LTE-M vs NB-IoT: Comparing LPWAN IoT solutions

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As companies look to deploy IoT solutions at scale, it’s crucial to understand the different connectivity options available. Two leading technologies in this space are Narrowband IoT (NB-IoT) and LTE-M.

Both NB-IoT and LTE-M are Low Power Wide Area Network (LPWAN) technologies designed for IoT applications. They offer long-range communication at a low bit rate, enabling low-frequency connectivity and low power consumption in IoT devices. However, they have distinct characteristics that make them suitable for different use cases.

We’re going to go into the key differences between NB-IoT and LTE-M. We’ll explore their technical capabilities, use cases, and the factors to consider when choosing an LPWAN solution. By the end, you’ll have a clearer understanding of which technology best aligns with your IoT deployment needs.

What is NB-IoT?

Narrowband Internet of Things (NB-IoT) is a Low Power Wide Area Network (LPWAN) technology standard developed by 3GPP to enable a wide range of cellular devices and services. It’s designed to enhance indoor coverage, support a large number of low-throughput devices, offer low delay sensitivity, reduce power consumption, and optimise network architecture.

How NB-IoT works

NB-IoT operates in licensed frequency bands, leveraging existing mobile network infrastructure. It uses a subset of the LTE standard, but limits the bandwidth to a single narrow-band of 200kHz. This allows NB-IoT to benefit from many of the same advantages as LTE such as:

Excellent coexistence performance
High spectrum efficiency
Superior security and privacy
Carrier-grade network reliability

NB-IoT employs two different approaches for deployment:

Standalone operation in a dedicated spectrum, typically in GSM spectrum
In-band operation utilising resource blocks within an LTE carrier

Both deployments ensure minimal impact on existing cellular networks while maximising coverage. NB-IoT also uses an optimised data transmission protocol adapted for small, intermittent data transfers to further reduce power consumption.

Key characteristics & benefits of NB-IoT

Extensive range and deep indoor penetration

Excellent coverage in hard-to-reach areas such as basements and remote locations

Up to 10x better coverage than GSM

Support for a wide range of devices

Can support up to 100,000 active devices per cell

Highly scalable for large deployments

Ultra-low power consumption

10+ years of battery life for many use cases

Power saving mode and extended discontinuous reception (eDRX)

Low device and deployment costs

Highly integrated chipsets and simplified network topology

Leverages existing LTE infrastructure

Enhanced security and reliability

Uses proven LTE security mechanisms

Carrier-grade network dependability

These characteristics make NB-IoT suitable for applications requiring long battery life, extended coverage and infrequent small data transmissions such as smart metering, environmental monitoring, asset tracking and smart city infrastructure. Its ability to operate in the licensed spectrum also ensures quality of service.

What is LTE-M?

LTE-M, also known as LTE Cat-M1, is another LPWAN technology that operates in licensed frequency bands. It’s designed to support IoT applications with higher data rate requirements compared to NB-IoT.

How LTE-M works

LTE-M technology leverages existing 4G LTE networks, using a portion of the LTE spectrum. It employs a 1.4 MHz bandwidth, which is wider than NB-IoT’s 200 kHz, enabling higher data rates. LTE-M supports both half-duplex and full-duplex modes, allowing devices to send and receive data simultaneously.

Devices connect directly to the LTE-M network without the need for a gateway, simplifying deployment. The technology uses advanced power-saving techniques including extended discontinuous reception (eDRX) and power saving mode (PSM) to prolong battery life.

LTE-M offers a maximum data rate of 1 Mbps, making it suitable for applications that require occasional data transmissions, such as asset tracking, wearables, and smart city applications.

Higher data rates:
With a maximum data rate of 1 Mbps, LTE-M supports applications that need to transmit larger amounts of data, such as firmware updates or rich sensor data.
Mobility support:
LTE-M ensures a seamless handover between cell towers, making it ideal for mobile IoT applications such as asset tracking and fleet management.
Voice support:
LTE-M includes voice over LTE (VoLTE) capabilities, enabling voice communication for applications such as security systems and emergency services.
Lower latency:
Compared to NB-IoT, LTE-M offers lower latency, making it suitable for applications that require faster response times, including real-time monitoring and control systems.
Improved coverage:
LTE-M provides deep indoor and underground coverage, ensuring reliable connectivity for IoT devices in challenging environments, such as basements and remote locations.
Reduced power consumption:
With power-saving features such as eDRX and PSM, LTE-M devices can achieve a battery life of several years, depending on the application and usage patterns.
Enhanced security:
LTE-M inherits the robust security features of the 4G LTE network, including encryption, authentication, and integrity protection, ensuring secure data transmission and device management.

NB-IoT vs LTE-M: Key differences

NB-IoT and LTE-M are both LPWAN technologies designed for IoT applications, but they have distinct differences that make them suitable for different use cases. Let’s examine the key differences between NB-IoT and LTE-M…

Coverage & penetration

NB-IoT offers better coverage and deeper penetration compared to LTE-M. It uses a narrow bandwidth of 200 kHz, enabling it to penetrate through walls, basements, and underground installations. NB-IoT’s coverage extends up to 10 km in rural areas and 1 km in urban areas.

