may be
regarded as a radio module with additional functionality.
Besides the power consumption of the radio module, the battery lifetime
depends on how often the devices transmit as well as upon the battery itself.
According to Radicrafts, a device communicating one message per day can
last more than ten years using a 3.6V lithium AA-cell battery [58]. Another
example by Radiocrafts AS is that a device transmitting ten times a day
would last six years using the same battery [58]. SigFox claims that two
messages a day equate to a 20 year lifetime using the energy contained in
one AA battery [45].
20 Chapter 2. Background
Base stations
There is no information publicly available about SigFox base stations.
Moreover, the only manufacturer seems to be SigFox. It is likely that only
certified SigFox operators (see Section 2.3.3 can buy SigFox base stations.
According to RadioCrafts AS, SigFox base stations are only provided by
SigFox [40]
Roaming
As stated bt Juan Carlos Zuniga and Benoit Ponsard (IETF), SigFox
authentication is global, and there are therefore no roaming requirements
[50]. The user can enjoy seamless mobility across the global SigFox network
[39]. However, for devices to roam internationally (assuming coverage is
provided), they must support the local RF regulations, such as ETSI and
FCC compliance [39].
Characteristic SigFox
Frequency EU: 868 MHz ISM band [39]
EU uplink: 868.0 - 868.6 MHz (Atmel ATA8520E) [56]
EU downlink: 869.4 -869.65 MHz (Atmel ATA8520E)
[56]
Business model
SigFox, launched in 2009, was the first proprietary LPWAN to hit the
IoT market, and since then it has been growing rapidly [46]. According
to Ingrid Lunden at TechCrunch, SigFox has received investments from
Silicon/product manufacturers such as Samsung and Intel, utility giant
Air Liquide, and service providers such as Telefonica and Eutelsat [59].
According to Aris Xylouris at Analysys Mason, SigFox increased their
number of active or planned networks from 9 in 2015 to 27 in 2016 [17].
Raza, Kulkarni, and Sooriyabandara summarize the offering by SigFox as
end-to-end LPWAN connectivity or device-to-cloud connectivity based on
patented technology [19].
"All a new entrant needs to do, apart from writing the app, is buy compatible
devices. They don’t need SIM cards or multi-band air interfaces. SIGFOX issues
IDs to the modem manufacturers, who subsequently give them to their customers,
and then they use the local service provider to activate them. This allows each
customer to manage their devices and subscribe to the messages they send."
Judging from SigFox’s web page, there are 34 SigFox operators (referred
to as local service providers in above quote), each in a different country [61].
The majority of these operators focus solely on SigFox connectivity, whereas
others use this service offering to complement their existing connectivity
portfolios, such as is the case for Arqiva or Cellnex [61]. Some SigFox
operators have struck deals with traditional MNOs. For example, a press
release by Tele2, revealed their partnership with the SigFox operator Aerea
in the Netherlands [62]. Similarly, Telefonica is in negotiation with local
Brazilian SigFox operator WND [63].
2.3. SigFox 23
Commercial aspects
Information concerning infrastructure cost, such as price per base station, is
not publicly available. However, according to Bob Emmerson at No Jitter,
the nationwide SigFox network in France, consisting of around 1000 base
stations cost US$4 million [60]. Emmerson further claims that this is about
100 times cheaper than an equivalent GSM/CDMA cellular network [60].
Reach
According to SigFox, they are present in 29 countries, in reach of 471 million
people [67], and on track to be present in 60 countries by 2018 [68]. The
total coverage in Europe is shown in Figure 2.3. In the US, in spite of
the regulatory obstacles explain in Section 2.3.1, SigFox writes that it has
attained a 20 percent population coverage, and they are rolling out networks
in more than a 100 cities [69].
24 Chapter 2. Background
TABLE 2.5: The SigFox partner network [72]. Note not all
SigFox entities are registered as a SigFox partner, and some
companies may appear in several categories.
2.4 LoRaWAN
This section describes LoRaWAN in terms of technical- and non-technical
aspects.
2.4.1 Overview
Before diving into the details, there is a need to clarify the following terms
that are used throughout in this section: LoRa, LoRaWAN, and the LoRa
Alliance. Centenaro et al. define LoRa (Long-Range) a novel physical layer
for LPWANs by Semtech Corporation [46]. According to Semtech, LoRa
is "agnostic" to higher-layer implementations, thereby allowing LoRa to
coexist and interoperate with existing network protocols [73]. On top of
LoRa, which is Semtech’s proprietary intellectual property, a special interest
group (SIG) named LoRa Alliance, comprised of industrial- and commercial
partners are developing an open standard referred to as LoRaWAN for the
MAC layer (data link layer) [74]. The LoRa alliance states that "LoRaWANTM
defines the communication protocol and system architecture for the network while
the LoRa
R
physical layer enables the long-range communication link." [74].
by the FCC in e-CFR §15.247 [38] and were described in Section 2.2.3. The
LoRaWAN specification states that transmitters shall use duty-cycle limited
transmissions exclusively and by default transmit at 25 mW [37]. Worth
mentioning, however, is that LoRaWAN uses a frequency hopping scheme
(described in Section 2.4.3) to circumvent the maximum allowed dwell time
in North America.
Physical layer
Semtech explains that the LoRa physical layer is based on spread spectrum
techniques, such as direct sequence spread spectrum (DSSS) [73]. However,
there are certain issues in utilizing DSSS for LPWAN purposes, which
Semtech claims to have resolved by using a variation of so-called Chirp
spread spectrum (CSS) [73].
The spreading factor (SF) is a relative measure of the extent to which the
signal is spread out; hence a higher SF implies a wider spreading. However,
a larger SF will always result in an increased receiver sensitivity (i.e. longer
range) [75]. In LoRa, the SF can be viewed as the ratio of the chip rate and
the symbol rate (data rate) [75].
Figure 2.4 illustrates how the range may be increased for a given
bandwidth (i.e. chip rate) by decreasing the data rate (increasing SF), or by
reducing the signal bandwidth (less noise captured by the receiver) in the
Semtech SX1272/73 transceiver [75]. Note that a higher bandwidth does not
increase the data rate since the noise captured by the receiver is increased, as
written by Semtech [75].
30 Chapter 2. Background
125 Khz
−115
250 kHz
500 kHz
Sensitivity dBm
−125
−135
−145
6 7 8 9 10 11 12
Spreading factor
The LoRa alliance says that the rates of LoRa range from around 0.3 to 50
kbps depending on the setting [77]. In another document, the LoRa Alliance
argues that the data rates of LoRaWAN also ranges from 0.3 to 50 kbps [74].
