Converging Paths
Introduction
LTE is taking the wireless world by storm. According to the Global Mobile Suppliers
Association (GSA), 49 operators worldwide had launched commercial LTE services as
of January 2012, and 285 had committed to commercial network deployments or were
engaged in trials or technology testing. In fact, LTE rollouts are now happening faster than
expected. According to GSA, by the end of 2012, we can expect 119 commercial LTE
networks operating in more than 50 countries. And, despite early questions about whether
LTE deployments would be limited to high-density areas, LTE has become the de facto
standard for the next generation of cellular networks.
Alongside this unprecedented growth in LTE, however, the wireless world is seeing another
major trend reshape the industry: machine-to-machine (M2M) communications. Just as LTE
can unlock a new world of high-speed wireless applications, M2M promises to transform a
wide range of industries by enabling remote communication with virtually any devicefrom
cars to coffee makers, oil pipelines to insulin pumps. Yet, while both market trends show
no signs of slowing down, thus far they have proceeded along separate trajectories. Many
in the industry can imagine tomorrows connected devices, and can clearly perceive the
benefits of lightning-fast LTE connections. But few seem to be talking about how the two
fit together.
In fact, there are many M2M applications that can benefit from LTE networks right now. But
even for those M2M solutions that dont require LTE speeds and latency, there are good
reasons to believe that LTE will play an important role in the future of M2M services.
This paper explores the market forces driving original equipment manufacturers (OEMs)
and other M2M stakeholders to consider LTE for connected devices and applications.
It also discusses some of the barriers preventing lower-speed M2M applications from
taking advantage of LTE, and what Sierra Wireless and others are doing to help evolve LTE
technology for a broader range of M2M solutions.
those developing M2M applications may find it difficult to justify investing in LTE. In the
long-term, however, there are good business reasons to be thinking about LTE, even when
higher speeds are not required. These include:
Longevity: One of the most important advantages of LTE is the technologys
longevityan important asset for connected devices that will have long lifecycles.
Automotive M2M devices may need to operate in the field for 10 years or more, and
connected industrial equipment and infrastructure will likely have an even longer lifespan.
While these applications may function well over 2G networks, the expected lifecycle of
those networks varies greatly from region to region. Mobile network operators (MNOs) in
some parts of the world are actively shifting away from 2G services. For example, several
tier-1 MNOs around the world have either already decommissioned their 2G networks
or discontinued any new product certifications on 2G networks. The factors driving
these decisionsregulatory changes, scarce spectrum, mobile broadband subscriber
growthcan be difficult to predict. OEMs developing M2M devices have to consider
that, depending on the market, 2G services may not be available for the full expected
lifecycle of the device. Increasingly, they will need to weigh the incremental upfront
costs of using LTE modules with the costs of performing a major field replacement
down the road.
Potentially lower service costs: Another benefit of LTE is the potential for lower
service costs in the future. As an IP-based technology, LTE allows MNOs to use a flat
IP core network, as well as standardized, self-organizing network technology, making it
much simpler and less expensive for them to deploy, operate, and expand the cellular
network. LTE also offers MNOs a great deal of spectrum flexibility, with the ability to
deploy LTE in many bands and combinations of bandsand deploy next-generation
services in virtually any part of the spectrum an MNO has available. Finally, LTE offers
much more capacity per MHz than 2G networks, and studies have demonstrated that
it provides twice that of HSPA+ 3G networks, even when using comparable antennas
and spectrum allocations. All of these factors can lower capital costs, and operating
costs, which lowers the cost per bit for MNOs, and ultimately translate to lower costs
for customers.
Scalability: LTE is also extremely scalable, as unlike 2G and 3G networks, it is being
deployed today with support for IPv6 addressing. This is becoming crucially important
deploying LTE at lower frequency bands, such as 700 MHz, LTE networks may ultimately
provide even better coverage than higher-frequency 3G services for indoor applications.)
However, significant efforts are now under way by network operators, LTE technology
providers, and standards-making bodies to make LTE more amenable to M2M applications
of all varieties.
Lowering Costs
The inherent variation and spectrum flexibility of LTE mean that it will likely always be more
complex than 2G systems. But, M2M technology providers are working to address these
complexities to bring costs down for M2M deployments. For example, Sierra Wireless and
others are using new tunable component technologies to allow modems and antennas to
handle more and wider bands, and help address the wide variation seen in todays LTE
deployments. Ideally, this technology could eliminate the need for multiple filters, and other
components that add cost to the device.
