Narrowband internet of things (NB-IoT) is a type of LPWAN technology standard developed by the 3rd Generation Partner Project (3GPP) that addresses the requirements of the IoT. It has the capability to enable a wide range of IoT devices and services. According to a recent GSM Association report, the technology can be deployed in-band, utilising resource blocks within a normal LTE carrier; or in the unused resource blocks within a LTE carrier’s guard-band or as a stand-alone for deployments in dedicated spectrum. The technology provides improved indoor coverage and can support a large number of low throughput devices. Owing to these advantages, NB-IoT technology is best suited for connecting devices on existing mobile networks and is ideal for applications that need to communicate small amounts of data over long periods of time. The long range connectivity of the technology provides users greater flexibility in terms of the choice of stationing their devices and, therefore, has multiple use cases.
Of late, there has been increased uptake in NB-IoT deployment across the globe. According to a recent study by Grand View Research, the global NB-IoT market size is expected to reach $6.02 billion by 2025, growing at a compound annual growth rate (CAGR) of 34.9 per cent from 2019 to 2025. The Asia-Pacific region is expected to register the highest CAGR from 2019 to 2025 owing to the rapidly growing demand for wearables and smartphones in line with continued urbanisation and various smart city initiatives being undertaken, the report highlighted. In addition, the automotive industry is yet another key driver of NB-IoT uptake across economies. The use of NB-IoT in the automotive industry is growing rapidly owing to the technology’s capability to accurately track vehicles, identify and avoid highway congestions, and contribute towards effective traffic management. Moreover, the growing commercialisation of upcoming connected and autonomous vehicles is also expected to play a key role in driving the growth of the NB-IoT market over the forecast period.
A look at some recent developments in the NB-IoT space across Southeast Asia (SEA)…
NB-IoT uptake in SEA
Thailand is leading the NB-IoT revolution in the SEA market with over 50 NB-IoT networks deployed in 40 industries. Recently, in October 2019, Thailand-based Sigfox deployed its IoT network technology in the country. This has been done in partnership with Things on Net, a subsidiary of Platt Nera. As part of this initiative, the company had committed to setting up 1,400 base stations nationwide by 2020 to cover 85 per cent of the population.
Malaysia has also been quite active on the NB-IoT scene. Recently, in January 2020, Maxis entered into a partnership with the Sarawak Multimedia Authority (SMA) for collaboration on NB-IoT. This deal has three focus areas – co-developing expertise on the proven applications of IoT (including NB-IoT) concepts, partnering on the design, development and implementation of IoT/NB-IoT solutions and developing a strong ecosystem via lab set-up support, with specialist support resources to build sustainable and smart solutions. Earlier, in April 2019, the operator had also launched the first commercial NB-IoT service in Malaysia. As part of this launch, Maxis had activated its NB-IoT coverage in various key areas such as Cyberjaya, Penang, Kuching, Putrajaya, Johor Bahru, and KLCC. Of these, Kuching is one of its key IoT market centres. Other Malaysian telecom operators too have been quick to jump on the NB-IoT bandwagon. For instance, Celcom Axiata, in collaboration with Xperanti, is working towards boosting IoT connectivity across the nation. Xperanti has already achieved over 85 per cent network population coverage in Malaysia and aims to take this to over 95 per cent coverage in 2020.
In Indonesia, Sigfox Indonesia had officially launched its “0G” Sigfox-based IoT network in February 2020. The network is being rolled out in phases. As part of Phase 1, the Sigfox network is being made available in the Greater Jakarta area and Bandung. Earlier, in October 2019, Hutchison 3 Indonesia, in partnership with Nokia, had introduced a platform that provides IoT coverage to enterprises in various sectors. Leveraging Nokia’s fully virtualised Worldwide IoT Network Grid (WING) managed service platform, enterprises can manage their IoT devices in real time using the cloudified IoT core network, a single global connectivity management platform and 24/7 IoT command centre capabilities. Around the same time, XL Axiata also commercially launched its NB-IoT network in 31 cities and districts via its XL Business Solutions division. Going forward, the operator intends to expand the 900 MHz NB-IoT network across the country.
Vietnam too has been making progressive strides in the NB-IoT space. In September 2019, Viettel had launched an NB-IoT network in Ho Chi Minh City. As part of this launch, the operator deployed 1,000 base stations to cover the entire city. The operator had also committed to cover 100 per cent of Hanoi, Vietnam’s capital, with NB-IoT and also roll out the network in Da Nang. Going forward, Viettel plans to expand coverage across the whole country in the next two years. In addition to rolling out a nationwide NB-IoT network, Viettel also plans to focus on IoT applications such as smart cities, smart homes, environmental monitoring and remote electricity metering.
Singapore has been actively pushing its IoT initiatives. Recently, the country’s incumbent telcos along with the GSM Association rolled out an NB-IoT network across the country. As per SEC Consult, this project will be a turning point for the country’s Smart Nation initiative and digital transformation. For instance, NB-IoT-based energy management meters can enable businesses and consumers to track their energy consumption. Further, IoT applications such as flood monitoring, fleet management and waste management also come with a host of benefits. Singapore is fast emerging as the epicentre and hub for IoT technology in the SEA region as infrastructure has been laid out to support IoT deployments in both the public and private sectors. According to data from Analysys Mason, total IoT revenue in Singapore is projected to be $714 million in 2025, of which connectivity and services will account for $95 million while applications will account for $349 million. The remaining $270 million will be accounted for by hardware and installation.
Challenges and the way forward
NB-IoT is a new-age technology created to meet the new-age needs of networks. Due to the growth in the number of devices that are getting connected via networks today, it has become imperative to make networks agile, scalable and fast. This purpose is served by NB-IoT technology. The NB-IoT network design enables efficient connectivity of large numbers of connected user equipment, reducing the network overheads associated with every connection request. However, the massive scale of devices that can be connected to the NB-IoT network also poses a significant security threat to the network. Malicious actors can launch denial-of-service attacks by harnessing a cluster of devices to send unplanned communication to designated victims. Such communication can not only cause service interruption on the victims’ servers but can also affect the service provider’s network and result in service degradation due to the signalling load. Challenges notwithstanding, NB-IoT is here to stay as it offers immense opportunity for telcos and comes with a host of benefits.