However, according to Adelantado et al. LoRaWAN supports a different set
of data rates: 0.3-27 Kbps and the maximum data rate of the FSK modem is
50 kbps [78]. Raza, Kulkarni, and Sooriyabandara claim that the data rate is
0.3-37.5 kbps depending on SF and bandwidth [19]. Similarly, the attainable
range depends on the trade-off between sensitivity and data-rate. According
to Semtech, LoRaWAN uses primarily a bandwidth of 125 kHz [79].
Network
The official LoRaWAN network specifications are contained within the
LoRaWAN specifications published by the LoRa Alliance. The latest
2.4. LoRaWAN 31
available version is V1.0.2, published July 2016, [77] and the upcoming
version is V1.1 [80]. V1.1, due in mid 2017 [81], will include backward
compatibility, so that a V1.1 end device or network server is compatible with
a V.1.0.X device or network server [80].
that the number of successfully received packets drops when the number of
end-devices increases, due to the effect of collisions [78]. Centenaro et al.
write that current LoRa gateway technology claims the capability of serving
15 000 nodes per gateway [46]. However, as Adelantado et al. show, the
supported number of devices depends on how often they transmit and the
size of their messages [78].
In the EU, the LoRa Alliance maintains that three default channels must
be implemented in every EU device and listened to by every EU gateway
[37]. In one instance, the LoRa Alliance claims EU gateways typically use 8
channels [81], and in another, puts forth that LoRaWAN defines 10 channels
for EU [74]. Out of these 10, eight are multi data rate channels ranging from
250 bps to 5.5 kbps, one is a high data rate LoRa channel at 11 kbps, and the
last one is a single 50 kbps FSK channel. In [37], the LoRa Alliance defines for
the 863-870 EU band, 7 different data rates, each with a unique combination
of bandwidth and spreading factor and one FSK data rate at 50 kbps [37].
In North America, the LoRa Alliance defines 64 different 125 kHz uplink
channels within the range 902.3 to 914.9 MHz in 200 kHz increments [74].
They also define 8 500 kHz channels each for the uplink and downlink
channels (respectively) in the ranges 903-914.9 MHz and 923.3-927.5 MHz
[74].
• The end devices must respect local regulations regarding the maximum
dwell time (see Section 2.2.3) [77].
34 Chapter 2. Background
Cloud/backend
The network server, or cloud, will receive transmissions forwarded from the
gateways. The LoRa Alliance says that the server will filter out redundant
received packets, perform security checks, schedule acknowledgment,
manage the network, and perform adaptive data rate (ADR), and more [74].
power [79] .
There is no single official LoRa cloud to which all devices are connected,
unlike the SigFox cloud in a SigFox network. It is the responsibility of each
operator to arrange cloud access and services. There are both open source
alternatives and a range of companies that provide LoRa cloud services. An
example of such a company is LORIOT, which offer operators a server as was
shown in Figure 2.5, which incorporates network management, operations
(OSS), and billing (BSS) [84]. LORIOT offers different cloud solutions, such
as a (1) shared instance suitable for development, testing, and small scale
and noncritical private networks or (2) a private instance perfect for any size
of the network (small to nation-wide), either private or public [84].
Security & authentication
LoRaWAN implements encryption on both the network and application
layers [74]. The network layer ensures reliable authentication, while
the application layer ensures that the payload is accessible only by the
application server [74]. Hence, an end device must have a valid AES 128
network session (NwkSKey) key and a valid AES 128 application session
key (AppSkey) [74].
The LoRa Alliance provides the following description of these keys. The
NwkSKEY is used by the server and device to verify the integrity of the
message [77] and to ensure the authenticity of the node in the network [74].
The AppSKey is used for end-to-end encryption between the end device
and application server [77]. Networks are differentiated based upon using
a Network ID (NetID) allocated by the LoRa Alliance [85]. In addition,
each end-device has a unique device address (DevAddr) that is included in
every frame to identify transmissions of the end-device within its current
network [77]. Moreover, the DevAddr is partly based on the device’s NetID,
thereby enabling use of the correct session keys and the network addresses
to identify messages meant for other networks [81].
Both the NwkSKEY and AppSkey are unique per device and are
depending upon the device, whether it be a static or session-dependent
pattern. A LoRa device can join a LoRaWAN network via Over-the-Air
Activation (OTAA) or Activation by Personalization (ABP). With OTAA,
the session keys are derived dynamically and uniquely for every activation.
With ABP, the session keys for a particular network are stored within the
device during its production and then remain the same until changed by the
developer [81].
Modules
Semtech has not released their patented LoRa technology in order to become
"Silicon agnostic.", but rather, the only manufacturer of LoRa chipsets is
Semtech, as noted by Centenaro et al. [46]. However, Semtech has announced
an agreement with STMicroelectronics to enable STMicroelectronics to also
manufacture chipsets [86]. At the time of writing, Semtech is the exclusive
manufacturer of LoRa RF products, and the end-device LoRa transceiver
product family is SX127X (as summarized in Table 2.6).
TABLE 2.6: LoRa modules, all uncited data is from Semtech [87]
Base stations
Semtech’s SX130X product family of digital baseband chips are the only
chips integrating the proprietary LoRa concentrator (gateway) intellectual
property. The gateway RF front end intellectual property is available via
Semtech’s SX1257 module. Using the SX130X family and SX1257, a wide
range of other companies offers a complete gateway solution, as can be
seen in the selection offered by LORIOT [94]. For instance, Cisco’s IR 910
gateway utilities two SX1257 modules and one SX1303 chip [94]. It is also
possible to build a gateway using a Raspberry Pi connected to an SX1301
concentrator [94]. These gateways may incorporate additional functionality
such as 4G LTE or Ethernet for backhaul, cooling, more powerful processors,
and increased local storage, outdoor weather resilience, etc. [94].
