& cplSiteName &

LTE & M2M: The Odd Couple?

Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
Heavy Lifting Analyst Notes
3/22/2013
50%
50%

Is it too soon to begin thinking about using Long Term Evolution (LTE) for machine-to-machine (M2M) applications? After all, most operators have barely begun building their LTE networks, and the technology is still new enough that it carries a hefty price premium over incumbents such as GPRS and CDMA 1X. And that's not even getting into the LTE's speeds, which are far more than most M2M applications need – now or ever.

So some people might be surprised to hear that a few M2M users are already requesting LTE. "I had one today where the customer wanted to run 19.2 [kbit/s] across it, but he was demanding 4G," says an executive at a router vendor that targets applications such as smart grids, ATMs, telemedicine and transportation.

The vendor says these requests are due partly to operators charging the same rates for 2G, 2.5G, 3G and 4G plans: "Why would you want a four cylinder if you can have a V8 for the same price?"

Often the motivation is "future proofing," both from a technological and market opportunity perspective. That's one key finding in the new Heavy Reading 4G/LTE Insider, "LTE for M2M: The Long-Term Opportunity Begins Now."

Residential security is one example. Those systems often remain deployed for a decade or longer, so continuing to use GPRS in new installations runs the risk of having to replace panel modules in four years. At the same time, LTE's speeds enable the possibility of upselling customers on high-bandwidth services that have yet to be developed.

Of course, operators won't shut off their legacy networks simultaneously. So, in theory, M2M users could switch from one legacy network to another operator's legacy network to postpone the cost of upgrading to 3G or 4G. T-Mobile, for example, wants to capitalize on AT&T's GPRS sunset in 2017.

"There's a strong future for 2G with us," says Rusty Lhamon, T-Mobile USA director of M2M. "In M2M, we see this something that's expanding as we look at some of our competitors sunsetting their 2G networks, and they're looking for a soft spot to land."

To make LTE attractive to more M2M users, some mobile operators and vendors are exploring the possibility of stripping down modules to support only one or two LTE bands. Another proposal would produce LTE modules that have lower throughput capabilities and thus lower cost – a plus in a market that's notoriously price-sensitive.

Many operators and vendors also hope that a diversity of both patent holders and chipset makers will help drive down LTE module costs. "The number of LTE chipset providers is much greater than 3G or even GPRS chipset providers," says one major module vendor. "It's more than Broadcom, Qualcomm and Intel."

The bottom line: Don't be surprised to find LTE coming soon to a device near you – and not just in the form of a tablet or smartphone. — Tim Kridel, Contributing Analyst, 4G/LTE Insider


This report,"LTE for M2M: The Long-Term Opportunity Begins Now," is available as part of an annual subscription (6 issues per year) to Heavy Reading 4G/LTE Insider, priced at $1,595. Individual reports are available for $900. To subscribe, please visit: www.heavyreading.com/4glte.

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
More Blogs from Heavy Lifting Analyst Notes
Huawei CEO Eric Xu finds inspiration in an unlikely place -- Harley-Davidson's drive to transform itself into a digital enterprise for the 21st century.
The ability to holistically analyze, in real time, any network data impacting customer experience is one reason why big data and analytics (BDA) will become a key network element in the near future.
Operators still fear the 'dumb pipe' label, but they must realize that their unique role in the future marketplace is in providing ultra-broadband connectivity between users and content.
Landmark Heavy Reading report explores the rise of web-scale Internet companies as networking powerhouses, and what it means for network equipment vendors.
The next phase of moving applications to the cloud means looking at platforms that use container technology and are suited to a cloud-native, microservices approach.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
UPCOMING COURSE SCHEDULE
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
Friday, October 21, 1:00PM EDT
Security: Evolving the Data Center
Rasool Kareem Irfan, Head, Telecom & Infrastructure Security Practice, Tata Communications Transformation Services Ltd (TCTS)
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
From Philly, With Love

9|30|16   |     |   (5) comments


Join Alan Breznick, cable's answer to the Italian Stallion, as he runs through the highlights of SCTE Cable-Tec Expo, lumbers along in Rocky Balboa's footsteps and searches for the perfect Philadelphia cheesesteak.
LRTV Interviews
CenturyLink: SD-WAN Customers Looking for Value Not Cost Savings

9|30|16   |   5:31   |   (0) comments


At NFV & Carrier SDN in Denver, CenturyLink's Eric Nowak told Light Reading that when customers launch SD-WAN, they aren't necessary looking to save money, but instead they are looking for more value from what they're spending. He also shared some unique case studies and lessons learned from launching SD-WAN services.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
AT&T CEO Backs Black Lives Matter
Dan Jones, Mobile Editor, 9/30/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
From Philly, With Love
Alan Breznick, Cable/Video Practice Leader, Light Reading, 9/30/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.