The Internet of Things Industry Facing Industry Standardization Challenges

The long-term development of the Internet of Things industry faces multiple challenges that need to be resolved. The Internet of Things lacks the theory, technology architecture, and standards system that converges the virtual network world and the real world in a unified framework. The first is the technical challenge. China has not mastered the core chip and sensor technology, and its technology is lagging behind. 80% of the chips also rely on imports. For example, the single-channel RFID system is backward and easy to interfere with. There are also standards that challenge market challenges.

In the past two years, because of its broad prospects, the Internet of Things has become an area of ​​future growth that governments of all countries have given great promise. China has listed the Internet of Things as an aspect of a strategic emerging industry. Local governments have also issued special industrial plans to lay out the development of the Internet of Things during the “12th Five-Year Plan” period. But is there really a legendary trillion-dollar market for the Internet of Things? “The Internet of Things will not become a service market that rivals the telecommunications industry in 10 years.” Wei Leping, director of the Science and Technology Committee of China Telecom Group, said at the 2011 China Wireless Network Integration Conference.

The “3 trillion US dollar market space” argument Raymond’s market space is an important basis for determining the strategic status of the Internet of Things, and is also an important cause of the current Internet of Things. However, Wei Leping believes that "the Internet of Things will not become a service market that rivals the telecommunications industry within 10 years." He said that there are currently some predictions about the Internet of Things market that are too exaggerated. The most commonly used reference in China is from Forrester in the United States: that is, the global Internet of Things market reached US$3 trillion in 2010, and will reach 30 times that of the telecommunications industry by 2020. It is 30 times bigger than the actual $100 billion market.

"But this is a too ridiculous and too indecisive forecast." Wei Leping analysis shows that from the number of connections, in 2010, the global 81.4 million, China's nearly 10 million, from the tens of billions of gaps is probably more than 10 years . From a revenue perspective, such a low ARPU (AverageRevenuePerUser per user average revenue) and such a small number of connections, the market outlook is not optimistic.

"Even in this limited market, the operator market is less than 1%, which is a hundred thousand miles away from the so-called tera-scale market space." Wei Le said flatly. Therefore, the Internet of Things will not become a public service market that rivals the telecommunications industry within 10 years. The key to the development of the Internet of Things is to be “very understandable and pragmatic.” At present, all countries in the world are government-driven IoT industries, rather than direct market drivers. From the perspective of a country’s economic development engine, informationization, energy conservation and environmental protection, many countries have given high priority and policy support to the development of the Internet of Things.

“However, the industry chain of the Internet of Things is complex and decentralized, and there is no single responsibility body.” Wei Leping said that the Internet of Things market is not only a niche minority, but also has strong professionalism, high professionalism, low concentration, and poor scale. Moreover, the standardization also lags behind and there is a lack of a unified standard system.

It is reported that because of the large number of industries involved in the Internet of Things, not only domestic and international standards organizations, but also many standards. Among them, only RFID has 30 international organizations out of 250 standards, and global light sensor more than 20,000 kinds. Therefore, professionalism and exclusiveness are too strong to make the Internet of Things public and public. These factors are not conducive to the rapid expansion of the Internet of Things market space.

Operators cannot dominate the IoT market and talk about the position of operators in the IoT industry chain. Weavers flatly stated that in the Internet of Things market, operators only accounted for 1% in the near future. It is impossible to become a leader, but only an intermediary role. However, it can be linked with the upstream and downstream, and coordinated.

Therefore, the operator's specific role positioning is only an integrator for the application of key industries in the Internet of Things. The niche profit market needs to focus on a number of key industries. Operators are also providers of the IoT communications pipeline, but they should focus on providing gateway-based smart pipelines. At the same time, operators are also the operators of the Internet of Things capability platform. Through the construction of the capability platform, it is not only limited to the IoT pipeline but also has the service provision capability of the Internet of Things business. The overall thinking of IoT business development is industry-based, key-cutting, effective input, and scale effect.

Wei Leping also elaborated on the Internet development strategy for the Internet of Things in the near future. It uses existing fixed, mobile, satellite and other network resources to support the recent development of the Internet of Things business. The network architecture remains basically unchanged. For some special high-value Internet of Things applications, the need can be met through network optimization and adaptation.

It is worth mentioning that long-term IoT network development should also be combined with next-generation network technologies such as FTTH, IPv6, and LTE to enhance the research on addresses, code numbers, spectrum, and security. With the expansion of the Internet of Things market and the increase in revenue, considering the network needs of certain special high-value applications, the scope, intensity, and depth of network transformation will be determined based on the principle of input-output.

Industry development faces many challenges. Regarding the future of the Internet of Things, Wei Leping said that if we consider from the perspective of time and time, the speed of the development of the Internet of Things depends on the orientation of the country’s macroeconomic policies and the strength of policy support, technological progress, the formation of industry chains, and collaboration. grow.

To achieve long-term development, there are currently multiple challenges that need to be resolved. The Internet of Things lacks the theory, technology architecture, and standards system that converges the virtual network world and the real world in a unified framework.

The first is the technical challenge. Wei Leping said that China has not mastered the core chip and sensor technology, and its technology is lagging behind. 80% of the chips also rely on imports. For example, the single-channel RFID system is behind, and it is easy to interfere.

The standard challenge can not be ignored. At present, there is a lack of a unified standard system, a low degree of standardization and poor interoperability. It involves a large number of international organizations and is difficult to coordinate.

In terms of market challenges, because the Internet of Things is in its infancy, the industry has a low level of informatization, high thresholds and barriers, high-end difficulties, and low-end revenues. The industrial chain is complex and decentralized. It is mainly a small profit niche market, with low concentration, instability, scale, and high cost. The business model is complicated.

“Exploring the business model of the Internet of Things is one of the keys to the successful development of the Internet of Things. To explore its mature business model, we should focus on M2M service providers and provide wholesale services, and avoid directly facing end users. Outside the field, it mainly depends on cooperation with M2M service providers to conduct business." Wei Leping believes.

Operators are good at one-to-one service relationships, namely one user, one terminal, and one bill. The nature of the Internet of Things is multi-point connectivity, and involves a wide range of terminals and a large number.

In addition, the development of the Internet of Things cannot bring negative, even threatening and harmful social, economic, political, military, cultural and personal privacy.

In response to these challenges, Wei Leping proposed the “Twelfth Five-Year” Internet of Things development strategy, which is to promote the construction of smart cities as the starting point for promoting the development of the Internet of Things. Through the scale application of animal networks in smart cities, promote the efficiency of urban management and serve the people's livelihood and promote the development of the entire industry chain.

Taking Vehicular Interconnect as an example, Vehicular Connect has developed 160,000 vehicles through its cooperation with GM and Toyota. It will focus on four research directions: vehicle-mounted communications products, in-vehicle navigation and information services, automotive entertainment, and mobile vehicle-mounted interactive products. Scaled promotion of mature IoT industry applications. Including energy information acquisition applications, wireless POS applications, vehicle intelligent scheduling management and real-time monitoring applications.