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WHITE PAPER
Why LoRaWAN Is Key to
®
AMI Network Systems
Patrick van Eijk
Senior Director IoT Solutions
semtech.com
LoRaWAN®, a MAC layer LPWAN
protocol specification defined and
managed by the LoRa Alliance®
as well as recognized as a global
standard by the International
Telecommunication Union (ITU)
since 2022, is an excellent choice for
Advanced Metering Infrastructure
(AMI) network systems to not
only connect smart meters and
streetlights, but also provide
connectivity for a host of other
IoT devices in smart city and asset
tracking verticals around the globe.
This article explores the features
and benefits of a LoRaWAN network
with AMI in mind especially for
deployments in North America.
Introduction
When LoRa® transceiver chips from Semtech first came to market more than a decade ago it quickly became apparent
that the RF properties of the LoRa Spread Spectrum modulation outweighed the legacy use of Frequency Shift Keying
(FSK) Modulation in Advanced Meter Reading (AMR) systems which are typically implemented as a drive-by solution
where a mobile data collector gathers metrology data as it passes nearby water, gas or electric meters. The innate
ability of a LoRa radio to demodulate a signal down to 17dB below the noise floor gave it an instant advantage over
traditional and legacy FSK-based AMR systems. This higher link-budget that a LoRa radio offers over FSK radios
benefits LoRa-connected smart meters (and other IoT devices) in two ways:
Longer Range
Lower Power
Gateways that collect data from smart meters using
LoRa devices can be further away from the meters
and therefore cover a larger meter deployment area.
The extra link-budget allows for successful metrology
reads from meters located in difficult to reach areas, like
pits with metal lids or deep indoors (basements). This
results in lowering the overall cost of ownership of a
LoRa-based solution.
Transmitting at lower power levels over the same
distance as comparable FSK connected smart meters,
LoRa-based metering solutions can last 10 to 20
years on the same battery, thereby lowering the total
cost of ownership.
Why LoRaWAN Is Key to AMI Network System
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Before the LoRaWAN® specification was created in 2015, LoRa® already had caught the eye of water meter OEMs
in China, Europe and the U.S. who were using FSK in their AMR capable meters. These OEMs quickly pivoted to
Semtech’s LoRa transceivers in new meter designs because LoRa transceivers can also operate in FSK mode, thereby
guaranteeing backward compatibility with existing FSK-based AMR technology and allowing for a smoother product
migration to LoRa technology.
However, the fact that these LoRa/FSK transceivers operated as a physical layer device only meant that each vendor
needed to implement their own MAC network layer protocol on top of LoRa, limiting the adoption and growth of LoRa
technology. With the creation of the LoRa Alliance® in 2015, a standards-based MAC layer protocol was developed
called LoRaWAN to solve these issues.
The LoRa Alliance and its Ecosystem
®
In the eight years since its creation, the LoRa Alliance has grown into an ecosystem of 400+ world-wide members,
comprising device makers, gateway OEMs, chip and module suppliers, public network operators, solutions providers
and IoT platform providers.
Its members include metering OEMs like Diehl, Honeywell, Kamstrup, Minol-Zenner, Mueller, Neptune, Pietro Fiorentini
and Sagemcom. The latest OMDIA LPWAN report lists LoRaWAN and NB-IoT as the two premier IoT technologies that
will experience the most growth between now and 2028 as shown below.
Why LoRaWAN Is Key to AMI Network System
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AMI Network Systems Based on LoRaWAN
®
LoRaWAN is a proven LPWAN technology with excellent characteristics that lends itself to AMI network systems.
Features include:
long range, low power,
and a star network
implementation
a high level of
network security
the ability to acquire the various
components from a multi-source
value chain ecosystem preventing
vendor lock-in at various levels.
Despite these facts, concerns are sometimes raised towards the use of LoRaWAN in AMI network system
implementations by utilities and municipalities in general. Hesitation in embracing LoRaWAN at this juncture has
primarily been due to unfamiliarity with and unawareness of the LoRaWAN connectivity with concerns about maturity,
IP ownership, performance, and security. The goal of this article is to provide a solid baseline as to why LoRaWAN
connectivity is indeed a great fit for AMI network systems.
While there are LoRaWAN implementations of AMI networks for electric meters (Vision Metering is a great example),
this article focuses on AMI Network Systems for water and gas metrology, since these types of meters are battery
operated and need to last 10-20 years, producing a much smaller amount of data compared to smart electric meters.
