Ericsson White Paper

GFMC-20:000025 Uen
February 2020

Cellular IoT
in the 5G era
Realizing cellular IoT for industrial transformation
Almost every industry can be transformed with cellular IoT. The connectivity needs of all
industries can be addressed by four multi-purpose IoT segments, which efficiently co-exist in
one 5G network. These segments are Massive IoT, Broadband IoT, Critical IoT and Industrial
Automation IoT.

This paper presents a clear evolution plan for addressing all 5G-IoT use cases, from basic
to the most complex, in a cost-efficient, smooth and future-proof way.
Ericsson White Paper 2
Cellular IoT in the 5G era

Introduction
The 3GPP-based global cellular networks are connecting things-to-things and
things-to-persons across borders. Many industries are experiencing the benefits of
cellular IoT, for example in the consumer electronics, automotive, railway, mining, utilities,
healthcare, agriculture, manufacturing and transportation sectors. There are over 1 billion
cellular IoT connections today in 2020, and Ericsson forecasts around 5 billion connections
by 2025.[1] With 5G in the market, almost every industry is exploring the potential of cellular
connectivity for fundamentally transforming businesses. In some regions, governments are
encouraging adoption of IoT via direct and indirect incentives to promote sustainability,
innovation and growth.

Mobile network operators (MNOs) have long been successful in the mobile broadband (MBB)
market and are also best positioned to create and capture value in the emerging IoT
market with their regional and global footprint. Unlike MBB, the IoT usage scenarios have
extremely diverse requirements. For maximizing returns on investments, MNOs will have to
systematically evolve cellular networks for addressing the needs of the rapidly increasing
IoT use cases across multiple industries. This paper shows a clear evolution plan for
addressing all 5G-IoT use cases, from basic to the most complex, in a cost-efficient,
smooth and future-proof way.

The wireless connectivity across various industries can be grouped into four distinct sets of
requirements. To address these requirements, Ericsson has defined four IoT connectivity
segments:[2] Massive IoT, Broadband IoT, Critical IoT and Industrial Automation IoT, as
illustrated in Figure 1. Each IoT connectivity segment addresses multiple use cases in
multiple industries.
Ericsson White Paper 3
Cellular IoT in the 5G era

Figure 1: Industry digitalization with cellular IoT in the 5G era

One 5G network with four multi-purpose IoT connectivity segments

Massive IoT Broadband IoT Critical IoT Industrial Automation IoT

Low-cost devices High data rates Bounded latencies Ethernet protocol integration
Small data volumes Large data volumes Ultra-reliable data delivery Time-Sensitive Networking
Extreme coverage Low latency (best effort) Ultra-low latency Clock synchronization service

Network slicing, network exposure, network data analytics, device positioning, device battery life

5G networks
(public/non-public) Industry digitalization with cellular IoT
Capability boost
in 5G era Industrial Automation IoT Entertainment Transportation
introduction with 5G NR Automotive Smart city
Dynamic Spectrum Sharing

and 5GC Railways Ports

carrier aggregation

Manufacturing Education
Critical IoT introduction with
4G networks 5G NR and enhanced with 5GC Mining Healthcare
Utilities Construction
Broadband IoT enhanced Forestry Oil and gas
Broadband IoT with LTE
with 5G NR and 5GC Agriculture Warehousing
Public safety Airline
Massive IoT with NB-IoT Massive IoT evolution with
and Cat-M NB-IoT and Cat-M Media production Maritime

Today, 4G networks are supporting Massive IoT based on Cat-M/NB-IoT and Broadband IoT
based on LTE. Massive IoT continues to evolve with Cat-M/NB-IoT access in 5G-enabled
networks, and Broadband IoT is being further enhanced with the introduction of 5G radio
and core networks. With powerful, ultra-reliable and/or ultra-low latency capabilities, 5G
networks are going to enable Critical IoT for time-critical communications. To seamlessly
integrate 5G networks with Ethernet-based industrial wired communications networks,
3GPP has standardized additional capabilities that would be offered by Industrial
Automation IoT connectivity.

The four IoT connectivity segments can co-exist in one 5G network, whether deployed
for public or non-public access. Some devices may need multiple IoT connectivity
segments for executing one or more use cases, for example, an autonomous vehicle
with rich requirements.[3]
Ericsson White Paper 4
Cellular IoT in the 5G era

Massive IoT
Massive IoT connectivity targets a large number of low-cost, narrow-bandwidth devices
that infrequently send or receive small volumes of data. These devices can be situated in
challenging radio conditions requiring extreme coverage and may rely solely on battery
power supply.

