IoT Networks: functions, selection and examples

IoT networks form the foundation for smart applications in companies. They connect machines, sensors and systems with one another and transmit data reliably, even under extreme conditions. However, not every network is suitable for every application: range, energy consumption and data security are decisive factors when selecting the right IoT network. 

In this article, you will learn which network technologies exist, which projects they are suitable for and what you should consider when making your selection.

IoT is short for "Internet of Things" and describes the networking of devices, sensors and machines via digital platforms. An IoT network connects technical devices or control systems via wireless or wired infrastructure to digital platforms. The goal is to collect, transmit and make data available for digital applications in an automated and location-independent way. Stable connectivity ensures that reliable data communication is guaranteed even under challenging conditions, such as in industrial halls or wide outdoor facilities.

The basis for this is the interplay of various components: sensors and devices collect relevant data from their environment and send it via the appropriate network technology to central platforms. These data are then processed in the cloud or on edge systems and made available for further processes.

The result: companies gain real-time insights into their processes, can manage operations more efficiently, respond to deviations at an early stage, and develop new services. This makes IoT networks a strategic lever for innovation and competitiveness.

IoT networks are used in a wide range of fields. Two typical examples show how devices, connectivity and platforms interact: 

1. Smart Parking with LoRaWAN
An example of an IoT network is a smart parking system in a city. Here, parking sensors detect available spaces via a LoRaWAN network and send the data to a central platform. Drivers receive this information in real time via an app, reducing search traffic and optimising parking management.

2. Water Meter Monitoring with NB-IoT
In the utility sector, NB-IoT enables reliable networking of water meters, even in hard-to-reach places like basements or shafts. Smart meters continuously record consumption data and transmit them via the energy-efficient NB-IoT network to central platforms. Based on this real-time data, utility providers can automate billing, immediately detect leaks, and focus maintenance efforts on critical points.

Depending on the application and requirements, different IoT networks are available, which differ in range, energy consumption, data rate and infrastructure costs. The most commonly used IoT networks include:

• NB-IoT (Narrowband IoT)  is a particularly energy-efficient mobile communication technology developed specifically for IoT applications. It is ideal for devices that transmit only small amounts of data and can run for many years on a battery. The high building penetration and nationwide NB-IoT network coverage of Telekom make this standard particularly attractive for smart meters, parking sensors or asset tracking solutions.
• LTE-M  complements NB-IoT by offering higher data rates and lower latency. This makes LTE-M particularly suitable for mobile applications such as fleet management or mobile payment systems. Companies also benefit here from Telekom’s existing LTE infrastructure.
• 5G  is the next-generation mobile communication standard, offering high bandwidth, low latency, and the ability to divide a network into multiple virtual sub-networks through network slicing to meet individual requirements. 5G is particularly relevant for time-critical IoT applications such as autonomous vehicles, industrial automation or smart healthcare. The comprehensive 5G infrastructure also ensures reliable connectivity in highly dynamic environments.
• LoRaWAN stands for Long Range Wide Area Network and offers licence-free, energy-saving radio technology. The LoRaWAN network allows networking over long distances with minimal energy consumption. Typical areas of use include smart cities, agriculture or industrial IoT projects with many decentralised sensors.
• Sigfox is another independent network developed specifically for the Internet of Things. The Sigfox network focuses on transmitting small amounts of data with extremely low energy usage. In both urban and rural areas, devices can communicate over many kilometres without relying on traditional mobile infrastructure.
• Satellite communication enables global IoT connectivity, independent of terrestrial networks. Especially in remote or hard-to-reach areas, such as offshore monitoring, global tracking or disaster response, satellite communication offers a reliable alternative. Modern IoT satellite solutions are increasingly energy-efficient and suitable for transmitting small amounts of data over long distances.

The following overview of the most important network technologies shows which solution is suitable for which application scenario:

Depending on the requirement, application and location, different technologies may be appropriate. Several criteria play a central role, which companies should consider during planning: 

• Energy consumption: Many IoT devices are battery-powered and are expected to operate as long as possible without maintenance. Technologies such as NB-IoT or LoRaWAN are designed to be particularly energy-efficient. Anyone wishing to deploy sensors in the field for several years should look for low energy usage.
• Range and building penetration: Not every network is suitable for every environment. NB-IoT excels with excellent building penetration, making it especially suitable for use in underground car parks, basements or industrial halls. LoRaWAN offers longer ranges, but is more dependent on local network infrastructure. Satellite communication, on the other hand, enables worldwide coverage, ideal for IoT applications in remote or hard-to-reach regions.
• Data rate and latency: Some applications such as condition monitoring, or tracking require only small data volumes and can rely on energy-optimised transmission. Others, such as mobile payment systems or vehicle communication, require higher bandwidths and lower latencies. LTE-M or 5G is often the better choice here.
• Security: Only with consistent data security and robust network protection can IoT solutions be operated reliably and scalably. Standardised mobile technologies such as NB-IoT or LTE-M offer particularly high security mechanisms through proven encryption procedures and comprehensive network integration. 5G also comes with advanced security concepts such as network slicing.
• Costs: In addition to the acquisition costs of the modules, operating and maintenance costs should also be considered. Network technologies like Sigfox or LoRaWAN score with low fixed costs, while mobile solutions often offer scalable tariffs and worldwide availability. Satellite communication is generally more cost-intensive, but can make economic sense in certain scenarios due to its nationwide access. 
• Infrastructure and integration: Companies should check whether existing infrastructure can be used or whether a separate network needs to be set up. Telekom offers access to powerful IoT networks with its solutions, enabling easy integration and professional management.

The choice of the right network technology should always be based on the specific use case. A careful alignment of requirements with the features of each network helps make investments future-proof.

The diversity of IoT networks opens up numerous new opportunities for companies. At the same time, they face the challenge of finding the right solution for their individual requirements. It is crucial not only to pay attention to technical parameters, but always to consider the entire lifecycle of a project. There is no single best IoT network – only the technology that best fits the specific goal. A precise analysis of the application case and careful planning form the basis for long-term successful projects.