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1、Powered by Narrow Band Internet of Things(NB-IoT)Igniting connected digitalisationApril 20222Document Classification:KPMG Confidential 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms
2、 affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Foreword KPMG in IndiaTelecom has long been synonymous with mobility and connectivity in India,the second most populous country in the world with 1.3 billion people.The telecom industry tod
3、ay is entering an exciting era of innovation.IoT(Internet of Things)as a technology especially NB-IoT(Narrow Band IoT)promises to create better and secure experiences for all by transforming connectivity.After almost two years under siege from COVID-19,the business sector has far more confident outl
4、ook for 2022 as companies take the initiative to invest in growth.The momentum for digital transformation to set the agenda and drive the recovery has never been stronger.Companies and clients are looking to move quickly on ambitious development projects and digital initiatives that would make their
5、 businesses more efficient,more resilient,and more competitive.NB-IoT would help usher this digital transformation by(a)enabling traditional businesses to operate smartly via smart meters,smart trackers and(b)opening up new industry opportunities like eHealth and smart city.As per IEEE(The Institute
6、 of Electrical and Electronics Engineers)“Narrowband Internet of Things(NB-IoT)is an emerging cellular technology that will provide improved coverage for massive number of low-throughput low-cost devices with low device power consumption in delay-tolerant applications”1.Around the world more than 15
7、0 operators are actively investing in NB-IoT technology of which more than 100 have commercially deployed NB-IoT network2.Owing to this boom in technology usage NB-IoT infrastructure from chipsets to modules to devices,are now available from a range of companies start-up or well established,small or
8、 big.In the Indian Union Budget 2022,production linked incentive(PLI)payouts for electronics/technology products,which includes IoT devices as well,is budgeted at INR 53 billion in FY 23 with a 5-year fiscal outlay of INR 459 billion3.This budgetary push by Indian Government is expected to aid the l
9、ocal sourcing of NB IoT infrastructure-thus aiding in NB IoT adoption by different sectors in India.The union budget also has focused on digital and connectivity,5G,access and customer premise equipment which would also boost NB-IoT.As the economic barriers recede along with a clear regulatory frame
10、work on the working of NB-IoT devices,increase in adoption is expected to happen.With more industries coming forward for different use cases for NB-IoT,this technology is likely to be viewed as having a positive impact on the growth trajectory of the people,business and India.Chaitanya GogineniPartn
11、erBusiness ConsultingKPMG in India2 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All righ
12、ts reserved.Dipayan GhoshAssociate PartnerTelecom,Media and Technology SectorKPMG in IndiaSources:1:IEEE wireless communication letters,Volume 5,Issue 6,Dec 2016 2:NB-IoT and LTE-M:April 2021 Member Report,GSA(Global Mobile Suppliers Association)3:FY23 union budget documents,KPMG analysisAkhilesh Tu
13、tejaPartner and National HeadTelecom,Media and Technology SectorKPMG in India3Document Classification:KPMG Confidential 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated wit
14、h KPMG International Limited,a private English company limited by guarantee.All rights reserved.Foreword Jio ThingsIoT has potentially impact the economy by several trillion dollars.IoT is the foundation of digital transformation.IoT is the key to disrupt consumer experiences.Everything that we hear
15、d about IoT was just an expert opinion.Facts have been far from reality!Technocrats,business leaders and operational managers all have agreed that IoT is the way forward,unfortunately,no one talks about how to scale it!Getting a positive return on IoT investments is a question executives look forwar
16、d to crack.A number of challenges like lack of reliable technologies,constrained device management,security concerns,analytical capabilities,and uncertainty about IoT standards and protocols have limited organisations to realise potential value from their IoT investments.Bottom line is,that the way
17、to unleash the power of IoT was just not available.The IoT market by theory is huge and can grow at an almost unthinkable clip,but the practical barriers on IoT adoption have ensured that revenues and paybacks do not become a reality but are always a part of boardroom cerebral hypothesis!This whitep
18、aper has come up with all the answers that the fragmented world was looking for!As businesses become more demanding in terms quality of output,uptimes and cost competitiveness,it is imperative for any IoT Service Provider(IoTSP)to put all the pieces together and become a one-stop-shop to unlock the
19、true value that IoT can generate!Enterprises and consumers today demand superior technology,reliable results and most importantly managed services which is nothing but reliable aftermarket support!So how do IoTSPs deliver a 10X experience with cost constraints especially in developing market like In
20、dia?How can IoTSPs unlock IoT data,bring scale and build a sustainable IoT factory that would last for decades to come?The whitepaper helps you with a“6C Mantra”that would help stitch all the pieces together for a successful IoT implementation.These include Coverage of network,Costof ownership,Conne
21、cting at scale,Cyber security,Constrained device support and Customer experience.With the advent of NB-IoT the wait for a technology that covers all the 6C aspects is over!NB-IoT not only has the potential to connect billions of sensors but also is secure,extremely cost effective,easy to deploy and
22、maintain and of course is a global standard.Internet of Behavior will soon be reality with help of NB-IoT!In order to achieve this reality,a strong and committed leadership and a clear and compelling vision to address business problems is needed.Unlocking value from any technology requires more than
23、 blind investments and needs to have a clear definition on end-to-end thinking,as IoT doesnt only consist of multiple technology layers like hardware,network,platform,portals,dashboards,but also field services like installation and aftermarket support!All of this is incomplete without domain knowled
24、ge!We hope you find this whitepaper insightful and enlightening.Let the democratisation of technology begin Happy reading!Anand BhandariVertical HeadNB-IoT,Smart Assets&Smart Utilities Jio Things Ltd.Ritu MandalBusiness Manager IoT Business Consulting Jio Things Ltd.3 2022 KPMG Assurance and Consult
25、ing Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Swapnil Khandave Technology Head NB-IoT,Smart Assts&Sma
26、rt Utilities Jio Things Ltd.4Document Classification:KPMG Confidential 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English co
27、mpany limited by guarantee.All rights reserved.Executive summary4 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company
28、 limited by guarantee.All rights reserved.Digital transformation is a significant priority for companies worldwide,more so after COVID 19.CEO surveys and industry reports point to a significant wave of investment aligned to rebound in customer sentiment/demandConsumer tech has really advanced,Front
29、office/Customer experience(CX)transformation has delivered significant value to businesses worldwide.Technology companies are using cloud/SaaS(Software as a Service)transformation to disrupt industries across sectors.But enterprise technology has lagged behindMid office and back office transformatio
30、n has not been on par,after the big shift due to ERP.Tremendous value remains to be unlockedBackbone for enterprise digital transformation is the IoT ecosystem.Lots of advances made in IoT building blocks sensors/devices(smart/connected),connectivity(cellular,LPWAN,5G),platform/analytics(cloud,edge)
31、IoTis being leveraged in some use casesinurbanlogistics,manufacturing,etc.However,it has not lived up to potential formultiple reasons,mostly centered aroundeconomics/paybackdevices(hardtomaintain/serviceinhostileenvironments),cellular/4G(expensive for rural applications),cloud/edge(significant upfr