LTE-M and NB-IoT have been co-existing with LTE in 4G networks since 2017 and fulfill
all 5G requirements from ITU and 3GPP for massive machine type communications.[4][5][6]
LTE-M extends LTE to support machine-type communications, including access for the
low-complexity device category series named Cat-M. NB-IoT is a standalone radio access
technology based on the fundamentals of LTE. At the start of 2020, over 120 commercial
networks supported NB-IoT and Cat-M access globally[7] with millions of commercial users.[1]
Forecasts indicate more than 2.5 billion connections will be in place by 2025.[1] Commercial
devices span various types of meters, sensors, trackers and wearables in many different
industries, including utilities, automotive, transport, logistics, agriculture, manufacturing,
healthcare, warehousing and mining.[8]

There are two dominating types of Cat-M/NB-IoT modem in the market: single-mode NB-IoT
modems, which are suitable for ultra-low cost devices, and dual-mode Cat-M1/NB-IoT
modems, suitable for diversity of use cases with low-cost devices. The dual-mode modem
combines the best attributes of the two technologies in terms of throughput, coverage,
mobility, voice support and device positioning, as summarized in Figure 2.

Figure 2: Comparison of Massive IoT modems (assuming half-duplex FDD and 3GPP Rel-16)

Characteristics Dual-mode Cat-M1/NB-IoT modem Single-mode NB-IoT modem

Peak data rates 1.1Mbps (UL), 588kbps (DL) 158kbps (UL), 127kbps (DL)

Voice Supported Not applicable

Connected mode mobility Supported Not applicable
Coverage Both modem types are on par
Battery life Both modem types are on par
Guardband carrier Guardband NB-IoT carrier can be used for both modem types
Device positioning Cat-M achieves better accuracy than NB-IoT due to wider bandwidth

The dual-mode devices use Cat-M1 mode in Cat-M1 signal coverage and can switch to
NB-IoT access when out of Cat-M1 coverage. Cat-M1 has two coverage extension (CE)
modes in the 3GPP standard: a mandatory CE mode A (for up to 10dB CE) and an optional
CE mode B (for up to 20dB CE, on a par with NB-IoT).

The performance benefits of Cat-M1 vanish when using CE mode B, due to fundamental
trade-off between coverage and throughput. There is major spectrum resource
consumption due to hundreds of subframe repetitions in CE mode B. Provided that the
dual-mode modem can switch to NB-IoT access and leverage guardband NB-IoT carriers in
extremely poor coverage scenarios, there is no commercial advantage in using CE mode B.

The peak data rates in Figure 2 are valid for commercially available Cat-M1 modems, which
have 1.4MHz bandwidth. The 5MHz bandwidth Cat-M modem (known as Cat-M2) and the
full-duplex operation mode have not been included, since these are currently not realized
in the ecosystem due to the price-sensitive Massive IoT device market and their negative
impact on device power consumption.
Ericsson White Paper 5
Cellular IoT in the 5G era

Cat-M1 and NB-IoT have a smooth and future-proof evolution in 5G networks when
combined with Dynamic Spectrum Sharing,[9] dual-mode 5G Cloud Core[10] and continued
standardization in 3GPP.[6] NR is being deployed in the new 5G frequency bands, as well
as in the 4G frequency bands, where Cat-M1, NB-IoT and LTE devices are operational.
With Dynamic Spectrum Sharing, all technologies co-exist efficiently, as shown in Figure 3.

Dual-mode 5G Cloud Core includes 5GC and 5G EPC. The existing and future Cat-M1/NB-IoT
devices can connect to 5G EPC (known as 5G architecture Option 1[11]). 3GPP Rel-16 is
also specifying an option for connecting Rel-16 compatible Cat-M/NB-IoT devices to 5GC;
however, this would be challenging for the cost-sensitive Massive IoT market, due to not
only increased complexity, but also market fragmentation.

Figure 3: Cat-M and NB-IoT have a smooth and future-proof evolution in the 5G era

Dual-mode 5G Cloud Core

5G EPC 5GC

Option 3 (NSA)
5G architecture
options Option 2 (SA)
Option 1

5G RAN

NB-IoT LTE-M LTE NR

Dynamic Spectrum Sharing

Frequency resources

Time
Ericsson White Paper 6
Cellular IoT in the 5G era

Broadband IoT
Broadband IoT connectivity adopts the capabilities of MBB for IoT to provide much higher
data rates and lower latencies than Massive IoT, while enabling additional capabilities for
IoT, such as extended device battery life, extended coverage, enhanced uplink data rates
and enhanced device positioning precision.

