Cellular Connectivity for Modern Smart Metering
By Joe Braga
July 1, 2025
Estimated reading time: 4 minutes
Smart meters are Internet of Things (IoT) devices that transmit data through secure communication networks. Utility providers use them to optimize resource distribution.
They enable consumers to make informed, more efficient usage choices. Smart metering plays a crucial role in advancing smart grid systems worldwide.
The deployment of a smart meter requires a combination of technologies, which are dependent on:
While there is no one-size-fits-all solution, cellular is critical in most cases of smart metering.
Cellular technology connects a smart meter to electrical applications in two ways. In the first use case, it connects via cellular to the utility’s head-end system (HES). Integrating cellular technology into smart meters does not require a high data rate.
Most electricity meters utilize low-speed options like Cat M, Cat 1 and Cat 1 bis. Electricity smart meters don’t require high-speed cellular technology and can use low-speed options.
As with all smart metering applications, electricity meters are tolerant to latency. Low latency is preferred to prevent delays when receiving the metering data at the HES for more flexibility and future-proofing of the complete system.
If a smart meter doesn’t connect to the HES via cellular, it uses power line communication (PLC) or mesh technology. Cellular acts as a gateway, concentrator or router.
These routers require a higher data rate, like Cat 1 or Cat 4, to accommodate data from multiple devices. Cat 1 and Cat 1 bis are not high-speed options but are faster than Cat M and improve latency.
Electrical smart meter deployments often don’t get to choose between Cat M, Cat 1 or Cat 1 bis. Instead, available coverage is the deciding factor.
For example, smart meters in the UK must use Cat 1, a technology never designed for mass IoT use but as a reduced-cost alternative to Cat 3. The only available Cat M network in the UK doesn’t provide exhaustive coverage. Most deployments must choose Cat 1 or Cat 1 bis.
A primary difference between water and gas smart metering and electricity applications is power availability. Electricity smart meter deployments have abundant power. In contrast, water and gas meters operate with limited energy and rely on batteries. Due to this power constraint, most cellular water and gas smart meters rely on narrowband IoT (NB-IoT) for low-power consumption.
Water and gas smart meters must minimize energy consumption to preserve battery life over long deployment periods. NB-IoT allows them to:
Despite entering sleep mode, it remains connected and registered to the network. NB-IoT is ideal for managing simple data and meter readings in water and gas deployments. However, its higher latency makes it a less capable option for electricity applications.
Mobile network technology continues to evolve alongside smart meter connectivity.
Cat M offers a future-proof option as it is compatible with both 5G and LTE technologies. NB-IoT has a clear path forward, utilizing 5G New Radio (NR).
5G stand-alone (SA) is the global standard for pure 5G. It defines how devices communicate wirelessly with cell towers in a mode that involves only 5G and none of 4G LTE.
Cat 1 and Cat 1 bis have no 5G SA roadmap. Devices that use these technologies rely on LTE. Utilities must learn from network operators what their plans are for long-term support.
In the future, cellular smart meters can leverage 5G reduced capability (RedCap), more specifically, eRedCap. This is an attractive alternative for devices that don’t require the full capabilities of high-end 5G.
5G RedCap and eRedCap will be the low-power replacement for Cat 1 for IoT-enabled devices. While 3GPP Release (Rel) 17 is more expensive, eRedCap in Rel 18 will provide a step up from NB-IoT and Cat M. It will offer low-power features and speeds of around 10 megabits per second.
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