3 lte applications for m2 m and smart grid

LTE Applications for M2M and
Smart Grid
November, 2013

Informação proprietária WxBR

WxBR Company
• Founded in 2008
• Shareholders: Padtec (77%) and Icatel (23%)
• Expertise focusing on BWA (Broadband Wireless
Access) System
• Offering Integrated E2E Solutions

• Operating in the high technology market,
specializing in Wireless Solutions for Broadband
Access
• Its mission is to develop, industrialize and
commercialize innovative products and solutions
using broadband access technologies such as LTE,
WiMAX and Wi-Fi
• Long term R&D program, key wireless
technologies LTE/WiMAX/Wi-Fi jointly with CPqD
• Located in Campinas City – Technology Center

Padtec/Icatel/WxBR

•
•
•
•

HQ: Campinas/Sao Paulo, SP – Brasil.
Regional Offices: São Paulo, Rio de Janeiro and Brasilia
Argentina, México, France Italy and Israel
Equipments and Solutions deployed in 40+ países.

Informação proprietária Wx BR

Customers - 1


Customers - 2


Motivation for LTE in M2M &
Smart Grid Applications


What is M2M ?
“ At its most basic level M2M relates to connecting remote sensing,
monitoring and actuating devices. However, it is about much more than
that. Specifically it concerns enabling new business models and processes
through the application of connectivity.”
• Increase IT efficiency for business and government.
Public and private sector organizations can gain significantly in terms of automated business process
management, enterprise resource planning (ERP) and streamlining of customer relationship management (CRM)
processes.
• Help products gain or maintain a competitive edge.
Connectivity can facilitate the addition of new features to products and services. For instance a consumer
electronics equipment manufacturer can add a cloud storage solution for a camera, or an insurance company can
offer a real-time usage-based insurance solution. The opportunities are endless.

• Enabling companies to comply with regulation.
Certain national and multi-national (i.e. EU) regulation requires either explicitly (e.g. eCall) or implicitly (e.g.
regular utility meter reading) some form of connectivity. These regulated applications provide the strongest
growth push for M2M in the next 2-3
years.
Source: Machina Research, 2012

Global M2M connections 2011-22 by technology

The Global M2M Market: A USD1.2 trillion opportunity in 2022
Source: Machina Research, 2012

M2M Data Traffic Forecast

Fonte: Cisco Fev/2013

CAGR: Compound Annual Growth Rate


M2M – More Forecasts...
 By 2022 there will be 18 billion M2M connections globally, up from
approximately 2 billion today
 The biggest sector in 2022 will be intelligent buildings with 37% of all
connections, dominated by heating, ventilation and air-conditioning
(HVAC) and security systems. Accounting for 32% of connections, the
second biggest is consumer electronics, including games consoles, music
players, cameras and white goods. These are followed by utilities (10%)
and automotive (8%). Short-range technologies will dominate M2M,
accounting for 73% of connections in 2022.
 Cellular technologies will grow from 146 million devices at the end of
2011 to 2.6 billion at the end of 2022. Today M2M accounts for only
around 2% of cellular connections. By 2022 it will account for 22%.
Today, M2M is dominated by 2G, in particular GPRS. By 2022 3G and
LTE will between them account for almost 90% of connections,
driven by requirements for higher bandwidth applications and
demand for technology future-proofing.


Smart Grid Market Enablers and Growth
Drivers
Environmental Factors
Growing demand for electricity

Governmental Mandates
EU plan 20% reduction of energy consumption by 2020
Deregulations (leading to separation of energy transport and energy provider)
USA: $4.3 B for direct investment in smart grid through stimulus package
China $9.7B investment to deploy AMR/AMI

Utility Companies
Optimization of distribution infrastructure and prevention of potential black-outs
(peak management)
More services to end consumer

Renewable Energies and E Vehicle
Residential solar and solar farm decentralized productions
Consumer production sold back to energy provider
Plug-in Hybrid Electric Vehicles (PHEV)

In-Building Customer Comfort
e-thermostats, smart and user-friendly displays, home-automation
End-customer energy savings (controls when, how, how much)


Key Smart Grid Initiatives
Smart Grid

- Reduce power consumption through intelligent
monitoring and control
- Increase power availability through optimized
distribution
- Improve power reliability and quality
- Expand consumer choices for electrical energy
- Improve resiliency of electric power grid
- Enable easier use of renewable energy and
distributed generation
source: Freescale/2012

M2M & Smart Grid Connectivity Options &
Challenges
 Business Model

• Private or Operator Network
 Wireless Technology option for Short & Long Range

• WiFi, Zigbee, WiMAX, GPRS, 3G, LTE
 Frequency Band Option
• License-Exempt Frequency Bands (e.g 900 MHz, 2,4 GHz,
5,4 GHz, 5,8 GHz)
• Traditional Operators Licensed Bands (e.g. B7 2,5 GHz, B3
1,8 GHz, B5 800 MHz, B13 700 MHz and others)
• New Licensed Bands (e.g 450 MHz, 200-400 MHz for
Brazil)


M2M & Smart Grid Connectivity Options &
Challenges
Current cellular systems are designed for human-to-human (H2H):
we are not too many users, in the end
we tolerate delay/jitter, even for voice connections
we like to download a lot, mainly high-bandwidth data
we don’t mind to recharge our mobiles on a daily basis (!!!!)
we raise alert when mobile is compromised or stolen
Accommodation of M2M requires paradigm shift:
there will be a lot of M2M nodes, i.e. by orders of magnitude more
than humans
more and more applications are delay-intolerant, mainly control
there will be little traffic per node, and mainly in the uplink
nodes need to run autonomously for a long time
automated security & trust mechanisms
… and all this without jeopardizing current cellular services!