Broadband IoT is relevant for all industries. There are more than 500 million Broadband IoT
users in 2020, primarily with LTE access.[1] Commercial usage today is dominated by
personal cars, commercial vehicles, trains, wearables, gadgets, cameras, sensors, actuators
and trackers. These devices can leverage MBB connectivity; however, their requirements
and traffic patterns are sometimes very different from typical MBB usage. For example,
traffic patterns can be more uplink-heavy and/or periodic, while requirements on battery
life, signal coverage and device positioning can be more challenging than for MBB.

LTE has a range of device categories (LTE Cat-1 and above) with wide bandwidths well
suited for diverse, wide area use cases. LTE achieves Gbps data rates and RAN (best effort)
latency down to around 10ms (round-trip time). With the introduction of 5G NR in old and
new spectrum, Broadband IoT is set to enable tens of Gbps and RAN latency down to
around 5ms.

The signal coverage per base station can be enhanced if requirements are relaxed on data
rate and latency; for example, an LTE device can dynamically switch between LTE and
LTE-M access depending on the signal coverage. Device battery life can be significantly
improved, leveraging user-specific traffic patterns. Network-based device positioning
accuracy can be improved with NR since the positioning accuracy typically depends on
signal bandwidth, and NR can operate in much wider bandwidths than LTE.

Uplink data rate is boosted with high-order modulation, multi-antenna transmission[12]

and carrier aggregation. When using TDD, uplink and downlink capacities are fundamentally
dependent on the TDD transmission pattern. Typically, MNOs have to agree on a common
static TDD configuration in order to avoid interference according to regional regulations.
The TDD configurations deployed today are often downlink-heavy to optimize for MBB
usage. However, with uplink-heavy IoT usage taking off, MNOs will have to reconsider
mutual agreements on TDD configurations in order to achieve a good balance between
uplink and downlink capacity, as well as low latency.

One of the 5G fundamentals is tight interworking between LTE and NR that allows 5G
modems to simultaneously access LTE and NR carriers, known as non-standalone (NSA)
5G (Option 3 in Figure 3). A 5G-capable modem connects with NR (when in NR coverage)
to experience a boost in performance while maintaining its LTE connection. This approach
ensures that 5G deployments deliver value for wide area MBB and IoT users from day one.[3]

Standalone (SA) 5G (Option 2 in Figure 3) is the long-term target architecture, as well as

the ideal choice for usage scenarios with localized coverage needs (e.g. local industrial
deployments) in the near term, from both performance and complexity standpoints.
To broaden the use cases addressable with NR, 3GPP Rel-17 will diversify NR device
capabilities by introducing support for relatively less-complex modems with power-saving
capabilities as part of the work on reduced capability NR devices;[13] example uses include
industrial sensors and wearables.
Ericsson White Paper 7
Cellular IoT in the 5G era

Critical IoT
Critical IoT connectivity is for time-critical communication. It enables ultra-high reliability
and/or ultra-low latency communication at a variety of data rates. The reliability is defined
as the probability of successful data delivery within a specified time duration.[14] In contrast to
Broadband IoT, which achieves low latency on best effort, Critical IoT can deliver data within
strict latency bounds with required guarantee levels, even in heavily loaded networks.

Typical use cases with demanding combinations of reliability, latency and data rates include
AR/VR, autonomous vehicles, mobile robots, real-time human machine collaboration,
cloud robotics, haptic feedback, real-time fault prevention, and coordination and control of
machines and processes.[14][15][16][17] Such use cases are relevant in almost every industry.
Some industries are piloting these applications with 5G, for example, in the entertainment,
automotive, manufacturing, mining, harbor, airport, construction and utilities sectors.

To enable demanding Critical IoT use cases, all components (networks, devices and
applications) may have to step up in terms of latency and reliability. From a pure network
perspective, end-to-end latency is the sum of individual latency contributions from radio,
transport and core networks, and the overall reliability cannot be higher than the reliability
of the weakest link.

5G NR and 5GC have been standardized for ultra-reliable and low latency communication
(URLLC) from day one (Rel-15) with further evolution in Rel-16 and Rel-17.[6] With URLLC
capabilities, 5G NR can achieve latencies down to 1ms and reliability up to 99.9999 percent.
Latency within the core network is typically below 1ms. The transport network can be
a major contributor to the end-to-end latency. Transport network latency varies widely
between regions, depending on distances and the transport solutions used. A general trend
is that transport latency is being optimized by higher availability of fiber and fewer router
hops. As an example, the round-trip time between 2 cities in a European country
(city distance 1,300km) is today just 16ms (theoretical minimum optical fiber latency
is 13ms), which is less than half of the latency of 5 years ago.

