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IoT could demand a whole new, dedicated network -- here's why

by Rob Chamberlin, DataXoom - VentureBeats, Aug. 05, 2015 – 

Today, most networked appliances on the Internet of Things (IoT) are not too demanding from a bandwidth perspective. Often they just share simple data that only require a few bytes to transfer from one device to another. For example, a sensor may update a computer with a machine's current fuel efficiency, or the temperature of a commercial refrigeration unit - and, in network terms, this doesn't add up to much traffic.

In fact, only around 1% of all network bandwidth is being used by the IoT. Yet, the 3G and 4G networks that largely support the IoT are designed for data-hungry connections, such as video-streaming services and web browsing. In other words, bandwidth isn't the problem - it's the price. The large U.S. wireless carriers require a certain Return on Investment to continue to build and maintain mobile networks and support the growth of IoT. Most IoT devices today provide a tiny fraction of the revenue that a typical smartphone generates in a month. The economics of IoT is a challenge for the wireless carriers today, and this problem will only grow over time as the number of connected devices grows exponentially in the next decade.

That's why some people, like Google Developer Advocate Don Dodge, say we need a new, inexpensive IoT-dedicated network. Dodge argues that although Wi-Fi can be used to connect devices fairly cheaply, this is not practical because it limits use to the home or office environment, when in reality it should be available everywhere. Going outside Wi-Fi networks ranges forces users to rely on their data plans for broadband connection, which is not at all economical, especially considering the huge number of IoT devices we can expect to see in the future.


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