LPWAN Introduction & Outlook for Japan（国内市場におけるLPWANの展望）

The Internet of Things market is set to gain more traction in 2017 with the introduction of Low Power Wireless Area Network (LPWAN) technology in Japan.  LPWAN is a new wireless radio technology that is enabling new applications of the Internet of Things space as it offers the ability for devices to become connected over a wider area, at a lower cost and uses significantly less power than was previously possible with existing wireless technologies.

What is LPWAN?

LPWAN is a new type of telecommunications network that is distinct as it allows for low bandwidth signals to be transmitted over a wide area.  As seen in the chart below, LPWAN fills a gap in the market as low bandwidth applications have not been able to reach such a wide area in the past using cellular, Zigbee, Wi-Fi or other technologies.  The closest technology in terms of low bandwidth/long range performance has been satellite communications, although in the past satellite connectivity has been relatively expansive and therefore limited in its applications.  As such LPWAN now allows for new IoT products and services to be deployed.
There are many different standards emerging in the LPWAN market that have unique characteristics.  The most popular LPWAN technologies that will be deployed in Japan are LoRa, Sigfox, LTE-M and NB-IoT.  There are other LPWAN standards such as Weightless and RPMA which are popular in the USA and Europe, but are unlikely to be deployed in Japan.

All LPWAN standards share the same traits in that they all transmit wireless signals over a wide area, ranging from 5 kilometers to 30 kilometers depending on the technology standard and the topography of the deployment area.  While this is not drastically different from existing cellular technology what is different with LPWAN is that the networks consume significantly less power than existing wireless networks.  As such the battery life of an LPWAN module can last up to 10 years as compared to a few months for existing 3G/4G modules.  This means that maintenance requirements for LPWAN devices can be significantly less than we currently have today.  Modules can range from US$5 to US$20 at current market rates but there is a big emphasis in the market to reduce this cost to the US$1 range.  Again LPWA modules are cheaper on average than existing 3G/4G modules and hence can help make a better business case for IoT deployments.  LoRa and Sigfox are distinct as they use unlicensed spectrum and require a gateway to provide connectivity.  As they are using unlicensed spectrum this allows anyone to deploy these technologies, with an example being the city of San Francisco in the United States deploying their own network.  LTE-M and NB-IoT use licensed spectrum and therefore these technologies will be deployed by telecom operators and do not require a gateway.  Going forward unlicensed LPWA technologies are now popular but the market will likely gravitate towards licensed standards going forward.  Unlicensed bands are currently only downlink-enabled and offer very low data rates which also make them somewhat limited when compared to licensed spectrum standards.

Exhibit 1: Wireless Technologies, Bandwidth vs. Range