Characteristic LoRaWAN/LoRa
Frequency EU: 863-870 MHz ISM band [37]
US: 902-928 MHz ISM band [37]
Multiple access method uplink & downlink: Proprietary chirp spread spectrum (CSS) [73]
Pseudo-random channel selection [77]
Optional FHSS [75]
MAC Asynchronous / Unslotted ALOHA [74] (transmit and hope for the
best)
Overhear/Signaling No Signaling, coding rate ranges from 1.25 to 2 [75], preamble size 8
bytes bytes overhead per uplink message [78]
Modulation LoRa, standard FSK techniques [75]
Range Variable [76] [75]
2-5 km (URBAN), 15 km (suburban) [78]
Link budget variable [75]
∼ 150-157 dB [43]
FEC Yes [75]
Output power Maximum 25 W (14 dBm) [33]
Bandwidth Primarily 125 kHz, but also 200 kHz and 500 kHz [75] [43]
Number of frequency channels EU: 8-10 [81] [74]
Note: Different spreading factors equates to additional "virtual"
channels per frequency channel [74]
Number of spreading factors EU: 7 [74]
North America: 5 [74]
Peak data rate 0.3 to 50 kbps [74]
Payload length Variable [78]
51-222B [78]
Up to 250B [19]
Allowed number of messages per day Variable (depends on data rate)
Network topology Star [79]
Roaming There is no mechanism for cross network nomadicity (a device
cannot move between networks) [80].
However, operators of public networks may internetwork customer
data [80].
The upcoming LoRaWAN specification is claimed to support
nomadic roaming [80].
Handover Not needed (devices not tied to a single BS) [74]
Co-existence and resilience Potential co-existence issues with other UNB- and spread spectrum
networks [30]. The inherent noise like properties of spread spectrum
makes LoRaWAN resistant to jamming [19]. However, broadband
jamming, is likely an issue [83].
Adaptive data rate Yes [77] [79]
Bidirectional Yes [77]
Authentication & security AES-encrypted authentication [74]
AES encrypted payload [74]
OTA updates Yes [79]
SIM form factor No cards, eUICC or Soft-Sim equivalent. See Section 2.4.3
Localization Yes [19]
Nodes per BS Variable
20 000 - 60 000 (less than 1 message per hour / device) [82]
1000 (20 or 500 messages per day depending on data-rate, 10 byte
payload) [82]
10 000 [46]
Battery lifetime More than 10 years (battery and number of message is unspecified)
[93]
Typical current consumption (SX127X family)
Transmit: 28 mA at 13 dBm [87]
Receive: 10-11 mA [87]
Register retention: 100 nA [75]
supply voltage: 3.3 V [75]
2.4. LoRaWAN 39
Business model
The LoRa Alliance is an open, non-profit organization with the objective
of making LoRaWAN an open global standard for secure IoT LPWAN
connectivity [98]. LoRa, LoRaWAN, and the LoRa Alliance are exclusive
trademarks of Semtech Corporation [99]. The alliance defines the LoRaWAN
standard and ensures interoperability by a certification and compliance
program [100]. The LoRa Alliance claims that having an open standard is a
proven strategy for adoption and extensive deployments [100]. Furthermore,
Link Lab points out that companies who adopt LoRaWAN can add value to
the alliance as a whole and its members [47].
According to the LoRa Alliance, the main target applications for LPWANs
are those that require a long battery life to enable "fit and forget", disposable
end-devices, a low-cost sensor or end-device bill of materials (BOM). and
long range connectivity [100].
Reach
According to the LoRa Alliance, LoRaWAN has 34 publicly announced
operators and more than 250 on-going trials and city-wide deployments [98]
as illustrated in Figure 2.6.
Figure 2.6 does not convey the actual network coverage, but only shows
the countries where there are known deployments. Ongoing and completed
deployments are summarized in Table 2.8.
The companies that have joined the LoRa Alliance include technology
companies (such as IBM, Cisco, and HP), product oriented companies
(such as Bosch and Schneider), and telecommunication network operators
(such as Orange and Swisscom), as well as small/medium sized enterprises
(SMEs) and startups [111]. The ecosystem also benefits from a number
manufacturers and service providers, thus enabling a multi-source value
chain, i.e. providing a variety of modules, devices, base stations, network
servers, and application servers [111]. Actility, a LoRa Alliance sponsor
claims the following about LoRaWAN [104]:
It is the fastest growing tech ecosystem in the technology world with more than
400 members, including mobile network operators, base station suppliers, sensor
manufacturers and system integrators.
Commercial aspects
For a LoRaWAN operator, the overall cost of a LoRaWAN network will
depend on which commercial infrastructure is implemented and whether
or not one wants to provide services beyond simply providing connectivity.
The price of LoRa gateways was given in Section 2.4.3 as between 130-1750
e. Note that the 130 e version is just a PCB, and hence not ready to be
deployed in the field. Similarly, unless developed in-house, the cost of the
back-end will vary as it is offered as a service by many different companies.
000 Wirnet base stations [107], which are roughly around 1750 e (without
considering a volume discount). Meanwhile, ELSYS’s roll out in Umeå,
Sweden, required only five base stations according to Joannes Karlsson,
CTO, at cost of between 50 000 SEK (≈ US$5700) and 100 000 SEK (≈
US$11400) in total according to Jonas Rydberg at NyTeknik [102].
2.5.1 3GPP
The 3rd Generation Partnership Project (3GPP) describes itself as a
collaborative agreement between seven telecommunications standard
development organizations from different regions [114]. 3GPP describes
these tandard development organizations as having an officially recognized
status and the authority to define, publish, and set standards in a nation
or region [115]. Presently, 3GPP consists of the following partners: ETSI
(Europe), CCSA (China), ARIB (Japan), ATIS (US), TTA (Korea), TTC (Japan)
and, TSDSI (India) [115]. 3GPP writes that its purpose is to prepare, approve,
and maintain the following:
• "A 3rd Generation Mobile System based on the evolved GSM core network,
and the Universal Terrestrial Radio Access (UTRA)."
enhancing existing cellular standards [18]. 3GPP states that it takes the
recommendations of ITU into account (see Section 2.2), and that the result
of its work shall form the basis of member contributions to the ITU [115].
With respect to the technologies that comply with the IMT standards, 3GPP
refers to them in terms of cellular generations, i.e. 2G, 3G, 4G, and 5G, which
are typically identified by different milestones with regard to the RAN- and
Core network technologies [114].
The 3GPP releases of interest to this thesis are those that specify cellular
MTC or IoT technologies. According to Rohde & Schwarz, the initiative
to standardize cellular technology to support a large number of devices
(massive IoT) began with Network Improvements for Machine-Type
2.5. Cellular technology 45
In release 10, NIMTC was justified by 3GPP with the following statement:
"It appears that there is market potential for M2M beyond the current "premium
M2M market segment" [117]. Arguably, 3GPP refers here to IoT characterized
primarily by large volumes, as discussed in Chapter 1. According to
Rohde & Schwarz, release 12 included further machine type communications
enhancements(MTCe) and low-cost LTE (LC-LTE) [12]. Mainly, release 12
introduced a power saving mode (PSM) described in Section 2.6.6 suitable
for sensors. Release 13 and 14 specify all the cellular LPWANs, as will be
presented in Section 2.5.2, and thus embody the armament of the cellular
industry in the LPWAN war.
