“Internet of things” in housing and communal services: the paradox of slow communication. Megafon is preparing infrastructure for the Internet of Things

With the development of the Internet of Things (IoT), the number of connections to mobile networks of operators will increase significantly. According to Ericsson forecasts, by 2021 the total number of Internet-connected devices in the world will be 28 billion. Of these, 1.5 billion will be consumer electronics and smart cars that interact with each other through mobile networks. In the coming years, the number of machine-to-machine (M2M) connections will grow by 25% per year, most of M2M devices supplied to the market will support the LTE standard. As the IoT market grows, it becomes clear that for many use cases of such solutions, existing mobile communication technologies are insufficient due to insufficient coverage, high cost of end terminals and short battery life.

An innovative Internet of Things technology is a narrowband IoT solution (Narrow-Band IoT or NB-IoT). This is a wireless narrowband variety of low power wide area networks (LPWA), which is primarily intended for machine-to-machine (M2M) applications. The NB-IoT standard will open up a wide range of new opportunities for companies specializing in the provision of telecommunications services. In particular, it will significantly increase the operators’ revenue per subscriber (Average revenue per user, ARPU). NB-IoT technology will occupy its low-speed niche in the class of solutions where uninterrupted data transfer and low power consumption are of priority.

Technical advantages of NB-IoT

The NB-IoT standard was specified by the 3GPP consortium in 2016 in Release 13 (LTE Advanced Pro) and is currently being tested. Experts believe that NB-IoT technology will gain popularity among operators because... its maintenance and operation will cost them less than today's advanced LTE and GSM networks. This is due to its characteristics. The NB-IoT standard is a two-way communication operating in a frequency channel with a width of 200 kHz. In order to put the network into operation, the operator only needs to install a special software. This is relevant if you deploy an IoT network already at existing frequencies.

3GPP is thinking through the network operation model. The consortium offers three options for deploying an NB-IoT network. The first is NB-IoT Guard Band, i.e. A separate frequency spectrum will be allocated for Narrowband IoT. The second is In Band, i.e. the technology will be placed in the guard frequency interval of LTE networks. The third one was called Stand Alone. According to his concept, NB-IoT and LTE operate in the same frequency range. Thus, the NB-IoT network can be deployed in frequency bands in which the GSM standard currently operates, after they have been refarmed to LTE, or in “protection” intervals between GSM and LTE networks. The data transfer rate in NB-IoT reaches 200 kbit/s, which is sufficient for devices that periodically transmit small amounts of the same type of data.

In a simplified form, options for deploying an NB-IoT network can be represented as the following illustration:

In turn, the developers promise that the battery life of NB-IoT equipment without recharging will reach 10 years!

The price of the NB-IoT terminal is expected to be $5.

Next the most important features NB-IoT technology is the ability to connect up to 100 thousand NB-IoT devices to one base station cell, which is tens of times greater than the capabilities of current mobile communication standards. This allows you to obtain additional commercial benefits based on the use of IoT data analysis using Big Data methods. As part of cooperation with related industries, operators, in addition to selling communication services, have the opportunity to sell analytical data to third parties.

Such advantages of the NB-IoT standard can significantly increase the coverage area, providing communication in hard-to-reach places and regions.

Problems and prospects for the development of NB-IoT

Many industries are showing interest in IoT products that improve the efficiency of business processes. First of all, these are housing and communal services, transport, healthcare, automotive industry, etc.

The Internet of Things provides more than fifty use cases, including smart sensors (for electricity, gas, water), facility management, security and fire alarm systems for home and commercial real estate, personal electronic health sensors, tracking systems for people, animals or objects, elements smart city infrastructure (for example, street lamps or garbage containers, smart homes and connected industrial tools, etc.).

Analysts believe that it is the B2B segment that will become driving force development of the Internet of Things and it is he who will show the greatest interest in these products at the first stage of their commercialization. This is also explained by the fact that it is easier to include a structured business procedure into a smart device than the needs of a private user. The Narrowband IoT market size is expected to reach about $200 million by 2022.

Experts give various figures about the number of IoT devices connected in the next 4-6 years. The difficulty of forecasting is explained by the fact that the Internet of Things has great potential in the industrial sector, which is quite energy-intensive and requires a large number of connected devices.

The first tests of the NB-IoT standard are expected to begin at the 2016-2017 border. It is too early to talk about the commercial deployment of such networks. This is due not only to the lack of electronic components and problems with the allocation of allocated frequencies, but also to regulatory mechanisms. Huawei representatives note that today there is no reason for Russia to remain behind in technology development. Federal operators have quite firmly implemented LTE networks, which is very important for the progress of Narrowband IoT. Among the world developers of the NB-IoT standard, in addition to Huawei, one can name Qualcomm, Intel Corporation, Nokia Networks, Verizon, Samsung Group, AT&T and others.

Considering that the NB-IoT standard has just been formed, their concept is still being refined. A number of developers plan to expand the functionality of the network in subsequent releases with a voice service, because The network speed allows this to be done. Also, most likely, NB-IoT will become one of the components of the network specification (Narrowband 5G).

Testing NB-IoT networks

This summer, u-blox announced the release of a first-of-its-kind module for NB-IoT networks. It supports services that require a reliable connection and long-lasting transfer of small data. The developers claim that the battery will last from 10 to 20 years without recharging. The size of the device is 1.6x2.6 cm, and the maximum incoming stream speed is 227 Kbps. U-blox reported successful equipment tests that confirmed the greater efficiency of NB-IoT compared to GPRS.

