This document describes a low-cost IoT application to monitor urban traffic using wireless sensors and GSM technology. The system aims to address issues like traffic congestion, accidents, pollution and fuel consumption. It implements a distributed multilayer model using Arduino boards, laser sensors and a GSM module. Real-time traffic data is collected and stored in a database. Data mining techniques are then applied using the Pentaho platform to analyze traffic trends and patterns under different conditions. Functional and unit testing was performed to validate the system. The results from the deployment provide valuable traffic insights to help address congestion problems.