AT&T to Shut Down NB-IoT Network, Focuses on LTE-M for IoT Growth

Published on November 24, 2024

AT&T plans to shut down its NB-IoT network by early 2025, transitioning customers to LTE-M for more data capacity. While T-Mobile and Verizon continue supporting NB-IoT, the technology faces declining adoption in Western markets, with nearly 90% of connections in China. Analysts cite inefficiencies and limited spectrum sharing as challenges for NB-IoT, especially as alternatives like LTE-M, LoRa, and 5G RedCap gain momentum.

AT&T’s decision to shut down its NB-IoT network stems from several factors. The operator stated that transitioning to LTE-M will provide more data capacity for both fixed and mobile IoT devices, aligning better with its business customers’ evolving needs. Unlike NB-IoT, LTE-M supports higher bandwidth, mobility, over-the-air updates, and voice functionality, making it a more versatile solution for use cases like wearables, fleet tracking, and dynamic monitoring.

Another key reason is the operational inefficiency of NB-IoT within mobile networks. NB-IoT requires dedicated spectrum, which cannot be shared with other types of traffic. This design limits its efficiency for mobile operators, especially when compared to LTE-M or emerging technologies like 5G RedCap, which can coexist with other network traffic.

The economic dynamics also play a role. NB-IoT has gained traction primarily in China, where government subsidies significantly reduce chipset costs, making devices almost free. However, in Western markets, where such subsidies are absent, the economics of NB-IoT are less favorable. AT&T likely determined that the ongoing costs of maintaining the NB-IoT network outweighed its benefits, especially as IoT demand shifts toward technologies offering greater scalability and flexibility.

By discontinuing NB-IoT, AT&T can reallocate resources to LTE-M and other forward-looking technologies that better meet market demands, ensuring greater spectrum efficiency and a more streamlined IoT service portfolio.

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