The LoRaWAN
standard and network
were engineered with
battery powered IoT
devices in mind, which
includes smart water
and gas meters.
Why LoRaWAN Is Key to AMI Network System
What makes LoRaWAN a great fit for AMI?
Today, LoRaWAN connected devices can be found across a wide variety of
markets including not only metrology, but also logistics, smart building, smart
city, and smart agriculture. A LoRaWAN network can either be implemented
as a dedicated network or a multitenant network providing a utility or
municipality planning to deploy a smart metering project with more options
and flexibility regarding network usage, ownership and management. In the
following sections we will review the key aspects of a LoRaWAN network with
a focus on AMI network systems.
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A Truly Open and Evolving
LPWAN Standard
Other LoRaWAN network
connected devices:
There are several advantages to using a truly open and
globally accepted standard like LoRaWAN®.
First, there is no vendor lock-in for smart water or gas
meters nor for any other devices one might want to
connect to a LoRaWAN network. Street Light National
Electrical Manufacturers Association (NEMA) controllers,
Outdoor Air Quality Index (AQI) sensors or parking
sensors that indicate if a parking spot is free or taken are
good examples. Second, unlike with competing licensed
spectrum or RF-mesh based AMI network systems, there
is no gateway vendor lock-in as gateways can be acquired
from a variety of OEMs. Open standards are known to
drive down costs, while proprietary solutions keep costs
elevated.
Another key benefit of an open-technology standard
like LoRaWAN is that the evolution of the standard is
driven by customer needs through the LoRa Alliance®.
The membership-based approach that the LoRa
Alliance takes ensures that its members drive the
specifications forward, evolving through contributions
from key members as part of Technical, Marketing and
Certification Committees. New innovations such as
Device-to-Device (D2D) communication which allows a
LoRaWAN connected device, like a Residential Methane
Detector (RMD), to communicate directly to a LoRaWAN
connected gas meter with a built-in shutoff valve. If the
LoRaWAN network were unreachable, as might be the
case in a natural disaster, D2D would ensure the safety of
those who might be affected by a rogue gas leak. Another
recent innovation is the LoRa-enabled relay, a low-cost,
battery powered device to extend the range of LoRaWAN
connected devices. This eliminates the need for a full
gateway. Additionally, the LoRaWAN standard continues
to be enhanced with new features such as support for
additional cipher suites (beyond the standard 128-bit
AES encryption as discussed in section 2.6) and rekeying
options for meter endpoint Root Keys.
Why LoRaWAN Is Key to AMI Network System
Street Lights
Outdoor Air Quality Sensors
Parking Sensors
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A Dedicated Versus a Multitenant
LoRaWAN Network
Dedicated Network
®
LoRaWAN supports both dedicated and multitenant
network implementations. While this choice has no
bearing on meter endpoints or gateways, it does affect
how gateway capacity is allocated as well as the total
cost of ownership (TCO).
In a dedicated network all the gateway capacity would
be allocated to a single utility’s or municipality’s AMI
network to which they can connect their smart meters
as well as other LoRa®-enabled end-devices or sensors.
In this case the utility or the municipality would be the
owner of the gateway infrastructure which requires a
capex investment.
Multitenant Network
In a multitenant network implementation, the network
infrastructure is typically owned by a third party who
then provides the Network as a Service (NAAS) to
the utility or municipality. In this case, the capacity is
securely shared between multiple parties. The benefits
of a multitenant network are lower TCO, higher network
efficiency and better device battery optimization as
multitenant LoRaWAN networks typically will have a
higher gateway density versus a dedicated LoRaWAN
network.
Why LoRaWAN Is Key to AMI Network System
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A Star Based Network Architecture
A LoRaWAN® network, whether dedicated or multitenant, is implemented as a star network, meaning there is always
only a single hop (connection) between the end-device and a gateway, in this case the smart meter or meter reader, to
a gateway.
The benefit of a star network compared to an RF mesh implementation is increased battery life, as the battery only
needs to be used to transmit metrology data from a single meter (itself). AMI meters connected to a RF mesh network
need to not only use their battery power to transmit their own metrology data to the headend system but need to
transmit metrology data of some or many of their neighboring AMI meters that are too far away from a gateway
or data collector and need one or more RF hops to reach the nearest gateway through another meter. One of the
operational limitations of an RF mesh network is the fact that the power consumption (and therefore the battery life)
of a meter endpoint is hard to predict, as some nodes could be relaying a lot of data from other nodes while others
might not. This could potentially result in more frequent battery replacements for an unplanned subset of meters.
