China Unicom's first move following its mixed-ownership reform has focused on the Internet of Things (IoT) industry. On August 25, the company officially launched the "China Unicom IoT Industry Alliance," which includes over 30 major companies such as Alibaba, Tencent, Baidu, and Huawei. This initiative marks a significant step in China Unicom’s mixed-reform strategy, showcasing collaboration with leading tech giants and industry players.
Wang Xiaochu, chairman of China Unicom, emphasized during a recent speech that the mixed reform has been successfully implemented. According to the plan, two key areas of focus are internal incentive system improvements and strategic cooperation with partners to enhance business and innovation capabilities. He also highlighted that innovative business development is a core driver behind the reform, with the IoT sector being a crucial area in the telecommunications industry. As communication and sensing technologies continue to evolve, the IoT market is expected to grow significantly.
In addition to this alliance, China Unicom has already made substantial progress in IoT infrastructure. The company has completed NB-IoT commercial trials in dozens of cities nationwide, with over 300 cities now capable of quickly accessing NB-IoT networks. In regions like Beijing and Guangdong, eMTC trial networks have reached commercial readiness. Lu Yimin, general manager of China Unicom, stated that the company is actively building a network capable of supporting diverse, personalized, and complex scenarios, accelerating the commercialization of the national NB-IoT network and promoting the trial of eMTC.
Lu also mentioned that China Unicom's NB-IoT/eMTC operates on frequencies of 900 MHz and 1800 MHz, and called for industry-wide collaboration to establish full-band IoT modules as an industry or even national standard. The IoT industry alliance includes not only BAT but also major players such as the Aerospace Science and Industry Group, Electronic Technology Group, Neusoft, Huawei, Bosch, Haier, and many others, totaling over 30 members.
Regarding industrial cooperation, Lu outlined four main directions: vertical fields, industry alliances, developer programs, and financial support. Financial support includes setting up special funds in collaboration with the Guangzhou Municipal Government Guiding Fund, expanding investment nationally and internationally through equity or sub-funds, and offering subsidies for IoT terminals, modules, and key applications. According to sources, the IoT fund has a total scale of 10 billion yuan, with an initial investment of 1 billion.
Experts suggest that while the three major operators are more active in IoT investments, the goal is not just to generate profit themselves but to enable downstream companies to benefit. As telecom analyst Fu Liang noted, operators can earn revenue by helping others make money in the IoT ecosystem.
Earlier, China Telecom also announced the establishment of its own IoT platform, and China Mobile has been working on the OneNET IoT platform, car networking, and IoT chips and modules. The actions of all three major operators in deploying IoT solutions are now fully underway.
From a revenue perspective, IoT still represents a small portion for the operators, but growth rates are impressive. China Mobile reported a 94.8% increase in IoT revenue, while China Telecom saw a 370% surge. With Gartner predicting that the number of IoT devices will reach 8.4 billion in 2017 and 20.4 billion by 2020, the market is clearly on a fast-growing trajectory.
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