R&D Activites Using Spectrum - Chris Andrews - RadComms 2014

Current R&D activities using spectrum—Australia was a world leader with Wi-Fi, where to next?

Taggle Systems

CONFIDENTIAL

The Challenge: Develop a solution to track cattle cost effectively

A Real Radio Design Challenge Ultra small device

Ear tag <20g weight including

battery

3 year + in-field life 2 – 4 tx per hour Small data packet Robust design

Low cost network 5 – 10 km range Low cost receivers Receiver capacity

>10,000 tags

CONFIDENTIAL

The Approach: Assemble a leading team of radio and chip innovators

Thomas DejanovicGordon Foyster

Matthew HendersonRichard KeaneyJohn O’Sullivan

Neil Weste

CONFIDENTIAL

The Technology Innovation: Build a technology to network large areas of farmland (‘000s km2) at ultra low cost

Battery life ^(1/2 AA cell)

Network Coverage(Range per receiver/base station)

Taggle

WiFiZigbee

RFID(No Battery)

2G, 3G, LTE

>3 Years

^ 15min transmissions

<1 Year

<5m >5km

One Slight Problem:

Cattle not currently commercialMost cattle farmers don’t want to pay anything to track their cattle

CONFIDENTIAL

The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market

In-field device life^

High (>10 Years)

Low(<1 Year)

Economic Network Range

RFID

Wi-Fi and “Zigbee”

Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining

• People location

^ Self powered, small form factor, robust design

W’House Inventory mgt

Shop stock control

Basic supply chain choke points

Hospitals Large plants

(Car plants)Office block

automationHome area

automation

m2 < 5 Km2 > 500 Km2

M2M DATA CAPTURE TECHNOLOGIES

Existing technologies struggled to deliver low cost wide area

solutions viably

CONFIDENTIAL

The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market

In-field device life^

High (>10 Years)

Low(<1 Year)

Economic Network Range

RFID

Wi-Fi and “Zigbee”

Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining

• People location

^ Self powered, small form factor, robust design

W’House Inventory mgt

Shop stock control

Basic supply chain choke points

Hospitals Large plants

(Car plants)Office block

automationHome area

automation

m2 < 5 Km2 > 500 Km2

M2M DATA CAPTURE TECHNOLOGIES

New Commercial Target:

Devices: Price <<$100 Battery life >10 years (AA cell) Hourly transmissions, 15 Bytes of data

Network Charge: Revenue per Unit <$10 pa

CONFIDENTIAL

The Business Innovation: LPWA Networks like Taggle will deliver the “missing link” in data collection for the Internet of Things

In-field device life^

High (>10 Years)

Low(<1 Year)

Economic Network Range

RFID

Wi-Fi and “Zigbee”

Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining

• People location

^ Self powered, small form factor, robust design

W’House Inventory mgt

Shop stock control

Basic supply chain choke points

Hospitals Large plants

(Car plants)Office block

automationHome area

automation

m2 < 5 Km2 > 500 Km2

Low Power Wide Area (LPWA) Networks

M2M DATA CAPTURE TECHNOLOGIES

Taggle is the first solution in

this space in Australia

Utilities monitoring•Water and sewer network monitoring >>15m devices•Gas monitoring >>6 million devices•Other Utility– electricity network monitoring, street lights etc• Environmental Monitoring

Rural Monitoring/Agribusiness•Crop and pasture monitoring•Asset tracking• Farm security

CONFIDENTIAL

The Business Innovation: LPWA networks can unlock significant new markets/value

In-field device life^

High (>10 Years)

Low(<1 Year)

Economic Network Range

RFID

Wi-Fi and “Zigbee”

Mobile Data (3G/4G etc)• Transport monitoring• Precision Ag and Mining

• People location

^ Self powered, small form factor, robust design

W’House Inventory mgt

Shop stock control

Basic supply chain choke points

Hospitals Large plants

(Car plants)Office block

automationHome area

automation

m2 < 5 Km2 > 500 Km2

M2M DATA CAPTURE TECHNOLOGIES

The LPWA market in Australia has the potential to be at least

$400m pa within 5 years

CONFIDENTIAL

Roll out at Mackay Regional Council has highlighted the potential benefits of LPWA networks to the water industry

Installation >30,000 devices 22 receivers, >1,000 km2

>750,000 readings per day

Business Case – NPV $20m and counting– $100m plant deferred by 8 – 10 years– >4,000 leaks detected in 12 months– 10 – 30% historical over-design of assets

– And a range of additional benefits are emerging

Unexpected Benefits:Staff member burgled, 5 minute tag amongst belongings, thief tracked by Taggle network….

