Consider using low-power/wide-area communication technologies for IoT applications.
Low power consumption and low price of communication chips and modules

The Internet of Things (IoT) is now expanding beyond the home IoT to occupy a significant role in industrial applications such as smart cities and smart farms. With smartphone technology advancing, the market has reached saturation, and the IoT is emerging as a latecomer.

Home IoT services have been able to utilize short-range wireless communication like Bluetooth and Wi-Fi. However, as the service range expands, it becomes necessary to move beyond "short-range." Beyond simply ensuring high speed and short-range, the communication chips and modules must also be inexpensive. Furthermore, they must also consume less power.

To address these challenges, low-power wide area (LPWA) Internet of Small Things (IoST) technology utilizing Long Term Evolution (LTE) frequencies is emerging. This concept stems from the idea that high-speed, high-capacity data transmission isn't necessarily required. By providing small amounts of data across wide areas, it can be used for tracking, sensing, and metering applications such as remote metering, streetlights, and vending machines.

Representative LPWA technologies include the standard technology 'NB-IoT' and non-standard technologies 'LoRa', 'Sigfox', and 'Wi-SUN'. In Korea, KT and LG U+ have built NB-IoT networks, while SK Telecom has built a LoRa network. Wi-Sun was first introduced in Gochang County for water metering. While Sigfox hasn't yet finalized its domestic business, it's exploring its potential.

Kim Hee-chul, Managing Director of Telit Wireless Solutions, said, “By 2021, the number of connections based on Non-Cellular LPWA technology will reach approximately 297 million. This will surpass the number of LTE-M and NB-IoT lines during the same period.” He also forecasted the future market, saying, “The unit price of NB-IoT modules will fall from $9.7 in 2017 to $4.7 in 2021. This is about one-third the price of LTE.”

According to the 3GPP standard, LTE-M is divided into Category 1, Category 0, and Category M1. In 2016, the three major carriers launched nationwide Category 1 services. While still a bit high-end for transmitting small amounts of data, it's likely to be VoLTE, as it's a mandatory option if voice services are to be included. There are no commercialization plans for Category 0. KT and LG U+ plan to launch nationwide NB-IoT services starting this year. SK Telecom, which owns a LoRa network, has not yet chosen it.

Future domestic IoT network competition is expected to center around NB-IoT and LoRa. However, some argue that LoRa, as a non-standard technology, is disadvantageous in terms of ecosystem development. Given its disadvantage compared to standard technologies, it is expected to converge with NB-IoT in the long term.

LoRa uses the 900MHz band. Because it's an unlicensed band, unlike licensed bands, it has the advantage of having nearly identical frequencies across countries. This also allows for low usage fees and low initial deployment costs. However, it suffers from significant interference and difficulty guaranteeing QoS. Additionally, there is a structural security vulnerability problem.

Most IoT devices upload more data than they download. Consequently, NB-IoT's downlink is slower than its uplink (Qualcomm's MD9206 model supports up to 20 kbps for downloads and 60 kbps for uploads). While simultaneous transmission and reception are not possible and voice transmission is not possible, NB-IoT utilizes existing LTE networks and can reach up to 15 km. While its data speeds are slower, NB-IoT is faster than LoRa or Sigfox. Because it's a commercial network, it also boasts security advantages. However, because it uses carrier networks, it requires modules certified by each carrier.

Executive Director Kim stated, "LTE-M and NB-IoT are complementary, not competitive. Depending on the bandwidth requirements, they will be used in different applications." He added, "Maintenance is crucial for IoT applications installed in equipment and devices that will be used for extended periods. It's important to ensure migration to 2G, 3G, and 4G. To be able to expand overseas, you must select a company that has completed certification from major global operators." He highlighted key considerations for IoT businesses.