This company has already “lit up” with sensations in the development of the Narrowband IoT standard last year. In partnership with Huawei and Vodafone, the first-ever testing of the NB-IoT pre-standard was organized. The experiment was carried out on the Vodafone network by attaching a special module to the base station, which sent a signal to the water meter. The partners intend to expand the scope of application of the technology. For example, Huawei plans to deploy this standard for organizing mobile communications. However, to do this, it is necessary to confirm the low sensitivity of the NB-IoT network to external interference.

In order to popularize and deploy the NB-IoT standard, Huawei signed an agreement of intent with TIM earlier this year. The partners are creating an open laboratory to organize work on narrowband IoT and conduct testing in the field.

It is obvious that the demand for this technology will grow, because... its characteristics are in line with market trends and consumer needs. It provides wide coverage (including in basements), energy savings, the ability to connect a large number of devices and low maintenance costs.

More detailed information about technological solutions of the Internet of Things in mobile networks (in particular, NB-IoT), the evolution of M2M networks to IoT in 3GPP specifications, as well as other technical features of the operation of mobile networks, read the book "Mobile communications on the way to 6G ".

The GSMA predicts that by 2020 the number of IoT connections across mobile networks and LPWAs will exceed 3 billion. Resource meters, wrist watches and bracelets, pet collars, parking sensors - each device will need access to the network. To make this possible, MegaFon and Huawei are actively cooperating in promoting a new communication standard on the Russian market - NB-IoT (Narrow Band IoT). This communication technology for the Internet of Things significantly reduces the energy consumption of end devices, provides significantly better coverage and communication penetration, and increases the maximum number of devices connected to the network.

MegaFon also became a member of the GSMA NB-IoT Forum community, the purpose of which is cooperation in the development of NB-IoT technology around the world. The organization includes the largest operators (China Mobile, Deutsche Telekom, Vodafone, etc.), as well as leading manufacturers of technological solutions (Huawei, Intel, Qualcomm).

The new NB-IoT standard was developed by the 3GPP consortium taking into account the requirements of operators: IoT services must be transmitted over a transmission technology known as a “low-power and wide-area (LPWA)” network and use the operator’s existing infrastructure. In terms of versatility, NB-IoT is the most suitable LPWA solution for enterprises in various industries, with which you can connect utility meters, monitoring sensors, object tracking systems and a host of other devices to the operator’s network. One of the features of the technology is the ability to connect up to 100 thousand devices to one base station cell, which is tens of times greater than the capabilities of existing mobile communication standards. The use of the low-frequency range will make it possible to provide coverage to such hard-to-reach places as basements, basements, etc. In addition, when operating in the new standard, devices use battery more economically, which allows them to work much longer without recharging. For example, a water meter with an autonomous battery, when operating in the NB-IoT standard, can last up to 10 years without recharging and receive a signal when installed in the basement.

The first devices supporting NB-IoT technologies are expected to enter the market at the end of 2016 - beginning of 2017. NB-IoT technology operates in LTE networks and will be relevant in the further transition to fifth-generation 5G standards.

“MegaFon is one of the key players in the Russian Internet of Things market, using current technologies, our company has implemented many successful projects in the field of M2M/IoT. And today, in partnership with Huawei, we are pleased to announce the transition to a qualitatively new level, the open NB-IoT standard, which allows connecting a huge number of devices of the most various manufacturers. We are confident that the new technology will make the lives of both our corporate customers and ordinary MegaFon subscribers more mobile, simpler and brighter,” noted Alexander Bashmakov, Director of Infrastructure at MegaFon.

“Huawei, in collaboration with the world's largest operators, has already made great contributions to the creation of NB-IoT technology around the world. We are glad that MegaFon is relying on the most advanced technologies, such as NB-IoT, bringing the Russian ICT market to the global level. This will allow MegaFon to offer its B2B clients effective services, which will also benefit end consumers,” added Dmitry Alferov, Vice President for Service and Maintenance at Huawei in Russia.

Prior to the final adoption of NB-IoT standards, Huawei worked with partners to prepare for standardization and test applications to better understand customer needs, accelerate modernization and optimize technical solutions. In the first half of 2016 alone, Huawei completed many joint projects. For example, Huawei tested smart parking services and applications with Etisalat; together with Australian operators (VHA and Optus) and South East Water, it launched testing of an intelligent water supply management system, and also entered into a strategic partnership agreement with the Chinese China Telecom and Shenzhen Water Group to implement a similar system.

At the Innoprom exhibition, MegaFon and Huawei demonstrated one example of the application of the new NB IoT standard - “smart parking”. Using a “smart parking” solution will enable companies - owners of commercial parking lots - to more effectively control parking space, optimize costs for monitoring the occupancy of spaces, and will also provide end users with a convenient interface through a mobile application for reserving, paying and navigating to a parking space.]]>

In the coming days, MegaFon, in partnership with the Chinese Huawei and the Russian software developer Big Three, intends to launch a pilot zone in one of the Russian regions for the use of smart gas, water and electricity meters operating using Narrow Band IoT wireless data transmission technology (NB-IoT). Such equipment cannot yet be used for commercial purposes due to the lack of a regulatory legal act (LLA) necessary for its certification. The Ministry of Telecom and Mass Communications is developing such a document. Analysts estimate the potential of the market for smart metering devices in Russia at more than 206 million meters, and not only mobile operators are already developing business in this area. However, the prospects for the introduction of smart meters are still vague.

