Less expenses and accidents: what savings does the NB-IoT standard provide for business

The Internet of things is gradually being introduced into everyday life – from logistics to housing and communal services. And this applies not only to “smart sensors” in apartments, but also to the automation of sales companies.

What is happening with the digitalization of water utilities and resource supply organizations

Fortune Business Insights estimates that the Internet of Things (IoT) market will reach $2027 trillion by 1,46. Analysts estimated the average annual growth rate of the market at 24,9%. But it is much more interesting to observe not only the dynamics of growth, but also the changes in segments within the IoT.

The share of IoT devices connected via 2G and 3G networks has been declining since 2019, giving way to the segment of data transmission over 4G/5G networks. But, according to the Ericsson Mobility Report, by 2027, 51% of all cellular IoT connections will be provided by other technologies – NB-IoT and Cat-M1. They allow you to connect a large number of low-cost devices with a long battery life. The NB-IoT standard is preferred for devices and sensors that transmit data from time to time.

Already, NB-IoT devices are widely used in medical devices, logistics and environmental monitoring, as well as in the digitalization of housing and communal services, namely, in the digitalization of water supply systems.

According to a study conducted by Rosatom, the current volume of the Russian market of digital water utilities is no more than 2% of the world market, the market potential is estimated at ₽20,3 billion with the possibility of growth to ₽30 billion or more by 2025.

The study notes the following growth factors:

• management of operating costs at a new level, satisfying the demand for quality water supply and sanitation services;
• conditions for mandatory digitalization of repaired and modernized facilities;
• the growing digitalization of the utility sector as a whole and the stimulation of the development of the concept of “Smart Cities” by the state.

All water utilities and resource-supplying organizations in one way or another are engaged in dispatching and online monitoring of resources. However, these processes require massive data collection. And this is where IoT technologies can help organizations.

What IoT technologies can be used by water utilities and distribution companies

Most often, IoT solutions in the housing and utilities sector are used to transmit location data and meter readings, access control and equipment status. In most cases, many devices transmit small amounts of data. Since there are hundreds and thousands of objects from which it is necessary to obtain information, this dictates its own requirements:

• devices should be simple and inexpensive;
• they should not require frequent recharging or changing the battery;

At the same time, the communication channel must have a high penetrating ability in order to transmit data from hard-to-reach places.

Several technologies are used for data transmission, but the most promising is NB-IoT (Narrow band Internet of things, narrow-band Internet of things), a type of LPWAN technology (Low-power Wide-area Network, energy-efficient long-range network). There are several reasons for this.

First, unlike most other LP-Wan networks, NB-IoT can be deployed on the infrastructure and equipment of existing LTE, which reduces implementation costs.

Secondly, the technology operates in the licensed spectrum, that is, it is protected from interference, while this range is low-frequency, which ensures high signal penetration. This is one of the most important criteria for digitalization and implementation of IoT technologies by water utilities, heating networks and other resource supplying enterprises, since the places for installing meters and sensors are located in the basements of houses, wells, below ground level – in general, where there is not always a regular mobile connection .

And thirdly, NB-IoT devices have low power consumption, which ensures a service life without replacing batteries up to 10 years.

Thus, NB-IoT networks allow you to set up uninterrupted operation of IoT solutions in any industry where there is a need for automated collection and transmission of information – from agriculture and industry to retail and logistics.

How NB-IoT is developing in the Russian housing and communal services: the case of the Nizhny Novgorod water utility and MegaFon

The first NB-IoT network in our country for resource accounting was launched by MegaFon – it was launched in 2017 in Innopolis. And one of the first Russian sales companies that decided to build an NB-IoT network together with a telecom operator was Nizhny Novgorod Vodokanal.

Nizhny Novgorod Vodokanal has already used several end-to-end technologies at the enterprise. To transfer data from metering devices, the company considered two technologies – LoRaWAN and NB-IoT. After analyzing examples of NB-IoT on the market, the water utility launched a pilot, tested the equipment, and then scaled the project. Due to the autonomy of devices, NB-IoT does not require power supply and allows you to cover more homes.

The first phase of the project covers about 2 points in multi-apartment residential buildings. MegaFon installed sensors on metering devices with pulse outputs that transmit information to the server. Between the MegaFon platform and the settlement system of the water utility there is automatic and seamless data transfer, including billing. This approach increases the speed of information processing, generating receipts and searching for dishonest consumer subscribers.

According to Alexander Yermolchev, IT Director at JSC Nizhny Novgorod Vodokanal, using the IoT platform allows you to receive information from metering devices and sensors, quickly make decisions at the control room, track surges in a timely manner, prevent emergencies, and find losses from the system. As a result, the enterprise can provide resources for the population with better quality, in a timely manner and without interruptions.

“We were one of the first to completely outsource equipment maintenance to a telecom operator. For us, this service has become commonplace, like telephone communication or the Internet: there is a monthly subscription fee for which the company receives a full range of services from equipment maintenance to a personal account, ”says the IT Director of the Nizhny Novgorod Vodokanal.

In addition to general house meters, the company also uses NB-IoT at waterworks. This allows you to quickly summarize information – how much resources are supplied to the site and how much is consumed, which is especially important during the rise in the level of reservoirs.

Why IoT is getting cheaper and more convenient for business

Since NB-IoT allows you to connect client devices without requiring the construction of additional base stations and communication channels, this can significantly reduce project time and costs for its implementation.

In addition, operators can analyze customer traffic consumption and optimize offers for customers. Megafon, for example, launched a new line of tariff plans.

“The volume of traffic in the packages of MegaFon’s new line of NB-IoT tariff plans was selected based on the characteristics of device consumption. If 1 MB is required for a month, it makes no sense for customers to connect and pay for a package that includes 15 MB of traffic, since the company simply will not be able to spend it. At the same time, the data is rounded up to 1 KB – how many kilobytes the client spent, how much was written off from the package, ”said Evgeny Polikarpov, head of IoT Communications at MegaFon.

The updated line includes two possible periods for charging the subscription fee – once a month and once a year. The client can choose a convenient payment period for him based on his preferences.