Edge computing is needed to reduce transport latency for demanding Critical IoT use
cases. Distributed anchor points, local break-out or on-premise full-core deployments are
key scenarios to achieve low to ultra-low latency, as illustrated in Figure 4 with typical
latencies. Core user plane distribution reduces latency by keeping the user traffic as local as
possible and is therefore typically distributed on more local sites than control plane network
functions. For use cases that require very high reliability, the core control plane and network
exposure can be further distributed to limit network disturbances, even in the rare event of
a major incident or disaster scenario. Real-time mobility, group management and network
monitoring could also drive decentralized control plane to optimize for reduced latency.
Core control plane and network exposure are typically recommended to be located at the
same site to avoid so-called signaling flow tromboning. Another driver for edge computing
is data offload, which is beneficial for both MBB and IoT.[18][19]

On-premise, full-core deployment enables dedicated resources, ultra-low latency and

ultra-reliability, providing autonomous operation with local subscriber data. The local area
network can also be interconnected with a public network, allowing mobile IoT devices to
roam between the networks.
Ericsson White Paper 8
Cellular IoT in the 5G era

Figure 4: Core network deployment examples to support Critical IoT use cases

Deployment examples

1. Wide area. Prepare for

reduced latency using
local break-out

2. Wide area and local area.

Prepare for ultra-low latency
using edge computing and
distributed applications

3. Wide area and local area.

Prepare for ultra-low latency
using edge computing and
further distributed applications

4. Local area. Prepare for

ultra-low latency, separation,
public integrated
NPN, autonomy

On-premise Edge sites Regional DC National DC

~0–1ms RTT ~1–5ms RTT ~5–20ms RTT ~10–100ms RTT

Core user plane Core control plane Network exposure Subscription data Application
management server

Critical IoT can be demanding in terms of bandwidth, since any major gains in reliability
and latency typically require substantial spectrum resources. NR operates in a wider range
of frequencies with larger bandwidths and far greater capabilities than LTE, which makes
NR the technology of choice. LTE may never be enhanced for Critical IoT due to multiple
factors, such as the timing of commercial use cases, the continued capability expansion of
NR URLLC in 3GPP, the momentum on NR and the available option of software upgrading
existing LTE sites with NR (in the LTE spectrum bands).

With flexible spectrum assets, MNOs are best positioned to provide Critical IoT coverage not
only in wide area deployments, but also for local industrial deployments. NR enables URLLC
in all 5G (FDD/TDD) frequency bands.[2] Figure 5 illustrates examples of spectrum band
combinations, along with key characteristics of different bands in terms of URLLC capacity
and coverage for addressing wide and local area users. Considering that there is very limited
bandwidth in sub-1GHz bands, these should be leveraged for high-value, wide area users.
When using TDD, RAN latency is fundamentally dependent on TDD transmission patterns.
A downlink- or uplink-heavy TDD configuration negatively impacts latency, especially in
sub-6GHz.[2][20]

SA 5G is ideal for fulfilling the challenging Critical IoT requirements. 5GC is better than
5G EPC in terms of ultra-reliability mechanisms, advanced service differentiation, flexible
edge computing, network data analytics, advanced Quality of Service (QoS), Ethernet
connectivity, and end-to-end network slicing capabilities which can be important for critical
use cases. Provided that LTE is also not enhanced for Critical IoT, NSA 5G does not offer full
potential for URLLC from both radio access and core network perspectives. For use cases
with local coverage needs, such as local industrial sites, NSA 5G deployments would not
be beneficial, as discussed earlier. However, in wide area coverage, 5G deployments would
be initially NSA and could leverage NR user plane capabilities for URLLC to enable less
demanding Critical IoT use cases. Over time, NSA 5G deployments will transition to SA 5G,
achieving the full potential of Critical IoT in wide areas.
Ericsson White Paper 9
Cellular IoT in the 5G era

Figure 5: MNOs are best positioned to enable Critical IoT with their flexible spectrum assets

Local coverage Wide area coverage (urban/rural)

High bands (24GHz–40GHz)

• High capacity
• Limited coverage

Mid bands (1GHz–6GHz)

• Decent coverage, capacity
• Latency penalized if DL/UL heavy TDD

Low bands (sub-1GHz)

• Wide coverage
• Limited capacity

Standalone 5G Standalone 5G Non-standalone 5G

NR URLLC LTE (Option 2) (Option 2) (Option 2)

NR enables Critical IoT in all its frequency bands

Industrial Automation IoT

Industrial Automation IoT aims at enabling seamless integration of cellular connectivity
into the wired industrial infrastructure used for real-time advanced automation. It includes
capabilities for integrating 5G systems with Ethernet and Time-Sensitive Networking (TSN)
used in industrial automation networks.

