Electronics Design AU
Wireless

What Is Cellular IoT?

Last updated 28 June 2026 · 5 min read

Direct Answer

Cellular IoT uses licensed cellular networks (LTE-M and NB-IoT) to provide nationwide, carrier-managed wireless connectivity for embedded devices without requiring local gateway infrastructure. Unlike LoRa or Zigbee, cellular IoT devices connect directly to carrier towers, offering wide-area coverage across Australia's 4G network, with lower power consumption than standard LTE — at the cost of ongoing data plan fees per device.

Detailed Explanation

Cellular IoT emerged as a response to a specific gap: existing cellular standards (standard LTE, 3G) consumed too much power for battery-operated sensors, while unlicensed-band protocols (LoRa, Sigfox) required gateway infrastructure and offered no guaranteed coverage. LTE-M and NB-IoT were standardised by 3GPP in Release 13 (2016) as LPWAN (Low Power Wide Area Network) technologies running on existing licensed cellular infrastructure, combining wide-area coverage with meaningful power savings.

LTE-M (Cat-M1)

LTE-M operates within the existing LTE frequency bands using a 1.4 MHz channel bandwidth (a subset of the 20 MHz LTE channel). Key characteristics:

  • Peak downlink: ~1 Mbit/s; peak uplink: ~1 Mbit/s
  • Device mobility: handover between cells supported (suitable for tracking and vehicle applications)
  • VoLTE: voice calls supported
  • PSM and eDRX: both supported for low-power operation
  • In Australia: deployed on Telstra's 4G LTE network nationwide

LTE-M is suitable for mobile assets (fleet tracking, stolen equipment recovery), devices requiring moderate data throughput (OTA firmware updates, JPEG image transmission), or devices that also need voice capability (personal alarms, elderly care devices).

NB-IoT (Narrowband IoT)

NB-IoT uses a 200 kHz channel that can be deployed in-band (within an LTE carrier), guard-band (in the guard band between LTE carriers), or standalone (on a dedicated 200 kHz allocation). Key characteristics:

  • Peak downlink: ~26 kbit/s; peak uplink: ~62 kbit/s
  • No mobility support: devices must remain stationary or near-stationary
  • Deeper building penetration than LTE-M (typically +20 dB coverage improvement)
  • PSM and eDRX: both supported with very long PSM periods (up to approximately 413 days specified by 3GPP)
  • Lower module cost than LTE-M typically

NB-IoT is optimal for stationary sensors in locations with poor radio coverage: underground utility meters, basement sensors, and rural assets where the deeper coverage gain compared to LTE-M is beneficial.

Module integration

Cellular IoT modules provide a complete radio and modem stack, typically controlled by the host MCU via AT commands over a UART interface. Common modules:

ModuleStandardNotable features
SIM7080G (SIMCom)LTE-M + NB-IoTDual-mode, GNSS option, widely available
nRF9161 / nRF9160 (Nordic)LTE-M + NB-IoTIntegrated application MCU, ultra-low power PSM
BG95 (Quectel)LTE-M + NB-IoT + GNSSMulti-mode with integrated GNSS
SARA-R410M (u-blox)LTE-M + NB-IoTHigh-quality AT interface, global band support

The nRF9160 and nRF9161 are notable for integrating the application processor — the user firmware runs directly on the module rather than on a separate host MCU, reducing BOM cost and board space.

AT command interface

Cellular modules are configured and operated via a UART AT command interface derived from the Hayes modem command set:

AT+COPS=1,2,"50501"     ; connect to Telstra AU (MCC=505, MNC=01)
AT+CFUN=1               ; set full functionality
AT+CEREG?               ; check network registration status
AT+CPSMS=1,...          ; configure PSM timer values
AT+UDNSRN=0,"api.server.com" ; DNS resolve hostname

Most modules also support TLS sockets, MQTT clients, and HTTP clients as built-in firmware features, reducing the firmware complexity required on the host MCU.

Practical Examples

A remote water meter in regional New South Wales uses NB-IoT with an nRF9160 module. It wakes from PSM every 15 minutes, reads the meter pulse counter, transmits the reading over MQTT to an AWS IoT Core endpoint, and returns to PSM. Average current over the 15-minute cycle is approximately 8 µA — providing estimated battery life of over 5 years on a 3600 mAh D-cell battery.

