M2M and IoT redefined through

cost effective and energy optimized

connectivity
Whitepaper
Whitepaper
1
The success of the Internet and the World Wide Web has
resulted in more and more kinds of fxed and mobile computing
devices being connected, and effcient wireless communication
has therefore become of critical importance. Although this frst
Internet/Mobile revolution changed the world profoundly, the
next disruptive development, in which the majority of data traffc
will be generated by things rather than by human initiation, has
the potential to change it even more.
This Internet of Things (IoT), or in some cases also referred
to as Machine to Machine (M2M) communication, is well
underway - after all, microprocessors are to be found in all
manner of things, domestic appliances, credit cards, cars,
passports, CCTV cameras in your city, the elevator in your
building, and many more. Add the powerful ingredient of Internet
connectivity - or the effcient and affordable ability to be read
by an Internet connected device- mixed with applications and
services that make use of the data gathered by this vastly
expanded network, and the next technology revolution becomes
visible on the horizon.
However theres a potential gap between a possible brave
new technological world and a reality that could improve the
quality of life of a signifcant portion of humankind. Whether
the Internet of Things will be able to deliver in a satisfying and
economically affordable way will depend on how the emerging
M2M ecosystem, is architected.
*
This whitepaper describes how we at SIGFOX have redefned
the network required and the access to Big Data generated
to enable enormous scalability, whilst taking into account the
fnancial and power constraints, which have thus far shelved
many good ideas in an early stage.
Introduction
The data are no longer
in the computers.
We have come to see that
computers are in the data
Authors of Trillions
*
The Executives Guide to the Internet of Things , Jason Hiner, CBS Interactive Inc.
2
Clearly the Internet of Things has its benefts, determining
whether the technology is right for your organization, and where
to start with it, takes an analysis of the business needs and how
these can be resolved using Big Data. Typically this starts with
the question do you have assets in the feld and if the answer
is yes there is a conversation to be had as to whether you have
full visibility and awareness of what those assets are doing.
*
The main reasons why companies consider IoT are
listed in Figure 1 and show that cost savings are
an important factor however customer service and
sustainability through new business are rated even higher.
Figure 1. Business reasons to implement IoT - CBS Interactive survey

A result of IoT often mentioned is a painless service or the
sensation that the service supplier is actively engaged in the
customer relationship leading to better user experience, clear
brand benefts and competitive edge.
If the last 10 years of technology development were about
making it easier for companies and people to exchange
information with one another Google, Skype, Dropbox, and
so on the next 10 years will be about making it possible, cost
effective and easy for the physical world to transmit data to the
Internet.
*
In hindsight however many companies currently deploying
connected objects are struggling with the major drawbacks
of traditional network solutions: steep pricing, the high-
energy consumption and the complexity of deployment and
maintenance.
Executive summary
Low energy consumption
Long range
Ease of use
Extremely cost effective
22
THE EXECUTIVES GUIDE TO THE INTERNET OF THINGS
New business opportunities and service/product im-
provement top M2M priority list
So what are companies hoping to get from their M2M investments? According to our survey, most are look-
ing for new business opportunities and ways to improve their existing processes and products.
We asked respondents to rate the importance of several factors in their organizations decision to implement
M2M technology, with a score of 1 being not at all important and 5 being very important.
*
The Executives Guide to the Internet of Things , Jason Hiner, CBS Interactive Inc.
Whitepaper
3
The major conclusion derived from, sometimes painful,
experience is that existing network solutions were not built
for low throughput Machine-to-Machine (M2M) and Internet
of Things (IoT) applications, and therefore cannot provide an
adequate solution. An optimal solution will at least need to
provide answers to the following requirements:
Energy consumption as many assets are battery powered
Long range to avoid high network and subscription costs
Ease of use both for asset and back offce system integration
Extremely cost effective initial investment and running costs
Secure and reliable to avoid interruptions and vulnerability
In this whitepaper we describe how SIGFOX provides answers
to the above. Once you have understood the challenges it will
become clear why we have had to purposely build a disruptive
IoT network solution to meet these exact requirements.
Because of improved
visibility, they only need
to go to where the attention
is needed, thats a hard
ROI for operations
M2M and IoT will feature
orders of magnitude more
nodes than " human-to-
human ", most of which
will create low bandwidth,
upload biased traffc.
The ability to have physical objects communicate allows for a
multitude of opportunities, from optimization of existing business
processes to the creation of entirely new business cases.
