Winners and losers from LoRa

This was a short box to accompany my Reuters piece on LoRa:

One company most likely to gain from the rise of interest in LoRa networks is Semtech Corp, which holds some of the IP related to LoRa and makes most of its chips. Companies like Microchip have also made LoRa related kits.

The most likely gainers from the spread of low power connectivity, however, are going to be the companies building and managing the networks. SigFox, a LoRa rival, allows others to make the hardware, and its partners to build the networks, but makes its money from charging companies fees for connecting their devices to the network.

“We’ll see a ton of SigFox and LoRa launches over the region over the next 12 months,” says Charles Anderson, an analyst at IDC.

More traditional players are either adopting or competing (or both) with the new networks.

Some telcos have aligned themselves with one or more of the technologies, rolling out LoRa networks in the hope of gaining a foothold ahead of their rivals. They include KPN Telecom NV and SK Telecom, both of which have rolled out nationwide in their respective countries. “The people who make the most money will be those having a large network at the right price,” says Isaac Brown, of Lux Research.

Other telcos are focusing on technologies that use existing cellular networks and 4G standards. Vodafone for example, is using NB-IoT (Narrowband Internet of Things), while AT&T is using LTE-M (the M stands for machine). Both are standards supported by the cellular specifications body 3GPP.

Telecom equipment makers are aligning with one technology or another. In part this reflects a war over technologies, where Huawei and Ericsson, backed by Nokia Networks and Intel, battled to have their proprietary standards adopted. The NB-IOT compromise has prompted a rash of trials — Huawei recently concluded a city-wide trial with Vodafone in Australia, after a similar trials with Deutsche Telekom in Germany last year. Meanwhile Ericsson in June demonstrated its own NB-IoT products, using Intel chips and software.

ZTE, meanwhile, is a high profile member of the LoRa Alliance, the industry body supporting the standard, officially joining the board in June. It launched some LoRa-based smart meters earlier this year. Other prominent members of the alliance include Cisco and IBM.