Why LTE-M should play a major role in M2M evolution

Most M2M applications today do not need the higher bandwidth of LTE and 3G as data rate of a few hundreds kbps could meet their needs. The LTE-M extension aims to fulfill the specific energy, spectrum, cost, efficiency constraints of M2M communications, whilst not hindering current LTE devices to operate normally on the LTE network.

LTE-M is expected to be released by 2017 achieving the following

• low power consumption and autonomy (i.e. up to five years for a device running on AA batteries), 
• easy deployment 
• interoperability, 
• low overall cost, 
• excellent coverage. 

LTE-M is likely to evolve further with discussion on including local mesh networking, very low cost modules (under $5), very long battery life ( even up to 10 years due to  long sleep cycles) and low data rates with two-way (including full-duplex) communication.

LTE-M should co-exist with other proprietary networks supporting backwards compatibility to the previous LTE standards in the same spectrum. Today, for example the LTE EPC will require scaling and densification to support a huge number of additional LTE-M devices similar to the requirement of an increased subscriber number as LTE rollout 
progresses. 

Thus, two different worlds need to coexist and share the same resources: first, the LTE core network with LTE users directly connected to the base station (eNodeB) through a LTE interface; second, the capillary (and heterogeneous) network with 
LTE-M or non LTE-M devices connected to a M2M Gateway via any air interface (LTE-M or 
not), while the M2M Gateway is interconnected to the LTE base station via a LTE-M 
interface. It might be also possible for LTE-M standalone devices (i.e., LTE-M devices which do not belong to any capillary network) to directly access the base station via a LTE-M connection. Some main features and research has been conducted in the EXALTED (EXpAnding LTE for Devices), an Integrating Project (IP) of the European Union's Seventh Framework Programme (FP7) in the Information and Communication Technologies (ICT) by 2013.

However detailed security features and protocols need further research if need to be implemented. The security protocols should be applied at the application and data layer without compromising the energy efficiency of the device, inducing the minimal extra electrical consumption. Security should also be implemented at the SIM (embedded in the device) level, based on the SIM's hardware and operating system, components that are progressing, enabling high security for a minimal economical cost and a minimal energy consumption.

Today LTE Category 4-6 supports broadband M2M services at speeds of 300 kbps, expecting LTE Category 0, by 2017 to reach data speeds at up to 1Mbps.  LTE Category 0, Cat-0, has been already incorporated into the 3GPP standards, thus the possibility of using LTE as a main bearer for M2M communications has come a step nearer. Most 4G LTE mobile phones being used today are either category 3 or 4, and new developments are taking place for categories 6 or even 7.

Category 0 can perform really well under certain configuration and conditions. It is expected to reduce the complexity of an LTE modem relative to a single band Category 1 LTE module due to a modem's simplicity. Today, Cat-0 operates with only one transmit / receive antenna; has a single RF chain; the peak data rate is 1Mbps in downlink and uplink. That can be achieved by using reduced transport block sizes; among the limitations is the fact that it supports only half duplex capability.

In addition, an M2M unit does not usually require a display or UI, thus the processing power is now compared to a typical smartphone.  Low cost modems could be used that could be really cheap in a large scale,  where each could cost like a GSM modem (~$10). 

Today some interesting M2M applications among others include Energy Smart Metering and E-Health considered basic parts of tomorrow's networked society. Many startup companies heavily involved into IoT and M2M, should be able to provide efficiency and innovation into a variety of low cost solutions.

Microwave PtMP backhaul equipment market is expected to surpass US$ 300 million by 2017

Microwave PtMP  backhaul equipment market is expected to surpass US$ 300 million by 2017
PtMP licensed backhaul equipment is still in contention as a high-capacity technology for small cell backhaul

Athens, Greece and London, UK, 22 February 2013 – Point to Multipoint (PtMP) microwave backhaul shipments decreased 6% in Q4 2012 over Q1 2012, but a sustainable two-digit Compound Annual Growth Rate (CAGR) is forecasted by 2017, according to ExelixisNet’s latest report, “PtMP Backhaul Market for LTE and small cells”.

The relentless demand for network backhaul capacity is making mobile operators consider every possible option for efficient, sustainable backhaul solutions. Licensed point to multi-point microwave solutions continued to make inroads as an alternative to conventional wireless backhaul albeit a major European network breakthrough has still not occurred. Concerns over interference, spectrum availability and service guarantee issues, continue to present barriers for widespread adoption for PtMP. The breakthrough may not be that far away however with many operators looking seriously at PtMP solutions for small cell backhaul. “The new all-outdoor licensed-band radios look very efficient and competitive, even in the emerging 42 GHz band, compared to the NLOS solutions,  and are expected to become a key asset for backhaul links between lamp posts and the sides of buildings where small cells will be installed,” said Elias Aravantinos, author of the report and ExelixisNet Leading Analyst. The new outdoor small cell PtmP solutions will be tested during 2013 not only to prove whether they can deliver ease of installation, attractive form factor, and improved traffic handling benefits but also to evaluate whether the predicted lower overall cost of ownership (TCO) can be realized.

