The Future of

Cellular for IoT

The Future of devices will be in use by 2025, of which cellular
IoT—including 2G, 3G and 4G technologies that will

Cellular for IoT be used for IoT but not specifically optimized for
IoT—and Low-Power Wide-Area (LPWA) modules
are forecast to account for about 7 billion units,
according to Machina Research.2 (See Figure 1.)

Everything That Computes, This implies that approximately one quarter of

Must Connect
The Internet of Things (IoT) is destined to be one
of the most transformative and disruptive
technologies of the 21st century. It has a potential
to impact all spheres of our lives in unprecedented
ways. Use cases are being implemented in many
industries and rolled out at a very rapid pace.
Indeed, the IoT market is slated to more than
quadruple in size, growing from $900 billion in
2014 to $4.3 trillion by 2024, according to
Machina Research.1
Communications service providers (CSPs) are
among the top players vying for a share of the
addressable IoT market. Top CSPs, such as AT&T
and Vodafone, have developed new technology,
business frameworks and competencies. Many
other CSPs have seen significant growth in
machine-to-machine (M2M) connections over the
past few years. More than 30 billion connected
connected devices will use cellular IoT or LPWA for
connectivity, which is a significant number.
Many leading OEM vendors have recently
announced supporting LTE-based connectivity for
IoT devices. For instance, Vodafone was the first CSP
to start trials for Narrow Band IoT (NB-IoT)
connectivity, and both AT&T and Verizon have
shown a strong inclination to support LTE
connectivity for IoT.
As the connectivity requirements for IoT have
become more complex, investment by CSPs has
increased. The total M2M revenue opportunity is
forecast to reach USD1.6 trillion in 2024, up from
USD500 billion in 2014, a CAGR of 12%, according
to Machina Research.3 This includes devices,
connectivity and application revenue, with the
majority of the revenue coming from devices.

Global Connected Devices(in billions): 2014 to 2024

40

30

20

10

0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

PC’s, tablets and smartphones Connected Industries Connected Health

Connected Cities Connected Cars Connected Living and working

Source: Machina Research Forecast Database, 2015

Figure 1: Steady growth expected for IoT devices

Billions of connected devices globally, 2014-2024

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The essential requirement of all IoT devices is
connectivity to applications, cloud services and
other devices. The Global mobile Suppliers
Association (GSA) estimates that by 2020, the
number of IoT devices connected through an LTE
connection will be four to five times greater than
LTE-connected smartphones and tablets.
The type of IoT device chosen depends on the use
case, throughput requirements and power
requirements. Some specific industry use cases
are detailed in Table 1.
The applications can be largely determined by two
types of factors: data throughput and latency, as
detailed in Figure 2. There are additional secondary
factors required to determine the appropriate IoT
device, such as power control, mobility and secured
connection. Also, an operator will need to
understand the behaviour of the IoT devices based
on the profile of the application and services.

Use Case Throughput Battery Life Mobility Other Information

1 Asset tracking Low throughput of Typically, between Highly mobile Used for asset tracking. An effective alternate
less than 1 Mbps 5 to 10 days to GPS

About 1 Mbps Connected to a power

2 Smart metering Fixed Used for metering electricity, water and gas usage
supply or batteries

Runs on a battery and

3 Industrial usage About 10 Mbps may be provided with Static devices Used for monitoring production lines
a power connection

About 10 Mbps Can take power from a Used for vehicle-to-vehicle or other device
4 Vehicle communications Highly mobile
vehicle’s battery communication

About 10 Mbps Battery life should be

5 Home appliances Static devices Generally requires good indoor coverage
at least 1 day long.

Healthcare devices, Less than 1 Mbps Battery life should be Low velocity mobile High availability and may require voice
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including wearables at least 1 day long devices communication, used across multiple geographies

Requires a permanent Mostly static, with High reliability and high availability, ensures
7 Safety and security Less than 1 Mbps
power source limited mobility continued alerts and should be able to respond to
network triggers for status

About 5-10 days Mainly used outdoors where the area of coverage
8 Agriculture 1 Mbps Mostly static, with
limited mobility by a single cell would be large and the number of
devices required per cell would be fewer.

