Internet of Things Builds the Future Life

The Internet of Things is considered as the third wave of changes in global information industry after computer and Internet.

On March 5, 2010, Chinese Premier Wen Jiabao for the first time suggested that importance be attached to the development of Internet of Things during the parliamentary sessions. Then, the Minister of Industry and Information Technology Li Yizhong, published an article, saying: “We must make use of information technology to restructure and improve traditional industry; we should formulate policies to encourage the development of Internet of Things.”

A Part of National Strategy

The Internet of Things is thought to be the third wave of changes in information industry after computer and Internet. In 2009, the US president Barack Obama lists “new energy” and “Internet of Things” as the two major tools for boosting economy. Then a huge amount of US dollars is put in the development of Internet of Things.

The Internet of Things means a), the network extension and expansion based on Internet; b), the information exchange and communication between things and things. Presently, the Internet of Things includes Cloud, 3G, wireless network, cable TV, remote monitoring and intelligent power grid. It aims at connecting things with Internet through radio frequency identification device, infrared inductor, GPS system and so on to realize intelligent identification, orientation, tacking, monitoring and management.

There are 4.6 billion mobile users in the world and 700 million in China. If the Internet of Things sees achievement in one field, the number of users can increase multiply. Now, the application of Internet of Things in China is limited within electric power, intelligent transportation, health, household security, intrusion prevention, industrial control, agriculture, environmental monitoring and so on. In the future, the application will be spread to more industries.

Once the Internet of Things gets popular, the demand for sensors, electric labels, chips and interfaces will greatly exceed the mobile phone demand. That adds a catalyst to the production of new technological organs. It is estimated that the industrial value of Internet of Things is 30 times as large as Internet.

Now, China’s economy is still haunted by unreasonable structure. It mainly depends on the industries featured with low cost and low-tech production. Therefore, the rise of Internet of Things, which is a vital part of China’s program of developing new technology, has significant meanings. On the one hand, it can improve the economic benefits and save the cost; on the other hand, it can provide technological impetus for economic development. The official data shows that the Internet of Things can bring about hundred billions of yuan as market value in 2010.

The First Matured Business Pattern

Mobile payment is the first matured business pattern generated from the combination of Internet of Things and Internet. Compared with the other methods, the mobile payment is featured with lower cost and more conveniences. As the 3G technology become more and more popular, mobile payment will be the biggest application of 3G and Internet of Things in the financial industry.

Presently, the three major telecom operators in China – China Mobile, China Telecom and China Unicom – are all striving to get into the mobile payment industry. According to the data, the total value of mobile payment in China will amount to 1.45 trillion yuan (USD 212.3 billion) in 2012.

The huge value means a large amount of commissions. On March 16, China UnionPay declared that the trial program for new-generation mobile payment was started with the trial areas increased to Shanghai, Shandong, Ningbo, Hunan, Shenzhen and Sichuan. Also in 2010 the mobile payment will be put into practical operation.

The popularization of mobile payment boosts the development of a complete industry chain including, SIM chip design and manufacturing, SIM module encapsulation, SIM card production, POS terminals manufacturing and so on.

Simultaneously, the relevant technological bottleneck has also arisen. For example, there are not enough IP addresses. According to NRO’s official data, there are only 400 million IPV4s left in the world and these will be run out in 2011. But the research made by the China Telecom Research Institution showed that China needs 34.5 billion IPV4 addresses in the next five years.

The shortage in IP addresses affects the development of not only Internet, but also 3G and Internet of Things. Therefore, Premier Wen Jiabao put forward definite requirements for the technicians. “Try to make a breakthrough in the key technology of sensor network and Internet of Things and deploy the technological development in the post-IP era as soon as possible.” Zhang Xinjian, general manager of China Telecom Zhejiang Branch said that it is necessary to evolve to next-generation network based on IPV6.

Meanwhile, China’s Internet of Things is also haunted by the lack of general planning, standard criteria, core technology, scalable application, business pattern and so on.

Xu Xiaolan, deputy director of China Center for Information Technology Development, said that the Internet of Things covers too many things so that its development can not be achieved by a single enterprise or industry. Industry chain and cross-industry cooperation are the inevitable trends. “Formulate uniformed technological standard and explore the all-win pattern,” said Xu. “Meanwhile, rational development is needed when seizing market share.”

Innovations at Expo

According to the data from the Bureau of Shanghai World Expo Coordination, the applications of Internet of Things, 3-netowork-convergence and the other technologies are the innovative light spots to illuminate the concept of “Better City, Better Life through Future Information Technology”.

Notable is the huge information network built by China Telecomm Shanghai Branch for the Expo Park – a network covering the 5.28-quare-km Expo Park. The programs of “Metro Optical Network” and “Internet of Things”, to which China Telecom Shanghai Branch has intensively dedicated, are the invisible wings for this information network.

The construction of Metro Optical Network connects the fiber-optic cables to the buildings and pavilions at the Expo Park, enabling everyone at the Park to enjoy the high-speed Internet, IPTV, VoIP, video conference, Online Expo and so on. The net speed of the Press Center at the Park reaches 100Mb.

China Telecom also gets ready for the development of Internet of Things. Presently, the company has established its Internet of Things Application and Promotion Center in the Wuxi Hi-tech Park and has owned a group of successful cases in the application of Internet of Things.

For example, China Telecom deploys the “Mega Eyes” system by the Taihu Lake to watch the water condition changes from a long distance; the technology of Internet of Things in the farming fields in Changsha, Hunan, succeeds in improving the output of crops through real-time data collection, transmission and analyzing; China Telecom also works out the “Vehicle Management Specialist” system combining GPS, navigation, positioning, vehicle maintenance and theft prevention.

The “Mega Eyes” system is the most important and most widely used technology of Internet of Things for China Telecom. It was developed in 2004 and mainly used to monitor urban security, port, Internet bars and so on. It is the only product laurelled with the title of “National Self-Innovative Product” in the whole telecom industry.

According to the insider from China Telecom Shanghai Branch, the “Mega Eyes” system is mainly used to watch the construction site of the Expo Park. When the Park was finished, the “Mega Eyes” system began to be used to collect and handle high-resolution videos. Presently, the “Mega Eyes” system at the Expo Park can provide the 1080p-resolution videos, ensuring the obstacle-free identification of human faces, image analysis and handling.

A lamp connecting to a light-sensitive sensor is installed in the China Telecom business hall at the Expo Park. It is a module for intelligent illumination system. If covering the sensor at day, the light will be on automatically, and it will be off after removing the cover. This simple module showcases the major application of Internet of Things in the energy-saving system for buildings.

Next to the lamp is a carbon dioxide-sensitive senor, which can sense the changes in the density of carbon dioxide in the room and then display the change through a control platform. When the density of carbon dioxide reaches a certain level, the control platform can give out warnings. The monitoring of illumination, carbon dioxide density and humidity are the major functions of energy-saving system for buildings. All in all, China Telecom Shanghai Branch’s energy-saving system based on Internet of Things is a “good chamberlain” for the pavilions and buildings at the Expo Park.

In addition, China Telecom Shanghai Branch applies the wireless network LTE technology into 45 cars featured with the concept of Internet of Things. These cars have the functions of remote control, GPS navigation, information service and so on. The passengers can also enjoy the games, music, videos inside these cars.

It is forecasted that more services and applications of Internet of Things can emerge if China Telecom gradually introduces sensor technology into its existing industry ICT solutions. Its “Mega Eyes” system, intelligent security guard, building’s energy saving system and the other services of Internet of Things are adding splendor and brilliance to the Expo.