At the “2013 World Telecommunication and Information Society Day Conference†co-sponsored by the Ministry of Industry and the Ministry of Transport, people from all walks of life in the industrial chain stated that the market for car networking needs to be developed. It is reported that the Ministry of Industry and Information Technology and the Ministry of Finance have jointly issued a notice on the application of the special fund project for the development of the Internet of Things in 2013, and will continue to promote the development of the Internet of Things industry through special funds in 2013, and have established smart industry and intelligent agriculture. , smart environmental protection, smart logistics, intelligent transportation and intelligent security six key development areas.
Industry insiders predict that car networking will form a scale of 100 billion within five years, setting off the market enthusiasm. However, the industry generally believes that as industry standards and business models are not yet clear, China has yet to form a true sense of the form of car networking, and urgently need to promote the integration of resources.
Good policy
The domestic car networking environment has been initially formed and the market has great potential. From the ministries and commissions of the Ministry of Communications, the Ministry of Industry and Information Technology, to the regional level of local governments in many regions, the development of the Internet of Vehicles is very much supported, and various preferential policies for taxation, land, and funds have been introduced.
On April 28, 2013, the General Office of the Ministry of Industry and Information Technology and the General Office of the Ministry of Finance jointly issued a notice on the application of the special fund project for the development of the Internet of Things in 2013. It is reported that, unlike the previous two years, the special funds for this year will focus on supporting the development of the Internet of Things system in such areas as economic development and social management. It mainly includes six fields: smart industry, smart agriculture, smart environmental protection, smart logistics, intelligent transportation, and intelligent security. Among them, the intelligent transportation field mainly supports the things such as traffic state perception and exchange, traffic guidance and intelligent control, vehicle positioning and dispatch, and vehicle remote monitoring and service.
In May, the second phase of the “National Road Traffic Safety Science and Technology Action Plan†jointly signed by the Ministry of Public Security and the Ministry of Communications is under planning. It plans to rely on the next generation information technology of the Internet of Things to realize the source prevention and active intervention of road traffic hazards.
In fact, as early as in 2011, the Ministry of Science and Technology released the third major requirement of the “National Twelfth Five-Year Plan for Science and Technology Developmentâ€: Accelerating breakthroughs in mobile Internet, broadband cluster systems, next-generation wireless LANs, and the Internet of Things. Core technologies, promote industrial applications, promote operational service innovation and intellectual property creation, and enhance the core competitiveness of the industry. As a core application in the field of Internet of Things, the car networking project has been listed as an important project in the country's major special projects (third special project) in October 2012, with the first capital investment reaching 10 billion. Support funds are concentrated in automotive electronics, information communications and software solutions.
Differentiated business opportunities
China is the world's largest auto market and the world's largest mobile internet market. The subtle integration of these two factors makes the “networking market†of the car networking market bright and clear, and it has also become a major highlight of the 3G era operators' data services. At present, China's three major telecom operators have already established a broadband basic communications network covering the whole country. The network has a wide coverage, excellent performance, and high coverage. In particular, 3G technology can provide broadband wireless information channels throughout the country. This is to build a car network. Providing a solid network infrastructure, and the application and promotion of Vehicular Telematics can bring a huge application and business market to the communications industry and generate a wealth of applications. Operators naturally look at the market.
How the three major operators look for their own business opportunities in the market, and the correct market positioning is the key. The car networking market is the super blue ocean of operators. The three major operators also have their own emphasis on avoiding homogeneous competition, and at the same time they are looking for business opportunities in promoting the transformation of vehicle terminals from product to service.
According to Huang Xiaobin, technical director of China Telecom Shanghai’s car networking base, the core of car networking should be active push based on user location information. The future development should be a smart pipeline. On August 8, 2012, China Telecom’s Shanghai network of cars was formally established. This is also the first innovative business development base named after the car network. In March 2013, China Telecom established two major information technology research bases for the transportation industry in Shanghai and Nanjing, as well as specialized transportation information service teams for passenger cars and commercial vehicles combined with different requirements for pre-installation and post-installation. The professional operation model is the key to China Telecom’s search for differentiated positioning.
Li Gang, deputy general manager of China Unicom, said that in terms of intelligent transportation, China Unicom has fully utilized the existing 3GW CDMA network to fully support the promotion of public transport intelligence, intelligent monitoring, electronic station signs, and vehicle transfer functions. At present, this type of project has been applied to more than 150,000 buses in 180 cities in Beijing, Shandong, Shanghai and Guangdong. Xin Kejun, deputy general manager of China Unicom's customer department, said that China Unicom may pay more attention to call center services. He believes that call centers are the most efficient way to improve security through voice calls during vehicle driving, but how to promote intelligent voice Identifying alternative call center services is a breakthrough.
For the domestic intelligent transportation industry, Li Zhengmao, deputy general manager of China Mobile, called for the networking of all vehicles to be implemented as soon as possible, to strengthen enforcement with various legislative means, and to establish a multi-vendor car-network security collaboration platform that takes safety as a goal and participates. At present, developed countries in Europe and the United States are advancing information technology to solve road safety issues at the level of legislation and technical standards, and are worth learning from. Yang Jing, Chief Science Officer of China Mobile Research Institute, said that China Mobile has put forward the concept of a safe car networking platform. This platform actually collects data from vehicles and collects data on vehicles traveling, passing roads, and driving behavior.
The three major operators have different focuses. This is undoubtedly a good thing for the development of the Internet of Vehicles market. After all, homogenous competition is difficult to achieve for a long time. Only differentiation capability is king.
Business model is unknown as a hidden danger
According to the forecast of YiZhan think tank, in 2015, China's auto production plan will reach 25 million vehicles. The penetration rate of car networking application and service may be close to 10%, and the market scale is expected to exceed 150 billion yuan.
Although the "Internet money" is vast, many people in the industry think that there is a "hype concept". Judging from the current stage, car networking is still in its infancy in China. “The car network sounds good. How can we make money?†has become a problem that all parties must face squarely. Otherwise, the upsurge of car networking will be just a “virtual fireâ€. Yang Jing is ridiculous: "In fact, nowadays, there are only cars in the car network, and there is no network. After so many years of car networking, the penetration rate did not exceed 10%, and no one pays." This phenomenon has become a major constraint for the sustainable development of the industry.
The absence of industrial standards and the unclear business model have all become important issues affecting the next stage of development of the Vehicular Network. If we cannot find a business model that is rational, sustainable, and profitable, operators will find it hard to dig out the "gold mine." A car networking industry source said, "including the telecommunications network operator traffic costs are too high and the lack of standardization of car networking technology, leading to the development of car networking difficulties, currently only about 3% of domestic passenger cars equipped with car networking." Application and promotion can bring huge application and business markets to the communications industry, especially to operators. At this stage, it is not necessary to define the business model and find profit points.
As of March, the total number of telephone users in the country reached 1.42 billion, and mobile phone users reached 1.146 billion. The penetration rate has increased to 84.9%. At the same time, the number of Internet users in China reached 578 million, and the penetration rate reached 43.1%. The continuous improvement of the informationization level of the whole society is the key to the development of car networking, but it is a big issue to promote the matching of the needs of the two major industries. The government, operators, and automobile manufacturers are the three main promoters of the car network, at this stage. It is urgent for the three parties to accelerate the exploration of the business model in order to lay a foundation for achieving a win-win situation for all parties.
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