Network Carriers Racing to Launch IoT Networks in 2017

In March (2017), Verizon launched its LTE Cat-M1 IoT network, which spans 2.4 million square miles, making it the first nationwide network of its kind in the U.S. The network is designed for narrowband LTE applications and is one of three LPWA technologies—the other two being NB-IoT and EC-GSM IoT. Verizon is integrating its network with its ThingSpace IoT Platform so that developers can create IoT solutions utilizing all pieces of the value chain. Verizon is hoping to capitalize on the shift from CDMA-based IoT solutions to cloud-based technologies, while also expanding its solutions beyond the maturing mobile market.    

Just two months after Verizon’s announcement, AT&T announced that it was launching its LTE Cat-M1 network in the U.S. with plans to expand to Mexico. Like Verizon’s network, AT&T’s network is focused on enabling connectivity for devices that use little data and power while leveraging existing infrastructure. AT&T offers monthly plans starting for as little as US$1.50 per device while Verizon referenced data plans for US$2.00 per device when it launched in March. AT&T is also offering LTE Cat-M modules, which enables developers to create IoT solutions on its network. Additionally, in May (2017) Sprint announced that it is planning to deploy LTE Cat-1 technology in support of IoT across its network by the end of July. Sprint is partnering with Ericsson on its deployment. T-Mobile’s CTO Neville Ray stated at MWC 2017 that T-Mobile would be deploying narrowband LTE but did not give an expected launch date for that deployment.  

These carriers are in an exceptionally strong position to address the IoT market through their core business functions along with existing partnerships. Verizon, AT&T, Sprint, and T-Mobile have experience in deploying services like these and already have infrastructure and workforces in place to deliver and maintain the service. The major network carriers are all expanding their existing product and solution portfolios beyond the mobile market, which is quickly becoming a price war competing over the same customers. By deploying these IoT networks, the carriers are attempting to target developers and customers early to create long-term stickiness with clients.

However, the network carriers are not existing simply against each other, but also with other cellular LPWA network technologies like NB-IoT. While LTE-M does have slight performance advantages over NB-IoT depending on the solution type, pricing may prevent LTE-M from attracting a considerable number of customers. Additionally, LTE-M is designed for a narrow range of IoT use cases that do not transmit a lot of data, such as industrial, asset tracking, and wearable solutions. Sigfox and LoRa have already connected more than 100 cities and towns across the U.S., presenting additional competition. Decision makers will be inundated with a flood of new options, causing them to potentially resort to using existing networks they are familiar with.