In a LoRaWAN network, there is no persistent 1:1 connection between an AMI meter and a specific gateway. The
absence of a dedicated connection prolongs battery life because the meter endpoints do not have to stay synchronized
with a gateway. Furthermore, LoRaWAN networks are highly scalable as gateways can be added as needed without
reprovisioning meter endpoints to connect to an added gateway.
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High-Capacity Full Duplex Gateways
While 8 or 16 channel gateways utilizing LoRaWAN® are the norm for most
countries around the world, in North America the FCC allows for 64 channel
gateways operating in the 915MHz ISM band. The added benefit from
hopping over 50 channels or more (per FCC regulation 15.247) is the fact
that endpoints can transmit at 30dBm (1 Watt). Even though higher meter
endpoint transmit-power levels reduce battery life, a compromise can be
made between the metrology reporting interval and transmit power because
the extra 6-8dB of link budget over a typical 22dBm end-device frequently
make a big difference for water meters that are often located in a concrete pit
under a metal or concrete lid.
Water as well as gas metrology data that needs to be passed from the meter
through an AMI network system to the headend system (typically cloud
based) is small enough to be passed in the payload of a LoRaWAN frame. In
efficient implementations, this can be as little as 11 bytes, but can be as high
as 254 bytes if needed. Even at an assumed network load of only 5% (meaning
95% of the time there is no data being sent), a 64-channel full-duplex
gateway utilizing LoRaWAN can process up to 9 million 11-byte payload uplink
messages (equally distributed between the 4 spreading factors; more on
spreading factors in section 2.5) in a 24-hour period.
With a maximum uplink link-budget of 164dB, AMI meters can be located
up to 15 km from the gateway. The long-range capabilities of the LoRa RF
modulation means that gateways utilizing LoRaWAN only need to transmit
their downlinks to the meter endpoints at 0.5W, compared to gateways from
some competitive licensed-spectrum AMI solutions which transmit at up
to 60x (30W!) power levels, severely increasing the size of a backup battery
needed with each gateway in case of a power outage.
As an example,
a single full-duplex
64
-channel
LoRaWAN gateway
can support well over
100k
meter endpoints
each reporting
24
metrology reads (or
more) per day.
Intelligent Network Server
In a LoRaWAN network, uplink messages from any AMI meter within linkbudget range of any gateway will be processed and transmitted over a secure
TCP/IP backhaul link (typically 4G cellular) to a cloud-based network server
utilizing LoRaWAN. The network server performs a function called data deduplication where it will delete all additional copies of each LoRaWAN uplink
message and only keep the one with the best RSSI/SNR. The network server
will then forward the uplink to the head-end system of the utility or to a
specific application platform/IoT platform to which the end device belongs.
Uplinks (from an AMI meter to a gateway) can be transmitted using one of
four different data rates (called Spreading Factors). The fact that these four
different Spreading Factors are orthogonal to each other in the RF space
(meaning they appear as noise to each other) provides an often overlooked
Why LoRaWAN Is Key to AMI Network System
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and extremely valuable feature of LoRa® modulated packets.
The orthogonality allows incoming uplinks on the same channel (same frequency) of a gateway at the same time to be
processed concurrently because they appear as noise to each other, and because LoRa packets are received well below
the noise level. This significantly increases the overall throughput of any gateway utilizing LoRaWAN® (whether it has
8, 16 or 64 channels).
Each network server utilizing LoRaWAN employs a dynamic Adaptive Data Rate (ADR) mechanism which controls
the SF and power levels of all AMI meters utilizing LoRaWAN (via Network MAC commands sent through downlinks
from the network server to the meter). The main goal of the ADR mechanism is to optimize the battery life of the AMI
meters by for example having the meters that are located close to a gateway (based on RSSI/SNR levels) transmit their
uplinks at a low power level and with the lowest Spreading Factor (SF7). The lower the Spreading Factor, the shorter
the time-on-air (transmission time of the LoRaWAN frame) thus reducing overall current usage. Higher Spreading
Factors are assigned to meters that are located further away from the nearest gateway and therefore need the
additional RF gain (from using the higher Spreading Factor) to close its link-budget with the gateway.
