ARE NETWORKS PREPARED TO WITHSTAND THE “INTERNET OF
THINGS PARADIGM”, AIMING TO CONNECT BY 2020 50 BILLON
DEVICES? PIERRE YVES PLAZA TRON
MAY2016; WARSAW
COST ACROSS INDUSTRY DAY
THE FUTURE INTERNET NOW
HAS TO BE ADAPTED IN ORDER TO ACCOMMODATE FOR IOT:
-PERSONAL COMMUNICATIONS -MEDIA COMMUNICATIONS -THINGS COMMS: SENSORS-ACTUATORS-GATEWAYS
IOT PERFORMANCE AND RELIABILITY CHALLENGES
• IOT DEVICE COMMUNICATIONS: THEY DIFFER CONSIDERABLY IN COMPARISON TO MOBILE PHONES COMMUNICATION:
REGISTRATION PHASE, NOT INTENSIVE DATA COMMUNICATIONS AND WITH A GOOD MIX OF ASYNCHRONOUS AND
SYNCHRONOUS NODE BEHAVIORS
• IN LPWA: 200B /HOUR OR /DAY- LATENCY 1-8 SEC.
• MAIN REQUIREMENTS:
• BATTERY LIFETIME CONSIDERABLY IMPROVED (+10Y)
• COSTS HAVE TO BE DECREASED FOR THE CHIPS/MODEMS(<5$)
• COVERAGE PER CELL TO ACCOMMODATE FOR FAR MORE DEVICE COMMUNICATIONS (>50K PER CELL) AND YET PROVIDE FOR
EXAMPLE DEEP COVERAGE (+20 DB)
• SECURITY UP TO THE SAME LEVEL AS FOR 3G COMMUNICATIONS (EMBEDDED SIM)
• IOT SPECIFICS HAVE TO BE DEALT WITH WITH NEW STANDARDS IN CELLULAR COMMUNICATIONS: NEW PROPRIETARY
SOLUTIONS SURGED (SIGFOX, LORA,…: NORMALLY USING UNLICENSED FREQUENCY BANDS)
• BUT NOW 3GPP HAS COME WITH CELLULAR COUNTERPARTS: NB_IOT, EC_GSMA_IOT AND LTE MTC (THIS YEAR STANDARDS TO
BE FINALIZED AND FIRST IMPLEMENTATIONS)
IOT IS MUCH MORE THAN TODAY MOBILE NETWORKS' SCOPE
Massive IOT segment is an untapped opportunity for Mobile Operators
<1Mbps Lower Cost
3GPP R12 LC MTC /GSM/UMTS 2
Telematics, Smart Home,
M2M Backhaul …
3GPP GERAN Cellular IoT
UNB – Sigfox LoRa – Semtech Weightless - Neul
3 <100kbps
Lowest Power
Lowest Cost
Sensors, Meters,
Tracking, Logistics
…
1 3GPP R9+ LTE/UMTS
>10Mbps CCTV, m-Health,
Smart City, Electronic
billboards …
• THE TOTAL ADDRESSABLE MARKET FOR
LPWA SERVICES MAY BE CLOSE TO 14
BILLION DEVICES BY 2023
• BY 2023 LPWA CAN GENERATE MORE
THAN USD10 BILLION GLOBALLY IN
CONNECTIVITY REVENUES ALONE FOR THE
FORECASTED 3.1BN LPWA CONNECTIONS
OF 2023.
LPWA, A SIZEABLE M2M/IOT CONNECTION MARKET
Source – Analysys Mason
And, according to Machina Research, it could
be even bigger!!!
THE CELLULAR IOT & LTE TECHNOLOGIES
SIG
FO
X
&
LOR
A
NB_IOT and CATM deployed over the LTE infrastructure NB_IOT and LTE_CATM are both deployed over the existing LTE
infrastructure
WHAT IS THE STANDPOINT RIGHT NOW
• GOOD TECHNOLOGICAL PERSPECTIVE AS FOR THE ACCESS
CELLULAR NETWORK SUPPORT
• RE-USING NETWORK INFRASTRUCTURE BASE STATIONS EQUIPMENT
• SW UPGRADES
• IOT/LPWA COMMUNICATIONS SUPPORTED BY AN UPGRADED M2M
INFRASTRUCTURE THAT WILL RUN IN PARALLEL AND MEETS ON THE
INTERNET
IOT RELIABILITY AND PERFORMANCE ELEMENTS
Device A Device C Device B
Secure Connectivity
Device Management Services
Application & Configuration Management
Big Data and System Integration
Work
flow
Rep
ort
ing, Bill
ing
and
Contr
ol
E2E Security including
Authentication & Data transport
Standardized device protocols,
not based in silos
Virtual networks management
Data collection and access APIs
Upgraded cloud infrastructures
Privacy- Data analytics – use of
the data
Device Lifecycle
1 2 3 4 5 De
vice
Lifecy
cle
Commissioning Retrieval Service Operation Manufacturing/
Acquisition Installation
Device is received and configured
Physical installation into machine
Service is Started Device is recovered/ Service is terminated Operational Support
Building in device management services supports a more robust,
reliable and flexible service
As of today based on proprietary elements, protocols in a lot of cases
Device Management
Monitoring of Alarms
Remote Diagnostic tools
Remote Error fixing tools
Fraud prevention
Device Auto Configuration
Inventory Update
SW/FW/Settings update
Automatic DeviceLine link
Secure and reliable. Multi device vendor
Flexible device and ERP integration
And much more…
Scalable
THE OVERALL PICTURE
11
• Internet users >3000 m (43%
global / 78% in developed
World)
• Mobility. Broadband mobile
>2800m (expected 90%
mobile connected in 2020)
• Big Data: 2,5 trillion bytes
/day (90% of data: last 2
years) -> Open data
• Cloud: flexibility & seamless
access
A sensor can be
anything
Towards everything in the
Cloud
Hyper-connected &
Shared Society
The big data era
* SMAC (social, mobile, analytics and cloud)
Image Source: Smart Cities. La transformación digital de las ciudades.