32、ont investment)What isNB-IOT:It is aformofLP-WAN,4G/5Glite standard,backwardscompatible,being launchedglobally.It is compatible withexisting mobile technologies.5Document Classification:KPMG Confidential 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a me
33、mber firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Executive summary(continued)5 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership an
34、d a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Why NB-IoT It presents a compelling proposition due to its 6Cs(coverage,cost,connectivity,constraints,cybersecurit
35、y and customer experience).NB-IoTcan power a wide variety of use casesacross sectorsNB-IoT is witnessinggrowing investment globally telco OpCos,device OEMs,platform companies,system integratorsTheNB-IoTmarketinIndiaisalready present and growingsince 2018 and has the potential toenhance adoption of I
36、oT owing to itslow cost,low power and massivedevice supporting capabilities.However,there are potential challenges and constraints to reaching full potential(regulations,alternative technologies like Satellite broadband).These require interventions such as policy and industry support Conclusion NB-I
37、oTis an exciting Made for India and Made in India technology.As the dream of Digital India takes shape,this technology would play a key role across B2B and B2C sectors and Government/public services6Document Classification:KPMG Confidential 2022 KPMG Assurance and Consulting Services LLP,an Indian L
38、imited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Table of contents6 2022 KPMG Assurance and Consulting Services LLP,an Indian Limite
39、d Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The digital transformation opportunityThe Digital Enterprise Powered by IoTNB-IoT:A Capa
40、bility EdgeNB-IoT in India:Outlook and Road AheadConclusion:An Opportune Moment0101726307 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Internationa
41、l Limited,a private English company limited by guarantee.All rights reserved.The digital transformation opportunity78 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with
42、KPMG International Limited,a private English company limited by guarantee.All rights reserved.Digital transformation has become a significant priority for businessesworldwideAccording to a study commissioned by Forrester Consulting on behalf of KPMG in July 2020,67%Of the respondents say theyve acce
43、lerated their digital transformation strategy as a result of COVID-19 69%Of the respondents say their digital transformation strategy was a“high”or“top”priority prior to the pandemic 63%Of the respondents said theyve increased their digital transformation budget as a result of COVID-19COVID-19 has m
44、ade organisations relook at their business modelsTo better understand how COVID-19 has impacted companies digital transformation strategies,in mid-late summer 2020,KPMG conducted various surveys to understand how organisations are reviewing their digital strategy in the wake of COVID-19.The crisis h
45、as seen the emergence of 4 models:Pre-COVID 19,private and public organisations were on a journey towards a digital business model,traveling at various speeds.But the scale ofthe current pandemic has forced a dramatic acceleration,both in the required investment in digital transformation and the spe
46、ed of change.Customer centricity amid social distancing became a challenge during the COVID-19 led pandemic.This was true especially for businesses which were dependent on face-to-face interactions with theircustomers to drive business.With restrictions such as quarantine and remote working,business
47、esfaced an unimaginable dilemma How to stay closer to the customer while staying away from them?While some organisations found new ways to connect with their customers through digitalinterventions using chatbots,social media,online collaboration platforms,others struggled.Withcustomers going increas
48、ingly digital,businesses realised the need for a larger digital engagementacross functions to enhance their competitiveness.Hard reset modeATransform to re-emergeBSurge modeCModified business as usualDOrganisationsthatscalerapidlybecauseconsumerbehaviourchangedpermanentlyduringtheCOVID-19 era.These
49、organisationswould need to protect the gains thattheyhavemadeduringthepandemic.Those that can keep themomentum gained from COVID-19would prove to be opportunistic andagile.Example:Online collaborationsoftwareOrganisationsseenasdailyessentials that could suffer duringthe consumer slowdown but recover
50、more quickly as consumer demandrebounds.Example:UtilitiesTo be adopted by organisationsthat struggle to recover due topermanentlylowereddemandfortheirofferings,insufficientcapitaltorideoutextendedrecession,and/orpoordigitaltransformationexecutionresultingindelayedrecovery.Example:Hospitality,Aviatio
51、nOrganisationswhosebusinessmodel has changed along withhowtheircustomerswanttointeract with them.Their recoverycould be along a protracted path,requiringcapitalreservestotransform operating models tokeepupwithnewconsumerexpectations.Example:Retail9 2022 KPMG Assurance and Consulting Services LLP,an
52、Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Organisationsview aligning their front,middle and back-office functions as
53、critical to drive an enterprise-wide digital transformationHow it all workstogetherFigure 1:the Digital One Office FrameworkThe Outcome driven Front OfficeMobile engagementTouchless interactionReal time actionable data for greater personalisationDesigning processes to meet desired customer outcomesD
54、igital underbellyDigitalisation of manual processesAutomation and standardisation of processes Cybersecurity and cloudification of processes,IT and softwareIntelligent digital processesPredictive analytics Machine learning,cognitive and AI Internet of Things(IoT)BlockchainIntelligent support functio
55、nsDesign thinking to unify outcomes Broadening of roles to align with outcomes Digital change management across support functions:IT,HR,supply chainThe Nervous SystemThe Circulatory SystemThe Neural NetworkIntegrating the Front Office and Back Office into One OfficeCustomer experienceFront officeMid
56、dle officeBack officeThe COVID 19 pandemic drove explosivechangestocustomerexperienceexpectations and demands across theworld.Andthischangewasntonlylimited to the customers;businesses alsoexpected intuitive,easy and seamlessexperiences from their suppliers.While business organisations respondedto th
57、is sudden shift by adopting digitalsolutions focused on front office,theysoonrealisedthattheirback-officeprocessesandstructureswerenotdeveloped to support this transformationover the long term.Toenableaconsistentcustomerexperience(furtherenabledbyanenhanced employee experience),it isessential for or
58、ganisations to embracethe One Office concept.OneOfficeisrealisedwhenthecustomer needs and experiences are thefront and centre of the entire business.Theoldbarriersbetweencorporatefunctions(oftenreferredtoasfrontoffice,middle office and“back office”)are dissolved and constraints of legacyERP systems
59、are minimised.This allowsthebusinessestoinvestindigitaltechnologies and capabilities that enableit to cater proactively to its customersneeds at the forefront of the market.79 per79 percent cent of C-suite respondents view aligning middle-and back-office operations to support customer experiences as
60、“mission critical”or“increasingly important.”Source:State of Operations and Outsourcing 2017survey,KPMG USBack office:The next“frontier”of technology 10 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of indepe
61、ndent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The Digital Enterprise Powered by IoT1011 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global orga
62、nisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.IoT is the foundation for digital transformation driven by a collaborative ecosystem for bringing data driven insights for enhanced performance IoT is a
63、network of devices that collect and share data for analysis.IoT has evolved from standalone industry to a mainstream set of tools that can be used,often paired with another technology,to solve challenging business issues8More than just devicesData CollectionData StorageProcessingData CleansingModeli
64、ng and PredictionThingsDataStrategy/OperationsSecure NetworksSensorsDevice ConnectivityAutomation/RoboticsRecommendationsPeople/EnterpriseData VisualisationData AccessApplications/cloud platformBusiness AnalysisDeploymentIterationCollectionAnalysisBlockchain Interoperability:Challenges in establishi
