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THEME »» connecting machines »» china set to lead ▶ vendors from playing a dominant role in China, Wu says, adding that the government will probably back Chinese standards with regard to the Internet of Things as well. “So vendors should be proactively involved in the development of these Chinese standards from the beginning, in order to ensure their longterm success in the era of the Internet of Things,” she says. An indigenous Chinese approach to this market could strengthen China’s position in technology, particularly in contributing to international standardization bodies. In addition to the sensor technology center in Wuxi, the Ministry of Industry and Information recently collaborated with the local Wuxi government and Jiangsu Province to create a national r&d center devoted to the Internet of Things. Meanwhile, China Mobile, China Telecom and China Unicom have plunged into – and taken the lead in – the Internet of Things market. Wu says these companies are well-positioned to stay at the top of the value chain. “The operators regard the Internet of Things as a deep ocean of new growth opportunities,” she says. China’s largest operator, China Mobile, already counts 5 million machine-to-machine (m2m) terminals in its network – about 60 percent more than 2009, Wu says. The operator’s m2m offering is largely devoted to electric metering and automobile telematics. Che Wu Tong, a car telematics and locationbased application for vehicles, is China Mobile’s most widely used m2m service, enabling vehicle management and dispatch, location queries, route optimization and telephone ordering for an esti- 38 EBR #3 2010 TELECOM OPERATORS ARE leading the way toward an Internet of Things in China, and the Chinese government is considering speeding up the development. Yu Xiaohui, deputy chief engineer of China Academy of Telecommunication Research (catr) of the Ministry of Industry and Information Technology (miit) and the head of catr’s Economy and mated 1.1 million customers, including bus companies, taxi operators and express delivery companies. Chongqing Mobile is the base for parent company China Mobile’s m2m business and its capabilities will be upgraded to operate the platform for the entire network. To date, five provincial subsidiaries have set up their own m2m platforms, Wu says. Agriculture is another promising area for m2m communications, however small the scale may be at present, she says. China Mobile has piloted livestock tracking, which enables end-to-end traceability of meat to ensure food safety; as well as remote greenhouse monitoring, to ensure the right temperature, co2 concentration and humidity. By October 2009, as many as 80,000 terminals were involved in these trials. China Telecom has trialed m2m applications in dozens of industries, including transportation, energy and environmental sustainability. Some notable examples are the Toyota G-Book service and the General Motors OnStar service over the operator’s cmda network. The operator also has 17,000 m2m terminals involved in trials of a video surveillance system for oil storage and measurement, Wu says. In the financial sector, China Unicom has launched a service enabling customers to use handsets to make payments from their Bank of Communications account. “Operators have early-mover advantages,” Wu says. “Also, telecom operators are much more integrated – there are only three players – and therefore more influential than players in other sectors in China.” ● YU XIAOHUI: “M2M is only one part of a big picture” Policy Research Institute, says the Chinese government is exploring how the Internet of Things can raise living standards and improve industrial productivity in a “smart and green” way. What does the Internet of Things mean for China? In the past year the Chinese leadership has mentioned the Internet of Things on many occasions. Prime Minister Wen Jiabao has talked about it many times and President Hu Jintao has also talked about it. When we talk about the meaning of the Internet of Things, we have to put it in a
oader context of economic and social development, both internally and worldwide. We view the Internet of Things three ways. The first is that it is a very important part of the new generation of ict, which is one of seven emerging industries the government has decided to promote. The second aspect is closely related. The new generation of ict will be used to transform traditional industries, for example, to increase production efficiency and output with lower energy consumption. Thirdly, the Internet of Things will play an important role in raising the living standards of the Chinese people. It can be applied in medical care, education, safety and security management, as well as in environmental protection and urban development management. What about smart grid technology? I think the smart grid, via the Internet of Things, is important. Apart from smart grids we want to apply the Internet of Things in other industries as well. That’s what we call smart industry. Industry is where you see the most energy consumption and pollution. With Internet of Things, industries can be transformed to realize green development. Energy consumption and emissions can be greatly reduced. Will the Chinese government offer incentives to convert to intelligent technologies? It is hard to say what the policy will be, but I think, in general, the government will encourage our industries to carry out smart upgrades. This is also our main task for the future. The merging of information technologies and traditional industries is implied in the name of our ministry, the Ministry of Industry and Information Technology. We will complete this task. Is there a time plan for that? The application of the Internet of Things has started in China. But it has a complicated architecture, and it’s still in the explorative stage; that is, it has been applied in some industries – transport, medical care, energy grids and urban management. I think we still need an action plan and a strategic roadmap for the Internet of Things. The Internet of Things to some means m2m. You are talking about the internet being used to boost services. What are the differences between how you’re describing the Internet of Things and the m2m Internet of Things? For us the Internet of Things consists of three very important key factors: one is sensing and identification; the second is transmitting information via the interconnected networks; and the third is intelligent processing of information. I think m2m is a core part of the Internet of Things, but it doesn’t represent the whole concept. The difference between our view and others’ is that apart from realizing a communi- china set to lead «« connecting machines «« THEME cation between machines, there should be a human factor in this. Via the Internet of Things people should be able to identify and control the nature of the machines so that we can improve productivity and living standards. You mentioned agriculture – can you give us some examples of how the Internet of Things will benefit people’s lives in that sector? One example is food safety and security. Using rfid (radio-frequency identification) we could track the whole process of food distribution, from production to transportation to sales. We could guarantee the food quality this way. It can also be applied to the production process. A mobile network with sensors can be installed inside a greenhouse to enable monitoring and better control of temperature, humidity and other conditions. The development of the Internet of Things is going to put a huge load on the network infrastructure. What are your thoughts on that? I can offer some personal ideas about this. The development of the Internet of Things involves two parts: the infrastructure of telecommunications and the infrastructure of the internet. There should be both the sensory technology and the back-end platform for processing – for example, the infrastructure for cloud computing. With that in consideration, there should be a move to upgrade the network in order to meet m2m communication needs. We also need to utilize the Internet of Things to upgrade other infrastructure – for example, China’s transport network, the power grid and the water systems. ● ▶ EBR #3 2010 39
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Page 8 and 9: details JUST ONE QUESTION ...to Sam
Page 10 and 11: cover story Lucy Küng Basic facts
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