As the shutdown of 2G and 3G networks speeds up, businesses need a reliable upgrade to ensure operational continuity. LTE Cat 1 bis has emerged as the ideal solution for most IoT companies, offering global coverage, faster data rates, and lower costs than Cat-M1 and NB-IoT.
Traditional 2G and 3G networks are being rapidly phased out, making room for more advanced 4G LTE and 5G standards. As per GSA’s data, by mid-2024, 192 operators from 68 countries had either completed or were in the process of shutting down their 2G and 3G networks. This massive transition creates an urgent problem for IoT companies relying on older standards (see our previous post on 2G shutdown). Businesses must shift to newer technology to keep their products operational. When doing so, they can also take advantage of better coverage, throughput, performance, scalability, and cost-effectiveness – if they successfully implement the standard best suited to their needs.
Since 2008, the LTE Category 1 (Cat 1) – the first IoT-specific LTE variant – has been a common choice for IoT companies. However, in technology, things move fast and standards change with growing market demands. Soon, LTE Cat 1’s limitations – particularly in power consumption and cost efficiency – became apparent, leaving businesses hungry for alternatives. LTE Cat-M and NB-IoT, the next generation of connectivity solutions, sought to address these shortcomings. Unfortunately, both technologies have faced serious adoption hurdles and come with their own set of limitations.
There’s good news, though. High-tech companies searching for the optimal solution frequently overlook LTE Cat 1 bis – a versatile LTE module designed to cater to a wide range of IoT applications. LTE Cat 1 bis offers critical benefits for businesses looking to enhance coverage, power efficiency, and data rates, avoiding the “false dilemma” of LTE Cat-M vs. NB-IoT. While the latter technologies are suitable for specific applications, like Industrial IoT or healthcare, they do not cover as wide a range of use cases as the next iteration of Cat 1.
Figure 1 – Estimated battery life of devices
What’s wrong with LTE Cat-M1 and NB-IoT?
Many businesses have opted for LTE Cat-M1 and NB-IoT due to their promises of low-power, wide-area (LPWA) connectivity at reduced costs. Both solutions were touted as game-changers for industries like agriculture, healthcare, logistics, and smart cities. Despite the initial buzz, adoption has been slower than expected, and so far, neither of these solutions has managed to set a common standard for the IoT industry. Let’s look at some of the reasons for their limited success.
NB-IoT offers very low data rates (up to 250 kbps) and does not support mobility, restricting its use in applications that require real-time communication or device movement. Its high latency (1.5–10 seconds) makes it unsuitable for time-sensitive tasks, such as emergency systems or industrial automation. Additionally, NB-IoT’s limited two-way communication (it’s optimized for uplink-heavy traffic) impacts applications that need frequent or substantial downlink data transfer.
LTE Cat-M1 offers higher data rates (up to 1 Mbps) and supports mobility, but it falls short in areas like coverage and cost for large-scale deployments. Its more complex modules come at a higher price, and it can’t match the extensive coverage that NB-IoT can provide in difficult environments, such as basements, tunnels, or remote rural areas.
Despite these issues, companies have chosen either Cat-M1 or NB-IoT based on the specific requirements of their IoT applications. Cat-M1 has been favored in North America for real-time, mobile IoT solutions, while NB-IoT is more commonly used in Europe and Asia for stationary, low-power applications where long device lifetimes are needed.
Figure 2 – Upload data transfer comparison
However, both technologies struggled with slow adoption due to fragmented ecosystems, high module costs, inconsistent network deployments, and regulatory hurdles. This has created uncertainty, leading companies to seek an alternative that addresses these challenges.
Enter LTE Cat 1 bis.
LTE Cat 1 bis offers significant advantages over both LTE Cat-M and NB-IoT
Launched in 2016, LTE Cat 1 bis presents an effective, yet frequently overlooked, solution for companies looking to upgrade. LTE Cat 1 bis is an extension of the existing LTE standard optimized for IoT applications. As such, it’s able to leverage most of the LTE’s benefits ensuring high-quality performance in areas where LTE Cat-M1 and NB-IoT may underdeliver.
Let’s briefly discuss the key advantages of LTE Cat 1 bis over its alternatives.
Global coverage and compatibility
Unlike Cat-M1 and NB-IoT, which are regionally focused, LTE Cat 1 bis operates on standard LTE networks, benefitting from the ubiquity of LTE infrastructure already in place and offering wider global coverage. This ensures better roaming capabilities, making it easier to deploy IoT devices internationally without worrying about network compatibility.
Higher data rates
LTE Cat 1 bis supports data rates up to 10 Mbps, far surpassing the 1 Mbps of Cat-M1 and the 250 kbps of NB-IoT. With this capability, the standard is perfect for applications requiring higher data throughput, such as video streaming (e.g., security cameras), firmware over-the-air (FOTA), and applications requiring real-time responsiveness.
Full mobility support
Unlike NB-IoT, which lacks mobility support, and Cat-M1, which only supports basic handovers, LTE Cat 1 bis offers seamless connectivity during device movement. This makes it suitable for applications like vehicle telematics, asset tracking, and wearable devices.
Cost-effective and simpler hardware
Cat 1 bis enables Cat 1 devices to function with a single-antenna design. This ensures the same level of performance in terms of data rates and power efficiency as regular CAT-1, while allowing for a reduction in both device size and cost by removing one antenna. Cost-wise, LTE Cat 1 bis is competitive with Cat-M1. When factoring in the full device lifecycle, it’s often more affordable than both Cat-M1 and NB-IoT.
Future-proofing
Since LTE Cat 1 bis operates on standard LTE infrastructure, it doesn’t rely on specialized network configurations like Cat-M1 and NB-IoT. As such, LTE Cat 1 bis is well-positioned for seamless and long-term coexistence with next-generation networks, including 5G, ensuring smooth IoT deployments.
Why LTE Cat 1 bis is the best fit for IoT businesses?
LTE Cat 1 bis solves many of the problems businesses face when shifting from legacy networks (2G and 3G) or choosing between Cat-M1 and NB-IoT. The module provides:
– broader global coverage than either Cat-M1 or NB-IoT,
– higher data rates, allowing for more sophisticated IoT applications,
– support for mobility, critical for use cases requiring real-time communication,
– lower cost and simpler hardware, making it a more affordable solution for large-scale deployments,
– device longevity, ensuring compatibility with 5G as it becomes more widespread.
For companies seeking to future-proof their IoT deployments while maximizing functionality and minimizing costs, LTE Cat 1 bis is an attractive and viable option. It represents a middle ground between high-bandwidth LTE technologies and ultra-low-power LPWA solutions, addressing many of the shortcomings of Cat-M1 and NB-IoT.
With the industry rapidly shifting to 4G LTE and 5G, now is the best time to adopt LTE Cat 1 bis. Companies that make the transition sooner will secure business continuity threatened by the 2G/3G phase-out. They will also ensure their IoT solutions remain scalable and cost-effective in the long term.
If you’re interested in discussing available solutions for your IoT operations, feel free to reach out anytime https://fideltronik.com/rnd/#contact .