65、ng and maintaining interoperability between different IoT systems Integration:Integration of various products with the right IoT platforms Unstructured data and processing:Challenges in managing unstructured data on the parameters of variety,volume and velocity Data security and privacy:Development
66、and implementation of sound data security and cyber security policies for the purpose of consumer protection Authentication and device management:Identification and authentication of IoT devices on single platform that requires system architecture and formalisationCollect:Interconnecteddevicescollec
67、tbehavioraldata and environmental datathat can be analysed andvisualised.Deploy:Devicesandsystems(i.e.,things)areconnected to the internetthrough low-cost sensorsAnalyse:Humanscanmonitor and learn from thisdata,informingmoreaccurate business decisionsandimprovedcustomerinteractionsIterate:In maturit
68、y,deviceswouldautonomouslyactbased on this data stream,ultimately making businessdecisionsChallenges for IoT introduction Figure 2:IoT collaborative ecosystem12 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation o
69、f independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Six principles for creating business value with IoT123456Clearly define why you are looking to utilise IoTDefine the business problem to be solved and the benefit
70、sought in terms of cost reduction,customer experience,quality,productivity,growth,improving products or risk reduction?Define a clear problem statement,use cases,value statement and success criterionIoTs power is when talking,sharing and connecting happens.From devices to people,processes and dataTh
71、e richer the sharing,the wider the span,and the more benefit that will be achievedOpen standards and interoperability play a critical role,reducing cost and improving successIoT will disrupt the way your business operatesNew experiences,new processes and new products will emergeDont assume your curr
72、ent team has all skills or mind set to work optimally in this new environment without extra trainingA balanced mix of creative,analytic,data,technical and business process skills will be critical with the ability to span silos and functionsDefine the business problemCollaborate to create valueRe-thi
73、nk skills and cultureApply the adage think big,start smallDevelop a richer understanding of IoT benefits and risks for your business through testing and learning solutionsAssess successes and failuresMeasure the value and degree of disruptionRun gradually bigger experiments as you learn building str
74、onger capabilitiesWith value comes risk.IoT will likely take your business places its never beenUnderstand any regulations or risks associated with your initiativeSecurity,privacy,safety are important(but are not the only things)to considerEnsure you are thinking across customers,employees,assets,pa
75、rtners and all other stakeholdersIoT requires a connected ecosystem of components to deliver valueYour solution wont rely on one vendor or product,but many working togetherWith your problem in mind,create a clear view of who your partners need to be in each area,and how you want them to work with ea
76、ch otherExperimentKnow the risks and rulesEstablish your ecosystem13 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English comp
77、any limited by guarantee.All rights reserved.Evolution of IoTIoT Evolution over the yearsTill 20 onwardsDigital disruption era focused on technology adoptionAccelerated IoT adoption to focused sectoral implementationIoT in conjunction with other technologies gaining momentum During201
78、0-2020,periodknownfordigitaldisruption,focusedmainlyontechnologyadoption Itwaswitnessedthattechnologieswereintertwining into every industry and industry valuechains Industry convergence was witnessed as firms sawhuge competition from outside sectors,such as fromeCommerce,automobiles,and manufacturin
79、g TrendssuchasacceleratedIoTadoptiontofocusedsectoralIoTimplementationacrossbusinesses was observed during 2020-2021 Changingconsumer/patientpreferencesandwork-from-anywhere model drove IoT applicationacross sectors HealthTech,EdTech,and RetailTech sectors arethe top-most sectors showing high adopti
80、on for IoT Adoption of IoT/IoB(Internet of Behaviour)attainingground Internet of Behaviour refers to the data gathering(bigdata,businessintelligence,customerdataplatforms etc.)that offer important information onconsumer interest,preferences and behaviours-abehaviouralpsychologystandpoint.IoTincorpor
81、ated with technologies like AI and ML isessential to achieving this state.Spendingpatterntoshifttocloud,dataandanalytics,and software from devices and sensors,forcompaniestomanagedailytasksand be ahead13 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a me
82、mber firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.14 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG
83、 global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The market opportunity for IoT is hugeFrom smart devices to smart cities,IoT is growing rapidly,with the pace and scale of enterprise IoT far
84、 outweighs consumer IoT.IDC predicts that by 2025 there would be 55.7 billion connected IoT devices worldwide generating almost 80 zettabytes(ZB)of data3.Source:3:Future of Industry Ecosystems:Shared Data and Insights,IDC,posted on Jan 2021,accessed on Jan 20,20224:Business Insider Intelligence,GSMA
85、 Intelligence,IDC,Market Watch,PR Newswire,KPMG analysisNorthern America IoT connections4Note+:Represents CAGR for semi and fully autonomous vehicles,which accounts for 13.6%of the total IoT-enabled vehicle shipments in 2023.When including connected vehicles,which accounts for 86.4%of the total IoT-
86、enabled vehicle shipments in 2023,the aggregate CAGR is 7.8%.Health wearables20%23%49%20%56%Smart speakersSmartappliancesSmart vehicles+Installed device CAGR,2020-20254Home security28%15%17%19%29%Enterprise roboticsLogistics roboticsAgriculture monitoringSmart sensorsStreet lighting050002
87、50030003500200022202320242025MillionsConsumerIndustrial15 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private E
88、nglish company limited by guarantee.All rights reserved.IoT is expected to impact the majority of traditional industries by 2023 2025 depending on data found RetailManufacturingInfrastructureUtilitiesDefenseHealthcareAgricultureBanking&financeFood servicesTransportationUSD 35.5 billion expected mark
89、et size of IoT in the industry by 20259USD 26.8 billion militarydrone market by 2025824%annual increase in IoT infrastructure spending687.6 billionsmart sensors in manufacturing by 202551.3 billion smart meters deployed by 20257USD 188 billion expected value for IoT devices used in healthcare by 202
90、514USD 18.1 billion value of global agricultural IoT market by 20261074%of insurance executives believe IoT would disrupt the industry11USD 8.4 billion expected market valuation of IoT in the industry by 202512470 million connected cars by 202513Source:5:Smart Sensor Market Global Forecast to 2025,M
91、arketsandMarkets,Mar 2020;6:Global IoT spending to grow 24%in 2021,IoT Analytics,posted on Jun 2021,accessed on Nov 21,2021;7:AMI global forecast 2020-2025:H1 2020,Wood Mackenzie report,Mar 2020;8:Military Drones Market,MarketsandMarkets,Oct 2018;9:Internet of Things(IoT)in Retail Market-Global Fore
92、cast to 2025,MarketsandMarkets,Mar 2020;10:Agriculture IoT Market,Market,Markets and Markets,May 2021,11:How IoT will change auto insurance,Global Big Data Conference posted on Mar 2017,accessed on Nov 20,2021;12:Internet of Things and Traceability for Food&Beverage Manufacturing Market,Forecast to
93、2025,Frost&Sullivan,Sep 2018;13:“470 Million Connected Vehicles On the Road by 2025,”ITSdigest,February 16,2018;14:IoT in Healthcare Market,Markets and Markets,Jun 202016 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global orga
94、nisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.IoT usage for hyper focused industries to deliver significant opportunities1Retail servicesOil and gasSecondary IndustriesAgricultureFinancial servicesHi
95、gher educationEnergy distributionTransportationGovernment(Fed/Local)Consumer productsAsset managementIndustrial manufacturingCities/SpacesHealthcareTechnology,Media and TelecomClient opportunity:Factory floor automation Workforce safety Product waste reduction Predictive and preventative maintenance
96、 Logistics and supply chainTarget submarkets:Automotive manufacturing Chemical manufacturing Medical devices manufacturing Warehouse and logistics Fleet managementClient opportunity:City/building operational efficiency Enhanced employee,citizen,visitor experience Improved safety and security Integra