Cellular connectivity offers great benefits in term of mobility, flexibility, cost-cutting

and digitalization compared to wired communication. However, in some industrial
deployments, wired networks may migrate to wireless connectivity in such a manner that
different parts of an industrial system may switch to wireless connectivity gradually over
time. Even if an industrial system is within 5G coverage, certain components of the system
might stay connected with cables due to various factors; for example, not having a major
need for a wireless solution, having long life cycles, or having extreme performance needs
that are beyond 5G’s current capabilities (for example, micro-second level deterministic
latency). It is important that 5G supports seamless integration into the current and
evolving wired infrastructure.[21]

A number of industries use wired communication for advanced automation; for example,
the mining, utilities, construction, ports, oil and gas sectors. There are several industrial
Ethernet solutions supporting deterministic communication for real-time automation;
for example, PROFINET, EtherCAT, Sercos, EtherNet/IP, Powerlink and Modbus. 3GPP
has standardized support for Ethernet sessions in Rel-15. In Rel-16, Ethernet header
compression has been introduced for spectral efficiency. Reliable data delivery within strict
latency bounds is achieved with 5G URLLC (enabled by Critical IoT). With Rel-16, a 5G
virtual network can be set up over a 5G system providing 5G LAN-type service (e.g. VLAN)
by which on-demand connection of UE to UE (user equipment), multicast and broadcast
private communications is supported between members of the same 5G virtual network.[22]
In order to overcome challenges with the fragmented industrial Ethernet market, a common
open standard is emerging: Ethernet with TSN support.[23] TSN is designed for diverse QoS
requirements, including both deterministic and best-effort latencies. TSN was standardized
within IEEE and its profile for industrial automation is being developed jointly by IEC and
IEEE. To enable seamless integration of 5G with TSN, 3GPP has standardized a feature set
in Rel-16 as part of the Industrial IoT work item.
Ericsson White Paper 10
Cellular IoT in the 5G era

The 5G-TSN integration is illustrated in Figure 6, where a 5G system is integrated into a

TSN network as a bridge.[24] TSN Translators (TT) are introduced in the 5G system for
the user plane and control plane. The user plane translators are placed at the UPF
(Network TSN Translator, NW-TT) and at the UE (Device Side TSN Translator, DS-TT).
TSN is managed centrally by the TSN Central Network Controller (CNC). A TSN Application
Function (AF-TT) is placed at the 5G control plane to expose 5G system capabilities
(e.g. list of ports at DS-TT and NW-TT and the transfer delay between them) to the TSN
CNC, for configurating and scheduling TSN flows across the 5G system bridge. Hold and
forward (de-jitter) buffering at NW-TT and DS-TT is used for delivering traffic streams with
deterministic latency based on the time-aware scheduling information obtained from CNC.

The TSN nodes are time-synchronized with a master clock using the generalized
Precision Time Protocol (gPTP) [IEEE 802.1AS].[24] The 5G system bridge can either support
forwarding of the gPTP synchronization information or use its internal clock as a grandmaster
for providing a time-reference to the TSN nodes. The 5G system can also deliver clock
synchronization as a service to industrial applications that operate synchronously;
for example, synchronized coordination between multiple controllers in a system.

Figure 6: 5G-TSN integration and clock synchronization as a service

5G system Industrial
controller
Industrial
UE/DS-TT 5G Grandmaster
devices

Industrial
UE/DS-TT 5G Radio System User Plane/NW-TT TSN
devices

TSN UE/DS-TT 5G Radio System Core control plane

Industrial
devices
Industrial
controller AF-TT

TSN Central Network Controller

5G system
Timing
Grandmaster
Time Synchronization (gPTP)

AF-TT: Application Function–TSN Translator A physical link

DS-TT: Device Side–TSN Translator A logical link
NW-TT: Network–TSN Translator
Ericsson White Paper 11
Cellular IoT in the 5G era

Key enablers for

cellular IoT
Network slicing
Network slicing allows creation of multiple logical networks using a common shared
network infrastructure across radio, core and transport networks, which is essential for
cost efficiency, scaling and flexibility.[25] An operator can either deploy end-to-end network
slices per cellular IoT segment serving consumers and multiple enterprises, or create
separate network slices for different enterprises where each slice may include multiple
IoT connectivity segments, as shown in Figure 7.

A network slice includes required network resources configured and connected across radio,
transport and core network. The resources can be physical or virtual, either dedicated to a
slice or shared between slices. The slices can be dynamically created on an as-needed
basis. A slice service Orchestrator automates the creation, modification and deletion of
the individual slices, while also handling the assignment of the underlying resources.
By continuously monitoring slice performance, the Orchestrator is able to accurately
configure and adjust slice resources.