Machine-Type Communication (MTC)


Machine-Type Communication (MTC) - 1
Small data transmissions
Mobile originated only or infrequent mobile terminated
• Reduction of management control signaling
MTC Monitoring
• Detect unexpected behavior, movement or loss of connectivity, change of
location, failure in communications, etc.
• Subscriber should decide which events can be detected by server
• In case of event: notify the server or limit services provided by device
Priority Alarm (maximum priority among features)
• Case of theft or tampering, lack of connectivity, roaming not allowed, etc.
• Maximum priority for alarm traffic
Secure Connection
• Even in the case of a roaming device, secure connection shall be available
• The network shall enable the broadcast to a specific group of devices


Low Mobility
• Reduce frequency of mobility signaling
• Reduce reporting frequency

Time Controlled
• Combination of allowed and Forbidden periods
• Transmission of data during allowed time periods
• Avoid signaling out of these periods
• Allow transmission during forbidden periods subject to special
charges and without priority.
Time Tolerant
• Applications that can delay transmissions
• Useful to avoid the overloading of the network: restrict access to
delay tolerant MTCs during congestion periods

Location specific trigger
• Location information stored by the operator
• Reduction of mobility control signaling
Infrequent transmission
• The network shall allocate resources only when needed
• Apply duty cycling regarding connectivity (attach/detach)
Group based policing and addressing
• System optimized to handle GROUPS
• The system shall be able to apply combined QoS policy for a group of
devices
• Limit transmission rate (UL and DL) for a group of devices
• Broadcast and Multicast to a specific group of devices

LTE in 450 MHz


Initial Motivation for LTE 450 MHz in Brazil
(M2M and Smart Grid to come...)
Broadband access universalization at Brazilian
rural areas (PNBL)
• 16% of population living in rural areas (≈ 30 millions)
• 94% of families living at rural areas without Internet
access
(≈ 28.5 millions)
• 93% of public schools at rural areas without broadband
access (≈ 80,000 schools)
• Services demand: telephony, Internet, e-Gov

Social and economic Brazilian development in
rural areas
• Favorable regulatory scenario in Brazil
• Auction of 450 MHz band (June 2012)
• Two events are booting Brazilian economy:
• FIFA World Cup 2014 and Olympic Games 2016

Source: CPqD – LTE 450 - A Solution for Broadband Access Universalition – with modifications


Auction 450 MHz and 2.6 GHz
Anatel (Brazilian Telecommunication Regulatory
Agency) announced in June 2012
2.6 GHz

450 MHz

Source: ANATEL - Edital de Licitação de 450 MHz e de 2,5 GHz – relator Cons. Marcelo Bechara, with modifications


Commitments of Coverage at 450 MHz
(nationwide coverage)

Jun/2014

Dec/2014

Dec/2015

Dec/2017

• At least 30% of municipalities

• At least 60% of municipalities

• 100% of municipalities

• 100% of municipalities

• Commitments to coverage a
geographical area of at least
30 km from served locations
with individual PSTN accesses
• Voice and Data on retail
• Data Access in rural
schools
• Download 256 kbps
• Upload 128 kbps
• Monthly allowance for voice
and data on retail: 250 MB
• No Monthly allowance for
rural schools.

Increase throughput and
monthly allowance:
• Download 1Mbps
• Upload 256 kbps
• Monthly allowance for voice
and data on retail: 500 MB

Auction Winners (Claro, TIM, Oi and Vivo)
Obligations:
Jun 2014: At least, 30% of municipalities
Dec 2014: At least, 60% of municipalities
Dec 2015: 100% coverage of municipalities
(DL: 256kbps, UL:128kbps)

Dec 2017: 100% coverage of municipalities
(DL: 1Mbps, UL:256kbps)

Jan-2013

Jun-2013

Jan-2014

Jun-2014

Dec-2014

30% municipalities 60% municipalities
1652

3304

LTE 450 MHz in 3GPP


LTE 450 Standardization in 3GPP
Scope: Standardization of 450 MHz band, considering compatibility with

ANATEL 558 resolution (Dec 2010) and ITU-CITEL recomendation to America
(CITEL CCP.II-RADIO/doc. 2854/11 rev.2 );

WI (Work Item) Approval

Coexistence Study

Band Arrangement

Determination of technical requirements of
Base Station and Terminal
TR (technical report) Preparation, Identification
of Modified Standards and CRs (change request)
development
Q3/2012

Q4/2012

Q1/2013

Q2/2013

Q3/2013

Q4/2013

LTE 450 Standardization in 3GPP
Band Arrangement for LTE 450 (Band 31)


450 MHz Outside Brazil
450 MHz frequency band already being used in:

Angola

Ireland

Portugal

Argentina

Mozambique

Romania

Denmark

Netherlands

Saudi Arabia

Russia

Norway

Sweden

Equator

Nigeria

Venezuela

Bolívia

Peru

Zambia

Hungary

Philippines

Mexico

Source: Commnunications Ministry of Brazil – Comunicações no meio rural – Possibilidades a partir da faixa de 450 MHz


Final Remarks
 M2M & Smart Grid to grow at high rates in the coming years
 Connectivity is key for enabling this growth
 Different business models & technologies available
 Private versus Operator Network, or combined model ?
 LTE will play a key role in wireless connectivity for long
range networks
 LTE in which frequencies ?
 Sub 1 GHz bands better positioned for the coverage
challenge – 450 MHz (3GPP Band 31and 250 – 400 MHz
bands)


Thank you!


3 lte applications for m2 m and smart grid

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