Selecting the Optimal Cellular IoT Technology

Editor's Note: As demand for IoT devices rises, cellular technologies tailored for the IoT are becoming essential. Developers now need in‑depth guidance on selecting the right solution.

Excerpted from Cellular Internet of Things, this series explains key concepts and practical applications of cellular IoT.

Earlier in the series, we explored the evolving cellular landscape, the role of IoT, and the technologies that enable massive machine‑type communications (mMTC) and ultra‑reliable low‑latency communications (URLLC).

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Adapted from Cellular Internet of Things by Olof Liberg, Marten Sundberg, Eric Wang, Johan Bergman, and Joachim Sachs.

Chapter 9. The Competitive IoT Technology Landscape (Continued)

9.3 Choice of Cellular IoT Technology (Continued)

9.3.2 Which CIoT Technology to Select

Choosing a cellular IoT (CIoT) solution involves multiple stakeholders. Mobile network operators decide which CIoT technology to integrate into their existing networks, while device manufacturers and service providers choose connectivity options that best fit their applications. In practice, several technologies will coexist.

9.3.2.1 The Mobile Network Operator’s Perspective

For operators, the decision is multi‑faceted, balancing long‑term network strategy, current assets, and targeted IoT markets. Key considerations include:

• Long‑term mobile network strategy and existing assets
• IoT market segment strategy

Most operators run multiple radio technologies on a single network. For example, a base station may support GSM, UMTS/HSPA, and LTE simultaneously. In some cases, 2G, 3G, and 4G networks are managed separately.

Operators hold spectrum licenses granted by national regulators, often valid for 20+ years. These licenses secure economic stability, allowing operators to plan high‑cost infrastructure roll‑outs over long horizons. When a license expires, regulators typically hold a spectrum auction to reallocate frequencies. Consequently, network build‑out plans must consider:

• License validity, permissible technologies, and future reallocation timelines
• Current build‑out status for each radio technology and market share
• Competitor networks and market shares
• Strategic intent regarding IoT services (connectivity provider vs. service enabler)
• Market maturity and target IoT segments

While decisions are often country‑specific, operators with multi‑country footprints may seek regional harmonisation.

When evaluating CIoT options, operators typically prioritize reusing existing infrastructure. EC‑GSM‑IoT leverages GSM infrastructure and spectrum, sharing resources with legacy GSM traffic. LTE‑M and NB‑IoT build on LTE infrastructure and spectrum, sharing LTE resources. In many deployments, CIoT introduction is a software update, enabling rapid rollout at low total cost of ownership.

IoT services often require long lifecycles—sometimes a decade or more—so operators must align CIoT choices with their long‑term network strategy. If an operator plans to retire GSM in favour of LTE or 5G, deploying EC‑GSM‑IoT may be suboptimal, as it would lock operators into maintaining GSM hardware for many years.

GSM remains the most widespread cellular technology, covering about 90% of the global population in 2016 and projected to reach 95% by 2022 (Ref. [55]). LTE coverage was roughly 40% in 2016, expected to exceed 80% by 2022. Regional disparities are significant: in the Middle East and Africa, LTE penetration was only 5% in 2016 (growing to ~30% by 2022), while GSM‑only subscriptions were about 20% and most others were WCDMA/HSPA. In North America, 65% of mobile subscriptions were LTE in 2016, with near‑zero non‑LTE subscriptions projected for 2022. These variations influence CIoT technology preferences across regions.

Note 1: For 2022, we define LTE‑capable subscriptions as those with LTE or 5G capabilities, assuming full compatibility with LTE networks.