A vehicle GPS tracker uses LTE-M for its combination of mobility support and nationwide Telstra coverage. The tracker sends position updates every 30 seconds while moving and enters PSM when stationary for more than 5 minutes. LTE-M's cell handover support allows continuous tracking across multiple base stations without the GPS coordinates jumping between towers.

Design Considerations

  • Band selection: LTE-M and NB-IoT operate on specific LTE frequency bands. In Australia, Telstra's LTE-M operates primarily on Band 28 (700 MHz APT) and Band 3 (1800 MHz). Select a module that supports these bands and confirm with your carrier before designing the hardware.
  • Antenna design: cellular antennas for Band 28 (700 MHz) require physically larger antennas than 2.4 GHz Wi-Fi or BLE — a λ/4 monopole at 700 MHz is approximately 107 mm. Use a certified flexible printed antenna or an active ceramic patch designed for Band 28.
  • SIM and eSIM selection: for products deployed across multiple countries, an eSIM with a multi-carrier profile avoids the logistics of physical SIM card management. For Australian-only deployments, a physical IoT SIM from Telstra or Optus is straightforward.
  • Cellular vs LoRaWAN: LoRaWAN has no per-device data cost and lower module cost, but requires gateway infrastructure and has lower data throughput. Cellular is appropriate when coverage outside existing LoRaWAN gateway range is required, or when the application needs guaranteed nationwide coverage without gateway deployment.
  • Cellular vs satellite: for truly remote locations (outback Australia, offshore) beyond cellular coverage, satellite IoT is the only option. Satellite has higher latency, lower throughput, and higher per-message cost than cellular, but provides global coverage.

Common Mistakes

  • Assuming LTE coverage equals LTE-M/NB-IoT coverage: not all LTE infrastructure is updated for LTE-M and NB-IoT. In Australia, Telstra's NB-IoT and LTE-M network covers major populated areas, but rural coverage gaps exist. Verify actual coverage for the deployment area before committing to cellular.
  • Ignoring PSM timer negotiation: PSM timer values are requested by the device but granted by the network. The carrier may not grant the exact PSM period requested. Firmware must read the granted values back and adjust wake scheduling accordingly.
  • Not handling module boot time in power budget: a cellular module takes 5–15 seconds to boot, register on the network, and establish a connection after power-on. This is a significant power spike that must be included in the battery life calculation.
  • Omitting the RF antenna ground plane: cellular antennas require a proper PCB ground plane for correct impedance matching and radiation efficiency. A small or poorly shaped ground plane significantly reduces the effective antenna gain.

Frequently Asked Questions

What is the difference between LTE-M and NB-IoT?
LTE-M (Long Term Evolution for Machines, also called Cat-M1) supports up to approximately 1 Mbit/s downlink, maintains device mobility (handover between cells), supports voice (VoLTE), and can operate in low-power PSM and eDRX modes. NB-IoT (Narrowband IoT) is lower-power and lower-cost, with a narrower bandwidth (200 kHz) and peak throughput of approximately 26 kbit/s, but it does not support handover (suited for stationary devices) or voice. LTE-M is preferred for mobile or voice-capable devices; NB-IoT for stationary, very-low-data-rate sensors where absolute minimum power is required.
Does cellular IoT need a SIM card?
Yes. Every cellular IoT device requires a SIM (Subscriber Identity Module) to authenticate to the carrier network. This can be a physical SIM card (nano, micro, or standard form factor), an embedded SIM (eSIM/eUICC) that can be remotely provisioned to multiple carriers, or an integrated SIM (iSIM) built directly into the cellular module. In Australia, Telstra and Optus both offer LTE-M and NB-IoT coverage and IoT-specific SIM plans.
What is PSM and how does it affect battery life?
PSM (Power Saving Mode) is an LTE feature that allows the device to enter a deep sleep state for a configurable period (seconds to hours) while remaining registered with the network. During PSM, the device does not receive downlink data, but the network retains its registration — so when it wakes to transmit, it reconnects almost instantly without full re-registration. eDRX (Extended Discontinuous Reception) is a complementary mechanism that allows the device to wake at defined intervals to receive downlink pages. Both PSM and eDRX dramatically reduce average current draw, enabling multi-year battery operation for IoT sensors transmitting data infrequently.

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