Table 1: The choice of IoT device depends on five requirements

Location-based Marketing AR/VR Applications

Industrial Robotics Vehicle Control

Home Control
Remote Surgery
Latency Sensitivity

Data Throughput Personal Care

Healthcare
Meter Reading
Vehicle Software Updates
Sensors
Video Surveillance

Location Tracker

Figure 2: Data throughput and latency are the primary factors for IoT applications

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One Size Does Not Fit All LPWA networks are not required for:
01 — Devices that are “plugged in” to a power
IoT-connected devices typically use Low-Power
source
Wide-Area (LPWA) networks for connectivity.
02 — Some datacenter and industrial
The devices with low-power consumption
installations
represent the lion’s share of the growth 03 — Situations where replacement or
opportunity for IoT, such as smart meters and
recharging of the device battery is not a
wearables. LPWA, of course, is more than just
problem
about power, it's also about market focus and
coverage, both outdoors and indoors. The LPWA However, even where LPWA is not actually required,
solutions put forth by LoRa, Sigfox and Ingenu as long as the application profile allows it there is no
have focused on opportunities where carriers are reason why an LPWA network cannot be
not dominant, such as rights of way, oil used—should it be available.
platforms and gas lines. Figure 3 shows the
pallet of options that are available to support
any number of IoT applications where
connectivity is critical.
Short Range Radio

802.15.4
802.11
Bluetooth Concessions to the ‘low power
SIM-based Roaming from Carriers
+proprietary options and cheap’ device profile within
Licensed Exempt

LTE, UMTS/HSPA, networks that use existing radio

EVDO, GSM/EDGE technologies
If data volume is LTE Cat-0
Spectrum

moderate to high, LTE Cat-M1

Device Power Consumption

or if power EC-GSM

Device Hardware Cost

burn(battery life)
is not a concern
Licensed Spectrum
Device

NB-IoT Cat-NB1
Range

+proprietary options
Licensed Spectrum

Licensed Exempt
Spectrum
Long Range Radio

LPWAN/LNT
Weightless (N&P)
Very Low Data Rate LoRa(Partially open)
Very Relaxed Latency
Proprietory

Very Low Power Burn SIGFOX TM

Ingenu’s RPMA
WAVIoT’s NB-Fi
...etc.

Figure 3: A pallet of options for IoT applications

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01 Why LTE?
Choosing between licensed versus unlicensed
spectrum comes down to a number of business
and technology considerations including cost,
geographic coverage and reliability. LTE services
for IoT have already been adopted by over 20
carriers throughout the world and many more
are in the process of deployment. The number of
IoT devices having LTE connections has also
increased with the introduction of chipsets from
Qualcomm, MediaTek and others that support
various forms of LTE service. These include:
01 — CAT-1/Cat-M devices for IoT that are used
in cases where the devices need to support
around 10 Mbps downlink traffic
02 — CAT-M1 devices that support less than 1
Mbps downlink traffic
03 — CAT-NB1 devices that support less than
200 Kbps downlink traffic
LTE is a dominant force in licensed spectrum
providing a number of significant advantages,
including:
01 — Commercial LTE networks: These
networks are best suited for smartphones
as they can provide voice traffic,
guaranteed quality of service (QoS), high
throughput, low latency and handovers at
high speed.
02 — LTE networks for IoT: These networks
can support devices with CAT-M and
Cat-M1. They need to support high
capacity, moderate throughput, fewer
handovers and less device roaming.
03 — LTE networks on cloud for IoT: Most
IoT use cases do not need low latency.
Networks need to be real-time, and latency
of less than 1 second is sufficient. For these
use cases, core networks can be hosted in
data centers.
04 — LTE networks supporting high
battery life for devices: Devices
requiring very low throughput (< 200
Kbps) but high battery life (around 10
years), can use NB-IoT-based connections.
These use cases do not normally require
low latency.
05 — LTE networks with high indoor
penetration: LTE networks are offered by
many operators in the 700 MHz and 800
MHz frequency bands. The networks
created in these frequency bands provide
good indoor coverage.
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However, unlike subscriber usage, the chatter of
billions of devices is very different and an operator
must scale the network accordingly. (See Table 2.)
For low-power sensors running NB-IoT there is a
need for high data storage and lower routing
requirements. On the other hand, a healthcare
device would require low data storage with slightly
higher routing requirements. If the operator can
divide the network according to the nature of the
device, then it could divide the network resources
based on the type of resource required for each
kind of device.
The journey towards 5G (3GPP Rel 14) is focused
on addressing a number of considerations such as
low latency and low power—however, network
slicing is a key design target for optimal usage of
resources. Using network slicing, an operator can
optimally force the devices to be served by the
corresponding network, which is apt for the resource
requirements of these kind of devices. An operator
can associate the devices according to different
service criteria and then serve the devices based on
the services requested by the user.
NB-IoT is another example of the intermediate
journey to 5G with an existing and viable solution
that offers up and runs roaming infrastructure
support. NB-IoT is an LPWA network that carefully
and frugally manages the power consumption when
it comes to radio communication capability of the
device.

