The notable shift away from Narrowband IoT (NB-IoT) hasn’t been surprising.
When it was first introduced, it was seen as the only low-cost, low-power solution ideally positioned to revamp IoT connectivity as a whole. Yet today, NB-IoT has witnessed a massive decline in popularity, mainly due to challenges in its adoption, not to mention the infrastructure costs associated with its overall deployment.
Eseye’s 2025 IoT and Telecom predictions report, a comprehensive analysis of the IoT landscape and future trends from earlier this year, clearly shows that Mobile Network Operators (MNOs) are increasingly favouring stronger, more versatile technologies such as LTE, 5G, and satellite connectivity for the superior interoperability and long-term viability they offer customers.
Understanding NB-IoT and its initial promise
At its beginning, NB-IoT was hailed as a powerful game-changer for IoT applications requiring minimal data transmission and prolonged battery life. Setting aside the heightened infrastructure costs, NB-IoT offered the ability to connect many devices effectively, making it ideal for smart meters, continuous environmental monitoring, and asset tracking applications.
Originally, NB-IoT was marked as the ultimate beacon of hope. It offered reliable connectivity for densely urban areas and was adequate for most of Earth’s challenging environments. Yet, at the same time, its ability to integrate into existing cellular networks without significant infrastructure upgrades made it particularly attractive to MNOs wishing to deepen their IoT offerings. With strong indoor coverage, extended battery life, and cost-effective deployment, it seemed perfect as the cornerstone of the growing IoT ecosystem.
Challenges leading to NB-IoT’s decline:
1. Limited Global Adoption:
● While China had embraced NB-IoT with robust deployments, it was clear that other regions of the world have been slower to adopt it. Due to this uneven global rollout, the deployment has hindered a cohesive NB-IoT network.
● The lack of standardised adoption has resulted in a fragmented market, making it challenging for NB-IoT to achieve the critical mass required for its widespread success.
2. High Infrastructure Costs:
● Contrary to initial expectations, infrastructure costs for its deployment have proved much higher than anticipated. Extensive network modifications and the integration demand of NB-IoT-specific hardware have significantly increased deployment costs, making it less than economical for most MNOs.
● The return on investment for NB-IoT deployments has been slower, discouraging operators from investing considerably in the technology.
3. Interoperability Issues:
● NB-IoT has faced challenges in interoperability with other IoT technologies. This lack of seamless integration with existing IoT frameworks has limited its utility and attractiveness to businesses.
● The competitive landscape of IoT technologies means that NB-IoT often struggles to differentiate itself amidst many alternative connectivity options.
Shift towards LTE, 5G, and satellite connectivity
In response to the challenges of NB-IoT, MNOs have shown remarkable foresight in pivoting towards more sustainable technologies. LTE, 5G, and satellite connectivity are rapidly emerging as the preferred alternatives, each offering considerable advantages, putting NB-IoT’s limited capabilities in the shade.
1. LTE and 5G: Versatility and Scalability
● Enhanced Capabilities: LTE and 5G provide higher data rates, lower latency, and greater capacity than NB-IoT. These attributes make them suitable for a broader range of IoT applications, from real-time data processing to high-bandwidth requirements.
● Future-Proofing: As the demand for more sophisticated IoT applications grows, LTE and 5G offer the scalability and flexibility needed to support these advancements. Their ability to handle diverse use cases ensures long-term viability for MNOs.
● Interoperability: LTE and 5G are widely adopted global standards, facilitating better interoperability with existing and future IoT technologies. This seamless integration simplifies deployment and enhances the overall efficiency of IoT networks.
2. Satellite Connectivity: Global Reach and Reliability
● Coverage: Satellite connectivity provides global coverage, especially in remote and underserved areas where traditional cellular networks fall short. This capability is crucial for IoT agriculture, logistics, and environmental monitoring applications.
● Resilience: Satellites offer a reliable communication link less susceptible to terrestrial disruptions. It ensures consistent connectivity for critical IoT applications and enhances operational reliability.
● Rapid Deployment: Satellite technology allows for quick deployment of IoT networks without the need for extensive ground infrastructure, reducing deployment time and costs.
Economic Sustainability: The key to technological success
Eseye’s 2025 IoT and Telecom Predictions report is clear: technological success hinges on technical feasibility and, crucially, economic sustainability. This is a harsh truth for NB-IoT.
And serves as a stark reminder that without a viable economic model, even the most technically sound innovations can disappear.
Eseye’s role in the evolving IoT landscape
Undoubtedly, there is a shifting dynamic in the IoT connectivity market. Businesses and operators now seek global access, preferably through one platform solution that solves in-country roaming and provides federated localisation and global eSIM orchestration.
If MNOs are hungry for versatility and operational scalability, then offering them a cloud-based SaaS platform that is compatible with technologies such as LTE, 5 G, and satellite technologies will enable them to provide solutions that meet the diverse needs of enterprise customers. By fostering seamless interoperability and offering a cost-effective, cloud-based SaaS platform, Eseye empowers operators to remain competitive in a rapidly evolving market.
The Future of IoT
The decline of NB-IoT only highlights the interplay between innovation and economic viability. As MNOs navigate this uncharted landscape, embracing newer tech will be critical if they are to maintain any hold over the market. The rise and fall of NB-IoT have taught us hard lessons. While it may be tempting to stick with NB-IoT for its cost-effectiveness in the short term, the long-term outlook is not certain. And for devices that will be in the field for many years that is a real risk that cannot be ignored.
For more IoT trends, view a copy of Eseye’s 2025 IoT and Telecom Predictions Report
About the Author
Ian Marsden is CTO of Eseye. Eseye, a global leader in IoT Connectivity and eSIM Orchestration, empowers Enterprises and MNOs to optimize connectivity to millions of devices across over 800 networks with near-100% uptime. Our advanced eSIM Orchestration platform ensures seamless IoT device management and scalability with localized connectivity precision. From Amazon to AT&T, we power the world’s most ambitious IoT deployments. Nobody does IoT connectivity better.
