the iotopportunity
TRANSCRIPT
www.huawei.com
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The IoT opportunity
Luis Barreto – Product DirectorFuture Wireless International Conference
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Neul a Global IoT Competence Centre
• Team of IoT Experts Experience on LPWA for IoT since 2010
• Based in Europe’s Technology HubAlong with other major IoT players such as CSR and ARM
Started in TVWS, but concluded that licensed spectrum was needed to deliver the functionality required by mass market
Acquired by Huawei in September 2014
Now semi-autonomous subsidiary focused on IoT
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SEMI CONDUCTOR INDUSTRY
The Good, The Bad and The Ugly
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Semi conductor development: The Good
Source: https://en.wikipedia.org/wiki/Moore%27s_law
Moore, still right after 50 years
8,000 yearsAgricultural
Revolution
Industrial
Revolution
120
years
Commercial
Electricity
90
years
Man on the
moon
25
yearsInternet
9
years
Human genome
sequencing
Opportunities in many different markets
Phenomenal Volume Growth
Fixed Line
Broadband
Mobile
Broadband
Internet of
Things
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Semi-conductor development: The Bad
• Risk of error is high
• Business operates on gross margin (% * Si area)
ConceptArchitecture
& Design
Design
Verification
Sample bring-up and
system validationQualification Launch
Long development process
High upfront investment before return
Long support tail
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Semi conductor development: The Ugly
Moore’s law is a self-fulfilling prophecy
Rock’s law:
R&D investment increases with each chip generation Reduce risk by moving more IP to SW
Add more value to IP (more complexity)
How to capture increased value?
How to diversity revenue stream?
0
20
40
60
80
100
R&D Investment% o
f R
&D
In
ve
stm
en
t
Cellular modem R&D investment
Software
Hardware
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IOT IN LICENSED SPECTRUM
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How will Cellular technologies address the IoT?
Application Class / Type
No. of Connections2025
Requirement Cellular Solution
CCTV, mHealth, Electronic billboards, automotiveinfotainment
2 BnWired,
WiFi, Cellular
>10Mb/sNot cost sensitive, fixed power
3GPP Rel. 9+LTE / UMTS
Telematics, smart home, M2M backhaul
8 BnWired, WiFi,
Cellular, Satellite
<1Mb/sLow cost (<$15 UE), fixed power or regularly rechargeable battery
3GPP Rel 12+LTE Cat 0 / GSM(eMTC/feMTC*)
Sensors, meters, wearables, ‘thing’ tracking, assisted living, logistics
20 BnWiFi, Zigbee, Bluetooth,
PLC, sub-GHz License-Exempt (e.g. M-Bus, etc.)
<10Kb/sVery low-cost (<$5 UE), Ultra Low power (>10yrs battery life )
No solution today
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Mobile Broadband
C-IoT (sensors, etc)
Why do we need a clean-slate?
Cellular IoT traffic is several
orders of magnitude different
from today’s mobile
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3GPP Rel-13: Cellular IoT
• Extended coverage compared with existing cellular (20dB
enhancement)
• Very large terminal capacity (tens of thousands)
• Reuse of existing cellular infrastructure (soft update to base stations)
Small spectrum cost and easy to deploy
Technology Characteristics Chip design implications
Low throughput Lower processing
Narrow band Simpler PHY
Established modulation & coding
techniques
Less IPR, simpler PHY
Simple protocols Less complicated stack
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Innovation doesn’t come only from the chip
Cellular BTS Network & Platform
Chip
Novel Core Network
3GPP Rel-13 Cellular IoT
Is a chip business with Cloud SW still a semi-conductor business?
Module
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Semi Conductor Business case options
Strike Gold
Capture value up/downstream
Expand portfolio and reachable market(consolidate)
Capture value through IPR
New business models(capture value somewhere else)
IoT opportunity: Innovation and
redefinition of “product”
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In IoT one size does not fit all
There’s a big opportunity in new IoT business models
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