ARE NETWORKS PREPARED TO WITHSTAND THE “INTERNET OF … · FORECASTED 3.1BN LPWA CONNECTIONS ......

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