Figure 7: Dynamic network slicing with closed-loop life cycle management

Service orchestration (Network Slice LCM) Assurance and Analytics

Closed loop
automation
RAN shares

Shared VNFs

Unified
A Broadband IoT slice for multiple industries
SDM

Multiple Slice
A Critical IoT slice for multiple industries
slices selection

Unified
A slice for a vehicle fleet (including Massive IoT, Broadband IoT, Critical IoT)
NE

A slice for a factory (including Massive IoT, Broadband IoT, Critical IoT, Industrial Automation IoT)

On-premise Edge Regional Central DC

Core user plane Core control plane Network exposure

Ericsson White Paper 12
Cellular IoT in the 5G era

Network exposure
Network exposure with RESTful APIs securely exposes network capabilities, enabling
network programmability. The main types of service exposure for IoT connectivity are:
• network monitoring, including network publishing information as real-time statuses,
event streams, statistics and analytics insights
• device-related APIs for provisioning, onboarding, triggering, device and connectivity
management, connectivity monitoring and location information
• network control and configuration, involving control services that request configuration
changes including network resource management, group management and application
function influencing traffic routing (local breakout)
• payload interfaces for small data delivery, non-IP data delivery and background data transfer

Network Data Analytics

Network Data Analytics leverage the consolidated data from status monitoring of the
network, applications and devices for extracting valuable network insights and optimizing
the network for improved performance. The Network Data Analytics Function has been
introduced in the 5G system architecture in 3GPP Rel-15[26] with enhancements in Rel-16,
which enables:
• the detection of misbehaving devices by observing abnormal traffic patterns
• deriving a suitable policy for background data transfer by analysis of, for example,
traffic volume, congestion level, load status information in the specific network area
• dynamic traffic routing to the edge by analyzing network status (for example load
information based on time and space), which service is available at the edge, and the
device’s location
• assisting applications with predictable network performance by analyzing speed, direction
and location of devices and network status
• network automation by collecting and analyzing the status of network slices and assisting
the network slice Orchestrator to scale up or scale down the resources for IoT network slices

SIM flexibility
Traditionally, the cellular network subscription credentials are provided to devices using
physical SIM cards. However, it can be difficult to physically access the SIM cards in various
IoT devices after they are produced and sold. During production of devices, it is often not
known which cellular subscription(s) would be used and the subscription(s) may also change
multiple times during the device’s life. To address this, GSMA has specified an Embedded
SIM (eSIM) solution for remote provisioning of the subscriber credentials without physically
touching the device.[27] For optimizing device cost, form factor and power consumption, an
Integrated SIM (iSIM) solution embedded into a device’s chipset hardware exists in the
market that builds on the eSIM functionality.[28]

3GPP Rel-16 has standardized non-SIM authentication (a certificate-based EAP-TLS

authentication principle) for 5GC.[29] The non-SIM authentication is useful for non-public
networks where devices may not need subscription. A device accessing both public and
non-public networks may still use SIM functionality for the public network and the non-SIM
feature for accessing the non-public network. The non-SIM authentication is also attractive
for low-cost NB-IoT and Cat-M1 devices, and is therefore also relevant for 5G EPC.
Ericsson White Paper 13
Cellular IoT in the 5G era

Conclusion
MNOs are uniquely positioned to transform almost every industry with cellular IoT. The
connectivity needs of all industries are addressed with four multi-purpose IoT segments which
co-exist efficiently within one 5G network, leveraging complementary capabilities of multiple
radio access and core network technologies, with cost-efficiency, flexibility and scale.

Firstly, Cat-M and NB-IoT are formally 5G Massive IoT technologies with global coverage
and a clear evolution plan. There is tremendous potential for realizing truly Massive IoT
with continued investment in the existing Cat-M1 and NB-IoT ecosystem.

Secondly, Broadband IoT has a natural head start with 4G and initial 5G MBB roll-outs.
Its long-term success depends on addressing the IoT-specific challenges, such as signal
coverage, device battery life, device positioning, uplink-heavy traffic and diversifying
capabilities of 5G devices.

Thirdly, almost every industry has time-critical communication needs. 5G powered with
URLLC capabilities is the most suitable wireless technology for realizing Critical IoT.
However, a systematic end-to-end co-development in the ecosystem is essential for
realizing Critical IoT gradually over time.

