Low Power Wide Area Networks: The Game Changer for the Internet of Things

Low Power Wide Area (LPWA) technologies mark a new era of digitalization. For the first time, small devices with tiny batteries can connect virtually everywhere and directly to the internet. This game-changer for the Internet of Things (IoT) offers Telco’s exciting opportunities. Currently, there are competing LPWA technologies available, which facilitate a variety of strategic options. Key differentiator between the technologies is the choice between using unlicensed or licensed spectrum as well as using standardized versus non-standardized technology. More importantly, LWPA requires a fundamental reassessment of the business models. Incumbent technologies fuel business models that are based on bandwidth consumption growth. LPWA however requires alternative models for monetization. Furthermore, Telcos must consider specificities of LPWA use cases and build powerful ecosystems in order to realize the full potential of the technology: revenues are driven by the sheer volume of devices as well as the opportunity to offer services on top of connectivity. The LPWA opportunity is still fresh and many challenges must yet be overcome not only by Telcos but also by other players in the ecosystem. However, by keeping in mind the different aspects and factors described in this article, Telcos will be rewarded by being able to lead in exploiting promising use cases enabled by LPWA technologies and thereby to enter the IoT mass market.