Current R&D activities using spectrum—Australia was a world leader with Wi-Fi, where to next? Taggle Systems 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 Dejanovic Gordon Foyster Matthew Henderson Richard Keaney John O’Sullivan Neil Weste CONFIDENTIAL The Technology Innovation: Build a technology to network large areas of farmland (‘000s km2) at ultra low cost RFID (No Battery) Taggle >3 Years One Slight Problem: Cattle not currently commercial Most cattle farmers don’t want to pay anything to track their cattle Battery life ^ (1/2 AA cell) WiFi Zigbee <1 Year 2G, 3G, LTE <5m ^ 15min transmissions >5km Network Coverage (Range per receiver/base station) CONFIDENTIAL The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) In-field device life^ RFID W’House Inventory mgt Shop stock control Basic supply chain choke points Low (<1 Year) m2 Wi-Fi and “Zigbee” Hospitals Large plants (Car plants) Office block automation Home area automation < 5 Km2 ^ Self powered, small form factor, robust design Existing technologies struggled to deliver low cost wide area solutions viably Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Economic Network Range CONFIDENTIAL > 500 Km2 The Business Innovation: Recognising that the “Cattle Tracking” radio filled a major gap in the M2M market M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) In-field device life^ RFID W’House Inventory mgt Shop stock control Basic supply chain choke points Low (<1 Year) m2 New Commercial Target: Devices: Price <<$100 Battery life >10 years (AA cell) Hourly transmissions, 15 Bytes of data Wi-Fi and “Zigbee” Hospitals Large plants (Car plants) Office block automation Home area automation < 5 Km2 ^ Self powered, small form factor, robust design Network Charge: Revenue per Unit <$10 pa Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Economic Network Range CONFIDENTIAL > 500 Km2 The Business Innovation: LPWA Networks like Taggle will deliver the “missing link” in data collection for the Internet of Things M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) In-field device life^ RFID W’House Inventory mgt Shop stock control Basic supply chain choke points Low (<1 Year) m2 Low Power Wide Area (LPWA) Networks Utilities monitoring • Water and sewer network monitoring >>15m devices • Gas monitoring >>6 million devices • Other Utility– electricity network monitoring, street lights etc • Environmental Monitoring Wi-Fi and “Zigbee” Hospitals Large plants (Car plants) Office block automation Home area automation < 5 Km2 ^ Self powered, small form factor, robust design Rural Monitoring/Agribusiness • Crop and pasture monitoring • Asset tracking • Farm security Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Economic Network Range CONFIDENTIAL > 500 Km2 Taggle is the first solution in this space in Australia The Business Innovation: LPWA networks can unlock significant new markets/value M2M DATA CAPTURE TECHNOLOGIES High (>10 Years) In-field device life^ RFID W’House Inventory mgt Shop stock control Basic supply chain choke points Low (<1 Year) m2 The LPWA market in Australia has the potential to be at least $400m pa within 5 years Wi-Fi and “Zigbee” Hospitals Large plants (Car plants) Office block automation Home area automation < 5 Km2 ^ Self powered, small form factor, robust design Mobile Data (3G/4G etc) • Transport monitoring • Precision Ag and Mining • People location Economic Network Range CONFIDENTIAL > 500 Km2 Roll out at Mackay Regional Council has highlighted the potential benefits of LPWA networks to the water industry MACKAY LPWA NETWORK 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…. CONFIDENTIAL In the last 18 months Taggle has installed 20 commercial LPWA networks, and over 50,000 devices across Australia TAGGLE NETWORK SITES 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 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 10 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 TX Power per device (mW) CONFIDENTIAL Taggle Mesh Solution 25 1000 LPWA networks are much more spectrum efficient than traditional mesh solutions Network Topology Comparison TX Power per device (mW) Duty Cycle (%)^ TX power per hour (mWh) Taggle Mesh Solution 25 1000 0.008 0.3 7.5 10800 (20.00) LIPD Spectrum Power in LIPD Band 60.3dBm Power (dBm) (40.00) (60.00) Taggle Suburb Taggle + Mesh Suburb (80.00) (100.00) (120.00) (140.00) Power in LIPD Band 90.6dBm (160.00) 900 ^ 905 910 915 920 Frequency (MHz) 925 Taggle duty cycle in all commercial networks CONFIDENTIAL Mesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011. 930 935 940 “Free spectrum” can easily lead to the poor spectrum utilitsation – “The Tragedy of the Commons” Network Topology Comparison TX Power per device (mW) Duty Cycle (%)^ TX power per hour (mWh) Taggle Mesh Solution 25 1000 0.008 0.3 7.5 10800 - This is truly “high cost” spectrum (20.00) Power (dBm) (40.00) (60.00) Taggle Suburb Taggle + Mesh Suburb (80.00) (100.00) (120.00) (140.00) (160.00) 900 ^ 905 910 915 920 Frequency (MHz) 925 Taggle duty cycle in all commercial networks CONFIDENTIAL Mesh duty cycle from AMI Meter Electromagnetic Field Survey, DPI, 30 October 2011. 930 935 940 Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry? MOBILE LPWA ECONOMIC COMPARISON Installed Base Station Mobile LPWA > $150,000 < $15,000 CONFIDENTIAL Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry? MOBILE LPWA ECONOMIC COMPARISON Mobile LPWA > $150,000 < $15,000 Device Price > $250 << $100 Device Life 2 – 4 Years > 10 Years Installed Base Station CONFIDENTIAL Will LPWA networks emerge as the “Low Cost Carriers” of the M2M communications industry? ECONOMIC COMPARISON: MOBILE DATA VS LPWA MOBILE DATA LPWA > $150,000 < $15,000 Device Price > $250 << $100 Device Life 2 – 4 Years > 10 Years >> $5 per Month ~50c per month Installed Base Station Network Access Cost (RPU) 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 Spectrum Efficient LPWA Solutions Low Cost Physical Network Sites Global development is seeing competitive options emerge rapidly Standards are likely to take several years Resolved by: Utility site sharing Partnerships with Telco’s Further regulation CONFIDENTIAL The keystone to a stable, profitable LPWA industry is access to robust and cost effective spectrum Robust, Cost Effective Spectrum 1. Spectrum Allocation Provision of 5 – 10 MHz of dedicated LPWA spectrum Radio 2. Spectrum Framework Set the spectrum utilisation rules and license fees to allow a competitive LPWA industry to take off CONFIDENTIAL Sites The Challenge: LPWA networks will unlock a new multi billion dollar industry in Australia – if we get it right This Not This Encourage Competition: Provide shared spectrum that remains robust with increased competition – e.g. Message duty cycle and energy limits Provide shared spectrum that can be hijacked by unforseen uses – The Tragedy of the Commons Encourage Innovation: Specify the spectrum efficiency requirements for technologies to meet Specify requirements according to existing technology types (modulation schemes etc) Recognise Value of Spectrum: Develop a license fee structure that reflects the realities of LPWA economics 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 CONFIDENTIAL Thank You