Finally, Industrial Automation IoT with support for Ethernet and TSN is an enabler for
seamless integration of 5G into the existing and evolving industrial deterministic networks
used for real-time automation. These capabilities, in conjunction with other IoT segments,
enable the Industry 4.0 revolution to meet its promise for full digitalization.
Ericsson White Paper 14
Cellular IoT in the 5G era

References
Ericsson Mobility Report, November 2019:
[1] 

https://www.ericsson.com/en/mobility-report/reports/november-2019

Cellular IoT Evolution for Industry Digitalization, Ericsson White Paper:

[2]

https://www.ericsson.com/en/reports-and-papers/white-papers/cellular-iot-evolution-for-
industry-digitalization

Driving transformation in the automotive and road transport ecosystem with 5G,
[3]

Ericsson Technology Review, 2019:

https://www.ericsson.com/en/reports-and-papers/ericsson-technology-review/articles/
transforming-transportation-with-5g
[4]
IMT-2020 self-evaluation: mMTC coverage, data rate, latency & battery life. Ericsson and
Sierra Wireless. 3GPP R1-1814144, November 2018:
http://www.3gpp.org/ftp/tsg_ran/WG1_RL1/TSGR1_95/Docs/R1-1814144.zip

LTE-M and NB-IoT meet the 5G performance requirements. Ericsson blog post, December 2018:
[5]

https://www.ericsson.com/en/blog/2018/12/lte-m-and-nb-iot-meet-the-5g-
performance-requirements
[6]
Cellular Internet of Things – From Massive Deployments to Critical 5G Applications, 2nd
edition, Academic Press, 2019:
https://www.elsevier.com/books/cellular-internet-of-things/liberg/978-0-08-102902-2
[7]
https://www.gsma.com/iot/mobile-iot-commercial-launches/

IoT Ecosystem: NB-IoT and LTE-M Report, GSA, 2019:

[8]

https://gsacom.com/paper/iot-ecosystem-report-april19/

Sharing for the best performance, Ericsson White Paper, 2019:

[9]

https://www.ericsson.com/en/networks/offerings/5g/sharing-spectrum-with-ericsson-
spectrum-sharing/download-form

One core – the best of two worlds, Ericsson White Paper, 2019: https://www.ericsson.com/en/
[10]

digital-services/forms/packet-core/one-core-the-best-of-two-worlds
[11]
Simplifying the 5G ecosystem by reducing architecture options, Ericsson Technology Review, 2018:
https://www.ericsson.com/en/reports-and-papers/ericsson-technology-review/articles/
simplifying-the-5g-ecosystem-by-reducing-architecture-options

Advanced antenna systems for 5G networks, Ericsson White Paper:

[12]

https://www.ericsson.com/en/reports-and-papers/white-papers/advanced-antenna-systems-
for-5g-networks
[13]
New SID on support of reduced capability NR devices, 3GPP, RP-193238, December 2019:
https://www.3gpp.org/ftp/TSG_RAN/TSG_RAN/TSGR_86/Docs/RP-193238.zip
[14]
Service requirements for next generation new services and markets, 3GPP TS22.261, 2019:
http://www.3gpp.org/ftp//Specs/archive/22_series/22.261/22261-h01.zip
[15]
Service requirements for cyber-physical control applications in vertical domains,
3GPP TS 22.104, 2019:
http://www.3gpp.org/ftp//Specs/archive/22_series/22.104/22104-h20.zip
Ericsson White Paper 15
Cellular IoT in the 5G era

[16]
Service requirements for enhanced V2X scenarios, 3GPP TS 22.186, 2019:
http://www.3gpp.org/ftp//Specs/archive/22_series/22.186/22186-g20.zip
[17]
Mobile communication system for railways, 3GPP TS 22.289, 2019:
http://www.3gpp.org/ftp//Specs/archive/22_series/22.289/22289-h00.zip
[18]
Driving Data to the Edge: The Challenge of Traffic Distribution, AECC Technical Report,
Automotive Edge Computing Consortium (AECC), Technical Solution Working Group
(WG2), 2019: https://aecc.org/wp-content/uploads/2019/09/AECC_WG2_TR_v1.0.2.pdf

Distributed cloud – a key enabler of automotive and industry 4.0 use cases,
[19]

Ericsson Technology Review, 2019:

https://www.ericsson.com/en/reports-and-papers/ericsson-technology-review/articles/
distributed-cloud
[20]
J. Sachs et. al, 5G Radio Network Design for Ultra-Reliable Low-Latency Communication,
IEEE Network, 2018: https://ieeexplore.ieee.org/document/8329620
[21]
5G for Automation in Industry, 5G ACIA White Paper, 2019:
https://www.5g-acia.org/fileadmin/5G-ACIA/Publikationen/5G-ACIA_White_Paper_5G_
for_Automation_in_Industry/WP_5G_for_Automation_in_Industry_final.pdf
[22]
Technical Specification Group Services and System Aspects; System architecture for the 5G
System (5GS), 3GPP TS 23.501

Boosting smart manufacturing with 5G wireless connectivity:

[23]

https://www.ericsson.com/en/reports-and-papers/ericsson-technology-review/articles/
boosting-smart-manufacturing-with-5g-wireless-connectivity
[24]
5G-TSN integration meets networking requirements for industrial automation:
https://www.ericsson.com/en/reports-and-papers/ericsson-technology-review/
articles/5g-tsn-integration-for-industrial-automation