97、ted transportation and improved traffic flowTarget submarkets:Smart buildings Hospitality Smart cities Integrated transportation Sports venuesClient opportunity:Improve patient outcomes Streamline operations Effective response to pandemics Remote patient managementTarget submarkets:Hospital and othe
98、r medical facilities Hi-Tech pharmaceuticals Bio-technology research Client opportunity:Product globalisation Network integration Market collaboration Asset management and tracking Operational efficiencyTarget submarkets:Software and hardware providers Semiconductors Media production and distributio
99、n Telecommunications17 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.U
100、nlocking the value of the IoT has its challenges and requires a clearly defined strategyUnclear strategyAuthentication and device managementUnstructured data and processingInteroperabilityConnectivity,network and load balancingConsumer awarenessData security and privacyNo unified approachIntegration
101、 and Intelligent analyticsField installation and operations Digitisation of the upstream processes via IoT is complex and require a clear strategy and roadmap to realise the expected business objectives and outcomesIdentification and authentication of IoT devices on a single platform that requires s
102、ystem architecture and formalisationChallenges in establishing and maintaining interoperability between different IoT systemsMonitoring and tracking problems created by higher growth rate of number of connected devices as compared to the network coverage growthChallenges in managing unstructured dat
103、a on the parameters of velocity,volume and varietyLack of consumer awareness creating fear of security and costs amongst the customers leading to slow adoption of technologyDevelopment and implementation of sound data security and cyber security policies for the purpose of consumer protectionIntegra
104、tion of various products with the right IoT platforms and inability to translate data into meaningful insightsChallenges in continuity of using IoT devices especially in field installations and operations.Lack of clear direction on how to move business transformation,powered by IoT,forward successfu
105、llyClearly Defined StrategyStructured ApproachEffective GovernanceCollaboration Hyper Focus on QualityTransparent Communications18 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms aff
106、iliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Successful IoT implementations require a structured governance frameworkA structured IoT Governance framework helps identify various components and stakeholders of a comprehensive IoT program.T
107、he IoT strategy,delivery,and operations models are integrated with risk,governance,and controls considerations throughout the program lifecycle to help ensure timely and effective risk identification,evaluation,mitigation,and in some cases,acceptance.IoT GOVERNANCECENTER OF EXCELLENCEThis framework
108、also helps in:Holistic approach to responsibly building and managing a connected device programSupports a sustainable program for product design,development,and ongoing supportAligns people,process,and technology across different brands with common objectives and policiesEnables continuous innovatio
109、n without compromising security,privacy and trustLayered approach with embedded checks and balances19 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Internation
110、al Limited,a private English company limited by guarantee.All rights reserved.NB-IoT:A capability edge1920 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Intern
111、ational Limited,a private English company limited by guarantee.All rights reserved.Different IoT communication standards especially LPWAN technology options driven by its low costs and operating requirementsNB-IoT stands out amongst the IoT standardsNB-IoT was conceived particularly for cellular M2M
112、 communications and allowsseamless deployment of devices within an operated network.It can coexist in thelicensed LTE/GSM bands with a frequency bandwidth of 200 KHz16.Operators,until now,opted for hybrid technology as there was no cellular LPWANtechnology.In addition,hybrid strategies with cellular
113、 and unlicensed non-cellularLPWAN applications were opted for due to factors such as cost,coverage,batterylife,latency,and scalability.However,with introduction of LTE-M and NB-IoT,available options have increased and so has the likelihood of using cellular LPWAN.Licensed technologies such as LTE Ca
114、t-1,LTE-M or NB-IoT,however,utiliseexistingcellularinfrastructure,offeringinstantstandards-drivendeployment,security,platform integration synergies and scale for mobile operators.As a result,the adoption of any of these cellular LPWAN technologies can scale much faster ina country like India.Wireles
115、s IoT networks have progressed to address a range of device applications in automobiles,wearables,connected homes,smart meters,connected lights,connected appliances,parking trackers and industrialautomation,amongst others.With a growing array of use cases and more potential ones to follow,choosing t
116、heappropriate connectivity standard becomes vital.IoT communication standards:LPWAN takes the leadFigure 4:IoT connection standards mapped against power consumption and coverage15Power consumptionShort-range wirelessBluetoothIEEE 802.15.4Zigbee,Z-WaveWLANsWi-FiHiperLANCellular2G,3G,4GLow Power Wide
117、AreaNB-IoT,LTE-MRange10 m100 m1 km10 kmSource:15:KPMG analysis;16:A comparative study of LPWAN technologies for large-scale IoT deployment,Kais Mekkia,Eddy Bajica,Frederic Chaxel,Fernand Meyer,Science Direct,Mar 2019Figure 3 Comparison of different technologies 15,16FeatureSigfoxLoRaWANNB-IoTModulat
118、ionBPSK(Binary Phase Shift Keying)CSS(Chirp Spread Spectrum)QPSK(Quadrature Phase Shift Keying)FrequencyUnlicensed ISM bandUnlicensed ISM bandLicensed LTE frequencyBandwidth100 Hz250 kHz and 125 kHz200 kHzMaximum data rate100 bps50 kbps200 kbpsBidirectionalLimited/Half DuplexYes/Half DuplexYes/Half
119、DuplexMaximum messages/day140(UL),4(DL)UnlimitedUnlimitedMaximum payload length12 bytes(UL),8 bytes(DL)243 bytes1600 bytesRange10km(Urban),40km(Rural)5km(Urban),20km(Rural)1km(Urban),10km(Rural)Interference immunityVery highVery highLowAuthentication&encryptionNot supportedYes(AES 128b)Yes(LTE encry
120、ption)Adaptive data rateNoYesNoHandoverEnd-devices do not join a single base stationEnd-devices do not join a single base stationEnd-devices join a single base stationAllow private networkNoYesNo21 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member f
121、irm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Introducing NB-IoT and itspotentialbenefits6Cs of NB-IoT Coverage:large area of coverage,over 20dB higher than legacy cellular
122、technologies.Extended coverage using repetition of transmissions17 Cost:low cost,low maintenance due to high battery life,ability toleverage telco towers.50%economical that Cat1/Cat4 with no upfrontinfrastructure deployment cost or no network maintenance18 Connections:up to 50,000 connections cells1
123、9 Constrained devices:well suited for battery operated applications Cybersecurity:advanced CIoT security for IP and Non-IP data delivery Customer experience:easy and hassle-free onboardingwithnoaftermarket/maintenance challengesFigure 5:Advantages of Nb-IoTBenefits of NB IoT 5 CsSources:17,18:Cellul
124、ar networks for Massive IoT,Ericsson,Jan 202019:What is NB-IoT?Unlock its business potential Ericsson,accessed on Nov 1,202120:A comparative study of LPWAN technologies for large-scale IoT deployment,Kais Mekkia,Eddy Bajica,Frederic Chaxel,Fernand Meyer,Science Direct,Mar 201921:Global NB-IoT Ecosys
125、tem:Trends,Adoption and Outlook,Counterpoint Research,March 2021NB-IoTExtended long-range coverage and deep penetration Indoors and undergroundStreamlined for optimised for low power consumption Integrates into cellular systemEasy deploymentSecure and reliable industry standards based with easy onbo
126、ardingReduced overall cost due to exponential adoption rate in all IoT requirementsFurthermore,NB-IoT represents a significantopportunity for mobile operators to create newrevenuestreamsbeyondthehypercompetitiveconsumersegment.Bymoving further up the value chain beyondconnectivityintoareassuchasIoTs