Figure 2. Application domains for M2M and IoT Beecham Research

The service sectors and application groups shown in Figure 2
are wide spread and cover almost everything from industrial
M2M (Machine-to-Machine) solutions to consumer oriented IoT
(Internet of Things) applications.
Growing
connectivity problems
M2M Market Overview
The frst of the following two charts shows the main service sectors within which M2M solutions are usually implemented. This
provides a useful market segmentation for the whole M2M market.
9 8 Copyright 2012 BeechamResearch Ltd. All rights reserved. http://beechamresearch.com
4
The use of connected objects in many industries is not entirely
new, but the growth is accelerating very rapidly. Global object
connections are estimated to have a potential increase from two
billion at the end of 2011 to 18 billion at the end of 2022 and in
terms of revenue the connected objects industry is set to have a
potential growth from $200 billion in 2011 to $1.2 trillion in 2022,
a CAGR of 18% .
2
The connected objects are in many cases simple objects, often
isolated and running on battery, with sensors that detect certain
events or information and transmit that data to an IT system.
The information can be anything from energy consumption,
temperature, humidity, location, presence information, health
data, and many more. These applications tend to have very
different network and data transmission requirements with
regards to connectivity than traditional network clients, such as
mobile phones and computers.
A low throughput object in terms of data transmission - would
be expected to have very low power consumption and a reduced
connectivity cost as the objects only send small messages once
in a while. The challenge for traditional connectivity network
providers is their ability to truly deliver on these aspects whilst
they have not been built for this kind of network usage.
The lack of adapted connectivity solutions for low throughput
objects already has proven to be and will remain to be one of the
major obstacles in achieving the expected industry growth. Both
network nomenclature and bill of material or component cost are
high priorities and need to be rethought to allow for objects with
relatively low throughput and long deployment in the feld.
2
http://www.machinaresearch.com/m2mglobal2022.html
"The momentum
of the Internet of Things
is now building.
The Internet
changed our lives,
and the Internet of Things
will change us again."
Jason Hiner
Whitepaper
5
Whilst consumers continue to demand more bandwidth to
satisfy their needs for information driven by numerous apps,
the existing and traditional connectivity solutions continue to
develop and roll out their technology, networks and modems for
high throughput applications. The typical network client profle,
targeted for these solutions, both in B2B and B2C, is a computer
or a mobile phone.
As a result telecommunications operators have spent years
on building out more and more advanced networks to cater
for the growing needs of mobile devices, from 2G, to 3G and
now LTE/4G. Lately the impact of their focus and priorities has
become bluntly visible as early stage 2G networks are even
announced to be closing down resulting in huge challenges
for service providers that have deployed millions of connected
objects using this communication backbone.
Figure 3. Long range and short range connectivity.

Clearly there are great advantages for certain use cases
like feet management - for which the current communication
solutions provide good and effcient solutions even if they were
primarily not intended to serve the specifc business needs of
their current installed base. Lets not forget that technologies like
TDMA - GSM - and CDMA were put in place to serve a voice
driven need, and even SMS in in its early days was a control
channel attribute and never intended to become an industry on
its own.
As a result early adaptors of telematics virtually had no choice
and accepted the technology and fnancial limits resulting in
many good initiatives being shelved. Nowadays it has become
painfully clear that M2M and IoT applications have very different
Expen$ive and
energy consuming
Complex
to manage
Short Range
Energy
consuming
Expensive
Telcos / Satellite
Long Range
Energy
consuming
Whilst established
providers of connectivity
focus on 4G deployment
and licensing we focus
on low throughput and
subscriptions for objects
with little power.
6
requirements than mobile phones, and the advances within
the telecommunication networks are only making the problem
worse for low throughput applications. The focus seems to be
on increased bandwidth for a relatively limited human audience
without a doubt however also annoyed with ever increasing
monthly cost and limited battery life when compared to the
billions of objects, and not on a couple of bytes per day for a
fraction of the existing wireless subscriptions. Despite the fact
of modem manufacturers coming down substantially in price
over the past few years, assisted by the quite large demand for
mobile phones, most business models involving the much larger
objects pool do not fy with even half of the current component
or chipset pricing.
Satellite connectivity has the advantage of providing a very rich
coverage, even in remote areas, but the costs are even higher
when compared to telecommunication network services which
rules out satellites for M2M and IoT from the start.