The wireless PtMP backhaul equipment market is expected to surpass US$300 million by 2017, almost 3-fold growth from 2012 to 2017. ExelixisNet believes the overall PtMP wireless backhaul equipment market growth will reach its profitable peak early 2014, even 5-fold growth as a really high forecast, as the PtmP solutions could serve the small cell market’s uptake in a very satisfying, efficient and economic level, as described in the report.

Drawing from in-depth interviews with backhaul vendors and operators worldwide, the report provides a detailed look at licensed microwave PtMP backhaul technology, spectrum, and investment and market trends.

Selected Key Findings:

• Middle East is the fastest growing region for Ptmp microwave shipments between 2011 and 2012
• Africa maintained a continuous demand pace between 2011 and 2012, but Latin America is expected to uptake in the next 5-years
• Shipments of radios in the 26GHz band represented 47% of total shipments in H2 2011, a surprising increase of 100% from the previous half
• Lack of progress is observed in European Markets
• CBNL managed to maintain 50% of the market share mainly due to strong ongoing business in the Middle East and Africa.
• Intracom Telecom’s innovative small cell backhaul solution is expected to become a key player in the near future
• Hughes and its satellite solutions remain very attractive especially when securing communication during natural disasters
• Bluwan managed to turn the spinoff into a sustainable companyand a key player in delivering high speed and high capacity Point to Multipoint wireless backhaul

ExelixisNet is a global consulting firm focusing on LTE and broadband wireless technologies, regulation and other technologies and markets.

Press Contact:
Elias Aravantinos, Leading Analyst
Email: earavantinos@exelixisnet.com
Tel: (+30)6949732009

Smallcelling LTE networks

Smallcelling the LTE networks?

As the LTE World Summit ended today many questions and takeaways are buzzing our heads from the discussions and experts’ opinions.

There were various statements on small cells but all agreed that small cells need to happen and assist on the capacity and forums like 3GPP, Small Cell Forum are setup to succeed and make small cells a reality

Although there is lots of discussion held on small cells around the 60GHz unlicensed band outdoor solution where small cells are expected to be deployed, in reality the truth might be different. When today about 80% of the mobile data traffic is generated between the residence and the enterprise, there is perhaps a small remaining percentage to consider and manage at the street level. How long the user will be travelling and what services will be using that will need capacity, most likely video is important but not crucial. That thought might lead us into an indoor solution pointing to a femtocell, which will cost almost nothing to the operator since power, transmission and hosting will be covered by the consumer. The cost might might be today around $80, but if companies like Cisco, Samsung even NEC seriously work on the electronics, might be even lower. It is really interesting, how Samsung was trying to position itself in the LTE and small cells due to thousands of deployments indoor and outdoor with KDDI in Japan. Today that LTE network is one of the fastest growing in the world and Samsung is expanding in Europe with an office, they just opened in the UK.

Enterprise networks is a different case, as the quality of service produced by macrocells is not acceptable, making HetNets a more attractive solution to support them. This kind of networks is asking for a high QoS and careful traffic handling.

When it comes to LTE and small cells, there are some recommendations to be further discussed or food for thought.

1. For the backhaul, incumbent is in a position to access fiber backhaul, then the regulator’s position is to set the rules of the game

2.More examination of the backhaul considerations, a crucial factor also in the LTE

3.Harmonized regulation, who can actually run a femto?

4. Identify the exact location of the traffic as close as you can, using the right tools to locate the traffic, available in the industry, as Newfield Wireless was presenting during the Summit

5. Today seems to be difficult to roll out hundreds of small cells; the level of the self-configuration devices need to be considered, optimizing the networks to help on this
6. The impact of devices, including support of advanced features, legacy devices, and time need to install small cells

7. Multivendor support, is an idea that big backhaul vendors such as Ericsson didn’t like, to use different macro and small cells vendor, expecting efficient coordination and interoperability between two layers. Standards are needed to clarify the landscape and make interoperability happen!

Other factors that are expected to contribute in the small cells could be the M2M growth especially due to the upcoming mHealth and its ecosystem’s evolution, trying to understand the management of all these devices. However it is well accepted that licensed spectrum could be inefficient when using M2M in a macro level.

Final note, small cells is still considered a learning process with some hype for operators and needs careful and clear messaging from vendors since it’s a case is different and ‘one technology does not fit all’.