LTE-M, on the other hand, operates in a wider bandwidth of 1.4 MHz, resulting in slightly less coverage and penetration than NB-IoT. However, LTE-M still provides excellent coverage, reaching up to 5 km in rural areas and 500 m in urban areas.

Data speeds & latency

LTE-M offers higher data speeds than NB-IoT. It supports a maximum data rate of 1 Mbps, making it suitable for applications that require slightly more intensive data transmissions, such as asset tracking, wearables, and smart metering.

NB-IoT has a lower data rate, with a maximum rate of 250 kbps for downlink and 20 kbps for uplink. It’s designed for applications that send small, infrequent data packets, such as sensor readings and status updates. NB-IoT also has higher latency in comparison to LTE-M.

Power consumption & battery life

Both NB-IoT and LTE-M are designed for reducing power consumption and extending battery life. NB-IoT devices can last up to 10 years on a single battery due to their ability to enter deep sleep mode when not transmitting data.

LTE-M devices typically have a battery life of 5-10 years, depending on the application and usage patterns. LTE-M supports power-saving techniques including extended discontinuous reception (eDRX) and power saving mode (PSM) to minimise power consumption.

Deployment status & network support

LTE-M has a wider deployment footprint than NB-IoT. It’s supported by many major mobile network operators worldwide, leveraging existing 4G LTE infrastructure. This makes LTE-M easier to deploy and scale.

NB-IoT is also gaining traction, with an increasing number of network operators deploying it globally. However, the deployment of NB-IoT networks is still catching up to LTE-M in terms of coverage and availability.

Cost of devices & service

NB-IoT devices are generally cheaper compared to LTE-M devices due to their simpler design. NB-IoT modules often cost around £5-£10, while LTE-M modules range from £10-£20. NB-IoT also tends to be more affordable due to it having higher latency and longer device lifespan. LTE-M service costs are slightly higher but offer more flexibility and come with advanced features such as mobility support and voice capabilities.

Suitable use cases

NB-IoT and LTE-M are each suited for different IoT applications based on their unique capabilities. Let’s explore some common use cases for these LPWAN technologies.

NB-IoT applications

NB-IoT excels in applications that require:

Long battery life (up to 10 years)
Low data rates (up to 250 kbps)
Infrequent data transmissions
Deep indoor or underground coverage

NB-IoT use cases include:

Smart metering (electricity, gas, water)
Waste management and bin monitoring
Environmental monitoring (air quality, soil moisture)
Parking sensors and smart parking solutions
Smoke and fire detectors
Industrial tank level monitoring

NB-IoT’s low power consumption and excellent coverage make it an ideal solution for deploying a large number of battery-powered sensors in challenging environments.

LTE-M applications

LTE-M is better suited for IoT applications that demand:

Higher data rates (up to 1 Mbps)
More frequent data transmissions
Voice support (VoLTE)
Mobility and roaming capabilities

LTE-M use cases include:

Asset tracking and fleet management
Wearable devices and personal trackers
Smart watches and healthcare monitoring
Point of sale terminals and vending machines
Home security systems and smart doorbells
Vehicle telematics and connected cars

LTE-M’s higher bandwidth, mobility support, and lower latency enable more advanced IoT applications that require real-time data transfer and location tracking.

Factors to consider when choosing between NB-IoT & LTE-M

When deciding between NB-IoT and LTE-M for an IoT project, it’s crucial to evaluate various factors that impact the project’s success. Let’s explore the key considerations in more detail.

Current & future connectivity needs

It’s essential to assess the current and future connectivity requirements of your IoT application. NB-IoT is ideal for applications that send small amounts of data infrequently, such as smart meters, environmental sensors, and parking sensors. These applications typically require low data rates (up to 250 kbps) and can tolerate higher latency.
On the other hand, LTE-M supports higher data rates (up to 1 Mbps) and lower latency, making it suitable for applications that require more frequent data transmission or real-time communication. Examples include asset tracking, wearable devices, and remote monitoring systems.

Geographical coverage requirements

The geographical coverage of your IoT solution is another crucial factor. NB-IoT offers excellent coverage and deep penetration capabilities, enabling connectivity in remote or hard-to-reach locations. It’s well-suited for applications that need to cover large areas or operate in challenging environments, such as basements, urban infrastructure, or rural areas.
LTE-M also provides good coverage, but it may not match NB-IoT in terms of penetration. However, LTE-M has a wider global deployment, making it a better choice for applications that require international coverage or roaming capabilities.