PwC & IE Business School en colaboración con Telefónica
Digital technologies
driving innovation
12
An open ecosystem offers advantages and benefits in terms of innovation,
cost saving and coopetition
Service & Domain
Providers:
innovation, cost
savings, data@work
Platform
Providers and
Solution
Integrators:
ability to “co-
opete”
(cooperate and
compete)
Application Providers:
visibility,
connection to
target customers,
acceleration
opportunities,
facilities for
experimentation
Commercial
Partnerships
Connect to
Entrepreneurs
Avoid risk of
lock-in
City
Governments
Connected Car
Developers
City Service
Providers (data)
Everyone:
creation of jobs,
larger market
opportunities,
global
scalability
Telecom providers:
System integrators
Independent
developers
Innovative Apps
3.1 Platform & Ecosystem
FUTURE IOT PLATFORMS
13
PLA
TFO
RM
A
PPS
Platform 1
Open+ Standard API
Platform 2
Open+ Standard API
Vertical X Vertical Y
Vend
or A
Vend
or B
Vend
or C
Vend
or A
Vend
or B
Vend
or C
Standard API
Open Platform <> Open ecosystem
Dynamic open ecosystem, with external actors, via public interfaces (APIs)
• Interoperability by default
• Portability of applications between verticals: scale
• APIs help software creation and use of data
• Easy integration and interoperability through APIs
• Opensource: Community & avoiding lock in
ECO
SYSTE
M
THE NEXT IOE REVOLUTION FOR NETWORK OPERATORS: MERGE OF B2B & B2C
B2B Devices B2C Devices
Secure Connectivity
Device Management Services
Application & Configuration Management
Big Data and System Integration
Work
flow
Rep
ort
ing, Bill
ing
and
Contr
ol B2B
Framework:
User/Devices/contract
management
User A User B User C
B2C
Fra
mew
ork
HOW TO PRESERVE PERFORMANCE
Fixed
Network
Access
Broadband
& Voice
Cellular
IOT
Cellular
GA
TEW
AYS
LPWA
Cellular
INTERNET CORE
VERTICAL SERVICES
B2B
BIGDATA &
ANALYTICS
VERTICAL SERVICES
B2C
APPLIC
ATIO
NS FR
AM
EW
ORK
& A
CC
ECSS
Virtual
Network A
Virtual
Network X
NOT EVERYTHING IS ABOUT TECHNOLOGY…
• SUSTAINABLE BUSINESS MODELS:
• LPWA- VERY LOW ARPU- BUT SCALE GROWS AND NETWORKS WILL BE
READY TO WITHSTAND THE CONNECTIVITY
• HOW TO MONETIZE DATA IN ORDER TO IMPROVE NETWORKS IN GENERAL
AND BIG DATA OUTREACH AND DATA ACCESS PRESERVING PRIVACY
• MERGING OFFERS IN B2B AND B2C- NEW IOT/IOE PLATFORMS
CONCLUSIONS
• THE FUTURE INTERNET WILL COMPOSED OF INTERCONNECTED SUB-INTERNETS
• DATA WILL HAVE TO BE MADE AVAILABLE AT ALL DIFFERENT LAYERS
PRESERVING SECURITY AND PRIVACY
• PERFORMANCE AND RELIABILITY CAN BE MAINTAINED AND CLEAR STRATEGIES
ARE BEING DEVELOPED: DIFFERENTIATED ACCESS NETWORKS, DEVICE
MANAGEMENT AND DATA ACCESS, CLOUD INFRASTRUCTURE, OPEN APIS,
STANDARD PROTOCOLS….
• NEXT REVOLUTION: B2B AND B2C MERGE
• NEW SUSTAINABLE BUSINESS MODELS FOR THE IOE PARDIGM