Current R&D activities using spectrum—Australia was a world leader with Wi-Fi, where to next?
Taggle Systems
CONFIDENTIAL
The Challenge: Develop a solution to track cattle cost effectively
A Real Radio Design Challenge Ultra small device
Ear tag <20g weight including
battery
3 year + in-field life 2 – 4 tx per hour Small data packet Robust design
Low cost network 5 – 10 km range Low cost receivers Receiver capacity
>10,000 tags
CONFIDENTIAL
The Approach: Assemble a leading team of radio and chip innovators
Thomas DejanovicGordon Foyster
Matthew HendersonRichard KeaneyJohn O’Sullivan
Neil Weste
CONFIDENTIAL
The Technology Innovation: Build a technology to network large areas of farmland (‘000s km2) at ultra low cost
Battery life ^(1/2 AA cell)
Network Coverage(Range per receiver/base station)
Taggle
WiFiZigbee
RFID(No Battery)
2G, 3G, LTE
>3 Years
^ 15min transmissions
<1 Year
<5m >5km
One Slight Problem:
Cattle not currently commercialMost cattle farmers don’t want to pay anything to track their cattle
CONFIDENTIAL
The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market
In-field device life^
High (>10 Years)
Low(<1 Year)
Economic Network Range
RFID
Wi-Fi and “Zigbee”
Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining
• People location
^ Self powered, small form factor, robust design
W’House Inventory mgt
Shop stock control
Basic supply chain choke points
Hospitals Large plants
(Car plants)Office block
automationHome area
automation
m2 < 5 Km2 > 500 Km2
M2M DATA CAPTURE TECHNOLOGIES
Existing technologies struggled to deliver low cost wide area
solutions viably
CONFIDENTIAL
The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market
In-field device life^
High (>10 Years)
Low(<1 Year)
Economic Network Range
RFID
Wi-Fi and “Zigbee”
Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining
• People location
^ Self powered, small form factor, robust design
W’House Inventory mgt
Shop stock control
Basic supply chain choke points
Hospitals Large plants
(Car plants)Office block
automationHome area
automation
m2 < 5 Km2 > 500 Km2
M2M DATA CAPTURE TECHNOLOGIES
New Commercial Target:
Devices: Price <<$100 Battery life >10 years (AA cell) Hourly transmissions, 15 Bytes of data
Network Charge: Revenue per Unit <$10 pa
CONFIDENTIAL
The Business Innovation: LPWA Networks like Taggle will deliver the “missing link” in data collection for the Internet of Things
In-field device life^
High (>10 Years)
Low(<1 Year)
Economic Network Range
RFID
Wi-Fi and “Zigbee”
Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining
• People location
^ Self powered, small form factor, robust design
W’House Inventory mgt
Shop stock control
Basic supply chain choke points
Hospitals Large plants
(Car plants)Office block
automationHome area
automation
m2 < 5 Km2 > 500 Km2
Low Power Wide Area (LPWA) Networks
M2M DATA CAPTURE TECHNOLOGIES
Taggle is the first solution in
this space in Australia
Utilities monitoring•Water and sewer network monitoring >>15m devices•Gas monitoring >>6 million devices•Other Utility– electricity network monitoring, street lights etc• Environmental Monitoring
Rural Monitoring/Agribusiness•Crop and pasture monitoring•Asset tracking• Farm security
CONFIDENTIAL
The Business Innovation: LPWA networks can unlock significant new markets/value
In-field device life^
High (>10 Years)
Low(<1 Year)
Economic Network Range
RFID
Wi-Fi and “Zigbee”
Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining
• People location
^ Self powered, small form factor, robust design
W’House Inventory mgt
Shop stock control
Basic supply chain choke points
Hospitals Large plants
(Car plants)Office block
automationHome area
automation
m2 < 5 Km2 > 500 Km2
M2M DATA CAPTURE TECHNOLOGIES
The LPWA market in Australia has the potential to be at least
$400m pa within 5 years
CONFIDENTIAL
Roll out at Mackay Regional Council has highlighted the potential benefits of LPWA networks to the water industry
Installation >30,000 devices 22 receivers, >1,000 km2
>750,000 readings per day
Business Case – NPV $20m and counting– $100m plant deferred by 8 – 10 years– >4,000 leaks detected in 12 months– 10 – 30% historical over-design of assets
– And a range of additional benefits are emerging
Unexpected Benefits:Staff member burgled, 5 minute tag amongst belongings, thief tracked by Taggle network….