Description Traditional subscribers People, devices and things

1 Backhaul Connection Using dedicated backhaul connection Use public internet

2 Core Network Placement One per region Can be on the cloud

3 One core network handling 100’s of millions of

Capacity One core network handling millions of subscribers
subscribers

Should be able to handle capacity of a region. Should be able to auto scale dynamically – Scale up
4 Scaling
Dynamic scaling is not a necessity and scale down

5 Voice Should be supported Not always required

UE may not be listening and hence cannot page UE –

Should be able to wake up the UE for downlink
6 Page UE to Wake up Should be able to buffer data till UE wakes up on its
connection
own

Only nominal buffering – for buffering till UE Large buffering – for buffering user data for hours
7 Buffering user traffic
responds to paging and days

Since buffering can be across days, needs to be

8 Persistent buffering User data need not be stored in persistent storage persistent storage

Should have ability to support all services offered by Minimal data – no requirement for differentiated
9 Provisioning data
network for data and voice services services for different users

10 Subscriber identity MSISDN is mandatory to allow voice calls Since no voice calls – no need for MSISDN

Table 2: A comparison of the LTE infrastructure needs for traditional subscribers versus IoT devices

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Figure 4 depicts a typical network architecture for
IoT deployment. It shows that backhaul
connectivity from access to the core network can be
through any method of public internet broadband
connection. A dedicated connection is not required.
Thus, operators can deploy the network without
additional investment of backhaul.
An operator can host the core network on the cloud
if there is no low latency requirement. Even the
access to the core network can be over public
internet if the QoS is not paramount. An operator
can even offer other IoT application servers to be
hosted on the same cloud using the cloud platform.

Internet

Interconnect to
ISPs and across
Licensed networks
Site location for Spectrum
Base stations
Core
Network
City 2

