Home / Blogs

The Battle for IoT

There is an interesting battle going on to be the technology that monetizes the control of Internet of Things devices. Like a lot of tech hype, IoT has developed a lot slower than initially predicted—but it’s now finally becoming a big business. I think back to a decade ago when tech prognosticators said we’d soon be living in a virtual cloud of small monitors that would monitor everything in our life. According to those early predictions, our farm fields should already be fully automated, and we should all be living in the smart home envisioned by the Jetsons. Those predictions probably say more about the tech press that hypes new technologies than about IoT.

I’ve been noticing increasing press releases and articles talking about different approaches to monetizing IoT traffic. The one that we’ve all heard the most about is 5G. The cellular companies told Wall Street five years ago that the monitoring of IoT devices was going to fuel the 5G business plan. The wireless companies envisioned households all buying a second cellular subscription to monitor devices.

Except in a few minor examples, this business plan never materialized. I was reminded of it this week when I saw AT&T partnering with Smart Meter to provide patient monitoring for chronic conditions like diabetes and high blood pressure. The monitoring devices worn by patients include a SIM card, and patients can be monitored anywhere within range of a cellular signal. It’s a great way for AT&T to monetize IoT subscriptions—in this case, with monthly fees likely covered by health insurance. It sounds like an awesome product.

Another player in the IoT world is LEO satellites. In August of last year, Starlink made a rare acquisition by buying Swarm. This company envisions using satellites to be able to monitor outdoor IoT devices anywhere in the world. The Swarm satellites are less than a pound each, and the Swarm website says the goal is to have three of these small satellites in the range of every point on earth by the end of 2022. That timeline slowed due to the purchase by Starlink, but this could be a huge additional revenue stream for the company. Swarm envisions putting small receivers in places like fields. Like with Starlink, customers must buy the receivers, and there is an IoT data monitoring plan that will allow the collection of 750 data packets per month for a price of $60 per year.

Also still active in pursuing the market are several companies promoting LoRaWAN technology. This technology uses tall towers or blimps and CBRS or some other low-power spectrum to communicate with IoT monitors over a large geographic area. The companies developing this technology can be found at the LoRa Alliance.

Of course, the current king of IoT is WiFi. Charter recently said it is connected to 5 billion devices on its WiFi network. WiFi has the advantage of a free IoT connection for the price of buying a broadband connection.

Each of these technologies has a natural market niche. The AT&T health monitoring system only makes sense on a cellular network since patients need to be monitored everywhere they go during the day. Cellular should be the go-to technology for mobile monitoring. The battle between LoRaWAN and satellites will be interesting and will likely eventually come down to price. Both technologies can be used to reach farm fields where cellular coverage is likely to never be ubiquitous. WiFi is likely to carry the signals from the devices in our homes—the AT&T vision of everybody buying an IoT cellular data plan sounds extremely unlikely since we all can have the same thing for the cost of a WiFi router.

By Doug Dawson, President at CCG Consulting

Dawson has worked in the telecom industry since 1978 and has both a consulting and operational background. He and CCG specialize in helping clients launch new broadband markets, develop new products, and finance new ventures.

Visit Page

Filed Under

CircleID Newsletter The Weekly Wrap

More and more professionals are choosing to publish critical posts on CircleID from all corners of the Internet industry. If you find it hard to keep up daily, consider subscribing to our weekly digest. We will provide you a convenient summary report once a week sent directly to your inbox. It's a quick and easy read.

I make a point of reading CircleID. There is no getting around the utility of knowing what thoughtful people are thinking and saying about our industry.

VINTON CERF
Co-designer of the TCP/IP Protocols & the Architecture of the Internet

Comments

Comment Title:

  Notify me of follow-up comments

We encourage you to post comments and engage in discussions that advance this post through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can report it using the link at the end of each comment. Views expressed in the comments do not represent those of CircleID. For more information on our comment policy, see Codes of Conduct.

Related

Topics

Domain Names

Sponsored byVerisign

Domain Management

Sponsored byMarkMonitor

IPv4 Markets

Sponsored byIPXO

Cybersecurity

Sponsored byVerisign

Threat Intelligence

Sponsored byWhoisXML API