127、oftware/platforms and analytics,operatorscould capture a larger share of the IoT marketand diversify across more industry sectors.As the world is transitioning towards an era ofconnected devices,one of the important goalsofmobilecommunicationsistoachievemassive connectivity.The NB-IoT systemhelps re
128、alise this goal using a very narrowbandwidth.From a customer perspective NB-IoTbasedsystemshelpmakeIoTdeployments possible in situations where it isdifficult to deploy a dedicated unlicensednetwork.Anyareawithmobilenetworkcoverage can be the breeding ground for NB-IoT.NB-IoT is less sophisticated bu
129、t moresecure than traditional cellular modules thussimplifyingdesign,developmentanddeploymentforOriginalEquipmentManufacturers(OEMs).NB-IoTisstakingitsclaimastheLPWANtechnology of choice,with certain characteristicsmaking it preferable to other technologies.Keyreasons include utilising existing infr
130、astructure,openstandardsdrivendeployment,security,integrationsynergiesandscaleformobileoperators.Key growth drivers includeWidespread mobile networks globally:There arecurrentlymorethan100liveNB-IoTnetworksglobally,and with over 100 mobile operators planningto shutdown 2G and 3G networks in the next
131、 fewyears,2G M2M migration could be a major catalyst indriving NB-IoT uptake21.Strong industry support:NB-IoT has a thrivingecosystemofmajorchipsetvendors,hardwaremanufacturers and equipment providers.More use cases:NB-IoT technology is proving itsvalue in a growing number of sectors,from smart city
132、and consumer applications,through to industrialmanufacturing and agriculture.High 2G module chipset costs:Chipset cost of 2Gmodules increasing as operators are shutting 2Goperations globally.22 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm
133、of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.3GPP NB-IoT standard provides 15%lower modem complexity v/s previous versions as part of MTC standard213GPP offers transfer rates
134、of up to 200 kbps in the downlink and 20 kbps in the uplink22Uplink latency can be up to 10 seconds2310-yr battery life,assuming a 5 Wh battery capacity21With a promising value proposition,NB-IoT is witnessing increasing global deployments supported by a growing number of 3GPP compliant devices The
135、cellular stakeholders require a standardised solutions to go one step further to provide cellularstandards for LPWAN networks.It is their pressure that has accelerated the evolution of 3GPPstandards relating to IoT.The potential new subscribers originated by the IoT use cases are areason behind this
136、 need for standardisation.NB-IoT is a 3GPP effort to penetrate the ultra-low cost,throughput and power,expanded coverage,and tolerant to delay IoT marketplace,which,in 5G nomenclature,is the massive Machine TypeCommunication(mMTC)use case.This use case has one of the highest number of potential IoTs
137、ubscribers(order of several billion).In addition to extended coverage and massive deploymentcapabilities listed earlier,NB-IoT offers the following capabilities as well:NB-IoT:A promising value proposition Figure 6:NB-IoT offers unmatched capabilities Extremelylow-cost deviceReduced data ratesHigh a
138、llowed latencyLow power consumptionNB-IoT:Growing number of operators and devices According to GSA,as of April 2021,165 operators are actively investing in NB-IoT technology compared to 158 in December 2020 and 156 in April 202024,25,26In terms of IoT equipment,there has been a rise in devices suppo
139、rting 3GPP IoT standards by 33%compared to June 2020(518 in Apr 2021 v/s 493 in December 2020 v/s 390 in June 2020)24,25,26.8191092819Deployed/launchedPlanning/pilotingEvaluatingApr-21Dec-20Apr-20362 71 371 347 63 351 298 25 254 CAT-NB1 devicesCAT-NB2 devicesCAT-M1 devicesApr-21Dec-20Apr-
140、20OperatorsDevicesSource:18:Cellular networks for Massive IoT,Ericsson,Jan 2020;19:What is NB-IoT?Unlock its business potential Ericsson,accessed on Nov 1,2021;21:NB-IoT Deployment Guide to Basic Feature set Requirements,GSMA,June 2019;22:A comparative study of LPWAN technologies for large-scale IoT
141、 deployment,Kais Mekki,Eddy Bajic,Frederic Chaxel,Fernand Meyer,Dec 2017;23:A Systematic Analysis of Narrowband IoT Quality of Service,Andreas Philipp Matz,Jose-Angel Fernandez-Prieto,Joaquin Caada-Bago and Ulrich Birkel,Mar 2020;24:NB-IoT and LTE-M:April 2021 Member Report,GSA,Apr 2021;25:NB-IoT an
142、d LTE-M:Dec 2020 Member Report,GSA,Dec 2020,26:NB-IoT and LTE-M:April 2020 Member Report,GSA,Apr 202023 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Internati
143、onal Limited,a private English company limited by guarantee.All rights reserved.NB-IoT deployment in India is still at the early stages.NB-IoT in India:Early daysNB-IoT has been in India since 2018 and has the potentialto enhance adoption of IoT given its value proposition andrelevance for the India
144、 market because of its low cost,lowpower and massive device supporting capabilities.NB-IoT in India is crucial because of the bandwidthlimitations in the license-free bands in India.While someothercountrieshavenon-cellularLPWANIoTtechnologies(E.g.,LoRaWAN),the very same non cellularIoT technologies
145、are constrained for bandwidth in India.Ina way NB-IoT is one of the first LPWAN technology inIndia that has the potential to scale to the magnitude of theIndian IoT demands.ThestatusofNB-IoTreadinessinIndiacanbesummarised below:AreaKey developmentsNB-IoTreadymobile networksIn 2018,deployments of NB-
146、IoT network started in select cities in India which meant that mobile networkoperators had planned about rolling out NB-IoT for real.Today NB-IoT solutions have gone live in multiplecities at a considerable scale.NB-IoThardware/modulevendorsWith NB-IoT arriving rather late in India when compared to
147、other countries around the globe,there are dozensof already developed NB-IoT modules available from every major cellular module manufacturer.Operational costThe operational/connection cost is a make-or-break factor for NB-IoT in India.However,for a cost consciousmarket like India,the prices were exp
148、ected to be among the lowest globally.The possible price band of USD0.2 to USD 0.5 per device per month which would be a reasonable cost band for most IoT applications.Network coverageNetwork coverage is another major reason for fast scale up of NB-IoT and if most of the cities are covered,NB-IoT pr
149、oduct manufacturers could be struggling to meet customer demands24 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English compan
150、y limited by guarantee.All rights reserved.and is expected to drive the country to become the fastest growing market for IoT module shipmentsIndia projected to be the fastest growing market for Cellular IoT shipmentsAccording to Counterpoints Global Cellular IoT Module andChipset Forecast published
151、in February 2021,IoT moduleshipments would cross 780 mn in 2024.The share of NB-IoTwould lead the cellular IoT module shipments followed bycellular technologies of 4G and 5G.China would continue to dominate globally in terms of volumeand value ushering growth from NB-IoT to high throughput 5GIoT net
152、works.India,the worlds second largest mobile economy to register thehighest growth in shipments driven by large-scale roll out of NB-IoT and 4G/5G deployments in next four-five yearsSources:27:Global Cellular IoT Module and Chipset Forecast,Counterpoint Research,Feb 202113.4%13.4%IndiaNorth AmericaJ
153、apan38%28%South-East Asia26%16%South KoreaChinaWestern Europe26%25%13.4%13.4%Eastern Europe18%10%Figure 7:Projected CAGR in cellular IoT module shipment growth 2019-2024 by key regions2725 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of th
154、e KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Organisationsin India are experimenting with the use of NB-IoT for specific applications to enhance user experienceIn October 2020,EESL
155、 invited bids for procurement of 2.35 mn smart electricity meters based on NB-IoT technology Utilities like Tata Power,Meghalaya electricity board and several other states have either adopted or are evaluating NB-IoT for digitising their automated utility bill payment,theft reduction,analytics,etc.“
156、NB-IoT has provided us with an end-to-end solution to make coolersintelligent at a market acceptable price-point.We believe that NB-IoTis the technology that will change the course of connected coolers&freezersbecause of factors such as nationwide coverage,indoorreach,cost and adoption by 5G!”Harmee
157、t Singh,Western Refrigeration,Chairman&MDWe have evaluated multiple IoT technologies for giving a connected waterpurifier experience to the consumers.It was difficult since the waterpurifiers are usually in kitchen where Wi-Fi or any other cellular technologydoesnt reach.NB-IoT looks promising becau
