Quantifying the Economic and Financial Viability of NB-IoT and LoRaWAN Technologies: A Comprehensive Life Cycle Cost Analysis Using Pragmatic Computational Tools

Bernhard Koelmel (), Max Borsch, Rebecca Bulander, Lukas Waidelich, Tanja Brugger, Ansgar Kuehn, Matthias Weyer, Luc Schmerber and Michael Krutwig
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Bernhard Koelmel: School of Engineering, Industrial Engineering, Pforzheim University, 75175 Pforzheim, Germany
Max Borsch: Wirtschaftsförderung Nordschwarzwald, 75172 Pforzheim, Germany
Rebecca Bulander: School of Engineering, Industrial Engineering, Pforzheim University, 75175 Pforzheim, Germany
Lukas Waidelich: School of Engineering, Industrial Engineering, Pforzheim University, 75175 Pforzheim, Germany
Tanja Brugger: School of Engineering, Industrial Engineering, Pforzheim University, 75175 Pforzheim, Germany
Ansgar Kuehn: School of Engineering, Industrial Engineering, Pforzheim University, 75175 Pforzheim, Germany
Matthias Weyer: School of Engineering, Industrial Engineering, Pforzheim University, 75175 Pforzheim, Germany
Luc Schmerber: Luc Schmerber, 76199 Karlsruhe, Germany
Michael Krutwig: Krumedia GmbH, 76199 Karlsruhe, Germany

FinTech, 2023, vol. 2, issue 3, 1-17

Abstract: This paper focuses on quantifying the economic and financial viability of NB-IoT and LoRaWAN technologies, two low-power wide-area network (LPWAN) technologies with unique characteristics that make them suitable for IoT applications. The purpose of this study is to propose a “pragmatic” artifact for performing life cycle cost analysis and demonstrate its application to these technologies. The methodology uses pragmatic computational tools to facilitate the analysis and considers all relevant economic and financial factors, such as operating costs, equipment costs, and revenue potential. The main finding of this study is that Narrow Band-Internet of Things (NB-IoT) and Long Range Wide Area Network (LoRaWAN) technologies have different cost structures and revenue potentials, which may affect their economic and financial viability for different IoT applications. Ultimately, the study concludes that a comprehensive life cycle cost analysis is critical to making informed decisions about technology adoption, and that the proposed methodology can be applied to other IoT technologies to gain insight into their economic and financial viability.

Keywords: financial viability; life cycle cost analysis; LPWAN; pragmatic computational tools; design science research; data-driven decision making (search for similar items in EconPapers)
JEL-codes: C6 F3 G O3 (search for similar items in EconPapers)
Date: 2023
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