Besides modem cost, Hunn says that the often overlooked provisioning
cost is the second element of ascertaining the total deployment cost [6].
Hunn defines provisioning cost as including the cost of attaching the unit
to the network, maintenance, and the cost of billing it [6]. Hunn sets, as
of December 2015, the provisioning cost to US$50-1000, and claims that it
should be around US$2 in the IoT paradigm depicted in Figure 1.1.
2.6 EC-GSM-IoT
This section describes 2G improvements that EC-GSM-IoT entails.
2.6.3 Network
GSMA states that EC-GSM-IoT is based on EGPRS and that it reuses existing
GPRS core network functionality [22]. Ericsson explains that EC-GSM-IoT
48 Chapter 2. Background
is realized by mapping a new set of control and data channels over legacy
GSM [10]. Similarly, Reininger writes that the main features are new logical
channels designed for extended coverage [120].
2.6.6 Modules
This section describes EC-GSM-IoT modules and power saving mechanisms
supported by all of EC-GSM-IoT, eMTC, and NB-IoT.
GSMA emphasizes that a device can support both PSM and eDRX and
that it is up to the network to decide whether or not to allow both, none, or
only one of them [22]. Furthermore, as indicated by GSMA and Reininger
(3GPP), the implementation of PSM and eDRX differ slightly for EC-GSM,
eMTC, and NB-IoT, such as with respect to the maximum allowed eDRX
cycle [120] [22].
50 Chapter 2. Background
EC-GSM-IoT modules
GSMA points out that EC-GSM-IoT is realized by streamlining and
improving protocol layers to minimize device complexity and to facilitate
superior battery life [22]. Moreover, according to Reininger, EC-GSM
supports both PSM and eDRX [120]. According to GSMA, the maximum
eDRX cycle is 52 minutes [22]. An additional power saving modification
highlighted by Reininger is relaxed idle mode behavior, which is a reduction
in the degree of monitoring of neighboring cells [124] [120].
2.6.7 Roaming
GSMA writes that "Indeed, the very architecture of mobile technologies worldwide
also apply to cellular LPWA, allowing for seamless roaming of devices between
different network operators in different countries (or even within the same country
- national roaming)." [22]. Furthermore, GSMA states that the roaming
agreements used presently will be compatible with cellular LPWANs [22].
This should allow devices to roam between networks operated by different
operators.
Characteristic EC-GSM-IoT
Frequency Typical System bandwidth: 2.4 MHz [120]
GSM bands: [22] [43]
850-900 MHz
1800-1900 MHz
GSM and EDGE cover most of the world’s population (around 90%),
which is more than LTE and UMTS, as indicated by Ericsson [10]. However,
some MNOs have announced the decommissioning of their GSM networks,
as mentioned by Raza, Kulkarni, and Sooriyabandara [19].
2.7 LTE-IoT
Both eMTC and NB-IoT are collectively referred to as LTE-IoT according
to Qualcomm [126] and are both based on 4G. Hence, to avoid repetitive
text, eMTC and NB-IoT are both described in this section. 3GPP defines the
objectives of eMTC and NB-IoT as:
• eMTC
– Extended Coverage
– Prolonged battery life
– Low device cost (compared to GPRS/GSM devices)
– Variable data rates
• NB-IoT
– Extended Coverage
– Prolonged battery life
– Even lower device cost than eMTC
– Support for massive number of devices: at least 50 000 per cell
2.7.2 Modules
Before exploring LTE-IoT modules, the concept of 3GPP user equipment
categories (UE category) is introduced. UE categories specify device
requirements enforced by 3GPP standards (modulation schemes, radio
protocol, antennas, and so on) [129]. Hence, a given device must fulfill one
of the UE categories defined for the network in which it is operating. The
reason why 3GPP has defined multiple UE categories per network is that it
enables device differentiation [129].
The UE categories that 3GPP has defined as part of its IoT standardization
effort are shown in Table 2.10. Device category Cat M1 and Cat NB1
correspond to eMTC- and NB-IoT devices respectively [126].
As for EC-GSM-IoT, the aspired battery lifetime for eMTC and Nb-IoT is
ten years with a 5 Wh battery, depending on traffic and coverage, according
to Reininger (3GPP) [120]. Nokia writes that the most realistic scenario for
both eMTC and NB-IoT, assuming a daily update of 200 bytes and taking
into account leakage current and battery self-discharge, results in a battery
lifetime of 10 years [127].
At the time of writing, very few eMTC and NB-IoT modules are
commercially available. The modules that could be found are summarized
in Table 2.11.
2.7. LTE-IoT 55
Cat M1 NB NB1
Manufacturer NimbelInk Ublox Telit Quectel
Model NL-SW-LTE SARA-R404M NE866B1 [133] BC95 [134]
SVZM20-ES [132]
Data rate Unknown. Half-duplex uplink: Up to ≤ 100 kbps
uplink and 20 kbps (single [134]
downlink: tone)
375 kb/s [132] downlink: Up
to 250 kbps
[133]
Current, Supply voltage: Supply voltage: Supply voltage: Supply voltage:
supply 3.8 V. 3.8 V. 3.8 V. 3.8 V.
voltage or Rx & Tx PSM current: 9 µA. Output power: Output power:
power current: up to Idle Mode current: 23 dBm [133] 23 dBm.
500 mA [135] 9 mA. Sleep current:
Tx current (max 5 uA.
power): 125 mA Idle current:
[132] 6 mA [134]
SIM Form Micro Sim card (u)SIM interface 1.8 V SIM SIM/USIM
factor [135] (1.8 V / 3 V) [132] interface [133] interface [134]
Cost 1 unit: US$75. Unknown. 1 unit: US$35. Unknown.
500+ units: [137]
US$63.
1000+ units:
US$52. [136]
eMTC
As mentioned by Reininger, the sub-carrier spacing (the distance between
equivalent points on adjacent sub-carriers) for both the uplink and downlink
is 15 kHz [120]. Therefore, one sub-carrier is 15 kHz wide (narrow band).
Conventional LTE supports scalable carrier bandwidths ranging from 6 to
100 PRBs, corresponding to carrier bandwidths of 1.4 MHz to 20 MHz, as
explained by Qualcomm [126]. Qualcomm states that in eMTC, the CAT M1
device bandwidth is 1.4 MHz, which includes 6 PRBs (1.08 MHz) and guard
bands [126].