Also from a technological perspective, both telecommunication
networks and satellite connectivity are typically designed for
a more or less constant communication between the network
clients and the network itself. Worse case is when network
clients are still communicating with the network even when there
is no actual data to send. The obvious impact of the required
constant communication is a very high-energy consumption,
which besides having a negative climate impact will cause the
batteries on non-wired objects to run out quickly.
Short-range connectivity solutions were not intended for low
throughput applications either. They are bandwidth intensive
and therefore consume a lot of energy.
The short-range connectivity solutions also have the
inconvenience of being very complex to manage. Wi-Fi
connectivity for instance requires the confguration of each
object based upon which Wi-Fi network it will need to connect
to. Others like ZigBee infrastructures require a high number of
concentrators, resulting in high complexity to install and maintain
and even higher energy consumption. For example each ZigBee
based application requires the deployment of specifc local
infrastructures, which makes it very expensive and cumbersome
to deploy.
When used for connected objects, the short-range connectivity
solutions also have the drawback that monitoring of each object
is complex if at all possible. If for instance objects are connected
in local mesh networks and not directly to an operated network,
it then becomes extremely complex to manage service level
agreements.
Connecting millions
of objects without roaming
restrictions and enabled
by a very small, extremely
low power modem,
required our team
to think out of the box
Whitepaper
7
To conclude : frstly large deployments of M2M and IoT connected
objects do require long-range operated networks if not only for
the advantage of providing visibility of the status of each, and
many due to their coverage area, connected object. Secondly
these objects require radios and components, which consume
power in the order of low double digit Milliwatts to allow for many
years of maintenance free operation.
The DNA of the ideal solution for low throughput connectivity
requires an entirely new network solution, based upon a clear
set of specifc requirements. Depending on the service sector of
choice the below criteria will be of primary importance.
Low cost and thus allowing for any sort of object to be
connected in high volumes
Low energy consumption to increase battery life expectancy,
lower maintenance (TCO), minimize climate impact
Ease of use, both in regards to integration in objects but also in
regards to object management and integration with IT systems
Long range, to avoid having to deploy complex local
infrastructures and to reach all objects
Operated, to facilitate service level monitoring and object
management
Frequency-independent, for world-wide coverage and
adaptability
Embedded subscriber identifcation, to avoid additional cost
and management of SIM cards
Penetration should be deep and allowing for underground or
otherwise stringent structural environment connectivity
The SIGFOX network and patented IP has been built to answer
to these exact requirements and is 100% dedicated to fulflling
the needs of low throughput objects on a global basis.
Connectivity
redefned
8
SIGFOX provides an end-to-end solution for your communication
chain, from your objects through to your information system, with
unprecedented pricing models and low energy consumption.
As a network operator SIGFOX operates fxed-location
transceivers enabling your objects to be connected out of the box.
However contrary to the telecommunication networks, the
SIGFOX transceivers and the entire SIGFOX connectivity
solution has been developed, built and deployed to only serve the
low throughput M2M and IoT applications. As an operated long-
range network, SIGFOX provides connectivity without the need
to deploy specifc network infrastructures for each application.
Unlike other narrow band or white space solution providers we
do not require our customers to invest in network equipment, the
SIGFOX network is simply available to any object equipped with
our certifed connectivity solutions.
From an application point of view, the SIGFOX connectivity
solution functions as follows:
SIGFOX compatible modems are integrated within the physical
objects by our certifed partner network
The objects instruct the modems to send messages whenever
and wherever needed
The transmitted data is picked up by the SIGFOX transceivers,
and routed to our managed service
The SIGFOX servers verify the data integrity and route the
messages to the applications IT system.
An existing use case is a fre detector application where the
smoke detector object contains a SIGFOX compatible modem
and transmits daily heart beats (keep alive) to ensure the alarm
will work when most needed and in the event of a fre sends
alert messages. The 3rd party application is connected to our
managed service through a simple and standards based API
to receive the messages. The business beneft for the service
provider is to optimize their customer service and retention
in terms of alerts when the device is not operating whilst the
consumer can have peace of mind to be warned when it is most
needed. A derived beneft is to alert both the fre department and
the subscriber in case of absence per SMS.
What is SIGFOX
Whitepaper
9
A new approach
for objects
Average power
consumption for
an energy meter:
SIGFOX: 50 microwatts
GSM/cellular : 5000 microwatts
Ease of use
As an operated network there is no specifc local network
equipment to install when using SIGFOX. The network is always
available and ready to use.
There is no need for complex and expensive platforms and
tools to manage the connectivity for the devices. Easy to use
integration APIs and management applications are included in
the connectivity package.
