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LTE Cat 1 is a medium-speed LTE standard designed for more feature-rich IoT applications that require higher data speeds. LTE Cat 1 is the lowest-cost LTE category that still has the required speeds to support data streaming and full mobility.

Cat is the abbreviation of Category. The full name of LTE Cat 1 is LTE UE-Category 1. LTE generally refers to long-term evolution technology, and UE refers to User Equipment.

Cat is UE-Category, UE is User Equipment (User Equipment), Category is classification, and the value of Cat-X is used to measure the wireless performance of user terminal equipment and to classify terminal rate levels.

According to 3GPP’s vision, the performance of LTE Cat-1 will ultimately serve the Internet of Things market. Realizing the purpose of a low-power, low-cost IoT LTE connection is particularly important for the development of the Internet of Things.

Starting from the 4G LTE era, operators have begun to provide users with non-homogeneous services. They use various methods to hierarchically classify users and provide services with different network capabilities.

For example, according to the quality of service (QoS) agreement signed with users, operators will provide users with customized services, including guarantees such as bandwidth and access priority.

The most familiar hierarchical and hierarchical service in the industry is to provide different service capabilities according to the terminal access capability level, that is, UE Category.

The base station and the user terminal determine the transmission capability of the terminal through various parameters of the UE Category. The base station adjusts its own parameter settings according to the UE Category and communicates with the user terminal reasonably.

From this perspective, the UE Category is also the basis for the design of various terminals of different levels in the industrial chain. Among them, Category 1 is the user terminal level with the lowest version of the parameter configuration, allowing the industry to design low-profile 4G terminals at low cost, referred to as LTE Cat 1.

The low-profile version of the 4G terminal Cat 1 also plays an important role in the industry. For example, some mobile phone manufacturers consider using the Cat 1 chip to launch 4G elderly smartphones, because many elderly phones only need basic call and data functions, and Cat 1 supports VoLTE. And low-speed data and low cost, provide a new choice for mobile phone manufacturers.

In the market distribution of cellular connections, high-speed connections account for 5% of the market, medium-speed connections 35%, and low-speed connections 60%.

Globally, due to the popularization of 4G and 5G networks, more than 100 operating companies have implemented 2G and 3G withdrawals. In China, with the rapid advancement of 5G construction, the exit of 2G and 3G from the stage will also be the general trend.

How will the IoT market evolve in this wide-area-connected IoT market with a large base occupied by 2G, GSM, and CDMA?

Some application scenarios based on static and active reporting, such as smart meters, will continue to use low-power NB-IoT.

When 3G is withdrawn from the network, LTE Cat 1 and eMTC (Cat.M) can also carry it, mainly for voice, medium and low speeds, and markets.

This medium-rate market between high-speed (5G and 4G LTE) and low-speed (2G GPRS and NB-IoT) networks is emerging.

Compared with eMTC and NB-IoT, Cat 1 has greater opportunities, because eMTC requires infrastructure construction, and operators are now investing more resources in 5G construction, and it is difficult to have excess funds to invest in eMTC.

Because NB-IoT is a narrowband Internet of Things (bandwidth is the only 180kHz), due to its low-speed characteristics, although it can undertake some 2G markets, it is difficult to meet the needs of 2G/3G voice calls, medium-speed, and mobile connections.

What are the characteristics of LTE Cat 1?

Outstanding features of LTE Cat 1:

The total bandwidth required: 20MHz

Peak download rate: 10Mbps

Peak upload rate: 5Mbps

Electricity demand: low

Duplex mode: full-duplex

Transmit power level: 23dBm

About 10% of IoT application scenarios require high-speed services. This part will be supported by Cat-4 or higher and future 5G. Another 60% of narrowband scenarios will be supported by NB; the remaining about 30% of medium-speed scenarios will be supported by NB-IoT. It’s an opportunity for LTE Cat 1 or eMTC.

At the same time, China Telecom announced support for the Cat 1 network in 2016, and because it itself is carried on the 4G LTE network, there is no need for additional laying costs. Cat 1 can be used wherever 4G is available.

In the low-to-medium rate market, LTE Cat 1 has many advantages:

Cost advantage

  1. In terms of network construction, LTE Cat 1 can be seamlessly connected to the existing LTE network, without the need to upgrade the base station software and hardware, and the network coverage cost is low;
  2. In terms of chip cost, after system optimization, the hardware structure of the module is simpler, the integration level is higher, and the peripheral hardware cost is lower;
  3. In terms of modules, there are many players in the market and fierce competition, and the price of LTE Cat 1 modules is constantly being pulled down.

Application-level

LTE Cat1 is suitable for scenarios that do not require high broadband speed, but have certain requirements for power consumption and data transmission stability, such as wearable devices, shared payments, campus water control, charging piles, smart security, smart agriculture, smart home appliances, and industry Sensors, port logistics tracking, etc.

Could LTE Cat 1 even replace NB-IoT?

Compared with NB-IoT and 2G modules, LTE Cat 1 has advantages in-network coverage, speed, and delay. Compared with traditional LTE Cat 4 modules, it has the advantages of low cost and low power consumption and has the same advantages. The millisecond-level transmission delay, and supports the movement speed above 100KM/H.

LTE Cat 1 is adapted to the current domestic 4G network and is very suitable for use in application scenarios that require cost performance, latency, coverage, and communication speed.

For example, in terms of network construction, LTE Cat 1 can now be seamlessly connected to the existing LTE network, without the need to upgrade the software and hardware of the base station, and the network coverage cost is very low.

In terms of chip cost, after system optimization, the integration level is higher, the hardware structure of the module is simpler, and the peripheral hardware cost is lower.

