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The LPWA: the advantages and disadvantages of early market entry

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The low-power, wide-area (LPWA) is a promising market – we forecast that it will have 3.6 billion connections worldwide by 2023. Mobile operators must carefully consider whether they enter the market now (using pre-standard solutions) or wait for up to 2 years for the 3GPP to agree standards. This report discusses the choices that MNOs face in light of competition from other LPWA players.

 Executive summary
 The nascent LPWA market is attracting interest, driven by the availability of proprietary or non-standard technologies
 MNOs may face a competitive threat from LPWA players and will need to weigh up the benefits of entering the market before standards emerge
 Recommendations
 LPWA: Uncertainty in a promising market
 LPWA networks are designed to overcome the shortcomings that cellular networks have when it comes to M2M communication
 The ecosystem is fragmented – several technology providers are providing non-standard solutions and having some commercial success
 MNOs have two options regarding their LPWA strategy: deploy non-standard technology or wait for 3GPP standards to emerge
 LPWA standards in licensed spectrum will not emerge from the 3GPP until 2016 at the earliest
 Adoption of non-standard LPWA networks provides first-to-market advantages, but these may be undermined when standards  emerge
 ADVANTAGES OF ADOPTING NON-STANDARD LPWA TECHNOLOGY
 Uncertainty about LPWA standards in licensed spectrum has resulted in growing interest in non-standard technologies
 Early deployment of LPWA technology enables MNOs to target early demand for some applications and increase their market share
 Other important factors are also driving MNOs to enter the LPWA market before 3GPP standards emerge
 Network deployment costs are not a barrier to early market entry
 In light of these advantages, some pioneering MNOs will deploy non-standard LPWA systems
 DISADVANTAGES OF ADOPTING NON-STANDARD LPWA TECHNOLOGY
 MNOs that deploy non-standard technologies to enter the LPWA market face risks as the market develops
 3GPP LPWA standards are expected to ultimately result in economies of scale and lower-cost equipment and deployments
 Standardised LPWA solutions in licensed spectrum have clear advantages
 Some MNOs are prepared to wait for 3GPP standards in licensed spectrum and are championing their preferred options
 APPENDIX: LPWA PROFILES AND DEPLOYMENT MAPS
 Profile: SIGFOX
 Profile: LoRa LPWAN
 Profile: Telensa
 Profile: On-Ramp Wireless
 Profile: SIGFOX network operators, Arqiva and Cellnex Telecom
 3GPP standard proposal: Clean-slate is a proposed 3GPP radio technology which would not modify existing 3GPP standards
 3GPP standard proposal: LTE-MTC is part of the 3GPP standardisation of Release 13 of LTE
 LPWA deployments: SIGFOX deployment map (May 2015)
 LPWA deployments: LoRa LPWAN deployment map (May 2015)
 ABOUT THE AUTHORS AND ANALYSYS MASON


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Reports Details

Published Date : May 2015
No. of Pages :40
Country :Global
Category :Technology
Publisher :Analysys Mason Limited
Report Delivery By :Email
Report Delivery Time :12 to 24 hours after placing the order.

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