A “smart” meter will allow residents of houses to take readings not manually, but automatically. The consumption of electricity, water and gas can be monitored through the application and statistics can be uploaded for a certain period. As Pavel Ivanchenko, head of implementation and development of M2M/Iot corporate business products of PJSC MegaFon, said at a press conference, the company supplies a comprehensive turnkey solution for resource accounting. The operator will not only install and connect the meter, but will also provide its maintenance, monitoring and technical support. According to him, the technical solution consists of a counter, a battery, a data transmission system, a radio module, and a server that collects data, made in Russia.

The operator prepared this system together with partners. In particular, Huawei acted as the supplier of base stations and network infrastructure, as well as the radio module through which data is transmitted. Sales and Marketing Director for Huawei IoT solutions in Russia, Marat Nuriev, told a ComNews correspondent that radio modules for the company were supplied by the Swiss Ublox and the Chinese Quectel. For its part, the Big Troika Group of Companies is the developer of a platform for collecting and analyzing meter readings.

As Pavel Ivanchenko says, NB-IoT technology ensures high penetration of the mobile signal in rooms with difficult signal reception. In addition, the NB-IoT-based device features ultra-low power consumption and also operates in a licensed spectrum that is not affected by radio interference. According to Marat Nuriev, the cost of the radio module should be low, no more than $5. “For now, the modules are being produced in limited quantities. However, when they are mass produced, the price will drop,” he noted. The price of the meter itself will also include a solution for protection against DDoS attacks.

“In the coming days, we plan to launch a pilot zone in one of the regions of Russia. I won’t say which one yet, stay tuned. But definitely within 2017 we will launch the solution into commercial operation,” said MegaFon’s director of corporate business development "Natalia Taldykina. The mayor of Innopolis, Ruslan Shagaleev, directly at the press conference suggested that MegaFon fully equip all houses in the city with smart meters. “Let’s implement a load test, make the first city fully connected to the NB-IoT system. We are ready to provide all the city’s resources,” he said.

However, as Marat Nuriev says, such a solution will appear on the market only after certification of equipment operating in the NB-IoT standard. “We have been working on the issue of equipment certification in this standard together with the Ministry of Telecom and Mass Communications since last year. Now the department is preparing a regulatory legal act that will approve the rules for using the equipment,” he clarified, adding that the question is how long the Ministry of Telecom and Mass Communications will develop this document. A ministry spokesman did not respond to ComNews' request yesterday.

“Today we can talk about the emergence of a whole technology market in the housing and communal services sector, and the solutions that appear here then find application in other industries. Of course, this phenomenon is the result of systematic work to increase the investment attractiveness of the industry,” the Deputy Minister welcomes the new decision construction and housing and communal services of the Russian Federation Andrey Chibis. Liu Libo, vice president for the operator market at Huawei in Russia, noted that the company is ready to apply its experience of working with leading global companies in cooperation with Russian operators, application and equipment developers.

As Anna Aibasheva, press secretary of VimpelCom PJSC, noted, the company is also showing interest in NB-IoT technology. "We are exploring the possibility of using this technology in our products, but we are still waiting to receive necessary permits", she said. Representatives of Mobile TeleSystems PJSC (MTS) and T2 Mobile LLC (Tele2 brand) did not respond to ComNews’ request yesterday.

According to Viktor Kharchev, director of the analytical center of the National Association of Industrial Internet Market Participants, the prospects for equipment operating in the NB-IoT standard are largely determined by its capabilities and cost. Director of the Association of Internet of Things Market Participants Andrey Kolesnikov welcomes the appearance of meters using NB-IoT technology. He noted that mobile operators have the necessary technology, a customer base, powerful marketing tools, and most importantly, the infrastructure to access the Network. All this will help them promote the new product.

In addition to cellular operators, PJSC Rostelecom is already engaged in the installation and maintenance of smart meters. For example, the Novosibirsk branch of the company began to provide city management companies with an automated service for collecting and processing information from utility metering devices back in 2016. This service is used by 12 management companies in Novosibirsk, more than 100 houses are connected. "The operator provides a UK channel organized over a wired communication line, a modem, an interface converter (RS-485/RS-232 to Ethernet). Unlike wireless, more reliable and secure wired communication from Rostelecom allows you to request unlimited meter readings number of times per day. Thus, the management company has the opportunity to control the consumption of electricity and heat in houses in real time,” a company employee emphasized. The company has implemented similar projects in a number of cities.

Leading expert on the development of mobile broadband solutions at Ericsson in the Northern Europe and Central Asia region, Georgy Muratov, noted that the vendor around the world is working on similar projects (based on NB-IoT) directly with energy companies. Ericsson is doing one of the most interesting projects for working with smart power supply networks in Estonia for the company Electrilevi. The contract with this company involves the installation of 630 thousand “smart” electricity meters, as well as the implementation of operational support systems (OSS) for management and data collection.

According to Mobile-Review analyst Eldar Murtazin, the prospects for smart meters are vague, because such devices do not need to be changed often, they allow citizens to save money and pay less for consumed resources, which may run counter to the interests of some unscrupulous management companies, as well as and energy companies. He does not rule out that because of this, the implementation of such meters will not proceed quickly.

According to IKS Consulting, the total potential of the market for smart metering devices in Russia exceeds 206 million meters. However, the digitalization of the communal infrastructure of the residential sector (equipping households with digital metering devices) is at the very beginning of the journey. Even the level of equipment with mechanical meters for water consumption does not exceed 70%, thermal energy - 8%. The exception is the electricity consumption segment, which demonstrates the most high level development of digital utility infrastructure. About 0.2 million “smart” meters have been installed in this segment, with the overall level of provision of households with conventional electricity meters at 99%.