158、se of its reach and payloadlight architecture,we shall be launching our NB-IoT connected range ofwater purifiers in the early FY23.Shashank Singh,Eureka Forbes,Vice-President,Transformation|Strategy|MarketingAir pollution monitorConnected CoolersVadodara Municipal Corporation(VMC)has deployed15,000
159、NB-IoT based Smart Street Lights.The Smartlights can communicate with cloud based IoT platform inreal time,enabling the corporation to manage themremotely from central command and control centre andperformoperationssuchas,on-off,dimming,faultdetection,schedule-basedoperation,andenergymonitoring.NB-I
160、oThashelpedinachievingenergysavings and increasing safety.The network installationand maintenance cost have become zero.One of the leading Indian engineering institute and Ericssonsigned a memorandum of understanding(MoU)in 2019 todeployanNB-IoT-basedsensornetwork,namedIndiagyu76,to monitor air poll
161、ution in Delhi.As per the deal,Ericsson will be using locally developed air quality sensorsthat can share environmental data including PM1,PM2.5,and PM10 levels at specified time intervals.This will help inbettermonitoring and analysis of data collected fromdifferent parts of the capital.Periodicall
162、y,the findings will beshared with local authorities and other key stakeholders.Western Refrigeration has been working on connectedcoolers for a while now,however due to lack of a reliable&omnipresent technology&high cost,connected coolers asa concept couldnt be productionised.With the advent ofNB-Io
163、T,they were able to deliver the complete solution&help to monitor location,temperature and power cycles.Moreover,the door sensor-based analytics will help theircustomers to track inventory,sales,monitor usage patternenabling them to increase sales.Smart Cities-Intelligent LightingEESLPower utility26
164、 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Not only in India,globa
165、lly there has been a buzz about NB IoT that has translated into many use cases across industriesOperator:African operatorIn 2017,the operator launched an NB-IoT-enabled commercial network in South Africa with an average of 55,000 new connections per month to enhance sim security,licensed spectrum us
166、age,and scalability.Operator:US operatorIn 2019,the operator launched its NB-IoT network in USA.The company has collaborated with chipset and module manufacturers to build devices for its NB-IoT-enabled network.This would help its enterprise customers to launch NB-IoT solutions in the market.Operato
167、r:US operatorIn July 2018,the operator launched its NB-IoT services and NB-IoT enabled guard bands across USA for increased efficiency,high device connectivity at a low device cost,long battery life,and less power usage.Operator:Greek operatorIn 2018,a telecom OEM completed deploying NB-IoT clusters
168、 in the Greek operators 4G network to support the emerging use cases of massive Machine Type Communications(mMTC).The OEM has also upgraded the operators LTE network through NB-IoT-enabled technology.Operator:Singapore operatorIn 2018,a telecom OEM and a Singapore telecom operator collaborated to ro
169、ll out one of the first commercially available CIoT networks which supports both Cat-M1 and NB-IoT devices in Singapore.Operator:Middle east Asian operatorIn 2018,a middle east operator collaborated with a telecom OEM to expand their 4G network in a middle east Asian country nationwide which include
170、d LTE Advanced and NB-IoT in its Radio Access Network.NB-IoT Connectivity over SatelliteIn 2020,a NB-IoT network-based satellite communication vendor teamed up with an Asian semiconductor company to bring 5G-ready NB-IoT connectivity through satellite.The firms would work to create and deploy CIoT c
171、hipsets that use standardised,5G-ready,NB-IoT protocol and connected via geo-stationary satellitesPartnership for satellite capacityA NB-IoT network-based satellite communication vendor and British satellite telecom company partnered in June 2021 to enable a commercial NB-IoT over satellite solution
172、.The telecom company could offer this satellite capacity backbone to deliver its IoT solutions.NB-IoT enabled Smoke or Gas Detector An Asian telecom operator planned to deploy 170,000 NB-IoT connected smoke detection and alarm devices in rental homes in their province in 2019 by collaborating with d
173、ifferent IoT partners.The units could monitor the smoke levels and send data to a backend platform about smoke levels,power usage,and network signal strength.Smart Cities A European operator developed PAC(parking area control),a small NB-IoT parking sensor.The operator used a telecom OEMs platform w
174、hich simplifies the business and integrates the problems associated with IoT projects.This autonomous PAC might be installed partially or entirely underneath the ground and connects directly to the operators cloud.Water TelemetryAn American multinational technology conglomerate signed an MOU with a
175、European multinational telecommunications and mass media company in collaboration with a water management solutions provider where they developed proof of water telemetry concept by exploring the IoT services provided by the conglomerate including NB-IoT.Smart Farming ServiceA European communication
176、 provider and a European company that develops and delivers rugged condition monitoring systems have collaborated to launch a NB-IoT enabled farming service,which provides farmers with a smart irrigation systems monitoring systems.27 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited
177、Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Need for end-to-end approach across NB-IoT value chainHardware/Edge SystemsConnectivityIoT
178、 PlatformsSystem IntegrationField care and deploymentNB-IoT requires simple design and low-cost hardware hence it can be deployed at a rapid pace and at minimal expenses.The three core components of any NB-IoT hardware system are(1)chipsets,(2)modules and(3)devices.Edge processing and north-bound co
179、mmunication are other critical components that complete the device.Standardised stacks for IPDD and NIDD communication,device management and FOTA make development fast and reliable.NB-IoT devices require connectivity-as-a-service to function.It enables IoT product to seamlessly establish a connectio
180、n to the cloud and ensure an uninterrupted flow of data with appropriate actions.IoT connectivity enablement is a multi-stakeholder ecosystem that includes eNodeB equipment,service providers and SCEF gateway providers for NIDD.IoT platforms integrated with SCEF(NIDD)enables organisations to efficien
181、tly manage billions of devices by reducing compute cost.Platforms ensure connectivity between endpoints,gateways,apps,and services.It connects device sensors with the data network and enables application development,data collection and secure connectivityNB-IoT devices when deployed enjoys the benef
182、its of certain factors such as Zero Touch Provisioning,embedded SIMs,FOTA and remote diagnostics that gives this technology an upper hand over the conventional devices.System integration is required to make the different cogs of the IoT ecosystem work together e.g.,IoT services,IoT applications,IoT
183、developer services and field installations,commissioning and maintenance IoT strategyIoT Program Governance28 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG Int
184、ernational Limited,a private English company limited by guarantee.All rights reserved.NB-IoT in India:Outlook and road ahead2829 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affil
185、iated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Significant opportunity for application of NB-IoT in large scale programs to enhance efficiency and quality of service delivery NB-IoT:Made for India?India is on the cusp of a digitalrevolutiongi
186、ventheemergingtechnologyecosystemandthegrowing internet penetration whichhasacceleratedtheadoptionofdigital transformation amongst userindustriesforwhomthesetechnologies bring significant valuepropositionthroughenhancedcustomerexperience,operationalefficiency and/or lower costs.In a post COVID world
187、,to ensurethatthedigitaltransformationmomentumismaintained,itisimperative for service providers toquickly adapt and scale up theirsolution offerings relevant for theIndian milieu.This is necessary toensurethatusersprioritisetheadoption of a tested value promisingtechnology as they begin their capexc