NB-IoT
Qualcomm state that the total bandwidth of NB-IoT has been reduced to 200
kHz [126].
2.7. LTE-IoT 57
Reininger (3GPP) and KeySight write that the MCL is 164 dB [120]
[43]. According to Ericsson, this constitutes a 20 dB improvement over
conventional LTE [10].
58 Chapter 2. Background
2.7.4 Network
This subsection gives a short recapitulation of LTE network theory. In LTE,
both the uplink and downlink are called physical signals. These physical
signals are realized by TDD (Time Division Duplex) and FDD (Frequency
Division Duplex). FDD divides the available bandwidth into several bands.
Similarly, TDD divides the "time" into several recurring timeslots that
are allocated to different signals. Hence, by using synchronized switches
managed by synchronization channels, at the transmitter and receiver,
a signal is either transmitted or received during a given time slot in an
alternating pattern. The management or mapping of these physical signals
onto the time-frequency lattice is accomplished by broadcast messages sent
by the base stations.
Cat NB1 (NB-IoT) does not support handover between cells according to
Sequans [139]. Furthermore, Sequans claims that Cat M1 (eMTC) does not
support handover between cells while in extended coverage enhancement
mode [139]. In short, Sequans writes that eMTC is needed for mobile use
cases [139]. Rhode & Schwarz explains that for NB-IoT, cell reselection is
only supported if the device is the idle state (see Figure 2.8) [140].
eMTC
Nokia writes that eMTC utilizes a simplified LTE design accomplished by
eliminating legacy LTE control links except for EPDCCH (Enhanced Physical
Downlink Control Channel) [127]. Similarly, Qualcomm writes that eMTC
introduces new control- and data channels while leveraging legacy LTE
synchronization signals [126].
NB-IoT
Qualcomm writes that a new set of NB-IoT synchronization, control, and
data channels were introduced to accommodate the narrower bandwidth
[126].
[126]. The main distinction between these modes is the available power;
in-band LTE and guard-band operation implies a higher degree of power
sharing with conventional LTE services.
In Table 2.11, one Cat M1 module explicitly states that a physical micro
SIM card is required. The other modules specify SIM interfaces which
indicate that the modules can interface with a physical SIM card or/and an
embedded SIM (eSIM/eUICC).
Multiple access Multi-subframe repetition/frequency hopping [131] uplink: SC-FDMA (multitone/single tone) [120]
method [138] downlink: OFDMA [120]
uplink: SC-FDMA [120]
downlink: OFDMA [120]
MAC Optimized LTE (Time slotted synchronous) (Section Optimized LTE (Time slotted synchronous) (Section
2.7.4) 2.7.4)
Overheard/Signaling LTE based signaling, 100-200 bytes overhead per LTE based signaling, 100-200 bytes overhead per
uplink message (Section 2.6.3) uplink message (Section 2.6.3)
Modulation uplink: QPSK, 16 QAM [43] uplink: BPSK, QPSK, 8PSK optional 16QAM [43]
downlink: QPSK, 16 QAM, 64 QAM [43] downlink: BPSK, QPSK, optional 16QAM [43]
eMTC
GSMA has established an LTE-M task force for the purpose of accelerating
the adoption of 3GPP eMTC [143]. It is comprised of operators (AT&T,
Verizon, TeliaSonera), manufacturers (Nokia, Huawei), and more [143].
GSMA claims that the cost of a LTE-M modem will be reduced by 20-25%
compared to current EGPRS modems [143]. The CEO of Sequans (a chipsets
manufacturer), Georges Karam, anticipates that they will sell their Cat M1
modules for less than US$ 10 each [146].
NB-IoT
Similarly to the LTE-M task force, GSMA has established an NB-IoT forum
aimed at promoting NB-IoT adaptation, comprised of major operators
(Tele2, Telit, T-Mobile), manufacturers (Ericsson, Huawei, Nokia), and more
[144].
GSMA
GSMA writes that the most important benefits of standardized cellular
LPWANs compared to unlicensed solutions are the support of a huge
ecosystem, standardization to ensure interoperability, a minimum level
of performance, and economies of scale [22]. Furthermore, GSMA claims
that the device simplicity and cost efficiency of cellular LPWANs are
comparable with unlicensed solutions [22]. GSMA further claims that
operators are better off with cellular LPWAN connectivity because of the
inherent limitations in unlicensed spectrum regarding scalability, capacity,
and regulatory constraints [22].
Table 2.13 describes the use case requirements of 24 use cases categories
that GSMA has deemed suitable for LPWAN connectivity [22]. Note that
GSMA specifies identical downlink requirements for all of the use cases
shown in Table 2.13 [22].
64 Chapter 2. Background
Ericsson
Ericsson claims that unlike licensed LPWANs, unlicensed LPWANs such
as SigFox and LoRa address solely the ultra-low-end sensor segment with
very limited demands on throughput, reliability, and QoS [10]. According to
Ericsson, the advantages of cellular LPWANs include global reach, a large
ecosystem, low total cost of ownership, scalability, diversity, and security
[10]. Concerning cost, Ericsson writes that the reduced complexity of Cat
NB1 modules will enable it to rival unlicensed LPWAN technologies [10].
Ericsson envisions six massive IoT use cases in their mobility report
of 2016 [20]. These are shown in Table 2.14. Ericsson calculated the total
cumulative capacity of the use cases sown in Table 2.14 as 20 kbps per km2 ,
corresponding to 6% of the total capacitive of a single NB-IoT carrier [20].
This reemphasizes that IoT traffic is not the main issue, rather it is the ability
to handle the increased amount of signaling, as discussed in Section 2.7.4.
Nokia
Nokia writes that while operators are reviewing their connectivity roadmap
and taking into account potential threats from new entrants, their view is
that LTE-M, NB-IoT, and EC-GSM are the superior solutions to meet the
connectivity profiles and requirements for IoT [127]. Nokia motivates this
by claiming that cellular LPWANs constitutes a simple software upgrade of
existing networks and provide optimized device key performance indicators
(KPIs), battery life, coverage, and cost [127]. Nokia also claims that all three
solutions exhibit a significantly lower total cost of ownership[127].
66 Chapter 2. Background
Huawei
Huawei recognizes that there are several candidate IoT technologies but
that NB-IoT is the most suitable regarding coverage, power consumption,
and price [147]. Moreover, Huawei claims that a LoRa module cost US$8, a
SigFox module US$ 9, and that the ideal price for NB-IoT is less than US$5
[147].
