On August 3 and August 4, China Mobile made significant moves by allocating tens of billions of dollars and launching two consecutive projects to kickstart its IoT procurement efforts. These initiatives included a staggering 39.5 billion yuan to begin the 2017-2018 cellular Internet of Things project, focusing on the design and feasibility study collection for wireless and core network equipment.
This acquisition, estimated at around $39.5 billion, encompasses both NB-IoT and eMTC IoT technology requirements. NB-IoT, short for Narrow Band – Internet of Things, is an emerging technology targeting the low-power wide coverage (LPWA) IoT market. It can be deployed globally using licensed bands and supports three deployment modes: in-band, guard band, or independent carrier to coexist with existing networks.
Huawei has gained significant attention as a leading domestic developer of NB-IoT technology due to its focus on low power consumption, stable connections, low cost, and architectural optimization. NB-IoT boasts several key features:
1. **Wide Coverage**: It offers improved indoor coverage, providing a 20dB gain over existing networks, which translates to a 100-fold increase in coverage area.
2. **Massive Connectivity**: NB-IoT supports tens of thousands of connections per sector, with up to 50 to 100 times higher uplink capacity compared to 2G/3G/4G networks. A single base station cell can support up to 50,000 NB-IoT terminal accesses under 200KHz frequency.
3. **Low Power Consumption**: NB-IoT terminals can operate for over ten years on a standard AA battery (with a capacity of 5000mAh), making it ideal for long-term deployments.
Two primary power-saving technologies used in NB-IoT are PSM (Power Saving Mode) and eDRX (Extended Discontinuous Reception):
- **PSM**: By introducing a new state called PSM in the IDLE state, terminals can shut down their radios, reducing power consumption significantly. This feature was introduced in 3GPP Release 12 and allows devices to stay dormant for long periods, optimizing power usage for applications like smart meters and sensors.
- **eDRX**: Introduced in Rel-13, eDRX extends the paging cycle, allowing terminals to skip most paging monitoring when downlink data transmission is infrequent, thus conserving power.
Despite its advantages, the cost of NB-IoT remains relatively high, with a single module priced around 80Â¥. Industry experts anticipate further price reductions as adoption grows, though it still lags behind the 20Â¥ price point of GPRS modules.
The three major Chinese operators—China Mobile, China Telecom, and China Unicom—are actively investing in NB-IoT. China Telecom launched its first NB-IoT network in Yingtan earlier this year and also released its NB-IoT Enterprise Standard V1.0. Similarly, China Mobile implemented a smart streetlight project in Nanjing using NB-IoT technology. China Unicom also deployed NB-IoT in Shanghai Disneyland and opened the first standardized NB-IoT commercial network in Guangzhou.
Compared to LoRa, another popular LPWAN technology, NB-IoT has several inherent advantages:
1. **Technical Standards**: NB-IoT, backed by the 3GPP organization, offers an open standard with multiple chip designers contributing to its development. This fosters healthy competition and innovation within the field.
2. **Performance**: NB-IoT provides superior link transmission performance and security, especially under high load conditions, ensuring robust performance across diverse industry applications.
3. **Ecosystem**: With support from major telecom operators and industry solution providers, NB-IoT offers end-to-end solutions, streamlining deployment and maintenance processes.
Several key players are developing NB-IoT chips, including Qualcomm, Huawei, RDA, ZTE Microelectronics, and Intel. Each company brings unique strengths, from global reach to specialized expertise in low-power design.
As NB-IoT continues to evolve, it holds immense potential for applications in public utilities, smart cities, industrial automation, and agriculture. While challenges remain, including cost and ecosystem maturity, the future looks promising for this transformative technology.
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