Operated
All objects are directly connected to the network, which enables
a clear overview of the status of each object and thus the correct
management of service level agreements and maintenance.
Long range
The SIGFOX network technology allows for a very long range
between objects and transceivers, which enables the network
to easily cover large areas and reach underground and buried
objects.
The SIGFOX technology allows for better penetration than
traditional cellular networks such as GSM, while still ensuring
high reliability and radically lower energy consumption.
Figure 4. Fire detector solution

Smoke detector
3
rd
party
10
Frequency-independent
SIGFOX is not tied to any specifc frequency. The network
can adapt to the different ISM frequencies and therefore be
available worldwide today, but can also if needed adapt to other
frequencies, such as licensed bands or whitespaces.
Low energy consumption
To minimize energy consumption, the SIGFOX network is
only used when the object needs to transmit a payload. This
fundamental principle is the major reason why objects that
use SIGFOX consume radically less power than those using
traditional connectivity solutions.
The exact power consumption over time obviously depends on
how many messages are sent and how often. To illustrate the
difference in power consumption between SIGFOX and traditional
cellular networks, we compare the data for a typical use case,
such as a smart energy meter object that transmits 3 messages
a day using a 2.5 Ah battery. Existing solutions would typically
last for months whilst SIGFOX enabled smart meters run up
to 20 years.
Low cost
SIGFOX communications costs are radically more attractive
and justifable for almost any business case in comparison
with existing connectivity solutions. Included in the annual
subscription fee SIGFOX provides connectivity, APIs, web-
based administration and support as an all-inclusive fee without
any additional charges.
The waterfall based pricing model is based on actual daily or
monthly usage defned by bandwidth and the quantity of objects
deployed. For further details please contact us to discuss the
needs within your specifc business case, solution or project.
Typical stand-by time
(for a 2.5 Ah battery)
SIGFOX: 20 years
GSM/cellular : 0,2 years
The SIGFOX network is not targeting specifc industries and can
virtually be used in any context in which there is a need for a low
throughput connectivity solution. The defnition of low throughput
on the SIGFOX network can characterized as follows:
Up to 140 messages per object per day
Payload size for each message is 12 bytes
Wireless throughput up to 100 bits per second
Is my application
compatible ?
Whitepaper
11
Adding SIGFOX connectivity to an object
In order for an object to send messages using SIGFOX, it needs
to integrate a compatible and certifed modem. The SIGFOX
modems are based on standard hardware chips on which the
SIGFOX software stack is installed. These modems can be
purchased from SIGFOX certifed manufacturers.
Please refer to our website for a list of certifed modem
manufacturers: http://www.sigfox.com/modems
Integrating SIGFOX with an IT system
To receive the messages sent from the objects, the IT system
needs to be integrated with the SIGFOX servers. SIGFOX
provides a web application, accessible through a regular web
browser, which allows you to register HTTPS addresses of the
IT application that needs to receive the messages. Whenever
an object sends a message, it is forwarded to the confgured
HTTPS address.
Managing objects
SIGFOX will alert the customers IT system whenever there is
a communication problem with an object and can furthermore
provide operational information such as the ambient temperature
and power supply status. Through the SIGFOX web application
the customer can easily confgure when and where to receive
this information through standard HTTPS messages.
Web application
A standard web based managed service provides a clear
overview of the managed objects and provides access to the
history of messages next to other relevant data.
Integration points
12
Radio frequencies
The SIGFOX network operates in the unlicensed ISM radio
bands. The ISM is available worldwide governed by regulation
bodies such as ETSI (Europe) and the FCC (USA). The exact
frequencies can vary depending on national regulations, but in
Europe the frequency is generally 868MHz and in the US it is
915MHz.
Uplink and downlink
SIGFOX provides mono and bi-directional communication. The
capacity to provide mono-directional communication is very
unique and allows extremely low power consumption in use
cases where bi-directional communication is not required.
Reliable connectivity
From the very beginning SIGFOX solutions have been designed
to provide high reliability for applications looking to connect large
numbers of objects. Several antennas receive each message
and the network backbone has a redundant and continuously
monitored infrastructure to guarantee a high level of service.
Security and privacy
SIGFOX employs several techniques for securing the
communication in order to avoid privacy issues and other
security related risks.
SIGFOX does not impose specifc data formats and only the
customers know what they transmit and in which format. The
communication protocol also implements mechanisms such
as frequency hopping to avoid message interception and anti-
replay mechanisms to avoid potential false signals.
