NB-IOT Huawei PDF
NB-IOT Huawei PDF
NB-IOT Huawei PDF
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Executive Summary
The LPWA market has existed for about 10 years; its not a new thing. The current technologies
(solutions) supporting this market are fragmented and non-standardized, therefore there are
shortcomings like poor reliability, poor security, high operational and maintenance costs.
Furthermore, the new overlay network deployment is complex.
NB-IOT overcomes the above defects, with all the advantages like wide area ubiquitous coverage, fast
upgrade of existing network, low-power consumption guaranteeing 10 year battery life, high coupling,
low cost terminal, plug and play, high reliability and high carrier-class network security, unified
business platform management. Initial network investment may be quite substantial and superimposed
costs are very little. NB-IOT perfectly matches LPWA market requirements, enabling operators to
enter this new field.
NB-IOT enables operators to operate traditional businesses such as Smart Metering, Tracking, by
virtue of ultra-low-cost ($ 5 ) modules and super connectivity (50K / Cell), also opens up more
industry opportunities, for example, Smart City, eHealth.
NB-IOT makes it possible for more things to be connected, but also managing the commercial value
of the resulting Big Data is a big task, operators can carry out cooperation with related industries, in
addition to selling connections, they can also sell data.
Agriculture
Health Care /
E-Health
Safety and
Security
Automotive &
Logistics
Manufacturing
Smart City
Energy &
Utilities
Retail
Smart Home
Figure 2 below shows as one output example of five-year revenue forecast (connectivity only) by
Huawei for Germany divided by nine industries:
Five-Year NB-IoT Connectivity Revenue Forecast / MUSD
300
276
250
Overall Revenues:
1.67 bn USD
225
200
180
100
233
175
159
150
227
117
78
50
0
Source: Huawei
The overall sum of 1.67 billion USD for five years equals a per-year NB-IoT revenue of 334
million USD. This would equal to a revenue uplift of 2.2% for the existing German operators thanks
to the launch of NB-IoT services. This show, just as starting point, that already with conservative
assumptions, NB-IoT is a promising new business area which operators should invest into now, if they
do not want other players to capture this attractive market.
A few examples of such operators can be found in the Czech Republic and Sweden. There are
other operators in South Korea with commercial LTE networks on the 800MHz frequency band. For
mobile operators who are already running GSM 900MHz, it is possible to just upgrade, some
operators might also be running on LTE 800MHz, there is a clear upgrade pathway to NB-IOT for
such operators too.
Figure 5 : Telco business models for NB-IoT along the value chain
Consequently the next step towards an integrated offer would be the incorporation of more
functionality which points towards a setup, where the operators can offer the full NB IoT Network as
a service in the cloud to end to end service providers which are either private or governmental entities,
according to the addressed industries or verticals .
This will create for the operator the opportunity to lever its asset as security, billing and big data
into that domain. Quality of service assurance and service level agreements are common in the telco
space and could be leveraged into the NB-IoT Network as a service business model
Following this idea even more, operators themselves can enter the IoT business as an end to end
service provider by adding customer management and system integration functionalities on top. The
operator as e2e business owner can also outsource certain parts of the e2e domain to its partners,
sharing effort and revenues, and to expand the operators own experience in the OTT domain.
However competing in the OTT domain is not common to most of the todays operators and could be
quite challenging.
Revenue increased by
introducing various use cases
Connected Street
Lamp
Smart Gas
Metering
Motor Vehicle
Tracking
Smart Water
Metering
Alarms in SingleFamily Houses
5 Year
Connected Blood
Pressure Meter
..
3 Year
1 Year
The selection of use cases can be different per operator, country and region or per addressed
market. Huaweis business modeling framework is able to address those challenges and advise on the
right mix of investment, use case deployment and business model selection.
3.3
Summary
The opportunities for operators to enter business in NB-IoT domain are reflecting the huge
potential of NB-IoT. Operators can choose from three basic setups according to their strategy per
country or region:
Connectivity: For the Internet of Things a reliable connectivity is required, but there are more
business opportunities as just to engage in connectivity
NB- IoT NW as a Service: Carrier grade solutions with security, billing, big data integration
and QoS assurance allow the creation of new businesses and improvements to existing ones on a solid
technological basis. NB-IoT Network as a service is supporting the global trends of network
virtualization and cloud based service provision.
End to End service provision: Operators may choose to extend into the e2e service provider
domain for specific IoT solutions, but this needs careful planning, technology and business
partnerships with players in the industry, including outsourcing and revenue sharing models.
changing of meter batteries, which seems to be the two major cost drivers for conventional metering.
Smart metering includes smart meters for water, gas and electricity.
Garbage bins in city are not built by demand, and most of time the collecting trucks routes and
schedule are fixed which is not optimal for a smooth collection. Smart garbage cans can signal to the
waste management agent when the garbage can is full and in need of service, the best collection route
will be calculated and delivered to the drivers. Historical collection data can provide optimized routes
and guide on the right-size garbage can for each location. Charging for this service can be done on
sensor amount or on monthly fee basis.
NB-IOT
Tracking Application
Figure 12: Asset tracking use case
Farming industry is a sector with slim margins, and the way to survive in this industry is to
optimize the general agriculture production including crops and livestock. Developing a sensor
function to ensure the feeding of cattle has an optimized mix of nutritions to improve the yields from
farming, and to reduce the waste of cattle feed. Installing sensors in the farming equipment that mix
the cattles feed, through sensors measurements the variation in the cattle diet can quickly be
identified, assessed and corrected. Charging model for this application can be done on a monthly
payment or postpaid basis.
vii.
Wearables
Connected wearables in the past few years have taken center stage and increasingly becoming a
lucrative industry as it is an application that mainly revolves around health, fitness and wellness.
According to Cisco, there will be 177M connected wearables by 2018. Its market value is estimated
at $250M in 2015 and is set to rise to $1.6B in 2022. A report released by Research&Markets and
Berg Insight also estimated that global shipments of connected wearables in 2014 was 19 million and
this figure is set to hit 168.2million by 2019 growing at a CAGR of 74.8%. Some of the few products
that are making inroads in this industry are JawBone, GoPro & Nike just to name a few. While
smartphone giants like Apple, Sony and Samsung are more linked to smartwatches.
Smart bicycle
For bike rental companies it is vital to keep track of where the bike is at the moment, especially if
it gets stolen. A bike rental company in Holland has embedded an M2M SIM card into the bikes
frame, and in this way the bike rental company can always find the bike. The M2M SIM is embedded
into the bike in a non visible placeIf the bike is not returned to the rental company then the bike is
positioned via the SIM. The rental cost for bikes can be reduced since the number of stolen bikes
dramatically decrease. Stolen bikes can easily and quickly be located by the police via the SIM.
Charging model can be done on a monthly payment or postpaid basis.
activities. This use case provides realtime tracking of kids and the elderly. The information about
their activities to the cloud. Real-time insights about the their status can be received on the users
smartphone or other device.
6 Glossary
NBIOT- Narrow Band Internet of Things
PSD Power Spectral Density
LPWA-Low Power Wide Area
GMSK Gaussian Minimum Shift Keying
CAGR Compound Annual Growth Rate
SC FDMA Single Carrier Frequency Division Multiple Access
DL Downlink
UL Uplink
eHealth Electronic Health
3GPP Third Generation Partnership Project
TTM Time to Market
dB Decibel
GPRS General Packet Radio Service
MNO Mobile Network Operator
PoC Proof of Concept
KHz Kilohertz