Security & reliability priorities

YourSecurity and reliability are critical aspects of any IoT deployment. Both NB-IoT and LTE-M offer built-in security features, such as encryption and authentication, to protect data transmission and prevent unauthorised access.
However, LTE-M has an advantage in terms of reliability due to its ability to support voice and mobility services. This makes LTE-M a better choice for applications that require reliable, real-time communication, such as emergency alert systems or medical devices.
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Budget & pricing considerations

Cost is always a significant factor when choosing an IoT connectivity solution. NB-IoT is generally more cost-effective than LTE-M due to its lower complexity and higher latency. NB-IoT devices are also less expensive to manufacture, making it an attractive option for large-scale deployments or price-sensitive applications.
LTE-M, while more expensive than NB-IoT, offers a better balance of cost and performance. It’s suitable for applications that require higher data rates or more frequent communication, justifying the cost.
When evaluating pricing, it’s important to consider not only the cost of your devices and connectivity but also the total cost of ownership (TCO) over the lifetime of your IoT project. This includes factors such as device maintenance, battery replacement, and data processing costs.

Outlook on future development & adoption

Increasing adoption & market growth

We expect the adoption of both NB-IoT and LTE-M to continue growing rapidly in the coming years. According to a report by MarketsandMarkets, the global NB-IoT market is projected to reach $6.82 billion by 2025, growing at a CAGR of 34.9% from 2020 to 2025. Similarly, the LTE-M market is expected to grow at a CAGR of 44.2% during the same period, reaching $7.27 billion by 2025.

Several factors drive this growth, including:

Increasing demand for IoT solutions across various industries
Growing need for low-power, wide-area connectivity
Continued development and deployment of 5G networks
Declining costs of NB-IoT and LTE-M modules and devices

Coexistence & complementary roles

As IoT use cases continue to diversify, we anticipate that NB-IoT and LTE-M will coexist and play complementary roles in the IoT ecosystem. While NB-IoT will remain the preferred choice for applications requiring low data rates, long battery life, and deep coverage, LTE-M will cater to use cases demanding higher data rates, mobility support, and voice capabilities.

Ultimately, the choice between NB-IoT and LTE-M will depend on the specific requirements of each IoT project, considering factors such as:

Data rate and bandwidth needs
Power consumption and battery life requirements
Coverage and penetration requirements
Mobility and roaming needs
Security and reliability demands

Integration with 5G networks

As 5G networks continue to roll out globally, we expect NB-IoT and LTE-M to play crucial roles in enabling large-scale IoT deployments. Both technologies will be integrated into the 5G ecosystem, leveraging the enhanced capabilities of 5G networks, such as:

Ultra-low latency
Increased bandwidth
Improved network slicing
Edge computing capabilities

This integration will enable new IoT use cases and applications, driving further adoption and market growth for NB-IoT and LTE-M technologies.

Continued standardisation & ecosystem development

To support the growing adoption and deployment of NB-IoT and LTE-M, we anticipate ongoing efforts in standardisation and ecosystem development. Key areas of focus will include:

Enhancing interoperability and roaming capabilities
Developing new features and capabilities to address evolving IoT requirements
Expanding the ecosystem of NB-IoT and LTE-M devices, modules, and solutions
Fostering collaboration among industry stakeholders, including operators, device manufacturers, and solution providers

These efforts will help ensure the long-term success and sustainability of NB-IoT and LTE-M technologies in the rapidly evolving IoT landscape.

Frequently Asked Questions (FAQs)

What are the key differences between NB-IoT and LTE-M?

NB-IoT offers better coverage and longer battery life, while LTE-M supports higher data rates and has wider deployment. NB-IoT is suitable for low data rate applications such as smart metering, while LTE-M is better for asset tracking and healthcare monitoring.

What factors should be considered when choosing between NB-IoT and LTE-M?

When selecting between NB-IoT and LTE-M, consider factors such as your connectivity needs, geographical coverage, security, reliability, and budget. NB-IoT is cost-effective for low data rate applications, while LTE-M offers higher data rates and reliability.

How is the adoption of NB-IoT and LTE-M expected to grow in the future?

The adoption of both NB-IoT and LTE-M is projected to grow significantly, driven by increasing demand for IoT solutions, the development of 5G networks, and decreasing costs of modules and devices.

What roles will NB-IoT and LTE-M play in the evolving IoT ecosystem?

NB-IoT and LTE-M will have complementary roles in the IoT ecosystem, with NB-IoT suited for low data rate applications and LTE-M catering to higher data rate and mobility needs. Integration with 5G networks will enhance IoT capabilities and enable new applications.

What efforts are being made to support the long-term success of NB-IoT and LTE-M?

Continued standardisation and development will focus on interoperability, new features, and expanding the device ecosystem to support the long-term success of NB-IoT and LTE-M in the evolving IoT landscape.

LTE-M vs NB-IoT: Comparing LPWAN IoT solutions

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What is NB-IoT?

How NB-IoT works

Key characteristics & benefits of NB-IoT

What is LTE-M?

How LTE-M works

NB-IoT vs LTE-M: Key differences

Coverage & penetration

Data speeds & latency

Power consumption & battery life

Deployment status & network support

Cost of devices & service

Suitable use cases

NB-IoT applications

LTE-M applications

Factors to consider when choosing between NB-IoT & LTE-M

Outlook on future development & adoption

Increasing adoption & market growth

Coexistence & complementary roles

Integration with 5G networks

Continued standardisation & ecosystem development

Frequently Asked Questions (FAQs)

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