NarrowBand Internet of Things, NB-IoT is a wireless technology of the LPWAN family for the Internet of Things, implemented on the basis of cellular network infrastructure and standardized by the 3GPP consortium with release 13: LTE-Advanced Pro.

Manufacturers of equipment for cellular operators participated in the creation of the release: Huawei, Ericsson, Qualcomm and Vodafone. Each of them pursued their own interests and offered technical solutions that were beneficial to themselves.

Due to its widespread use and apt name, NB-IoT often refers to three different technologies adopted by 3GPP Release 13:

EC-GSM (EC-GSM-IoT)

Extended Coverage – GSM – Internet of Things (EC-GSM-IoT) technology is based on the eGPRS standard. Changes made to eGPRS allow most installed base stations to be used to communicate with EC-GSM-IoT devices without replacing or upgrading hardware. At the same time, it is stated that for EC-GSM-IoT to work, it will be necessary to update the software of existing equipment.

LTE Cat-M1

LTE Cat-M1 is an addition to the LTE standard with higher energy efficiency parameters. It is stated that LTE Cat-M1 end devices will be able to operate in the LTE network without upgrading base stations.

NB-IoT

The essence of NarrowBand Internet of Things (NB-IoT) is the use of chips that can operate in cellular networks, but have relatively simple logic.

Instead of developing a compromise solution, 3GPP included three competing technologies in the release, the choice of which was left to chip manufacturers or cellular operators.

Russian operators They use equipment that supports three 3GPP release 13 technologies, but the predominant equipment is from Qualcomm - the cellular operators Megafon and VimpelCom work with it.

In 2016, Megafon announced a strategy for the development of NB-IoT solutions on its equipment.

NB-IoT technology

The business model of cellular operators working on NB-IoT technology is to develop the market for IoT end devices and provide commercial data transfer services for Internet of Things solutions.

Thus, the Megafon company offers 3 models of partnership between operators and suppliers of IoT devices:

• Selling a vertical solution directly to the client.
• Selling IoT services to clients together with or through a partner.
• Selling communication services to a partner without interacting with the client.

NB-IoT plays the role of “transport” - delivering data from the device to the BS. The technology was created as an add-on to work on existing infrastructure.

In Russia, only licensed frequencies in the range: 890-915 MHz and 935-960 MHz can be used for NB-IoT broadcasting with a transmitter power of up to 200 mW.

The use of a dedicated spectrum ensures communication stability and protects the network from interference from “foreign” networks. Billions of dollars in costs for the purchase of licensed frequencies are covered by income from the business of cellular operators.

In December 2018, SCRF plans to allow the Big Four cellular operators to use frequencies in NB-IoT mode.

If the SCRF makes a positive decision, operators will be able to use old GSM networks for NB-IoT and save on the purchase of new frequencies. Broadcasting on GSM networks will likely require upgrading of GSM base stations (BS), which will result in the need for additional investment.

The width of the NB-IoT radio channel is equal to the width of the LTE resource block – 180 kHz. This is a relatively high value compared to narrowband LPWAN technologies.

This channel allows the use of NB-IoT for applications with speeds from 20,000 to 250,000 bps.
Relatively high speeds in practice look redundant for many IoT applications, in particular for one of the most widespread markets - dispatching metering devices in housing and communal services.

High speed, relative to narrowband LPWAN protocols, negatively affects other characteristics: communication range, scalability of solutions, penetration.

XNB technology from STRIZH

STRIZH's commercial activities today are based on:

• selling ready-made IoT solutions to both small and medium-sized and large industrial clients directly;
• sale of ready-made IoT solutions through regional dealers and partners;
• comprehensive sale of LPWAN communication devices and services for an integrator implementing its own IoT solutions.

XNB protocol logo

STRIZH has developed a complete technology stack for the Internet of Things: radio protocol, end devices, base stations and server software.

The STRIZH technology stack is based on the XNB (Extended Narrow Band) protocol, which is narrow-band, energy-efficient and optimized for machine-to-machine (M2M) data exchange over long distances. XNB is originally designed to transmit radio signals in the 868.8 MHz spectrum (license free) with transmit power up to 25 mW. At the same time, XNB can also operate at licensed sub-gigahertz frequencies, if available.

Due to the fact that STRIZH base stations and end devices “communicate” in the unlicensed range, where hundreds of devices from other networks are broadcast, protection from interference and collisions - signal overlaps - is necessary.

To eliminate them, STRIZH uses an ultra-narrowband signal and special reception and transmission algorithms:

• planning communication sessions: transmission and reception algorithm embedded in the device itself and the base station;
• use of noise-resistant coding of radio signals;
• mathematical methods and CRC checks that can significantly increase the probability of correct delivery.

The signal transmitted by the device in a 100 Hz band and the high energy per bit of transmitted information, coupled with high receiver sensitivity, provide an excellent communication channel budget of 174 dBm and high noise immunity.

The data exchange speed in the STRIZH network ranges from 100 to 9600 bps. Since the XNB protocol was originally developed for collecting and transmitting a small amount of data from metering devices and sensors, the specified speed is more than enough to implement target tasks. Large-scale projects implemented by STRIZH require high autonomy of end devices, long reception and transmission ranges, scalability and relatively low implementation costs.

Base stations

NB-IoT

Key characteristics of base stations: sensitivity, communication range and capacity.