MACKAY LPWA NETWORK
10CONFIDENTIAL
In the last 18 months Taggle has installed 20 commercial LPWA networks, and over 50,000 devices across Australia
Water Utility Clients include: Mackay Regional Council Goldenfields County Council Yarra Valley Water Wide Bay Water NT Power and Water Barwon Water Dept of Natural Resource
Management (QLD) Isaac Regional Council Townsville City Council Armidale and Dumaresq
Council Port Macquarie and Hastings
Council
TAGGLE NETWORK SITES
Monitoring: Over 50,000 km2 of network coverage with 112 operational receivers >1.2 million water meter readings per day Now monitoring water, gas, and electricity meters, water pressure, sewer overflow,
temperature, humidity, gate alerts, electric fences, water troughs and animal tracking
CONFIDENTIAL
Internationally we are seeing other major players starting to follow suit
CONFIDENTIAL
LPWA networks are much more spectrum efficient than traditional mesh solutions
Network Topology Comparison Taggle Mesh Solution
TX Power per device (mW) 25 1000
CONFIDENTIAL
LPWA networks are much more spectrum efficient than traditional mesh solutions
Network Topology Comparison Taggle Mesh Solution
TX Power per device (mW) 25 1000Duty Cycle (%)^ 0.008 0.3TX power per hour (mWh) 7.5 10800
900 905 910 915 920 925 930 935 940 (160.00)
(140.00)
(120.00)
(100.00)
(80.00)
(60.00)
(40.00)
(20.00)
-
Taggle Suburb
Taggle + Mesh Suburb
Frequency (MHz)
Pow
er (d
Bm)
Power in LIPD Band 60.3dBm LIPD Spectrum
Power in LIPD Band 90.6dBm
^ Taggle duty cycle in all commercial networksMesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011.
CONFIDENTIAL
“Free spectrum” can easily lead to the poor spectrum utilitsation – “The Tragedy of the Commons”
Network Topology Comparison Taggle Mesh Solution
TX Power per device (mW) 25 1000Duty Cycle (%)^ 0.008 0.3TX power per hour (mWh) 7.5 10800
900 905 910 915 920 925 930 935 940 (160.00)
(140.00)
(120.00)
(100.00)
(80.00)
(60.00)
(40.00)
(20.00)
-
Taggle Suburb
Taggle + Mesh Suburb
Frequency (MHz)
Pow
er (d
Bm)
This is truly “high cost” spectrum
^ Taggle duty cycle in all commercial networksMesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011.
CONFIDENTIAL
Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry?
Mobile LPWA
Installed Base Station > $150,000 < $15,000
MOBILE LPWA ECONOMIC COMPARISON
CONFIDENTIAL
Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry?
Mobile LPWA
Installed Base Station > $150,000 < $15,000
Device Price > $250 << $100
Device Life 2 – 4 Years > 10 Years
MOBILE LPWA ECONOMIC COMPARISON
CONFIDENTIAL
Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry?
MOBILE DATA LPWA
Installed Base Station > $150,000 < $15,000
Device Price > $250 << $100
Device Life 2 – 4 Years > 10 Years
Network Access Cost (RPU)
>> $5 per Month ~50c per month
ECONOMIC COMPARISON: MOBILE DATA VS LPWA
What are the foundations of a successful LPWA business model?
CONFIDENTIAL
Building an LPWA business requires two pillars need to be in place – Availability of suitable LPWA technologies
Spectrum efficient LPWA Solutions
Global development is seeing competitive options emerge rapidly
Standards are likely to take several years
CONFIDENTIAL
And cost effective network sites
Low Cost Physical Network Sites
Resolved by:Utility site sharingPartnerships with
Telco’sFurther regulation
Spectrum Efficient LPWA Solutions
Global development is seeing competitive options emerge rapidly
Standards are likely to take several years
CONFIDENTIAL
Radio
The keystone to a stable, profitable LPWA industry is access to robust and cost effective spectrum
Robust, Cost Effective
Spectrum
1. Spectrum AllocationProvision of 5 – 10 MHz of dedicated LPWA spectrum
2. Spectrum FrameworkSet the spectrum utilisation rules and license fees to allow a competitive LPWA industry to take off
Sites
CONFIDENTIAL
The Challenge: LPWA networks will unlock a new multi billion dollar industry in Australia – if we get it right
This
Encourage Competition: Provide shared spectrum that remains
robust with increased competition – e.g. Message duty cycle and energy limits
Encourage Innovation: Specify the spectrum efficiency
requirements for technologies to meet
Recognise Value of Spectrum: Develop a license fee structure that
reflects the realities of LPWA economics
Not This
Provide shared spectrum that can be hijacked by unforseen uses – The Tragedy of the Commons
Specify requirements according to existing technology types (modulation schemes etc)
Allow vendors to get use of spectrum for free – inefficient spectrum utilisation
CONFIDENTIAL
Summary: ACMA is well positioned to influence the development of the LPWA industry in Australia
Situation:LPWA networks have the potential to deliver significant new value to the economy
Commercial – e.g. Utility capital optimisation Public good – e.g. Scarce resource management
Complication:New business and operating models need to develop to support the growth of the industry
New models (e.g. “Low Cost Carrier”) need to be explored Steps need to be take to avoid a repeat of the “Tragedy of the Commons”
Resolution:The keystone to success is robust, cost effective spectrum that:
Creates an environment that encourages competition Minimises the risk of the “Tragedy of the Commons” Recognises the value of the spectrum utilised
Thank You