LTE Cat 1 undertakes the main task of 4G Internet of Things connection. As the user terminal level of the lowest version of the parameter configuration, LTE Cat 1 enables the industry to design low-profile 4G terminals at a low cost.

Therefore, the development of the LTE Cat 1 network and related industries is of great significance to complement the main scenarios of the Internet of Things.

China Mobile proposes the coordinated development of 5G+4G, and 4G networks as the main service bearer network will be continuously optimized to create a high-quality 4G network.

The LTE Cat 1 product has been completed in 30 provinces and municipalities directly under the Central Government, and the network has been tested in 65 countries and regions overseas. It is already a mature network.

LTE Cat 1 has certain cost advantages. For example, in-network construction, LTE Cat 1 can now be seamlessly connected to the existing LTE network, without the need to upgrade the software and hardware of the base station, and the network coverage cost is very low.

In terms of chip cost, after system optimization, the integration level is higher, the hardware structure of the module is simpler, and the peripheral hardware cost is lower.

In terms of delay, it has the same millisecond-level transmission delay as LTE Cat 4 and supports mobile speeds above 100 km/H.

Timing of LTE Cat 1

Intergenerational migration of cellular IoT connection mode has started

2019 is the first year of 5G, but for some time to come, the industry will still present a situation where the four generations of 2G/3G/4G/5G mobile communication networks coexist.

The development of the cellular Internet of Things is to a large extent also affected by the intergenerational upgrade of mobile communication networks, opening the way for intergenerational migration of connection methods.

According to data from Counterpoint, a market research organization, in the next few years, the number of cellular IoT connections will undergo migration from 2G+4G-based to NB-IoT+4G-based.

According to Counterpoint data, the number of 2G/3G Internet of Things connections is almost negligible by 2025. Therefore, during the intergenerational migration of cellular Internet of Things connection methods, the original 2G/3G connections can only be undertaken by NB-IoT and 4G.

Among them, low frequency, small packet, low mobility, low latency sensitivity but high-cost sensitivity scenarios can be undertaken through NB-IoT;

Scenarios with medium speed, certain requirements for latency and mobility, voice support, and a certain degree of cost tolerance can be undertaken through LTE Cat 1.

At present, the NB-IoT industry ecology is ready. If LTE Cat 1 is able to exert power at present, it is indeed a better opportunity to promote the intergenerational migration of the cellular Internet of Things.

The newly added low- and medium-rate terminals are connected via Cat 1. A considerable part of the existing medium- and low-rate 2G/3G terminals have reached the end of their life cycles before 2025 and can be replaced with LTE Cat 1, thereby migrating some of the 2G/3G connections to On 4G.

The cost is lower

Since LTE Cat 1 belongs to the 4G series, it can directly reuse 4G existing resources.

Under the current background, with the help of the mature 4G industry chain, LTE Cat 1 is a low-profile version of 4G. It is only necessary to make small tailoring changes to the existing 4G products, and it is possible to quickly market and reduce the cost to the range expected by the industry.

Infrastructure readiness and new opportunities

In 2017, China Telecom announced that LTE Cat 1 could be commercialized. Because it is based on the existing 4G network, for each operator, LTE Cat 1 does not require additional investment in the network, and it can be said that the infrastructure side is ready.

In the past few years, Chinese operators have built the world’s largest 4G network, and the network coverage is far ahead of overseas operators in terms of breadth and depth.

According to the latest data from the Ministry of Industry and Information Technology, the total number of 4G base stations nationwide has reached 5.19 million by the end of September 2020, accounting for 64.2% of all base stations.

The network infrastructure of this scale provides an environment that can be accessed anytime and anywhere for mobile communication users across the country.

LTE Cat 1 can also provide IoT users with the opportunity to access anytime and anywhere with the help of 4G network infrastructure. Its network infrastructure is not weaker than 2G/3G and NB-IoT, which will lay a good foundation for the migration of IoT connections to LTE Cat 1 basis.

Due to its 1Mbps rate, mobility support, VoLTE, and other features, eMTC can undertake low-to-medium-rate 2G/3G Internet of Things connections, which will replace LTE Cat 1 to a certain extent.

Due to various difficulties, the domestic industry has low expectations for eMTC. There are not many alternatives for the connection scheme of the medium and low-rate cellular Internet of Things. In the end, LTE Cat 1 may be the main choice. This is an opportunity for LTE Cat 1 to develop rapidly.

Motivation and determination of operators

The formation of industry trends, cost reduction, network infrastructure readiness, and LTE Cat 1 network maturity and product launches give users a suitable choice. From this perspective, perhaps it has great motivation and determination to promote LTE Cat 1.

In order to ensure continued growth in the number of connections and revenue, it is necessary to increase the sales of more high-value products. Compared with the previous 2G and NB-IoT, Cat 1 as a 4G connection can bring an increase in ARPU value. From this perspective, operators have great motivation and determination to promote 2G/3G medium-rate services to LTE Cat 1 migrate.

From the analysis of the above four angles, it can be seen that the launch of LTE Cat 1 is a good time.

Product design and launch rhythm

Intergenerational migration of cellular Internet of Things connection also requires a process, and the design and launch rhythm of related products require detailed planning. Because it is facing low-to-medium-rate scenarios, especially some medium-rare applications, the environment faced by users is relatively complex, and more comprehensive considerations are needed in product design.

Since low-to-medium-rate IoT connections are much higher than high-rate IoT connections, it can be predicted that in the future 4G IoT connection structure, LTE Cat 1 will occupy a dominant position, which is higher than LTE Cat 4 and above connections.

At present, the commercial opportunity for LTE Cat 1 has already begun. In the future, we look forward to the joint efforts of the industry to accelerate the intergenerational upgrade of IoT connections.