MACKAY LPWA NETWORK

10CONFIDENTIAL

In the last 18 months Taggle has installed 20 commercial LPWA networks, and over 50,000 devices across Australia

Water Utility Clients include: Mackay Regional Council Goldenfields County Council Yarra Valley Water Wide Bay Water NT Power and Water Barwon Water Dept of Natural Resource

Management (QLD) Isaac Regional Council Townsville City Council Armidale and Dumaresq

Council Port Macquarie and Hastings

Council

TAGGLE NETWORK SITES

Monitoring: Over 50,000 km2 of network coverage with 112 operational receivers >1.2 million water meter readings per day Now monitoring water, gas, and electricity meters, water pressure, sewer overflow,

temperature, humidity, gate alerts, electric fences, water troughs and animal tracking

CONFIDENTIAL

Internationally we are seeing other major players starting to follow suit

CONFIDENTIAL

LPWA networks are much more spectrum efficient than traditional mesh solutions

Network Topology Comparison Taggle Mesh Solution

TX Power per device (mW) 25 1000

CONFIDENTIAL

LPWA networks are much more spectrum efficient than traditional mesh solutions

Network Topology Comparison Taggle Mesh Solution

TX Power per device (mW) 25 1000Duty Cycle (%)^ 0.008 0.3TX power per hour (mWh) 7.5 10800

900 905 910 915 920 925 930 935 940 (160.00)

(140.00)

(120.00)

(100.00)

(80.00)

(60.00)

(40.00)

(20.00)

-

Taggle Suburb

Taggle + Mesh Suburb

Frequency (MHz)

Pow

er (d

Bm)

Power in LIPD Band 60.3dBm LIPD Spectrum

Power in LIPD Band 90.6dBm

^ Taggle duty cycle in all commercial networksMesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011.

CONFIDENTIAL

“Free spectrum” can easily lead to the poor spectrum utilitsation – “The Tragedy of the Commons”

Network Topology Comparison Taggle Mesh Solution

TX Power per device (mW) 25 1000Duty Cycle (%)^ 0.008 0.3TX power per hour (mWh) 7.5 10800

900 905 910 915 920 925 930 935 940 (160.00)

(140.00)

(120.00)

(100.00)

(80.00)

(60.00)

(40.00)

(20.00)

-

Taggle Suburb

Taggle + Mesh Suburb

Frequency (MHz)

Pow

er (d

Bm)

This is truly “high cost” spectrum

^ Taggle duty cycle in all commercial networksMesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011.

CONFIDENTIAL

Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry?

Mobile LPWA

Installed Base Station > $150,000 < $15,000

MOBILE LPWA ECONOMIC COMPARISON

CONFIDENTIAL

Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry?

Mobile LPWA

Installed Base Station > $150,000 < $15,000

Device Price > $250 << $100

Device Life 2 – 4 Years > 10 Years

MOBILE LPWA ECONOMIC COMPARISON

CONFIDENTIAL

Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry?

MOBILE DATA LPWA

Installed Base Station > $150,000 < $15,000

Device Price > $250 << $100

Device Life 2 – 4 Years > 10 Years

Network Access Cost (RPU)

>> $5 per Month ~50c per month

ECONOMIC COMPARISON: MOBILE DATA VS LPWA

What are the foundations of a successful LPWA business model?

CONFIDENTIAL

Building an LPWA business requires two pillars need to be in place – Availability of suitable LPWA technologies

Spectrum efficient LPWA Solutions

Global development is seeing competitive options emerge rapidly

Standards are likely to take several years

CONFIDENTIAL

And cost effective network sites

Low Cost Physical Network Sites

Resolved by:Utility site sharingPartnerships with

Telco’sFurther regulation

Spectrum Efficient LPWA Solutions

Global development is seeing competitive options emerge rapidly

Standards are likely to take several years

CONFIDENTIAL

Radio

The keystone to a stable, profitable LPWA industry is access to robust and cost effective spectrum

Robust, Cost Effective

Spectrum

1. Spectrum AllocationProvision of 5 – 10 MHz of dedicated LPWA spectrum

2. Spectrum FrameworkSet the spectrum utilisation rules and license fees to allow a competitive LPWA industry to take off

Sites

CONFIDENTIAL

The Challenge: LPWA networks will unlock a new multi billion dollar industry in Australia – if we get it right

This

Encourage Competition: Provide shared spectrum that remains

robust with increased competition – e.g. Message duty cycle and energy limits

Encourage Innovation: Specify the spectrum efficiency

requirements for technologies to meet

Recognise Value of Spectrum: Develop a license fee structure that

reflects the realities of LPWA economics

Not This

Provide shared spectrum that can be hijacked by unforseen uses – The Tragedy of the Commons

Specify requirements according to existing technology types (modulation schemes etc)

Allow vendors to get use of spectrum for free – inefficient spectrum utilisation

CONFIDENTIAL

Summary: ACMA is well positioned to influence the development of the LPWA industry in Australia

Situation:LPWA networks have the potential to deliver significant new value to the economy

Commercial – e.g. Utility capital optimisation Public good – e.g. Scarce resource management

Complication:New business and operating models need to develop to support the growth of the industry

New models (e.g. “Low Cost Carrier”) need to be explored Steps need to be take to avoid a repeat of the “Tragedy of the Commons”

Resolution:The keystone to success is robust, cost effective spectrum that:

Creates an environment that encourages competition Minimises the risk of the “Tragedy of the Commons” Recognises the value of the spectrum utilised

Thank You