The estimated communication range of the NB-IoT station is up to 15 kilometers per rural areas. However, judging by the communication budget indicator - 164 dB and the low sensitivity of the receiver: -127 dBm, it is unlikely that the base station will be able to “hear” “smart” devices at a distance of more than 2-3 kilometers in urban conditions.

In cities, according to operators, the limiting factor will not be range, but network capacity (the ability to receive and process signals from subscriber devices). To level it out, it is planned to increase the network density in the city to 1 base station per square kilometer, which contains only a few thousand sensors (up to 4000 according to specialist calculations).

This task will be solved either through the use of the GSM network (in the event of a positive decision by the SCRF), or by spending on new BSs with NB-IoT support.

It is likely that operators will be faced with the task of upgrading some of their equipment: GSM base stations released before 2015 do not support the NB-IoT standard and require a hardware “upgrade”. GSM equipment released after 2015 are updated by software.

Infrastructure upgrades for NB-IoT networks will be highly dependent on the commercial prospects of specific territories.

Short communication range will be a limiting factor in the penetration of traditional cellular networks in sparsely populated areas: villages, highways, fields.

Taking into account the factors described above, the prospects for the expansion of NB-IoT outside of large cities seem limited.

XNB from STRIZH

Due to the fact that the STRIZH base station is capable of simultaneously processing up to 5,000 channels in the unlicensed 500 kHz range, its capacity is up to 1,000,000 devices per day. The confirmed range of the BS is up to 10 kilometers in urban areas and up to 50 kilometers in open areas.

The STRIZH base station is distinguished by a high communication channel budget of 174 dBm. A 10 dB advantage over the NB-IoT budget gives a threefold increase in communication distance or an additional 2 concrete walls in the house.

Improvements made to the XNB protocol do not affect the hardware of the stations and are introduced at the software level. The software update occurs centrally from the server and takes no more than a minute.

Conclusion

Due to lower sensitivity, as well as the “fixed”, stationary location of cell towers, the NB-IoT station may not “hear” all signals, which is why “blind zones” of coverage appear, especially in hard-to-reach places. “Smart” meters cannot be placed in a basement or iron closet, which is critical for organizing large-scale resource metering solutions in housing and communal services.

In practice, this means that the cellular operator’s BS will not accept readings from 20 out of 100 metering devices installed on the first floors of the house. The effectiveness and expediency of such a solution from the user’s point of view is reduced to zero. At the same time, the telecom operator will not install an additional expensive NB-IoT station to eliminate a relatively small “white spot” on the coverage map.

This approach will not cover the costs of purchasing a new BS, the procedure for approving equipment and installation.

Cost of Network Deployment for Internet of Things

In Russia, since 2014, frequencies for the provision of mobile communication services have been distributed through auctions.

STRIZH base stations do not require licensing or approvals for installation. Whether it is an enterprise with 120 temperature sensors in a remote area or a developer with 5,000 “smart” meters - each client deploys a network for collecting telemetry in 2 hours and 69,000 rubles.

The project for federal coverage of the STRIZH telematics network for the Internet of Things in transport can be implemented using mobile BSs built into vehicles and the deployment of a network of stationary base stations - their low cost allows this to be done.

The project for federal coverage of the STRIZH telematics network for the Internet of Things in transport can be implemented using mobile BSs built into vehicles and the deployment of a network of stationary base stations - their low cost allows this to be done.

The cost of servicing the STRIZH base station is about 400 rubles per month: payment for Internet traffic and 11 kilowatt-hours of electricity - this is how much one fluorescent light bulb consumes.

Conclusion

The high cost of equipment, its maintenance and the unaffordable price for radio frequency licensing for small and medium-sized businesses will continue to hinder the development of NB-IoT technology.

Deploying a network in territory undeveloped by operators: in rural areas, roads will entail costs for infrastructure, communications and various approvals (capital construction of cell towers). Remote areas obviously cannot be covered by NB-IoT network operators for at least the next 7 years. Only large cellular operators will be able to deploy cellular networks supporting NB-IoT technology, and where it can be economically justified: in major cities with reliable coverage and developed new cellular network infrastructure.

An IoT network based on STRIZH technology can be deployed by a specialized entrepreneur or organization: a company managing a residential area, farming, or resource supplying organization.

Low cost, small dimensions and low maintenance requirements for STRIZH base stations allow large-scale deployment of IoT networks in large areas, including along roads and railways for transport applications. This scenario is provided for by the “Road Map” of the “Digital Economy of Russia” program, as well as a number of industrial programs related to improving the efficiency of infrastructure management and transport safety.

End devices

Today in Russia, Megafon and Teleofis are beginning to offer solutions based on NB-IoT technology.

As of December 1, 2017, there are no NB-IoT devices from Megafon for open sale. The Teleofis website does not present ready-made “smart” devices, but data collection and transmission devices (DCTs) with NB-IoT support. The sensor or meter must be connected to the SPD via wires through external interfaces.

Water meters SVK 15-3-2 with radio modem "STRIZH"

Operating experience proves that wired connections complicate the installation process and reduce the reliability of the solution: the reed switch of a cheap meter will fail, the contact will come off, an electrician will confuse it, or residents will deliberately cut it off.

Teleofis plans to sell USPD in 2018. Before implementation, it is necessary to check whether the cellular operator at the client’s site supports NB-IoT technology.

STRIZH sells devices ready to use: “out of the box”. Meters and sensors with built-in XNB radio modules do not differ in installation and commissioning from standard traditional devices without communication.