It is also important to recognize that the bill of materials is just one part of total cost of
ownership (TCO) of an M2M solution. GSMA studies suggest that hardware costs actually
make up only 5 to 15 percent of TCO, and that service and operational costs can add up
to much more over the life of the device. Major LTE vendors are working to bring down
TCO for M2M applications by making it less expensive to develop and operate them. For
example, Sierra Wireless built its Open AT operating system from the ground up to simplify
M2M application development by providing all of the essential wireless services, TCP/
IP connectivity, and hardware resources that M2M applications require, without requiring
an extra processor. Open AT also draws on the Eclipse Project to provide an integrated
development environment (IDE) with embedded M2M language tools, runtimes, application
editors, and more that make it very easy to develop M2M applications for connected
devices.
New M2M management solutions, such as Sierra Wireless AirVantage Platform also
provide comprehensive tools for developing M2M applications and managing devices,
subscriptions, and underlying assets. Combined with intelligent LTE gateways, these types
of solutions abstract M2M management from the cellular network technology, allowing
OEMs and developers to create M2M applications once, and port them to 2G, 3G, and 4G
networks without code changes.
to
reduce
power
them from trying to reconnect if they fail the first time. Engineers are also developing a new
LTE broadcasting scheme that would allow the network to prevent all low-priority devices
from accessing the network during certain timeframes.
Standards groups are also working with LTE technology developers to create standards to
protect the network from congestion or failures from roaming connections. For example,
standards groups are developing protection mechanisms that allow networks to allow home
subscribers access the network, but block roamers. This would be important for assuring
that, in collocated networks, a failure in one network wouldnt immediately lead to a huge
spike in traffic (and potentially even a failure) in the other.
In addition to this work, LTE vendors and standards groups are working to improve coverage
and minimize the footprints of M2M devices accessing the cellular network. One area ripe
with possibilities is the potential to trade speed for coverage. Currently, LTE is optimized to
use its larger bandwidth to deliver faster data rates. But theoretically, for M2M applications
that dont require higher speeds, some of that spectrum could be used to improve inbuilding penetration, improving coverage for in-building M2M systems.
Note that, while all of these innovations could theoretically be applied to cellular networks of
all kinds, they are most likely to appear in LTE networks, where MNOs are already investing
in deploying new technology in the cell site. (For more details on some of these efforts, see
the 3GPP work item System Improvements to Machine-Type Communications.)
configurable per device. This would mean, for example, that unlike a cell phone, a stationary
piece of industrial equipment need not check in with the network every two hours minimum
to report its location (and need not waste capacity and battery life performing that function).
Conclusion
Connected devices and applications promise to revolutionize the wireless industry, but
today, solutions for low-speed M2M applications and high-performance M2M applications
are evolving along two different paths. Those that can immediately benefit from high
speeds and performance are rapidly embracing LTE, while those developing lower-speed
applications have largely remained with previous-generation cellular modules. However,
these M2M evolution paths will soon converge. Ultimately, the advantages of LTEmost
notably its longevity, scale, and operational efficiencyare simply too great for OEMs and
other M2M stakeholders to ignore.
Sierra Wireless, along with other leading LTE technology vendors and standards groups,
is working to optimize LTE for M2M. This work encompasses a broad range of efforts to
improve LTE efficiency for OEMs that require high performance and low latency in their
M2M applications, and to lower LTE costs and complexity for those that do not.
Sierra Wireless is also drawing on its extensive expertise in multi-mode/multi-frequency
solutions to develop the most effective LTE modules and devices. As a global pioneer in firstgeneration LTE technologies and the market leader in M2M, Sierra Wireless has cultivated
mature and extensive LTE testing protocols, advanced antenna design capabilities, and
in-depth knowledge of MNO networks and certification processes worldwide. As a result,
Sierra Wireless is well positioned to help OEMs and M2M application developers avoid the
many potential pitfalls inherent in LTE, and streamline the development and approval of
their LTE-connected devices.
Both the M2M marketplace and LTE technology will continue to evolve. Sierra Wireless
is investing resources to assure it will continue to be the global leader in both industry
revolutions.