You are probably already familiar with some of the most popular smart home and wearable devices around now, such as Google Home, Amazon Echo, or the Apple Watch — all great examples of how IoT is being used in our daily lives.

NB-IoT vs GSM: What’s the Best?

As IoT technology continues to weave itself into our daily routines, the number of connected devices is set to grow rapidly, from fridges and cameras to clothing and even pet doors.

One of the most exciting and fast-growing areas for IoT applications is the bicycle industry. With rising demand for smarter, safer, and more connected mobility, both new bicycles and e-bikes are increasingly built with integrated connectivity. At the same time, there’s growing momentum behind retrofitting existing bikes with smart modules that connect seamlessly with software platforms, enhancing both functionality and rider experience.

Smart bicycles offer tangible benefits for riders, manufacturers, retailers, and even city infrastructure, from better security and maintenance tracking to improved fleet management and user engagement.

But behind every connected bike lies a fundamental technology decision: NB-IoT or GSM? Let’s explore how the two compare — and why the choice matters.

NB-IoT (Narrowband Internet of Things) is often presented as the natural evolution of GSM (Global System for Mobile Communications) — and it does bring advantages. Its lower power consumption can extend battery life, and its 20dB signal gain can, in theory, improve indoor reception (as long as the building isn’t made of metal).

These technical strengths have attracted significant investment from European network operators, who are positioning NB-IoT as the next big leap in connectivity. But while the promise is real, there are a few important caveats that are often overlooked.

The coverage of NB-IoT networks is not as good as GSM in Europe. It might be OK in the major cities, however, the signal is not guaranteed in out-of-city areas and some countries. Here is the deployment map of NB-IoT.

(1.0) Image source: https://www.gsma.com/iot/deployment-map/#deployments
(1.1) Image source: https://www.europa.uk.com/gsm-world-coverage-map-2009/

NB-IoT networks face significant challenges when the device is in motion. As the device travels, it must continuously reselect the nearest cell, often resulting in poor signal quality and delayed connectivity. In our road tests, it sometimes took several minutes for an NB-IoT device to re-establish a connection after moving between areas.

This is largely because NB-IoT was never intended for mobile use. It performs well in static applications such as smart meters, fire alarms, and traffic lights—devices that remain fixed in one location.

GSM, by contrast, was specifically designed for mobility. It enables seamless handovers between cells, ensuring a stable and reliable connection while on the move. This makes GSM a far better fit for use in bicycles and e-bikes, where continuous connectivity is essential.

NB-IoT modules are much more expensive than GSM ones. The price will drop when more NB-IoT devices are available in the market, but for the moment, you are paying a premium without any additional value.

An advantage of NB-IoT is that it has two working conditions: low-frequency usage and high-frequency usage. In low-frequency usage, the power consumption will be less, but as most cyclists are using their bike daily or 2/3 times per week, this mode will rarely be activated, so the benefit is not realised. In high-frequency usage (which will be the norm for most cyclists), the power consumption is similar to GSM.

So, in summary, if you need to track or manage your moving devices, such as bicycles, you will need the connectivity outside the cities, and it must be a stable connection while moving. This is why we believe GSM is the solution for cyclists at the present time.
However, if you want to future-proof your ride and ensure you are getting maximum benefit from your smart bike, then it makes sense to have a device with both GSM and NB-IoT, ensuring your bicycle has the most stable connection in every eventuality from tackling wild terrain, the urban commute or resting up at the bike rack.