Appendix C

CCost model

10 min read · 16 figures · 8 tables · 37 sources

We built our own cost model for the cost per device in Section 3. It uses only the public list prices valid at the time of publication, plus a few assumptions.

C.1 Model assumptions

We set the radio, data traffic, security hardware and update service per archetype by design rather than measuring them (Table 23). The base case assumes 10,000 units over 60 months. We convert prices in USD and CHF at the ECB reference rates of 15 October 2026, €1 = USD 1.1208 = CHF 0.9305.137 Prices exclude VAT where the vendor says so. Most B2B price lists do not say.

For components we take the highest quantity break that DigiKey publishes (500 to 5,000 units), not from a negotiated price for 10,000 units. Contract prices for an order of that size are usually lower. The hardware lines are therefore an upper bound. We neither discount nor inflate, count staff time only inside the Commission’s per-product estimates, and cost the Data Act per company rather than per device.

Archetype Radio and path to the cloud Data traffic per device Security hardware Update service
Battery tool with BLE tracker BLE SoC, relayed by the user’s app or a site gateway 20 messages a day, 60 minutes a day connected ATECC608B Trust&GO, pre-provisioned Golioth
Machine with gateway LTE Cat-1, IoT SIM with 100 MB a month one message every 10 s, always connected TPM 2.0 SLB9672 AWS IoT Device Management, 12 jobs a year
Building device under § 14a EnWG Wi-Fi via the customer’s network one message a minute, always connected SE050 Golioth
Logistics tracker for assets, containers and trailers LTE-M/NB-IoT with GNSS, power saving mode 24 messages a day, 30 cloud location fixes a month STSAFE-A110 Golioth
Table 23: Model assumptions by archetype

Note: messages of at most 5 KB. Source: RUBINLAKE cost model.

C.2 Measured list prices

Cellular tariffs span the widest range of any input, from €10 per SIM for ten years with o2 to €2.07 per SIM and month with Telekom.97, 381

Connectivity tariffs. DACH IoT tariffs follow three pricing models:

  • One-off packages for the device’s life. 1NCE IoT Lifetime Flat: €12 per SIM for 500 MB and 250 SMS over ten years. A top-up of the same size also costs €12 net.3 o2 Business Easy IoT (Telefónica): €10 net per SIM for ten years with 750 MB (world), 1,000 MB (Europe) or 1,500 MB (Germany), no minimum order, business customers based in Germany only.381 Telekom IoT Business LPWA: €14.50 one-off per SIM for ten years with 6.5 MB a month in Europe over NB-IoT and LTE-M.96 Magenta (Austria): IoT Tarif 5 at €9.99 for 60 months (6.5 MB) and IoT Tarif 10 at €18.99 for 120 months (8.33 MB), minimum 10 SIMs.256
  • Monthly fees per SIM. Telekom IoT Business Classic: €2.07 a month per SIM with 100 MB, minimum 10 SIMs and 12 months.97 The tariff family starts at €1.43.96 Swisscom CMP Mobile Lite: from CHF 1.00 per SIM, CHF 69 activation, no roaming.376 Sunrise IoT Starter Services, at their launch in June 2022: CHF 1.50 to 9.00 per SIM per month for 2 MB to 5 GB, plus CHF 205 one-off, minimum 12 months.370
  • Usage-based pricing. Onomondo: data from €0.0025 per MB, plan fees on request.310

LPWAN and satellite.

  • The Things Stack Cloud: Standard plan €190 a month including a licence for 1,000 end devices, or €0.19 per device. The plan covers the network server only, without gateways or roaming.385
  • Swisscom LPN: LoRaWAN connectivity at CHF 1.00 per device on the Lite plan, or from CHF 0.45 on the Smart plan with a CHF 49 monthly platform fee.376
  • Myriota: satellite plans from USD 0.99 per device per month.274

Cloud. AWS IoT Core in Frankfurt:15

  • USD 0.096 per million connection minutes
  • USD 1.20 per million messages for the first billion a month, metered in 5 KB increments
  • USD 0.18 per million rules triggered and the same again per million actions
  • USD 1.50 per million shadow and registry operations
  • USD 0.001 per location fix

Azure IoT Hub, per unit and month, messages metered in 4 KB blocks on paid tiers:266

  • S1: USD 25 for 400,000 messages a day
  • S2: USD 250 for 6 million messages a day
  • S3: USD 2,500 for 300 million messages a day

At 8,640 messages per machine and day, 10,000 machines fit in one S3 unit. That is USD 0.25 per device per month against USD 0.41 on AWS.15, 266 For the other three archetypes both clouds cost under €0.07 a month.

Device management and OTA.

