Cost and Imperative Role of Premium Gateways in LoRaWAN Network Setup
In this report, we delve into the costs associated with deploying and maintaining a LoRaWAN network, focusing on North American and European cities. Due to higher labor and leasing costs in these regions, the expense of setting up and running such networks tends to be more considerable compared to other global areas.
The cost of deploying a LoRaWAN network is not solely determined by gateway expenses but also encompasses various factors such as hardware, network infrastructure, subscription models, and maintenance and upgrades.
When it comes to hardware, the cost of gateways varies depending on their quality, with carrier-grade gateways offering better reliability and performance but incurring a higher price tag. Sensor costs also vary based on functionality and manufacturer.
Network infrastructure costs include the expense of public versus private networks, gateway deployment, and ongoing maintenance. While a private network requires a substantial initial investment, it may prove more cost-effective in the long run by avoiding recurring subscription fees.
Subscription models can also have an impact on costs. Various providers offer subscription plans ranging from €1 to €10 per year per sensor, depending on services included. Some providers may charge based on data volume, which can increase costs for applications transmitting large amounts of data.
Regular maintenance and potential upgrades are necessary for network reliability and performance, contributing to operational costs. Additionally, ensuring compliance with local regulations can add administrative costs.
However, a utility company deploying its own LoRaWAN or cellular network may find it more cost-effective, particularly if they have more than 20 thousand meters and a proportionally smaller area. This is especially the case when using connectivity services from IoT providers proves more expensive unless the monthly cost per meter is less than $0.30.
Deploying a private LoRaWAN network with carrier-grade gateways can lead to long-term savings, customization, and optimized infrastructure, potentially reducing costs associated with public networks. Strategic gateway placement, lower power consumption, and avoiding overhead charges are some benefits of this approach.
For more detailed information on the total network cost calculation, please refer to our downloadable guide. To schedule a consultation with our specialist, email us at info@our website or use the contact form provided.
[1] "Fraunhofer FOKUS. (2018). Building a Low Power Wide Area Network with LoRaWAN: Requirements, Challenges and Recommendations." Retrieved from https://fokus.fraunhofer.de/content/dam/fokus/de/publications/reports/2018/Fraunhofer-FOKUS-Bericht-Building-a-Low-Power-Wide-Area-Network-with-LoRaWAN-Requirements-Challenges-and-Recommendations.pdf[3] "Stack Path. (2022). LoRaWAN Network Configuration and Parameters." Retrieved from https://stackpath.com/knowledge-center/lorawan-network-configuration-parameters/
- The report highlights that the costs of deploying and maintaining a LoRaWAN network, such as those found in North American and European cities, are influenced not just by gateway expenses but also by factors like hardware, network infrastructure, subscription models, maintenance and upgrades, compliance with local regulations, and strategic gateway placement.
- In contrast to public networks, private LoRaWAN networks armed with carrier-grade gateways can lead to long-term savings, customization, and optimized infrastructure; benefits that can potentially reduce costs associated with public networks by taking advantage of strategic gateway placement, lower power consumption, and avoiding overhead charges.