There is no need to connect the UPD and call installation specialists - installing a “smart” meter or “STRIZH” sensor takes 3-5 minutes.

Conclusion

• To become truly mainstream, the solution must be as simple, ready-made, and wireless as possible.
• So far, the NB-IoT devices available on the market are made in the form of “semi-finished” modems and do not seem to be reliable solutions.
• STRIZH supplies ready-made wireless devices that work in any XNB network right out of the box.
• To install STRIZH metering devices, a full-time plumber or electrician from the management organization is sufficient.

Cost of end devices

USPD RTU102m-NB1 from Teleofis

The price of an NB-IoT radio module (the chip itself plus the harness) starts from 900 rubles; for large wholesale quantities, the price can probably be reduced.

The price of the RTU102m-NB1 data transmitter with NB-IoT support is 4,900 rubles. To this figure it is necessary to add the cost of integration with the meter and the cost of the actual water meter with a pulse output. The final cost of the solution is about 6,000 rubles for 1 water metering unit.

The retail price of a water meter with an XNB radio modem "STRIZH" is 2,030 rubles. Sales of the first STRIZH solutions for remote metering of utility resources began in 2014. After 3 years, almost 200,000 devices have been sold and installed.

Conclusion

The market for “smart” automation is sensitive to the cost and rise in price of end devices: an increase in the cost of a sensor, even by 50 rubles, produced in a millionth series, will entail corresponding costs. This is especially critical for decisions related to housing and communal services.

By the end of 2017, there are no ready-made devices with NB-IoT support on sale. USPDs are expensive due to the high cost of hardware and the lack of well-established large-scale production.
The appearance of NB-IoT devices comparable in price to devices from other manufacturers is expected no earlier than 2019-2020.

Mass production of chips on the basis of which the STRIZH radio module was created had a positive effect on the cost: they are 3-4 times cheaper than chips for NB-IoT.

The difference in the cost of components is also reflected in the cost of finished devices. The low price of the STRIZH radio module ensures low cost of IoT solutions, including tens of thousands of autonomous devices.

The ideal scenario for using "STRIZH" is stationary and mobile applications in territories or facilities where the deployment of low-speed telematics networks with high requirements for signal penetration and autonomy of end devices is required.

We are developing our own LPWAN chip “STRIZH”, which combines a transceiver and a microcontroller. Creating your own chip will simplify and make the production of STRIZH devices as cheap as possible.

Autonomy

The range of signal transmission speeds in NB-IoT networks varies from 20,000 to 250,000 bps. The radio signal power of NB-IoT devices is 23 dBm or 200 mW. At the same time, manufacturers claim 10-year autonomy of the devices. According to experts, to ensure a 10-year lifespan of the device, taking into account temperature fluctuations, a battery with a capacity of 7 to 15 Wh will be required.

The energy-efficient XNB protocol from STRIZH sends messages at a speed of 100 bits per second in a 100 Hz bandwidth. Low speed and narrowband signal provide a good communication budget.

STRIZH devices transmit radio signals with a power of up to 25 mW. This is 8 times lower than the power emitted by an NB-IoT radio modem.

Average power consumption in this case: up to 10 μA - in sleep mode and up to 50 mA - in transfer mode (estimated at the upper limit).

Conclusion

When comparing NB-IoT and XNB technologies from the point of view of end device autonomy, the latter looks much more preferable.

High transmission speeds reduce the battery life of end devices - the higher the speed, the more energy the NB-IoT radio module consumes.

As of December 1, 2017, less than 11 months have passed since the start of testing NB-IoT solutions, and it is too early to talk about the actual battery life in NB-IoT devices.

The confirmed autonomous life of XNB-meters "STRIZH" as of December 1, 2017 is 4 years. The first “smart” devices have already been operating for so long in residential areas of Moscow and Perm.

The XNB protocol is optimal for telemetry applications that require long-term battery life. For example, resource meters or other sensors installed in hard-to-reach places: basements, risers of apartment buildings and underground parking lots.

Technology development in Russia

Prototypes of NB-IoT devices from Megafon

Network equipment supporting NB-IoT is produced outside of Russia by Qualcomm and a number of other large foreign vendors.

Thus, Megafon cellular networks: base stations, software and BS control system are at least half built on equipment from a Chinese vendor.

STRIZH technology, including equipment and software, is entirely domestic: base stations are assembled in Moscow, end devices are produced at our own facilities, as well as at the factories of Russian partners.

The company's servers are located in Russia. Work is underway to introduce encryption into the system in accordance with GOST.

Since 2014, STRIZH has been creating and applying Russian information Technology and ensures their competitiveness at the international level.

The Internet of Things solutions developed and implemented by STRIZH fully comply with the main provisions of the “Strategy for the Development of the Information Society in the Russian Federation for 2017-2030”, approved by the President.

Conclusion

Building a network infrastructure on foreign equipment and software is unsafe for both technical and political reasons. And since operators tend to include part of the cost of equipment in its subsequent maintenance, cellular IoT networks may become significantly more expensive in the next 3 years.

STRIZH consistently implements the Strategy program, replacing imported equipment, software and electronic component base with Russian analogues that are not inferior to, and in many ways superior to, foreign developments.

Subscription fee for using the network

In cellular networks, the subscription fee is regulated by the operator. There are already precedents in Russia when, as traffic grew, tariffs also increased. For housing and communal services, a subscription fee of 50 rubles per device is a significant additional expense that affects the payback.

The STRIZH network is deployed on inexpensive base stations. The client becomes the “master” of his own network. The cost of the STRIZH solution is optimized due to the unlicensed broadcast range and inexpensive equipment.