  • Golioth: USD 0.25 per active device per month, no platform tiers.199
  • AWS IoT Device Management: USD 0.003 per remote action (job), USD 2.25 per million index updates, USD 1.00 per secure tunnel.16
  • Azure Device Update: USD 0.07 per device per month plus USD 70 per instance.266
  • nRF Cloud: from USD 0.10 per device per month.285
  • balena: Production plan USD 1,439 a month for 110 devices, plus USD 2 per additional device.28
  • Mender: USD 291 a month for up to 250 devices, fleets above 2,000 devices on request.292
  • Memfault: from USD 3,495 a month for 1,000 monthly active devices.260

PKI and SBOM. AWS Private CA:19

  • USD 400 per CA per month in general-purpose mode, or USD 50 in short-lived certificate mode
  • certificates at USD 0.75 each for the first 1,000, USD 0.35 up to 10,000 and USD 0.001 above

We use a pre-provisioned Trust&GO part in place of a factory provisioning service where such a part is on sale. OWASP Dependency-Track is free.321 FOSSA Business costs USD 20 per project per month, and the vendor’s example plan comes to USD 207 a month.189 Snyk Team starts at USD 25 a month.363

C.3 Line items per archetype

The machine’s cellular tariff, at €2.07 per device per month, is the largest single line in any archetype.97 The monthly figures add each one-off cost divided by 60 to the recurring fees.

For the battery tool, the premium is almost the whole cost (Table 24).

Line item Category One-off per device (EUR) Monthly per device (EUR)
BLE SoC nRF54L15, USD 2.40 at 3,000110 base 2.14 0.036
Connectivity via app or site gateway (assumption) base 0 0
AWS IoT Core: messages, connection, shadow15 base 0 0.001
ATECC608B Trust&GO, USD 1.91 at 100108 premium 1.70 0.028
Device certificate and CA share19 premium 0.35 0.041
Signed OTA, Golioth199 premium 0 0.223
Per-product compliance block (Table 28) premium 7.37 0.175
Base cost 0.037
Security premium 0.468
Table 24: Line items: battery tool

Note: rows may not add up because of rounding. Source: RUBINLAKE cost model.

For the machine, the cellular tariff is two thirds of the cost (Table 25).

Line item Category One-off per device (EUR) Monthly per device (EUR)
LTE Cat-1 Quectel EG915U, USD 17.61 at 500113 base 15.71 0.262
Telekom IoT Business Classic, 100 MB97 base 0 2.070
AWS IoT Core: 259,200 messages a month, rules, shadow15 base 0 0.366
TPM 2.0 SLB9672, USD 2.19 at 5,000107 premium 1.95 0.032
Device certificate and CA share19 premium 0.35 0.041
Signed OTA, jobs, fleet index, tunnels16 premium 0 0.153
Per-product compliance block (Table 28) premium 7.37 0.175
Base cost 2.698
Security premium 0.401
Table 25: Line items: machine

Note: rows may not add up because of rounding. Source: RUBINLAKE cost model.

For the building device, signed OTA is the largest line (Table 26).

Line item Category One-off per device (EUR) Monthly per device (EUR)
Wi-Fi 6/BLE module ESP32-C6-WROOM-1, USD 3.13 at 650106 base 2.79 0.047
Connectivity via the customer’s network (assumption) base 0 0
AWS IoT Core: 43,200 messages a month, rules, shadow15 base 0 0.064
Secure element SE050C2, USD 2.87 at 3,000112 premium 2.56 0.043
Device certificate and CA share19 premium 0.35 0.041
Signed OTA, Golioth199 premium 0 0.223
Per-product compliance block (Table 28) premium 7.37 0.175
Base cost 0.111
Security premium 0.482
Table 26: Line items: building device

Note: rows may not add up because of rounding. Source: RUBINLAKE cost model.

For the logistics tracker, radio and SIM are half the cost (Table 27).

Line item Category One-off per device (EUR) Monthly per device (EUR)
LTE-M/NB-IoT and GNSS nRF9151, USD 17.46 at 500111 base 15.58 0.260
1NCE Lifetime Flat (€12) and chip SIM (€2.50)3 base 14.50 0.242
AWS IoT Core and 30 location fixes a month15 base 0 0.028
Secure element STSAFE-A110, USD 1.27 at 5,000114 premium 1.13 0.019
Device certificate and CA share19 premium 0.35 0.041
Signed OTA, Golioth199 premium 0 0.223
Per-product compliance block (Table 28) premium 7.37 0.175
Base cost 0.529
Security premium 0.458
Table 27: Line items: logistics tracker

Note: rows may not add up because of rounding. Source: RUBINLAKE cost model.

The tracker uses about 1 MB a month. The 1NCE package allows 8.3 MB a month over five years and so lasts the device’s life.3 The battery tool and the building device carry no SIM. Their base cost is the radio chip and the cloud traffic.