188、ycletowardsavaluedriveninvestment.Forenterprises,NB-IoToffersagamechangingapproachinmanaging their value chain to bringforthanopen,transparentandefficiencydrivenoperatingenvironment for many stakeholdersincludingcustomers,vendors,shareholdersandemployeesbesides others.Forthegovernment,thetimelycondu
189、ct and rollout of 5G auctionsbesides defining the standards fordata safety and privacy is imperativeto ensure that the benefits offered byNB-IoT is realised to its full potential.The pace of adoption of NB-IoT canbe further accelerated by the keyinitiatives currently being planned bythegovernmenttoe
190、nhanceefficiency and national well being.Smart Meter National ProgramExhibit:Key initiatives in India and relevance of NB-IoT in these initiatives The program envisages installation of 25 crore smart meters by 202528.Given the available opportunity,adoption of NB-IoT enabled smart meters can enhance
191、 power consumption tracking hence win-win situation for all stakeholders Source:28:EESL annual report 2019-2029:National Smart Meter Dashboard at https:/smnp.eeslindia.org/accessed on 7 Feb 2022.INR 301 per month per meterTotal increase in DISCOMs revenue per month per meter under National Smart Met
192、er Program29Smart Meter National ProgramThe Mission envisages provision of potable water through taps to all Indian households by 2024.The adoption of NB-IoT based water tracking and monitoring(quality and quantity)across the value chain can enable achieving the twin objective of network+water conne
193、ctivity across the country Street Lighting National ProgramThe program envisages replacing conventional streetlights with smart and efficient LED streetlights across India.The adoption of NB-IoT based sensing/monitoring and controlling of lights+systems can further enhance savings for municipalities
194、 Smart City MissionThe program envisions transforming all Indian cities into smart cities by leveraging technology and encouraging local area development.The use of NB-IoT based solutions can enable timely monitoring and tracking of citizen service delivery and monitoring asset condition anytime any
195、where30 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.However,concerns
196、 pertaining to data security and privacy is a challenge,which the industry needs to addressIoT:Data security and privacy challenges to be addressedIoT brings in a new dimension to informationand data security.As the internet meets thephysical world,it also brings challenges inensuring that the senso
197、rs and edge devicesdo not become the“primary threat tool”or gethijacked;the captured information is used andstoredsecurely,andprivacyrightsarerespected while collecting and using data.The rapid emergence of diverse technologyapplications and their vulnerability to externalattacks(as they are designe
198、d for speed oversecurity with limited filters on data integrity)increases the risk of unwanted data flows intothesystem.WhileIoTendpointsandgatewaysmaybededicatedtospecificservices,IoT systems could frequently shareresources with a variety of unrelated systemsand applications.Given the complexity of
199、 different networks,protocols,operating systems and differentmanufacturers with each designed to handledifferent types of risks,there are a variety ofsecurity and privacy challenges associatedwith implementing any IoT system.Data portabilityConsumers face the risk of being locked-in with specificIoT
200、 service provider hindering data portability flexibilityAlong with telecom grade security and with introduction of NIDD,key security and privacy risks across the IoT ecosystem are addressed by NB-IoT Data rightsIoT uses data from different sources and objects;henceownershipandexerciseofdatasubjectri
201、ghtsarecomplex for the stakeholdersComplianceData collection,processing,interpretation and applicationtakes place in different jurisdictions with varied rules andregulationsAuthenticationInsteadofweakpasswords,weneedmulti-factorauthentication with digital certificates to mitigate accesscontrol risks
202、Device management IoT service providers need to enhance capabilities forend-to end device management as owners may nothave those capabilitiesNotificationLeads to user inability to acquaint concerned individualstoprovidemeaningfulconsentforprocessingtheirpersonal identifiable informationEncryptionEnc
203、ryption protocols and a centralised key managementsolution need to be engineered for efficient,scalable andcompatible deploymentsSecurity upgradesConsidering the volume and nature of integration in theIoT world,regularly upgrading security patches is achallenge31 2022 KPMG Assurance and Consulting S
204、ervices LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Foundation for Indian NB-IoT regulation has been laid down b
205、y the National Telecom M2M roadmapNB-IoT regulatory outlook in IndiaM2M is one of the key components of the evolving IoTrevolution.M2M connections form part of the IoT,alongwith cloud computing,big data analytics,and sensorsand actuators that in combination can run intelligentsystems and autonomous
206、machines.NB IoT has beendesigned for cellular M2M communications and henceM2M regulations play an important part in NB IoTdeployments.The Department of Telecom(DoT)of India publishedthe“National Telecom M2M Roadmap”in May 2015post seeking inputs from certain industry stakeholders.The roadmap focuses
207、 on M2M communication aspectswith the aim to have interoperable standards,policiesand regulations suited for Indian conditions acrossmultiple sectors.Two level committees have been formed by DoT toaddress policy and regulatory issues towards M2Mnetwork communication aspects.First is a high levelPoli
208、cy and Regulatory Committee formed with DoTrepresentatives.ThiscommitteeaimstooutlineGovernmentsidepolicyandregulatoryaspects.Second is an Industry level Consultative Committeewhich has been constituted to outline draft policy takingindustry view into consideration.Following issues andactionable poi
209、ntswere identified for considerationtowards M2M Policy:Adoption of standards,in line with global standards,for M2M networksSpectrum allocation for M2M local area networklayerAccommodationofM2Mnumberingneedsbyrevisiting National Numbering PlanEnsuring“Alwayson”requirementsviz.Inter-Network Mobility a
210、nd Inter-Operator RoamingAddressing data protection and privacyAddressing customer traceability issues and KYC(Know Your Customer)normsAddressing security and lawful interception for M2MconnectionsHaving policy around customers ethical issuesCoordination with relevant global organisations32 2022 KPM
211、G Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Sector specific use cases and re
212、quirements released by Telecom Engineering Centre(TEC)help identify future action points for M2M applicationsM2Mserviceproviders(MSP)are likely to havedifferentbusinesses.Inopensettlementprotocol(OSP)services,theendusersusetheirownSIM/telephoneconnectionto use the offered servicesliketelebanking,etc
213、.,whereasinmostoftheM2Mservices,internetconnectionorindividualSIMs are used exclusivelyfor such services i.e.,SIMfittedvehicle.InOSPservices,ownership of SIMnormally is with the end-user of services,whereas inM2M services,ownership iswith MSP(in most cases).Hence,it would be judiciousto have a separ
214、ate categoryofregistrationtohaveoversight over MSP usingtelecomresourcesfromauthorised telecom serviceproviders.All M2M serviceprovidersutilisingTSPstelecomfacilitiesshouldhave MSP registration toaddress different concernslikeinterfaceissueswithKYC,security,telecomserviceproviderandencryption(forlaw
215、fulinterception purposes at thetelecomserviceproviderlevel)Inaddition,TelecomEngineering Centre(TEC)of DoT has also come outwith nine technical reports30in 2015 on M2M detailingsectorspecificrequirements/use cases tocarry out gap analysis andfutureactionplanswithpossible models of servicedeliverywit
216、hadditionaltechnical reports releasedtime to time.Figure 7:Sector specific use cases defined by TEC M2M enablement in the automotive sector(May 2015)36M2M enablement in remote health management(May 2015)37M2M enablement in safety and surveillance systems(May 2015)38Code of practice for securing cons
217、umer IoT(August 2021)31Emerging communication technologies in IoT domain(Nov 2021)39IoT/ICT enablement in smart village and agriculture (March 2021)32Design and planning smart cities with IoT/ICT(January 2019)33M2M/IoT enablement in smart Homes(March 2017)34M2M enablement in the power sector(May 201