Standardization
SIGFOX is collaborating with ETSI on the standardization of low
throughput networks.
Unique characteristics
Whitepaper
13
SIGFOX uses a patented radio technology based on what is
referred to as UNB (Ultra Narrow-Band). The SIGFOX UNB
radio communication uses the ISM bands, which are free to use
without the need to acquire licenses, to transmit data over a very
narrow spectrum to and from connected objects.
The UNB devices have outstanding sensitivity, which results
in huge resource savings. The technology allows SIGFOX to
deploy a very effective, low throughput communications network
by limiting the number of antennas (base stations).
The impact on cost is massive and results in very affordable
subscriptions when compared to the upfront investments and
running cost of other network technologies.
Furthermore, each of the modems used in the network (to
emit and receive data) are signifcantly less energy intensive
than devices using competitive technologies (such as GSM or
broadband radio). These advantages allow SIGFOX to minimize
the networks ecological and fnancial footprint and to provide
the cheapest low throughput M2M and IoT communications
solution on the market today.
In its current state each SIGFOX base station can handle up to
a million connected objects, but the network is easily scalable to
handle more objects, by simply augmenting the density of base
stations.
The density of the cells is based on an average range of about
30-50km in rural areas and 3-10km for urban areas. Distances
can be much higher for outdoor objects where messages in line
of sight can travel over 1000km.
A GREEN network
Achieving the same communication range as SIGFOX with
traditional cellular networks would require the use of 10,000
times more power. Furthermore, the protocols used by traditional
cellular networks, which remain effcient for the usage they were
designed for, result in a 1% to 0.1% ratio for actual payload data/
protocol data, whereas for SIGFOX the ratio is in the degree of
20 to 50%.
The network
infrastructure
SIGFOX requires
substantially less antennas
than traditional cellular
networks, such as GSM
The power consumption
required for a simple
data transfer, with the
same level of service, is
2000 to 5000 times higher
with traditional cellular
networks than with SIGFOX
14
To complete the energy comparisons one would also need to
mention the energy consumption of the network itself, being the
base stations, the connection backbone, the managed service
and related components. The SIGFOX network consumes 200
to 600 times less energy for the same amount of connected
objects, again compared to traditional cellular networks.
To illustrate the overall energy consumption, a traditional cellular
network would consume 170 to 440 Mega-watt/hour to connect
a billion objects 10 times per day, whereas the SIGFOX network
would only consume 120 Kilowatt/hour. It is a matter focus and
optimized design of all pieces in the value chain leading to the
unique offering we can provide you with today.
Network coverage
SIGFOX is being deployed worldwide and thanks to the long-
range UNB technology, the low cost and easy installation of the
network infrastructure, the rollout is progressing rapidly.
Please feel free to contact us to know whether your target area
is covered.
The amount of
electromagnetic radiation,
for similar network usage,
is 2000 to 5000 times lower
with SIGFOX
When you are ready to start testing your objects with SIGFOX
you can purchase a starter kit. The starter kit package includes
two evaluation boards with SIGFOX modems and everything
needed to send and receive messages. Included in the starter kit
is also a connectivity subscription, which covers the exchange
of messages and use of the entire set of APIs to access our
managed service for operational and administration purposes.
How to get started
Whitepaper
15
MAAF Assurances, one of the leading French insurance
companies, anticipate the upcoming regulation that will impose
by 2015 that each household be equipped with a smoke detector.
The fre and/or intrusion alert service that will be using the
SIGFOX network will enable MAAF insured customers to be
warned directly through SMS, in case the intrusion or smoke
detectors send alarms and allow MAAF and their customers to
be alerted if there is an anomaly, such as low battery, with the
smoke detector.
Clear Channel Outdoor operates stations throughout France.
In order to avoid constant manual inspection of the ad stations,
a remote monitoring application has been deployed and the
SIGFOX network is used to communicate status information
from each ad station to the IT system.
SIGFOX is the frst and only operator of a cellular network fully
dedicated to low throughput communication for connected
objects. Leveraging on its patented UNB technology SIGFOX
brings a revolution to the M2M and Internet of Things world
by enabling large-scale connection of objects. The network
already connects tens of thousands of objects in France and
international cities.
Sample use cases
About
the company
For further info:
[email protected]
www.sigfox.com
SIGFOX
Btiment E-volution
425, rue Jean Rostand 31670 Labge FRANCE
Tl. : +33 (0)5 34 31 03 16 [email protected]
www.sigfox.com