Creative Connectivity

Smart Meters and Fake Headlines

Last month I wrote about an advert from Smart Energy GB promoting the current smart metering programme. The headline was that by having a smart meter installed you could save enough energy to charge your mobile phone for 177 years. It’s a good headline to attract people’s attention, but it seemed high. I was intrigued and decided to try and work out where that number had come from? I found that the calculation was riddled with mistakes and that a more realistic analysis showed that the saving was equivalent to charging it for just 17 years. I’ve since realised that even that figure was optimistic and in fact it’s just 16 years.

A reader kindly informed me that Smart Energy GB has produced a wider series of these adverts and have published how they calculated the claims. They obviously think they understand what they’re doing, as they’ve put the basis of their calculations on their website. (In case they change them after reading this, I’ve archived the version that was on their website when I wrote this article at http://bit.ly/dumbenergyGB.) Their webpage explains the workings behind seven adverts and in every single case they’ve got their calculations wrong. The mistakes range from a failure to understand how battery charging works, an inability to calculate percentages, getting formulas wrong, misreading much of their source data, including mistaking 2 x 12 for 212, not understanding the context of their source data or realising that electricity and gas have markedly different prices.

Most of the adverts overestimated the savings, but a few underestimated them. So, there was probably no deliberate attempt to mislead. Just an unbelievable level of incompetence. But we mustn’t fall into believing this type of fake data. Once we stop questioning, we set the scene for Orwellian manipulation.

Telling Lies about Smart Meters

What do you do when your smart metering plan isn’t working? Looking at the efforts of Smart Energy GB, who are tasked with persuading the nation to install 50 million smart meters which aren’t really fit for purpose you do two things:

You ask the Government to double your funding with an additional £95 million of public money. Then…
You spend it on inaccurate adverts.

The particular advert I’m talking about demonstrates one of two things – either that Smart Energy GB are lying through their teeth, or they can’t add up. Although given the sad history of this program, there’s a fair chance it could be both.

British Smart Meters cost £28 million EACH

That’s right. Britain’s smart meters are now officially the most expensive smart meters in the world. For those of you who have not been following the story, let me provide a brief précis. Back in 2010 the Government mandated that every home in Britain should have a smart gas and a smart electricity meter by 2020. Instead of using off the shelf smart meters, they decided to design their own. DECC worked with some vested industry interests to do a classic Government IT committee job, producing the most complex smart meter specification the world has seen. That design was called SMETS1 – short for Smart Metering Equipment Technical Specification. Not only was it the most expensive, but it was also insecure. When GCHQ looked at it and considered the potential implications of connecting it to our national infrastructure they demanded a redesign, resulting in the SMETS2 specification. SMETS1 meters look as if they won’t work with the SMETS2 software infrastructure, so any SMETS1 meters already installed will probably need to be replaced. Throughout this fiasco, the Government has not relaxed its requirements for every home to have a smart meter fitted by 2020, which means fitting around 50 million new meters.

Which brings us to today. The SMETS2 meters are enormously complex and are pushing the limits of the industry to design them. With the 2020 deadline barely 30 months away you’d hope that the bulk of them would be fitted by now. But I’ve just been talking to contacts in the industry who have told me that currently there are only around 80 SMETS2 meters fitted. Do the sums based on what has been spent so far on the GB smart Metering programme and you’ll find that it equates to around £28 million for each of these meters. It is an obscene example of a Government IT project going wrong. But it gets worse. Not only will the overall project cost consumers around £12 billion, it has the potential to destroy Britain’s leading position in the development of the Internet of Things. It also seems to be exerting a curse on any Government minister involved in the project, with Amber Rudd, our former Minister for Technical Illiteracy the latest to feel its effect.

13 Companies announce NB-IoT Chips

If history is anything to go by, it’s going to be unlucky for some, but it’s an indication of the momentum which is growing around cellular IoT that so many chip companies have jumped on the bandwagon.

It’s not cheap to develop a cellular chip, even one that is moderately simple, such as is the case with the NB-IoT standard. Back in 2012, when I wrote about the cost of developing wireless standards, I put it at around $6 million for each chip and protocol stack. That was looking at Bluetooth and Wi-Fi. With the additional complexity of any cellular standard, along with network interoperability testing, it becomes far more expensive, as you need to test with as many operators as possible. Hence the development cost to get a chip and stack to market is probably at least $15 million.

With thirteen different companies bringing chips to market, that’s an investment of around $200 million. Some of these have tried to cut their development time by acquiring start-ups which were already some way down the route. Sony purchased Altair, Huawei bought Neul, ARM bought NextG-Com and Mistbase, Goodix acquired CommSolid, while Nordic Semiconductor picked up around 60 engineers in Finland’s Oulu. We don’t know how much they spent on these acquisitions, but it’s probably well over $200 million. Add to that the costs of the standardisation process, infrastructure development and initial market trials and it’s clear that somewhere between $500 million and $1 billion has already been spent on getting NB-IoT to the point where it is today. That’s a level of investment that should be worrying competing standards like LoRa and Sigfox, as the NB-IoT companies will do all they can to recoup their investment.

Four Highlights from MWC2018

For anyone involved with mobile phones, networks or the IoT, the Mobile World Congress in Barcelona is the place to be in February. Over four days, the industry reveals its latest and fanciest ideas in the ongoing evolution of mobile telephony. It is vast. This year around 2,300 companies were exhibiting, several with stands large enough to fit a passenger jet in; over 100,000 visitors were wandering around it, including senior politicians and royalty and the organising industry body – the GSMA (God Save Mobile Analysts) probably raked in around $100 million in revenue. Which is more than some of the sectors it is promoting will make this year.

It’s not a show famed for radical new technology. Unlike CES, which gives us technical wonders like the selfie stick, MWC is about gradual evolution. But that is gradual evolution of a very, very successful industry – one that likes to take the annual opportunity to convene in Barcelona and flaunt its success.

So what was new? For me, there were four things which stood out. That might feel minor, but when you’re trying to predict the future, it’s difficult to judge. These are the ripples and butterflies that could bring massive change. No-one in the industry thought SMS and messaging would take off. But they were happy to bet on WAP as the mobile internet, which only goes to prove you should never believe an analyst or futurologist. So here’s my choice of four things which took my fancy.

What’s next for AirPods?

There’s growing speculation that Apple will be launching their next generation of AirPods sometime this year, so I thought it would be interesting to try to predict what might be in their next generation of earbuds. The hearables market is moving very quickly and there’s no shortage of technology for Apple to choose from. But the AirPods are a little different to anything else that Apple has ever brought to market.

The biggest difference is the way it has changed their development model. Historically, Apple is a follower. They don’t invent product categories – they wait for other major companies to create the market, then come in with a slicker product which delights customers. They concentrate on everything which is needed for people to feel that Apple invented the experience. After that, they create clear water between themselves and their competitors by constantly increasing the level of delight. The AirPod is arguably the first product where Apple have made the market themselves. There was a smattering of crowdfunded earbuds before the AirPods were announced, but they were only shipping in tens of thousands. In contrast, AirPods are shipping in the millions. For once, Apple wasn’t competing with established industry giants, but small, often poorly funded startups. That’s what makes the question of what might be in an AirPod 2 or AirPod 3 so interesting.