As part of the current commercial policy aimed at the housing and communal services sector, subscription fees are not charged to small and medium-sized customers.

When building a federal-level network, the business model will likely include subscription fee or its equivalent.

Conclusion

Subscription fees for M2M traffic and the likelihood of its increase are holding back large businesses and organizations that cannot depend on cellular operators: state-owned companies, the defense sector, developers with thousands of utility meters.

The ability to deploy your own networks without a monthly fee will allow you to large companies, and small organizations to implement projects on the STRIZH platform. If a monthly fee is introduced during the deployment of the federal STRIZH network, its size will be an order of magnitude smaller compared to the tariffs of cellular operators.

Summary

As of December 1, 2017, 4 pilot NB-IoT networks are known in Russia. All of them were deployed by the second largest Russian mobile operator, Megafon, and all in test mode.

The first commercial implementations should be expected only by the second half of 2018. And preparation for production and certification of ready-made “smart” devices will most likely shift the implementation timeline to 2019-2020.

It will take another 2-3 years before the full launch of NB-IoT in some regions. Network deployment will begin with the most cost-effective solutions with the highest subscriber density - large cities.

Advantages and features of NB-IoT

Advantages

• Availability of infrastructure in large cities: the user does not “bother” with the deployment of stations.
• High data transfer rates: can be used for applications with traffic levels from 20,000 to 250,000 bps.
• Low signal transmission delay (latency) up to 1 second from the moment of triggering to notification in your personal account. On busy networks, delays can reach 3 seconds.

The ideal use case for NB-IoT is fixed and mobile applications in urban areas with high bandwidth requirements and relatively tolerant of penetration and autonomy.

Peculiarities

• subscription fee for traffic;
• the risk of a unilateral change in the terms of cooperation: an increase in the subscription fee;
• complete dependence on the operator and its infrastructure;
• lack of ready-made end devices: the modem-meter connection is unreliable;
• inability to deploy a private network;
• the presence of SIM cards in volumes of 100 devices or more causes confusion on the client side;
• relatively low autonomy: you will have to change the battery or provide constant power;
• expensive infrastructure and licenses for frequencies when deploying a new network in a sparsely populated area, for which the user pays in the form of a monthly fee;
• the cost of modems and metering points is higher than the industry average;
• lower sensitivity and, as a result, worse signal penetration;
• the presence of shadow spots in the coating;
• long TTM (time to market) solutions: the stated solutions will have to wait from 1 year or more;
• foreign technology from foreign vendors (information security).

The listed features lead to the fact that NB-IoT will certainly receive some application in cities with a population of more than 100-300,000 people. In cities with smaller populations, at the request of large customers, it is possible to build an NB-IoT network in 6-9 months. Covering roads and railways will probably not be a priority.

The most attractive applications for NB-IoT:

• retail and banks: vending machines, cash registers, ATMs;
• medicine: wearable devices, remote monitoring;
• security systems: alarm, equipment control;
• consumer electronics.

Advantages and features of the STRIZH technology

Advantages

• Cheap base stations: from RUB 86,650, which can be deployed anywhere in 2 hours.
• Low cost of network ownership (power supply, transit channel) - from 400 rubles. per station per month
• Wide territorial coverage: up to 10 km in the city, 40 km. in open areas.
• White spots are easily “closed” by inexpensive mini base stations.
• High device density: up to 1,000,000 devices per station per day.
• Effective coverage of sparsely populated areas, roads and railways with mobile or stationary BS.
• High penetrating ability makes it possible to poll devices from basements, risers, and cabinets, which is critical for accounting resources in housing and communal services.
• High autonomy of devices: up to 10 years from the built-in battery.
• The ability to deploy private and closed networks without a subscription fee.
• Does not require licensing, can be used freely anywhere in the Russian Federation.
• No license costs are passed on to the subscriber
• Ready-made, integrated plug-and-play devices and complete solutions.
• The cost of chips is lower - the cost of devices is lower.
• Vertical LPWAN communication platform: from protocol to user application.
• Fast delivery of solutions to the market: 3 weeks for a prototype, 2 months for a finished product.
• 100% domestic technology: ahead of imports, safety, export potential.

The ideal use case for STRIZH is the rapid and inexpensive deployment of private or public networks with a high density of fixed or mobile devices in any territory, regardless of the commercial interests of traditional cellular operators.

Peculiarities

• Transfer rate: 100/1000/9600 kbit/s, suitable for applications with low communication bandwidth requirements: telemetry of meters and sensors.
• Higher delay (latency): up to 3-5 seconds from the moment it is triggered until the data is displayed in your personal account.
• The unlicensed range - a higher probability of interference - is effectively mitigated due to the narrowband approach and the high link budget of 174 dBm.

"STRIZH" is ideal for use in the following industries:

• Housing and communal services and electric power industry: dispatching and resource accounting.
• Transport telematics: cargo monitoring, waste removal, “digital railway”.
• Monitoring of buildings and objects: smoke, access, temperature, leakage sensors.
• Agricultural sector: monitoring of vast areas of agricultural fields, warehouses, greenhouses.
• The need to deploy a network where there is no coverage is not a barrier for STRIZH, since the infrastructure is available even for a small customer.

From this brochure you will learn:

• what is NB-IoT;
• detailed comparison of XNB and NB-IoT;
• differences in equipment levels: base stations, end devices;
• how much does it cost to deploy a network on XNB and NB-IoT;
• prospects for technology development in Russia.

