In the early days, Narrowband IoT (NB-IoT) was touted as the ultimate low-cost, low-power solution that would upend the IoT connectivity market for good. Offering reliable indoor coverage and minimal power consumption, it promised massive-scale deployments across essential products such as smart meters, environmental sensors and asset-tracking devices — critical for a developing technological world. Yet, NB-IoT’s rapid decline in popularity, coupled with the operator pivot toward LTE, 5G and satellite connectivity, has spotlighted significant challenges for Narrowband IoT — an issue that has predominantly overshadowed its once sky-high potential.
The initial allure of NB-IoT
In the beginning, NB-IoT had emerged as the ultimate “game-changer” for devices whose prime purpose was in sending small amounts of data. It boasted extended battery life and quick integration into any existing cellular infrastructure. It was hailed as cost-effective with broad coverage and was seen to be ideally suited to the IoT demands of dense urban areas and remote environments.
Yet, while markets like China aggressively and successfully adopted NB-IoT, its uptake globally quickly stagnated. According to Eseye’s 2025 IoT & Telecom Predictions — a global review of IoT trends — it has become clear most Mobile Network Operators (MNOs) are keen to sidestep NB-IoT in favour of more robust solutions for the future.
Why NB-IoT’s glow faded
- Limited Global Adoption: Patchy regional deployments created notable fragmentation. Without universal adoption, NB-IoT could never achieve the critical mass required for a seamless global footprint.
- High Infrastructure Costs: Contrary to initial expectations, rolling out NB-IoT has proven more expensive than anticipated and in turn, this has slowed any return on investment and deterring operators in need of profit and growth.
- Profitability Concerns: The real challenge lies in the economics. MNOs are in the business of profitability, and NB-IoT simply does not deliver the returns they need.
- Interoperability Headaches: NB-IoT has struggled to integrate seamlessly with other IoT technologies, limiting practical use cases and eroding any competitive edge in an already overcrowded market.
The shift toward LTE, 5G and satellite
It would have been a challenge for businesses if they had persevered with the shortcomings of NB-IoT. So, instead of attempting to wrestle with its limitations, operators are now gravitating to LTE, 5G and satellite connectivity, each offering some clear advantages over NB-IoT:
- LTE and 5G: Offers much higher data rates, lower latency and strong interoperability. These technologies have the capability to handle diverse IoT applications, from real-time analytics to high-bandwidth scenarios, offering much more scalable, future-proof paths for operators.
- Satellite Connectivity: This is critical for remote or underserved regions and providing global coverage for IoT agriculture, logistics, or environmental monitoring on a global scale. Satellite networks also offer resilience during terrestrial outages, ensuring continual data transfer at any given time.
Economic sustainability: The deal-breaker
The key takeaway from all the technical innovations in IoT is that economic viability remains the linchpin of success. Many MNOs found NB-IoT’s high overhead and patchy global presence less than convincing. Even the most technically sound protocol needs a completely sustainable, ROI-friendly model—or face a swift exit from widespread adoption.
An expert perspective and the path forward
It is clear we are seeing the connectivity landscape evolving around multi-operator eSIM orchestration and cloud-based SaaS platforms; all capable of coordinating LTE, 5G and satellite links seamlessly. It is an approach that offers MNOs the versatility to meet enterprise customers’ global coverage demands thus solving the traditional in-country roaming woes that have dogged NB-IoT for far too long.
By minimising integration friction and providing near 100% connectivity across more than 800 networks, these next-gen solutions maintain the agility operators need to stay competitive in a market that demands — above all else — robust reliability, meaning consistent and dependable service and cost-effectiveness, meaning the ability to deliver value for money.
NB-IoT’s decline has truly underscored one vital lesson for IoT stakeholders and that is innovation alone isn’t enough. If a technology isn’t able to achieve scalability and profitability, then operators will inevitably turn to more flexible, resilient and future-ready alternatives as we have seen with the shift to LTE, 5G and satellite connectivity for the future.