218、5)35Source:30:TEC M2M/IoT technical reports accessed on 7 Feb 2022 31:Code of practice for securing consumer IoT,Telecommunication Engineering Center,Aug 2021;32:IoT/ICT enablement in Smart village and agriculture,Telecommunication Engineering Center,Mar 2021;33 Design and planning Smart cities with
219、 IoT/ICT,Telecommunication Engineering Center,Jan 2019;34 M2M/IoT enablement in Smart Homes,Telecommunication Engineering Center,Mar 2017;35 M2M enablement in the power sector,Telecommunication Engineering Center,May 2015;36 M2M enablement in the Automotive sector,Telecommunication Engineering Cente
220、r,May 2015;37 M2M enablement in remote health management,Telecommunication Engineering Center,May 2015;38 M2M enablement in safety&surveillance systems,Telecommunication Engineering Center,May 2015;39 Emerging communication technologies in IoT domain,Telecommunication Engineering Center,Nov 2021;M2M
221、 service provider registration with DOT33 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.Al
222、l rights reserved.Conclusion:An opportune moment3334 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by g
223、uarantee.All rights reserved.NB-IoT is an exciting Made for India technology.As the dream of Digital India takes shape,this technology could play a key role across the spectrum of B2B,B2C and Government/public services34 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Par
224、tnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.As India begins a capex cycle,NB-IoT is attractively positioned at the core35 2022 KPMG Assurance and C
225、onsulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.With India beginning its capex cycle,NB-IoT is po
226、sitioned at its core to address the varied needs of the various user segments NB-IoT:Addresses the needs across the user spectrumIoTs diverse applicability along with lowering device costsmakes it an attractive technology option for serving the painpoints and issues faced by a variety of users acros
227、ssegments.While users have tested and realised the benefits of usingthe NB-IoT technology within their respective domain,Indiais yet to witness widespread applicability and rollout.While the implementation of 5G is likely to further boost NB-IoT business case,the impact may differ significantly acro
228、sssectors/usersegmentsgiventherolloutofcompetingtechnologies such as cloud,blockchain etc.,which wouldcomplement IoT either due to a stronger business case andincreased security.The Digital India initiative coupled with the enhancingtechnology infrastructure,and adequately supported byforward lookin
229、g production linked incentives of INR 53 billionin the Indian Union Budget 2022,NB-IoT has the potential todeliver the promised value proposition by addressing all theweaknesses of existing IoT implementations and meetingthe unique requirements of the three broad level usersegments i.e.,B2B,B2C and
230、Government.End to end value chain tracking and real-time SLA review and improvements right fromprocurement to customer deliveryEnables organisations to enhance their customer interface and experience with limited additionalphysical contactEnables earlyidentification of errors/issuesvia proactive ale
231、rtsand hence avoiding anysupply/service disruptionsProvides additional insights on performance across key parameters and ability to identify issuesmore proactively than other technologiesCustomer touchpoint channel to enhance revenues(point of sale)Monitor customer experience/product performance and
232、 provide real-time assistance to recommendcourse of actionGet real-time customer feedback and identify areas of improvements at the earliestEnhances situational awareness and/or choices for the customer for taking necessary decisionCustomer convenience and“intelligence companion”Monitor service deli
233、very for citizens/general publicTrack resource movement and leakages if any and recommend/trigger action without waiting forincoming data/reportsRemote monitoring enables keeping an audit trail of activities/events to enable decision makingAbility to integrate with existing infrastructure hence avoi
234、ds need for additional investments36 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rig
235、hts reserved.About JioThingsJio Things Limited,a subsidiary of Jio Platform Limited,is an ultimate IoTdestination for B2B,B2C and government IoT needs.With digitaltransformation at heart,JioThings has built a prodigious IoT portfoliousing bleeding edge technologies,hyper-scalable IoT platform anddis
236、tributed computing on edge and cloud.Why JioThings?The Internet of Things(IoT)was complex a lot of suppliers providingdifferent components,inevitably making it difficult to implement,verydifficult to manage and extremely difficult to afford!With the advent ofJioThings,all these problems have become
237、a matter of past!JioThingsdeliversmarket proven C2C(Chipset-2-Cloud)solutions to enableorganisations drive digital transformation!JioThings is one of the worldsfirst organisation that provides,hardware,connectivity,cloud platforms,portals,installation,and aftermarket services all under single roof!J
238、ioThings brings infinite value at an unbelievably economical cost platformto individuals and organisations to achieve sustainable growth,reduceoperational expenditure,increase efficiency,boost safety,and make bothliving and working easy!JioThingsoffersIoTsolutionsinindustrieslikeUtilities,Lighting,T
239、ransportation and logistics,Manufacturing,Smart cities,Smart spaces,Health,Agriculture and others.About KPMG in IndiaKPMG entities in India are professional services firm(s).These Indianmember firms are affiliated with KPMG International Limited.KPMGwas established in India in August 1993.Our profes
240、sionals leveragethe global network of firms,and are conversant with local laws,regulations,markets and competition.KPMG has offices across IndiainAhmedabad,Bengaluru,Chandigarh,Chennai,Gurugram,Hyderabad,Jaipur,Kochi,Kolkata,Mumbai,Noida,Pune,Vadodaraand Vijayawada.KPMG entities in India offer servi
241、ces to national and internationalclientsinIndiaacrosssectors.Westrivetoproviderapid,performance-based,industry-focusedandtechnology-enabledservices,which reflect a shared knowledge of global and localindustries and our experience of the Indian business environment.37 2022 KPMG Assurance and Consulti
242、ng Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.AcknowledgementsContentChaitanya GogineniDipayan GhoshAr
243、ghyapriya ChoudhuriManika SaxenaAnand Bhandari(JioThings)Swapnil Khandave(JioThings)Ritu Mandal(JioThings)Ranjit Ma Kumar(JioThings)Gulprit Singh(JioThings)37 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of
244、independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.External sources of referenceNarrowband Internet of Things(NB-IoT),GSMA accessed on 20 Dec 2021Standardisation of NB-IOT completed,3GPP accessed on 20 Dec 2021Narrow
245、band IoT,3GPP accessed on 21 Dec 2021Standards for the IoT,3GPP,accessed on 21 Dec 2021Brand and ComplianceNisha FernandesRaahul GautamRahil UppalShveta Pednekar38 2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisatio
246、n of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.home.kpmg/in/socialmediaThe information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or
247、 entity.The information presented is only informative and does not promote or defame any product or company.Although we endeavour to provide accurate and timely information,there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accura
248、te in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.The views and opinions expressed herein are those quoted third parties and do not necessarily represent the views and opinions of KPMG in India.KPMG
249、 Assurance and Consulting Services LLP,Lodha Excelus,Apollo Mills Compound,NM Joshi Marg,Mahalaxmi,Mumbai-400 011 Phone:+91 22 3989 6000,Fax:+91 22 3983 6000.2022 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organisation of i
250、ndependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation.This document is for e-communication only.hom
251、e.kpmg/inKPMG in Indiacontacts:JioThings contacts:https:/ Akhilesh TutejaPartner and National HeadTelecom,Media and Technology SectorE:Chaitanya GogineniPartnerBusiness ConsultingE:Dipayan GhoshAssociate PartnerTelecom,Media and Technology SectorE:Anand Bhandari Vertical HeadNB-IoT,Smart Assts&Smart Utilities E:Anand1.BSwapnil Khandave Technology Head NB-IoT,Smart Assts&Smart Utilities E:Swapnil.KRitu Mandal Business Manager IoT Business Consulting E:Ritu.M