SigFox
SigFox writes that their connectivity can be implemented across all
industries such as utilities (water, electricity, and fuel metering), industry
(goods- and predictive management), automotive and fleet management,
retail, agriculture, smart cities, health, assisted living, and smart homes [148].
LoRa Alliance
In a white paper by Mobile Experts, sponsored by the LoRa Alliance, it is
claimed that MNOs have invested in unlicensed LPWAN connectivity as
insurance against future market uptake due to the late arrival of cellular
LPWANs [149]. Furthermore, Mobile Expert writes that cellular LPWANs
suffers from a cost disadvantage because 5-10% of the cost of a 2G/3G/4G
device constitutes a collection of royalty payments to different recipients
and that no single company can unilaterally change this to make 3GPP
technology more cost effective [149].
Mobile Experts states that SigFox, LoRaWAN, and others are competing
for different vertical markets such as street lighting and energy metering,
therefore the market will remain fragmented for some time [149]. Mobile
Experts expect that LoRaWAN will emerge with a solid grip on a few key
verticals with the help of operators (such as Orange, Swisscom, and SK
Telecom) and other companies (such as Cisco and IBM) [149].
• System integrators (SIs) can extend their support for different IoT
solutions by LPWANs. SIs could also deploy their own LPWAN to gain
more control of coverage, performance, and so on.
• Large industrial sites and campuses could benefit from monitoring and
actuator control through an LPWAN.
Chapter 3
Methodology
This chapter describes the methodology of this thesis, why it was chosen,
and its flaws.
The metrics of interest are those exhibiting the most variance across the
different networks. For example, if only network A ranks "high" on technical
metric X (say latency, range, or security), there are potentially a set of use
cases only possible with network A.
Chapter 4
Interviews
• And 5G?
“5G is not relevant to us, it’s too far away.”
4.2 Talkpool
Interview with Magnus Sparrholm, founder of TalkPool, conducted
2017-04-27.
closed and controlled. Meanwhile, LoRa is more open; anyone can set up a
gateway, anyone can do backend, network servers, and so on. LoRaWAN is
open source. Semtech just wants to sell chips, and they’re happy with that;
they have no need for controlling or managing the network itself."
“SigFox had a head lead on LoRa a couple of years ago. They had the chance to
take market segments, but they were quite strict in their way of doing things,
so they lost a bit of speed. In addition, I think that the lack of open source
in SigFox constituted a void that LoRa is now occupying. LoRa exhibits
more bandwidth for both the uplink and the downlink. SigFox is not ideal for
tracking moving objects such as a car or a bike, possibly due to the Doppler
Effect".
“TalkPool deploys and manages networks for its clients, but stops short
of assuming the network operator role. We’ve invested in development of
LoRaWAN end-devices and network back-end technology in order to offer
secure and customizable solutions."
• Vodafone says they will crush SigFox and LoRa once NB-IoT is
launched. What are your thoughts on cellular LPWA?
“Difficult to say, it’s still quite an early stage. I’d say that NB-IoT has
a different focus. Mobile operators can just upgrade their existing network
infrastructure via software to offer NB-IoT. But probably they are 2-3 years
away from having real solutions. I don’t think NB-IoT will affect SigFox and
LoRa that much during the next few years. So far, there’s no real demand for
IoT connectivity. We haven’t seen much of the anticipated LPWA volumes,
so SigFox and LoRa have had difficulty getting customers. It’s doubtful that
NB-IoT would change that and suddenly gain new customers, especially since
NB-IoT will be more expensive. NB-IoT is more or less a way for the cellular
74 Chapter 4. Interviews
industry to have a foot in the door and to be part of the LPWA bandwagon. I
see it as a temporary positioning strategy; real things won’t start happening
until in a couple of years when 5G is launched."
75
Chapter 5
All technical data along and sources were summarized in Table 2.3 for
SigFox, Table 2.7 for LoRaWAN, Table 2.9 for EC-GSM-IoT, and Table 2.12 for
eMTC and NB-IoT.
Besides link budget, there are other ways of enhancing the range. A
LoRaWAN gateway may be deployed outdoors, indoors, or underground to
ensure coverage, as pointed out by Schmidbauer (Section 2.8.2). The same
argument is true for SigFox, although the gateway must be deployed by
the regional SigFox operator. Cellular LPWA, which requires conventional
base stations, will piggyback on existing cellular base stations. However,
something similar could be achieved with a distributed antenna network,
although such additional measures are not included in the advertising of
cellular LPWA.
5.1.2 Security
Sections 2.3.2 and 2.4.3 noted that SigFox and LoRaWAN (respectively)
integrate symmetric encryption designed to support authentication and
prevent spoofing (masquerading) and replay attacks. They exhibit no
obvious security weaknesses.
78 Chapter 5. Analysis & Discussion
SigFox is likely to be the most resilient to jamming due to its UNB FHSS
scheme. SigFox claims that jamming signals have no effect. However, a
precise follow-on jammer can be difficult to mitigate (see Section 2.3.2).
• NB-IoT UL: 23 dBm Tx: 200 mW / (200 to 3.75) kHz = 0.001 mW / Hz to 0.053
mW / Hz
5.1.4 Network
This section compares the number of devices per gateway, number of
messages per device, and the uplink and downlink functionality.
to the alleged capabilities of each network. The true limitations will not
come to light until the networks are put under strain in real deployments.
Accepting our inability to unravel the true limitations of each network in
terms of message per day per device, we proceed to compare the number of
nodes per base station based on the alleged maximum number of nodes per
gateway.
3GPP specifies at least 50 000 nodes per cell for NB-IoT and EC-GSM-IoT
but without giving any indication of how talkative they assume the
devices are. Moreover, no figure could be found for eMTC, although it
is probably comparable. The benefit of a coordinated approach is that
it reduces the number of collisions and enables mechanisms to ensure
performance and reliability (QoS) that in turn allows a higher degree of
service-level agreement. The lack of QoS in unlicensed LPWA is pointed out
as a disadvantage by the cellular industry (See section 2.8.1 for example).
However, the potential downside with a coordinated approach is that it
requires signaling: every transmission in LTE-IoT requires additional control
transmissions, therefore the network is susceptible to congestion. As stated
by Qualcomm (see Section 2.7.4), the bottleneck in cellular LPWA is the
ability to handle this increased signaling. Similarly, Ericsson claimed that
only 500 aggressive devices could cause a network signaling storm (see
Section 2.7.4). As such, whether or not 50 000 nodes per cell will be achieved
in practice remains to be seen.