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A comprehensive solution for the “Internet of Things” in housing and communal services was met with skepticism: they say, how many companies have already registered here, but meter readings still have to be written off manually! However, in this case it is worth taking a closer look at what is happening - and the more closely the closer the housing and communal services topic is to you. I will not say that this particular solution will become the market leader in the foreseeable future, or even that it will work in your home/homes. But it’s time to understand it and its analogues - without a doubt, because this will help save money and improve the quality of housing stock management.

Actually, the news is short: Megafon, together with Huawei and the Big Three, already this year plans to offer management companies and enterprises in the LCD sector in general a product that implements remote collection of information from smart meters (easily adaptable for other smart devices at home). How is this done? It looks like solutions that have already been implemented - for example, the Russian brand "": a radio module is connected to the meter, which regularly transmits readings to a server located several kilometers from the house.

The difference is that Megafon and its partners chose the NB-IoT standard for data transmission. What benefits this particular standard promises will be discussed below, but for now let’s take a closer look at the problem of remote collection of household meter readings.

Forget for a moment about “smart” devices, “Internet of Things” and other tricky terms. Take out your smartphone and think about how it works. You almost certainly use a mobile Internet service. The speed of such a connection is comparable to wired Internet: if desired, you can download not only web pages, but also listen to music, watch videos, even stream videos! However, we got all these delights for a reason; we have to pay for them. And I don’t mean money first of all, or rather, not only money.

High data transfer speeds greatly limit the number of subscribers that can be served by one telecom operator's cell. We have all encountered this limitation, for example, on a weekend mall: There seems to be a connection, but you can’t get through by phone! Then, a lot of energy is spent on such transmission - that’s why the smartphone battery only lasts for a couple of days. Also, the electronics that carry out such transmission are expensive. Finally, the communication range is short and the denser the building, the shorter it is. In total, all this results in the need for the operator to use expensive equipment to organize “cells” and, accordingly, in expensive tariffs for subscribers.

Now imagine a household meter - water, say, or electricity, gas, heat. How much information does it generate per day? Yes, an insignificant amount! Hundreds of bytes, if you take readings, for example, hourly: for comparison, one page with this article “weighs” thousands of times more! And how do you order these several hundred bytes to be transferred to the server if we suddenly decide to save the tenant from having to write down readings and submit them manually? Via the Internet, of course, and almost certainly wireless.

The cheapest option seems to be to attach a regular telephone to each meter. But this is where their disadvantages come to light: they are expensive, short-range, and one “cell” can serve only a small number of them. For meters, some other data transmission standard is clearly needed, which would have the opposite properties: although the transmission speed is low, it is cheap to operate!

This is exactly the standard that NB-IoT is, chosen by Megafon and its partners. Behind it is the industrial consortium 3GPP - that is, the same companies that gave us GSM, GPRS and EDGE, LTE. Just for information: the abbreviation NB-IoT, although it looks creepy, is easy to decipher. NB is a narrow band, that is, a “narrow band”: this means that a transmitter operating using this technology takes up relatively little space on the air and can, without interfering, operate in the same range with cell phones. IoT is the internet of things, that is, the “Internet of Things”: the standard is designed to connect not people to the Internet, but “smart” devices.

Any device equipped with an NB-IoT module behaves like a cell phone: it also communicates with the operator’s cell and transmits some data there. The difference from a telephone is that the data volumes and speed are small (hundreds or thousands of bytes per second), and this makes it possible to place tens of thousands of such devices on one “cell”, providing greater “penetrating power” (building density does not affect so much) , and achieve several years of operation without replacing the battery. Another important factor: the cost of such a radio module is around 300 rubles, that is, stealing it is, in principle, unprofitable - you spend more money on it.

In fact, of course, NB-IoT is not the only option in the class of low-energy networks (LPWAN, as networks designed for exchanging data with “smart” devices are called). There are more than a dozen standards and developments that claim to be a standard - from very crude theoretical ones to those already being implemented (such as LoRaWAN, behind which IBM stands, or the domestic “STRIZH”). But it is important to understand that in most cases these technologies involve the installation of auxiliary equipment for collecting data from one or several houses: a special radio station serving houses within a radius of hundreds of meters to tens of kilometers. This in itself makes the solution more expensive.

NB-IoT does not require such equipment: remember, it works like a cell phone, communicating directly with the carrier's "cells". For clients, this option is both simpler and cheaper. And given the authority of companies promoting NB-IoT in Russia, it is even more worth paying special attention to. Therefore, when such products go on sale, take a closer look at them!

What benefits can be brought by mass installation of meters at home that take readings via NB-IoT? For management companies and homeowners associations that steal money through manipulation of meter readings, none. But for such counters they are an extremely profitable thing. The fact is that you can equip your housing stock with them practically for nothing - in the sense that the cost of the radio module is almost invisible compared to the price of the meter itself, and no other equipment is required! After all, the data from the meters goes directly to the telecom operator, and from there to the server of the management company/homeowners association, where it is processed.

Thus, accounting in the house with a minimum of costs becomes almost ideal. “Smart” meters that take readings on their own prevent people from tampering with readings, detect undetected leaks and chronic leaks, and radically reduce general household needs. All this is beneficial primarily to the residents themselves, but also to the management company: more precisely, accounting - less problems, better image of managers. That is why, in the net result, NB-IoT seems to be the favorite of the “Internet of Things” in the housing and communal services sector. All that remains is to wait for its official launch in Russia, which should happen in the coming months.

P.S. Used graphic works GSMA, Huawei.

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