City 1

City 3

Figure 4: Network architecture for IoT deployment

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02 On the Road 02 —
to 5G
The diversity of connectivity requirements for IoT
devices means different technologies must to be
03 —
used for providing network connection. Some
devices require normal LTE connection and others
require NB-IoT. For this reason, many operators
have defined a roadmap to host a parallel LTE
network only for IoT devices. These operators
have also defined roadmaps for supporting
NB-IoT LTE connectivity in the future.
Aricent helps mobile operators, semiconductor
companies and service providers navigate the
fast-moving landscape of IoT connectivity and
infrastructure. For instance, CAT-NB1 is predicted
to be available commercially by the second quarter
of 2017 and Aricent has the world’s first embedded
device to support CAT-1, CAT-M1 and NB-IoT.
Aricent helps companies develop business and
deployment models that span:
01 — Commercial LTE networks: An operator
may choose commercial LTE networks when it
requires voice and high throughput with low
latency. This is because these networks require
high resource reservation for every user. In
addition, supplementary services and
interconnect agreements make networks
supporting voice calls complex and demand
higher resource requirements. Voice networks
also require high-speed handovers and
roaming agreements with various operators.
Disjoint LTE networks for IoT: An
operator can choose this implementation
when it needs to offer LTE connectivity to IoT
devices that do not require voice. These
networks can offer data connections and
offload the traffic locally. And they can be
used to support IoT applications that require
low latency with data-only connections.
Cloud-based LTE networks for IoT:
Cloud is the most common mode of
deployment seen by operators for LTE
connection to IoT devices. This use case
entails the core network being hosted on the
cloud, which is generally a private cloud. The
advantage of offering the service through a
cloud-based deployment is that it can easily
scale in terms of both capacity and
throughput. The communication is still
real-time, but not low latency. The QoS can
still be guaranteed.
Also, cloud-based LTE networks can be used
for a wider range of coverage. In this use case,
the operator can scale up in different
geographies by only increasing the radio
access network (RAN) deployment. The
wireless core network can still be offered by
the existing cloud. The maintenance of such
networks is fairly simple. Operators can also
place their IoT applications alongside LTE
core and offer IoT services on the cloud.
Many operators use this mode to move away
from traditional connectivity to offer the
network as a service. They can also increase
their offering suite by hosting different IoT
services on the cloud to offer more
value-added services to their customers. The
consumption of IoT services by their
customers becomes simpler in this case.
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04 — NB-IoT-based LTE connection for IoT
devices: This would generally be used when
operators have to provide connection to devices
that require battery life of around 10 years.
This use case can support a large number of
connected devices, to the tune of around
50,000 using a single cell. These devices would
generally not listen to network triggers unless
they are transmitting. The throughput
requirement would be less than 200 Kbps and
the latency requirement is not high. Due to
these reasons, cloud-based deployment of core
NB-IoT-based LTE networks is quite feasible.
Operators would eventually support this, but
due to the small number of commercial
CAT-NB1 devices deployed and the lack of use
cases to date, few immediate deployments are
expected. To prepare for the growth of use
cases, operators should be prepared to start
designing their networks to support NB-IoT in
the future by maximizing the reuse of their
existing LTE networks for IoT.
The Aricent 5G Transformation Services include
design, engineering, support and maintenance for
the following opportunities:
01 — Deploy a LTE RAN only for IoT connections
02 — Opt for multi-mode radio access technologies
(RAT) – supporting E-UTRAN RAT as well as
NB-IoT RAT
03 — Either add additional commercial LTE
networks for supporting voice or negotiate
roaming agreements with other operators when
the devices require voice. However, such use
cases combining IoT with voice are not very
common
04 — Offer LTE core through the cloud
05 — Offer LTE for IoT connectivity through
E-UTRAN RAT for now. It can be reused in the
future to serve NB-IoT RAT
06 — Support a high capacity of subscribers
(numbering in the millions) with LTE core
offered through core networks
07 — Offer dynamic scaling core network
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03 Use Case: A Parallel 03 — LTE network evolving to provide
NB-IoT connection: Aricent is planning to

and Optimized IoT add NB-IoT features to the core network to

allow NB-IoT devices to connect to the same

Network core network. This deployment can also be

Aricent offers a ready-to-run LTE Core Software
Solution that removes the overhead of commercial
LTE networks to connect IoT devices. Aricent’s
offering includes a VNF manager that allows
operators to set up a cloud-based network to host
the core network and applications. The LTE core
network software platform can be used by NEPs to
serve all the following deployment models:
01 — LTE for standalone IoT deployment: It
can be deployed to offer LTE connectivity
with local offloading. This LTE network can
also provide connectivity to other networks
allowing users to roam across networks
moved to the cloud. Aricent proposes a
unique solution of hosting such core
networks on the cloud where RAN and core
can even be connected through the internet.
Aricent proposes using the SD-WAN mode of
connection to provide different options for
LTE eNodeBs to connect to the core network
over the internet.
04 — VoLTE Core: Aricent also offers a collapsed
VoLTE server for offering local voice
connections to the devices in case the
operator wants to set up its own LTE network
to offer limited voice services to the IoT
devices.