Functionality
A SigFox device can request a downlink acknowledgment after an uplink
transmission (Section 2.3.2). However, SigFox offers only four downlink
messages per day per device. The downlink functionality of a LoRaWAN
Class A device works in the same fashion. However, class B devices, have
in addition to Class A device functionality, the ability to schedule receive
windows using a beacon (which requires some energy consumption by the
device to listen for the beacon). Finally, a LoRaWAN class C device has a
nearly continuously open receive window (however, this requires that the
device has no energy constraints). In cellular LPWA, downlink availability
will be determined by the allocation of network resources. Hence, a cellular
LPWA device can receive at any given time, provided it is allotted the
required network resources and is powered up and receiving at the time.
82 Chapter 5. Analysis & Discussion
Brian Ray at Link Labs claims that LoRaWAN gateways are unsuitable for
downlink applications because they might transmit while there are incoming
uplink messages that would be lost if the gateway is not listening [153].
However, LoRaWAN class B devices are capable of downlink scheduling,
and the LoRaWAN front end (SX1257, Section 2.4.3) supports both half-
and full-duplex operation[154]. Ray’s observation is more valid for SigFox
because it does not support full duplex operation, as mentioned by Ryan
Derouin, Developer Relations at Sigfox [155]. Another remark by Ray is
that the permissible TOA will be depleted by acknowledgments and "MAC
control", thereby leaving no resources left for FOTA [153].
LPWA because SigFox and LoRaWAN class A devices (the most common
class) can not receive downlink communication until an uplink message
has been sent. The downlink latency of LoRaWAN class B- and C devices
are comparable to cellular LPWA (see Section 2.4.3). Uplink latency could
not be found for EC-GSM-IoT. Nevertheless, since EC-GSM-IoT is allegedly
backward compatible with existing M2M EGPRS (see Section 2.6.6) and
because no latency enhancements have been found, one can assume that the
uplink latency is similar to the latency of existing 2G M2M. According to
Beth Princip at Telecom Engine, the latency of existing 2G M2M is one or two
seconds [157]. For LoRaWAN, the uplink latency will depend on the data
rate, which is a bit lower than EC-GSM-IoT. SigFox probably has an uplink
latency comparable to NB-IoT’s because its TOA is around 3-6 seconds.
Except for the results by Ratasuk et al. presented in Table 5.1, we only
have a set of vendor claims regarding battery lifetimes with undisclosed
or different assumptions. A real comparison will be impossible unless the
battery lifetime is calculated using identical assumptions. Hence below,
SigFox is simulated with the same basic assumptions as for the results
shown in Table 5.1. LoRaWAN, eMTC, or EC-GSM-IoT were not simulated
because necessary parameters (such as TOA) could not be found. Moreover,
these different types of devices have variable data rates and signaling which
in turn complicates the model. In contrast, SigFox has a constant data rate
with a TOA of 6 seconds according to SigFox [48]. Furthermore, because
of SigFox’s simplicity, the TOA is all we need to attempting to model the
lifetime of a SigFox device.
Comparing Figure 5.2 and Table 5.1 shows that SigFox achieves a
longer lifetime than NB-IoT regardless of taking into account battery
self-discharge or not when transmitting 12 messages per day. Furthermore,
86 Chapter 5. Analysis & Discussion
when transmitting one message per day, SigFox achieves a longer lifetime
than NB-IoT when NB-IoT transmits with a 200 byte payload, but not
for a 50 byte payload. It should be emphasized that Ratasuk et al. did
not specify the data rate or whether their results are based on an ideal or
non-ideal power source. However, their results are not linear in the sense
that transmitting one message per day instead of 12 results in 12 times
longer lifetime, which indicates that some non-linear degradation was
accounted for. Moreover, when transmitting one or two messages per day,
the unrealistically longer lifetime of a SigFox device powered by an ideal
source suggests that Ratasuk et al. modeled a non-ideal battery. Combining
the results displayed in Figure 5.2 and Table 5.1 with the uncertainty in
differences in the underlying assumptions of the models, such as battery
degradation, it is likely that SigFox has a slightly longer lifetime than NB-IoT.
All cellular LPWANs support PSM and eDX and have a target life length
of ten years with a 5 Wh battery. However, eMTC probably has a slightly
shorter lifetime than NB-IoT because its modules are more complex (see
Table 2.11) and because it has a shorter maximum eDRX cycle (44 minutes
compared to NB-IoT’s 175 minutes, Section 2.7.2). EC-GSM-IoT has an
eDRX cycle of 52 minutes, however, it constitute a very small or nonexistent
reduction in complexity (see Section 2.6.9) compared to LTE-IoT. Therefore,
EC-GSM-ioT is likely to have a slightly shorter battery lifetime than LTE-IoT.
taking on the role of both operator and equipment vendor. The advantage
of a fully defined proprietary network is that it is guaranteed to offer the
same functionality and service worldwide. The downside of a centrally
governed network is that it leaves the regional operators with little control
of the network or provided services.
(as explained in Section 2.3.2. Hence, the cost of the radio module may
significantly influence adoption and overall success of the network.
5.2.3 Regulation
Unlike unlicensed LPWA which is restricted by regulation within the given
band of operation, cellular LPWA operates in licensed spectrum and is
therefore less susceptible to regulatory "disruption". Fundamentally, a
risk for cellular LPWA (and the 3GPP ecoystem in general) is that more
bandwidth is made license free. Likewise, a risk for unlicensed LPWA
technology is that more bandwidth is licensed.
Not all regulatory change is negative. For example, the regulating body
of South Korea proposed to increase the maximum allowed transmitting
power from 10 mW to 200 mW in the 900 MHz band [162]. As for changes
that could prove damaging, ECC (see Section 2.2) might decide to decrease
the maximum allowed duty cycle to counterbalance the increasing number
of transmitting devices.
90 Chapter 5. Analysis & Discussion
The subscription cost for cellular LPWA could not be found. Existing
cellular M2M data-subscriptions over conventional 2G/3G/4G cost
significantly more than SigFox and LoRaWAN. In Sweden, according to the
retailer m2mbutiken, Telia’s cheapest subscription has a monthly fee of 35
SEK (US$4) and an installation fee of 100 SEK (US$11.45) [164]. Ignoring the
subscription fee, the cheapest option of existing cellular M2M costs US$48
per year per device. Hence, the cellular industry will have to lower their
prices significantly to compete with unlicensed LPWA.