Network Slicing can be a piece of cake, Ericsson:

[25]

https://foryou.ericsson.com/paper-network-slicing-can-be-a-piece-of-cake-ty_1.html

Network Data Analytics Services, 3GPP TS29.520: https://www.3gpp.org/ftp/Specs/

[26]

archive/29_series/29.520/

eSIM Whitepaper, The what and how of Remote SIM Provisioning, GSMA, March 2018:
[27]

https://www.gsma.com/esim/wp-content/uploads/2018/12/esim-whitepaper.pdf

Unlocking cellular IoT potential for chipset makers, ARM White Paper:
[28]

https://learn.arm.com/isim-for-chipset-makers.html
[29]
Technical Specification Group Services and System Aspects; Security architecture and
procedures for 5G system, 3GPP TS 33.501:
https://www.3gpp.org/ftp/Specs/archive/33_series/33.501/
Ericsson White Paper 16
Cellular IoT in the 5G era

Author biographies
Ali Zaidi is a Strategic Product Manager for Cellular IoT at
Business Area Networks, Ericsson. He received an M.Sc. and a PhD
in Telecommunications from KTH Royal Institute of Technology,
Stockholm, Sweden, in 2008 and 2013, respectively. Since 2014,
he has been working with technology and business development of
4G and 5G radio access at Ericsson. Ali is currently responsible for
LTE-M, URLLC, Industrial IoT, V2X and local industrial networks.
He is also Head of IoT Competence at Ericsson. Ali has co-authored
more than 50 peer-reviewed research publications and 2 books, filed
over 20 patents and made several 3GPP and 5G-PPP contributions,
spanning communications, control and automation technologies.

Anders Bränneby is a Strategic Product Manager for Internet of

Things in Packet Core, part of Business Area Digital Services at
Ericsson. With 30 years of experience at Ericsson, Anders has worked
within Device Development, Systems Management, Radio Research,
Sales Support, Commercial Management and Product Management.
The greatest parts of his career have been within Product
Management of Packet Core network products and solutions,
as well as Radio Network Products. Throughout his years at Ericsson,
Anders has been engaged in cellular packet data, from 1G to 5G.

Ala Nazari is an expert in media delivery architecture within

BDGS SA PC Architecture & Technology. He joined Ericsson in 1998
as a specialist in datacom and has been working with 3G/4G/5G,
broadband access, transport and media delivery. He has also worked
as a senior solution architect and engagement director. Prior to
joining Ericsson, he spent several years at Televerket Radio working
with mobile and fixed broadband access and transport. In total,
Ala has 30 years’ telecommunications experience.

Marie Hogan is in charge of strategic product management of

the mobile broadband and IoT areas of 4G and 5G Radio Access
Networks at Ericsson. Her main responsibilities include driving
the evolution of 4G radio access solutions to meet the continued
demands on existing LTE networks and the early deployment and
optimization of 5G radio access solutions. One of Marie’s main
focus areas is to enable new use cases by driving the evolution of
cellular IoT across the Massive IoT, Broadband IoT and Critical IoT
technology segments. She has worked in many areas within Ericsson,
from product development to product management, spanning 3G,
4G and 5G technologies. Marie has worked with both radio and core
network solutions as well as transport, synchronization and security
solutions. She holds an M.Sc. in Technology Management and a
degree in Electronic Engineering.
Ericsson White Paper 17
Cellular IoT in the 5G era

Christian Kuhlins is Strategic Product Manager for Massive IoT

and the new IoT use case areas UAV, railways and utilities at
Ericsson. After completing his education in Microelectronics at the
Fachhochschule Nürnberg, he joined Ericsson in 1998. Christian has
worked on various technologies over the past 20 years and has been
heavily involved in the early development of Bluetooth, WCDMA
and LTE in various positions within R&D. He chaired the IoT Activity
Group at LTE SAE Trial Initiative (LSTI). As a Product Manager,
Christian worked with a variety of RAN products within Ericsson
and is now a passionate advocate of cellular IoT.

Acknowledgments
The authors would like to thank Fredrik Alriksson, Joachim Sachs, Tomas Nylander,
Johan Bergman, Eric Wang, Peter de Bruin, Bela Rathonyi, Christer Boberg, Robert Khello,
Jan Backman, Maria Dusing, Richard Möller, Alexandra Martido, Shanqing Ullerstig,
Mikael Persson, Olof Liberg, Lisa Boström, Juan-Antonio Ibanez, Thorsten Lohmar
and Göran Eneroth for their valuable contributions to this paper.