C.4 Per-product compliance block

In our model the compliance block costs €104,781 per product over five years and is the same for all four archetypes (Table 28). We take the Commission’s per-product CRA estimates in full.144 For secure development we use 30.5 %, the Commission’s central value from a range of 19 to 42 % in its model.144 The Commission puts recurring testing at €3,000 to 5,000 per product without a period. We take the midpoint, €4,000, as a yearly cost.144 For tooling we assume one FOSSA Business subscription, paid for by a single product line.189

Cost item Per product (EUR) Per device per month (EUR)
Secure development (+30.5 % of €140,000) 42,700 0.071
Documentation, declaration of conformity, CE marking, reporting 12,600 0.021
Conformity assessment (self-assessment) 18,400 0.031
Recurring testing, €4,000 a year for 5 years (assumption) 20,000 0.033
SBOM and vulnerability tooling, USD 207 a month for 5 years 11,081 0.018
Total 104,781 0.175
Table 28: CRA compliance cost per product

Note: rows may not add up to the total because of rounding. Sources: RUBINLAKE cost model; [144, 189].

C.5 Conformity assessment fees

Notified bodies rarely publish fees. The one public offer is an EU-type examination by LCIE (notified body 0081), offered through Serma Safety & Security from €3,900.359 It lies below every Commission estimate of third-party assessment140, 144, 410 (Table 29).

Provider or estimate Service or product type Type of figure Amount (EUR)
Serma Safety & Security359 EU-type examination by LCIE published offer, from 3,900
Serma Safety & Security359 Gap analysis against EN 18031 or ETSI EN 303 645 published offer, from 3,750
Serma Safety & Security359 Gap analysis with intrusion testing published offer, from 13,500
RED impact assessment140 Third-party testing, simple products estimate per model 5,000-15,000
RED impact assessment140 Third-party testing, complex products estimate per model 20,000-30,000
RED impact assessment140 Third-party testing, heavily software-dependent equipment estimate per model 50,000+
CRA support study, 2021410 Third-party assessment estimate 15,000-50,000
CRA impact assessment144 Self-assessment (base case of our model) estimate 18,400
CRA impact assessment144 Third-party assessment (sensitivity case of our model) estimate 25,000
Table 29: Conformity assessment fees

Per unit sold, the Commission puts third-party testing under the RED at €3 to 13 for a connected lawnmower and €0.35 for a router.140 Third-party assessment at €25,000 and €50,000 raises the premium by €0.01 and €0.05 per device per month respectively (Table 30).

C.6 Sensitivity

Fleet size moves the premium more than any other input. The assessment route changes it by cents. The radio leaves it unchanged and moves only the base cost (Table 30).

Case (EUR per device per month) Battery tool Machine Building device Logistics tracker
Premium, 10,000 units (base case) 0.47 0.40 0.48 0.46
Premium, 1,000 units 2.37 2.30 2.38 2.36
Premium, 100,000 units 0.27 0.21 0.29 0.26
Premium, third-party assessment at €25,000144 0.48 0.41 0.49 0.47
Premium, third-party assessment at €50,000140 0.52 0.45 0.53 0.51
Premium, half of secure development already in place144 0.43 0.37 0.45 0.42
Base cost, base case 0.04 2.70 0.11 0.53
Base cost, Swisscom CMP Mobile Lite instead of Telekom376 n/a 1.70 n/a n/a
Base cost, nRF9151 and Telekom LPWA instead of Wi-Fi96 n/a n/a 0.57 n/a
Base cost, LoRaWAN on The Things Stack instead of LTE-M109, 115, 385 n/a n/a n/a 0.52
Base cost, Myriota plan added to LTE-M, modem not priced274 n/a n/a n/a 1.41
Table 30: Sensitivity of premium and base cost

Source: RUBINLAKE cost model.

The Swisscom case leaves out the CHF 69 activation fee and covers no roaming.376 In the LoRaWAN case we price a Murata Type 1SJ module at USD 11.11 and a u-blox MAX-M10S at USD 9.33, both at DigiKey, plus €0.19 a month for the network server.109, 115, 385

Sources in this chapter37

Numbered as in the full reference list and the PDF.

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Contents

Report overview
  1. 1Deadlines and scope
  2. 2Device requirements
  3. 3Cost per device
  4. 4Technology and architecture
  5. 5Spotlight: logistics tracking
  6. 6Spotlight: Austria and Switzerland
  7. 7Vendor landscape
  8. 8Recommendations
  9. AMethod
  10. BLegal basis
  11. CCost model
  12. DVendor directory
  13. EFunding programmes
  14. About RUBINLAKE
  15. Disclaimer
  16. References