According to IoT Sweden (see Section 4.1), a SigFox base station costs
US$6 879 (60 000 SEK) and covering the whole of Sweden requires 400 base
stations (costing US$2.75 million in total). Bob Emmerson at No Jitter (a
website of the UBM Technology Group) claims that a SigFox network is
about 100 times cheaper than an equivalent GSM/CDMA network and that
nationwide SigFox coverage in France required 1 000 base stations costing
in total US$4 million (See section 2.3.3). A popular LoRaWAN gateway, the
Kerlink Wirnet station, costs US$1 900 (1750 e). A LoRawan nationwide
network in India covering 400 million people will require more than 10 000
Kerlink Wirnet gateways [165].
5.2. Non-technical comparison 91
5.3 Discussion
’
The results from the technical comparison (Figure 5.3) and the
non-technical comparison (Table 5.2.6) and their significance for different
use cases are discussed in Sections 5.3.1 and 5.3.2 respectively. A discussion
of the future telecommunication landscape is conducted in Section 5.3.3.
Uses cases included in the first group are those that place great weight on
the technical characteristics exhibiting the most variance in Figure 5.3. These
are data rate, downlink functionality, uplink latency, maximum payload
size, and the maximum number of messages per device.
Starting with the data rate, a typical LPWAN use case does not use
more than 100 bytes per message. Therefore, the need for a high data-rate
is non-existent in and of itself (i.e. unless it serves to reduce power
consumption, comply with regulations, enhance multiple-access, etc.) .
Regarding the maximum number of messages per device, only one of the
24 use cases presented by GSMA exceeds SigFox’s limit of 140 per device
per day. The Remaining LPWANs are not affected because they can allocate
network resources or increase the data rate to provide a greater number of
messages per day per device. Hence, data payload size, uplink latency, and
downlink functionality are the three most important aspects in determining
whether or not a use case is technologically possible with a specific LPWAN.
The second group are use cases are supported by all networks but with
varying functionality. For these, a developer could benefit from increased
functionality by using cellular LPWANs at the expense of a more expensive
product (and probably a higher data cost). Hence, it is not necessarily a
question of whether or not a network fulfills the requirements of a particular
use case, but rather how flexible these requirements and the budget are.
Continuing with the second group of use cases, the choice of network
will be determined by non-technical aspects explored in Section 5.3.2 and
a cost versus functionality trade-off. In general, a developer will arguably
strive to minimize cost, which would make unlicensed LPWANs the desired
preferred choice assuming the technical requirements are not too high.
The reach of licensed LPWANs is still in its infancy and is therefore yet
5.3. Discussion 95
QoS will enable cellular LPWANs to prioritize one use case over another
when network resources are scarce. Blue light services, critical actuators
and meters are examples of use cases that would benefit from this ability.
However, as discussed in Section 5.1.4, implementing QoS for massive IoT
can cause congestion and unpredictable user behavior (as conventional
mobile services operate on the same network) may affect the devices’
performance.
Regarding cost, the data cost is extremely small for unlicensed LPWANs
compared to existing M2M, and cellular LPWAN connectivity is initially
unlikely to be as inexpensive (at least initially). Hence, use cases requiring
large scale collections of huge amounts of data in the aggregate are at the
moment better suited to SigFox or LoRaWAN
With regard to MNOs’ strategy, larger MNOs may be able to kill the
competition introduced by unlicensed LPWAN connectivity by bundling
or even offering cellular LPWAN connectivity for free (at least initially).
However, given its potential, unlicensed LPWANs are a low cost investment
for an MNO and many other actors. Indeed, compared with the total
investment in cellular infrastructure (and that of 5G), the required CAPEX
for unlicensed LPWAN connectivity is negligible and not necessarily
more expensive than integrating cellular LPWANs. In short, an MNO’s
options include deploying a nationwide unlicensed LPWAN connectivity,
collaboration with existing unlicensed LPWAN actors, or acquiring
proprietary unlicensed LPWAN technology. However, the opportunities
for these types of commitments are diminishing because new entrants
are taking advantage of them. For instance, many countries, especially in
Europe, already have a certified SigFox operator and many countries are
already seeing nationwide LoRaWAN roll-outs.
97
Chapter 6
The conclusions of this thesis are presented in Section 6.1, the ethical and
sustainability issues are reflected upon in Section ??, and a discussion about
future work is presented in Section 6.3.
6.1 Conclusion
The results shown in the previous chapters are that unlicensed and licensed
LPWANs are generally speaking technically comparable. The exceptions are
downlink functionality and uplink latency which LoRaWAN might have
some issues with and undoubtedly these aspects render some LPWAN use
cases out of reach for SigFox (for instance: critical metering, actuators, and
proximity warning systems). The same limitations also arise due to SigFox’s
limited payload size.
The results indicate that all of the different types of explored LPWANs
support applications without strict downlink, payload size, and latency
requirements. For use cases without these specific demands (typically
sensors, meters, tracking, etc.), it is not a question of whether or not a
network fulfills the requirements, but rather how flexible the requirements
are. As a result the choice of network will be determined by non-technical
aspects and a cost versus functionality trade-off where unlicensed LPWAN
is typically cheaper. Hence, both categories of LPWANs offer a unique value
proposition; therefore, they can be considered complementary. This notion
is reinforced when looking at non-technical aspects such as ecosystem,
regulation, network ownership and control, and network coordination,
which differ quite significantly. Furthermore, unlicensed LPWANs are likely
to be the vanguard of a new type of competitor offering the core service of
connectivity. For instance, a factory could choose an "out of the box" solution
with SigFox or cellular LPWAN connectivity, or deploy a local LoRaWAN
network and benefit from full control, independence, and no data cost.
It is furthermore concluded that unlicensed LPWANs are likely to be the
vanguard of a new type of competitor within the core service of connectivity
operating in unlicensed spectrum.
98 Chapter 6. Conclusions and Future work
Another potential issue alludes to the fact that the economy is partly
based on that our knowledge about the world is limited, which in turns
makes our predictions about the future uncertain. By increasingly making
more information available, the economy itself may change drastically,
which in turn may be to a disadvantage for different groups of individuals.
For instance, an insurance is bought to secure oneself against an unwanted
outcome. However, as the available information increases, the insurance
eventually becomes either very expensive or very cheap. There is a risk
that this could indirectly single out different individuals. That is, some
individuals might have to pay a very large cost for their insurance. For
instance, individuals living in an environment of highly polluted air, with
a specific medical condition, or just with certain personal habits deemed
perilous by the insurance company.
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