Following China Telecom's announcement regarding its ambitious strategic layout for the LTE Internet of Things, China Mobile, as the world’s largest mobile telecommunications operator, has decided to roll out narrow-band IoT under the guidance of national policies and the company's "Big Connectivity" strategy.
Last week, China Mobile officially began its related collection efforts. According to China Mobile's "Cellular Internet of Things Engineering Wireless and Core Network Equipment Design and Research and Development," the total project amount is 39.5 billion yuan. C114 reports that China Mobile anticipates the total base station construction scale to surpass 400,000 within two years, with overall investment exceeding 40 billion yuan. Specifically, 145,000 new stations will be constructed in 2017, with an investment scale of approximately 10 billion yuan. Both the wireless network and core network will see significant investments.
At this year's MWC Shanghai, China Mobile Vice President Sha Yuejia announced plans to initiate mobile IoT construction across 346 cities nationwide. By the end of the year, some key cities will be commercially available, and the number of smart IoT connections will increase by 100 million households.
Industry insiders noted that while China Mobile may have started later than China Telecom, the maturity of the entire industry chain, particularly the cost of chips and modules, means the LTE Internet of Things will see a true explosion next year, positioning China Mobile well. Given that China Mobile plans to deploy the network at 900 MHz, 400,000 sites will be sufficient for full network coverage.
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This is a fitting commentary on the actions of the three major domestic operators regarding the LTE Internet of Things. In June this year, the Ministry of Industry and Information Technology officially issued the "Notice on Promoting the Construction and Development of Mobile Internet of Things (NB-IoT)," allowing operators to deploy NB-IoT systems in the allocated IMT system bands of GSM or FDD mode. China Mobile has untied its constraints.
Under the combined effects of various factors, China Mobile timely adjusted its strategic direction. Although the annual capital expenditure remains at 176 billion yuan, investment in NB-IoT has significantly increased.
Recently, China Mobile released a collection for narrow-band IoT antennas for 2017-2018, with an estimated total of 1.11 million faces. These purchases include narrow-band IoT antennas (single-frequency 900 MHz) and narrow-band IoT antennas (dual-band 900/1800 MHz). Additionally, China Mobile launched the 2017-2018 cellular IoT project wireless and core network equipment design and feasibility study collection, with estimated project costs reaching 39.5 billion yuan. Furthermore, China Mobile also initiated related network survey procurement, involving amounts reaching 1.56 billion.
Local mobile operators are moving even faster on NB-IoT than the group. For instance, in May of this year, Zhejiang Mobile launched the "IoT Action," planning to invest 2 billion yuan in network construction funds, establishing two laboratories, investing 50 million yuan in IoT terminal subsidies, and building an IoT cloud platform. They aim to support 100 partners. By the end of June, the number of Zhejiang Mobile NB-IoT base stations had surpassed 1,000.
While China Mobile's current focus is on NB-IoT, NB-IoT is not the entirety of China Mobile's narrowband IoT.
Some brokers pointed out that China Mobile has been hesitant in deploying NB-IoT, primarily due to considerations of "investment returns." However, under the guidance of national policies and the company's "Big Connectivity" strategy, they finally decided to launch NB-IoT in May this year. Not only NB-IoT, but NB-IoT is deployed first, with LTE FDD and eMTC capabilities synchronized. NB-IoT and FDD are planned in unison, meeting the requirements of converged networks while allocating investments. Sha Yuejia also clarified that China Mobile is committed to simultaneously promoting the coordinated development of NB-IoT and eMTC, achieving complementary technologies and industrial progress.
"Full-Scale Advancement: Accelerating the Maturation of the NB-IoT Industry Chain"
Currently, the costs of NB-IoT and eMTC remain higher than those of other IoT connections. However, with the influx of large sums of money and the arrival of the large-scale commercial period, the price of NB-IoT is gradually decreasing, though it remains relatively high this year.
According to Lu Liangjun, Deputy General Manager of the Marketing Department of China Telecom Group, the NB-IoT industry chain is now mature and commercially viable, but the price is relatively high, with the module price (around 120 yuan) becoming a limiting factor; for NB-IoT, the initial phase is rapid, with strong industry support and high prices (70-100 yuan). In response to these issues, operators such as China Mobile and China Telecom are leveraging their industrial influence and capital advantages to invigorate the NB-IoT industry chain.
For example, in the field of chips, China Mobile has actively promoted the integration of software and hardware with the basic communication suite, thereby reducing the development cost and threshold for IoT applications. Companies like ZTE Microelectronics, Ziguang Zhanrui, and Haisi have released chip plans for the second half of 2017, supporting connectivity with China Mobile OneNET platform.
In the field of modules, to address fragmentation issues, China Mobile collaborated with vertical industries and module manufacturers to launch four universal modules. In terms of subsidies, China Mobile plans to conduct special subsidies and promotions. For the use of China Mobile IoT cards as transmission channels, contracts lasting more than one year, and products used by industry customers in China Mobile will receive subsidies of up to 50%.
In the field of main equipment, China Mobile launched the "Cellular Internet of Things Technology Test" earlier this year, with Datong Mobile testing in Lanzhou, Huawei in Hangzhou, ZTE in Guangzhou, Ericsson in Shanghai, and Nokia in Fuzhou. It is understood that from the test results, the main equipment tests were relatively satisfactory.
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