By balancing the distribution of the four spreading factors (SF7, SF8, SF9 and SF10), the ADR mechanism directly
contributes to the maximization of the processing capacity of the gateways utilizing LoRaWAN therefore increasing
the overall LoRaWAN network throughput.
Operation in the ISM (915MHz) Band
In North America, LoRaWAN networks operate in the
unlicensed 915MHz ISM Band. In the U.S., this ISM band
is regulated by the FCC’s 15.247 rules to ensure fair coexistence of RF Transmitters. The 15.247 regulation is
implemented as follows: It limits end-device transmission
power levels and enforces a distribution of these
transmissions over different frequencies (channels) by
either a frequency hopping requirement or a minimum
bandwidth requirement. Unlike FSK or GFSK based AMI
systems (operating in licensed or unlicensed bands), LoRa
packets can still be received with a SNR below the noise
floor, down to -17dB (when using the highest Spreading
Factor, SF10). In a LoRaWAN network, gateway diversity
boosts network capacity and lowers packet error rates by
reducing collisions between uplinks with the same spreading factor. If certain gateways utilizing LoRaWAN channels
are experiencing higher levels of interference on a local level, the network server utilizing LoRaWAN can reassign the
channel usage as needed.
Competing licensed-spectrum AMI network system providers often try to paint the ISM band as some kind of unregulated and noisy wild-west type spectrum. Nothing could be further from the truth. The ISM Band is strongly
regulated by the FCC who makes sure that many different products can coexists in this band. For example, the fact
that over 80 million smart electric meters managed by some of the largest utilities in some of our largest cities are
currently connected to competing AMI networks that operate in this unlicensed 915MHz ISM band is a testament
to the fact that FCC regulation works as it was intended. There is no need to pay for overpriced licensed spectrum
equipment when it comes to AMI network systems.
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LoRaWAN Security
®
As for any network, security is one of the most
important aspects of a LoRaWAN network. The security
implementation of LoRaWAN relies on standards-based,
well-vetted algorithms and end-to-end security. The
key security characteristics of a LoRaWAN networkdedicated or multitenant- are mutual endpoint
authentication between the meter and the network,
data-origin authentication, integrity and replay protection
and confidentiality. Symmetric cryptography and prior
secret key sharing between a meter endpoint and the
LoRaWAN network enables a very efficient and secure
activation procedure.
The security mechanisms for LoRaWAN are based
on National Institute of Standards and Technology
(NIST) approved Advanced Encryption Standards (AES)
cryptographic algorithms. These types of algorithms
have been accepted and deployed for many years and
are an excellent security implementation for LPWAN
networks. The LoRaWAN standard specifically relies
on the 128-bit AES cryptographic primitive combined
with several modes of operation such as Cipher-based
Message Authentication Code (CMAC) for integrity
protection and Counter Mode Encryption (CTR) for endto-end encryption of all metrology data between meter
endpoints and the head-end system as well as command
and control data between the network server utilizing
LoRaWAN and the meter endpoints.
Unlike cellular devices which need to be provisioned
with a SIM card, devices using LoRa® are provisioned
with their security credentials at manufacturing, ideally
injected into a tamper proof Secure Element. These
credentials consist of a set of Root Keys that uniquely
identify the meter endpoint, the LoRaWAN network and
the head-end system (Application Server). In a secure
manufacturing process, these keys are generated by
Hardware Secure Modules (HSMs) which are tamper-
Why LoRaWAN Is Key to AMI Network System
proof physical appliances. This provisioning process
allows for low-cost and efficient meter deployments.
Once a smart meter utilizing LoRaWAN is deployed,
network connectivity is achieved by an Over-The-AirActivation (OTAA) procedure which consist of a JoinRequest and Join Accept message exchange between the
meter endpoint and the LoRaWAN network.
Since a comprehensive review of the security features
of LoRaWAN is beyond the scope of this white paper,
additional details can be found here: LoRaWAN security
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Summary
Any LoRaWAN® network has key attributes that make
it attractive for AMI: scalability, high capacity, long range,
low power, ease of deployment, high security, and low
cost. The LoRaWAN standard is an open source, member
driven protocol and a unique LPWAN technology that
should receive serious consideration for any new AMI
network implementations service, particularly smart
water or gas meters, as well as electric meters where
meter read intervals or verbosity can be limited.
Explore these valuable links:
LoRa Alliance®
Academy for LoRaWAN
Everynet
Senet
Tektelic
Adtran
Viaanix
See more examples of
LoRa in Action
®
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