02 — LTE for IoT through cloud-based

deployment: Aricent’s LTE core can also be
deployed on cloud and can run on a
virtualized platform. It can be easily
integrated to various cloud managers to
quickly provide LTE connection over the
cloud. Aricent’s load balancers can help scale
the solution quickly and efficiently. The cloud
manager or VNF manager can allocate
resources divided by operators (tenants),
geographies, services and other groups.

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04 Why Aricent Reducing risk through feature-rich and carrier-grade
offerings

01 — Aricent provides a strong feature set that

Aricent works with original equipment
manufacturers (OEMs) to develop and customize
their LTE core for IoT. By customizing the LTE
core to meet their specific needs, Aricent can
deliver significant business value. This includes:
includes most commercial-grade features
available or in the product roadmap
02 — Ensures compliance to the latest 3GPP R10
(June'11) specifications with backward
compatibility

03 — Offers R8 and R9 peer nodes

Accelerating time-to-market
04 — Offload offerings (HeNB Gateway in Femto
01 — Aricent's ready-to-use, high-value,
and ePDG/SaMOG in Wi-Fi deployments)
pre-integrated software stacks and
frameworks reduces the OEM’s R&D
05 — Interop credentials with top Tier-1 OEM
investment
eUTRAN and EPC nodes
02 — Leveraging our team of experienced LTE
consultants and engineers participating in
the development of end-to-end solution,
from design to product rollout, streamlines
the development process and reduces
development time

MME HSS PGW

SGW
Ansible Capsule
EPC Server Server

EPC-1 EPC-2 EPC-N

RAN for Networking Nodes

Tenant 1 Provisioning Server

Public Internet Public Internet

Networking Nodes
Provisioning Server
RAN for
Tenant 2

EPC-1 EPC-2 EPC-N

Data Center

Figure 5: Logical view of cloud-based EPC

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Built-in flexibility for faster market response
01 — Aricent delivers highly customizable
solutions to ensure customers meet their
business objectives
02 — We participate in demonstrations and trials
with OEM customers around the world
03 — Our flexible engagement models reduce
investment risk and maintain the technology
supremacy needed to gain market share
04 — Deep expertise and experience with over 60
LTE clients for Aricent’s LTE offerings and
professional services
IoT Network
LTE Network For Subscribers
Figure 6: IoT network as overlay on an LTE network
Availability on generic platforms
01 — Aricent’s solution can run on any commercial
off-the-shelf (COTS)
hardware—single/multi-core or
single/multi-blade system on a server or
ATCA/ATCA chassis—or any proprietary
hardware running on Linux
02 — We ensure the customer incurs zero or
minimal hardware integration expense
As shown in Figure 5, Aricent’s suite of Software
Frameworks for LTE consists of a Mobility
Management Entity (MME), serving gateway
(SGW), PDN Gateway (PGW), Home Subscriber
Server (HSS), Policy and Charging Rules Function
(PCRF) and Cellular IoT Serving Gateway Node
(C-SGN). All these network elements are controlled
by a common element management system.
Figure 6 shows that an IoT network can be
deployed to overlay the LTE network without
affecting the LTE network.
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References
1. “The Global IoT Market Opportunity Will Reach USD4.3
Trillion by 2024” Machina Research, April 21, 2015
2. “LTE-M – Optimizing LTE for the Internet of Things”
Nokia, 2015
3. “Global M2M market to grow to 27 billion devices,
generating USD1.6 trillion revenue in 2024” Machina
Research, June 24, 2015

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Contact
If you wish to schedule a call / meeting with an Aricent expert, please email us at marketing@aricent.com

Author
R Ezhirpavai, Assistant Vice President - Technology
Email: r.ezhirpavai@aricent.com

About Aricent
Aricent is a global design and engineering company innovating for customers
in the digital era. With more than 12,000 design and engineering talent and over
25 years of experience, we help the world’s leading companies solve their most
important business and technology innovation challenges.

© 2017 Aricent. All rights reserved.

All Aricent brand and product names are service marks, trademarks, or registered marks of Aricent in
the United States and other countries.

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