Interpretation of ＂Notice on Promoting the Development of＂ Everything Smart ＂in Mobile Internet of Things＂

Recently, the General Office of the Ministry of Industry and Information Technology issued the Notice on Promoting the Development of "Everything Smart" in the Mobile Internet of Things (No.52 [2024] of the Ministry of Industry and Information Technology, hereinafter referred to as the Notice). In order to accelerate the implementation of policies and respond to social concerns, the relevant contents of the Notice are now interpreted as follows:

1. What is the background and significance of the promulgation of the Notice?

Mobile Internet of Things is a new information infrastructure based on mobile communication technology and network, which realizes the ubiquity of people, machines and things in Zhilian through multi-network collaboration. It is an important driving force for digital transformation of economy and society.

Thanks to the joint efforts of all parties in the information and communication industry, in August 2022, the number of mobile Internet of Things terminal users in China exceeded the number of mobile phone users for the first time, becoming the first country in the world’s major economies to achieve "superman", and the development of mobile Internet of Things has achieved remarkable results. First, the network foundation is more solid. The network infrastructure with the largest scale, the widest coverage and superior performance in the world has been built. By the end of July 2024, the total number of mobile communication base stations in China reached 11.93 million, forming differentiated access capabilities for different industry applications. Second, the application scale continued to increase. By the end of July, 2024, the number of mobile Internet of Things terminal users in basic telecommunications enterprises had reached 2.547 billion, accounting for 59% of the number of mobile terminal connections. The pace of mobile network "Superman" continued to expand, and it was widely used in public services, car networking, smart retail, smart home and other fields, and the enabling role of mobile Internet of Things applications was constantly highlighted. Third, the industrial ecology continues to grow. Promote the inclusion of NB-IoT in the 5G international standard, form a complete mobile Internet of Things industrial chain covering chips, modules, terminals, equipment, services and other links, and be at the global leading level in technology research and development and standard setting, with a number of leading enterprises emerging in modules and terminals.

At the same time, with the accelerated integration of information and communication technologies such as artificial intelligence and big data with the mobile Internet of Things, "Everything is Smart" has become the general trend of the future development of the mobile Internet of Things. The high-quality development of China’s mobile Internet of Things faces problems such as network coverage needs to be optimized, high-end industries need to be broken through, industry applications need to be deepened, and connection value needs to be improved. It is necessary to guide all parties in the industry to work together to accelerate the process of the integration and development of the mobile Internet of Things and the industry.

General Secretary of the Supreme Leader emphasized "accelerating the development of the Internet of Things" in the Party’s Report to the 20th CPC National Congress. Accelerate the development of the digital economy and promote the deep integration of the digital economy and the real economy. " The Third Plenary Session of the 20th CPC Central Committee "the Central Committee of the Communist Party of China’s Decision on Further Comprehensively Deepening Reform and Promoting Chinese Modernization" proposed "perfecting the circulation system and accelerating the development of the Internet of Things". "Overall Layout Planning of Digital China Construction" clearly puts forward "promoting the all-round development of mobile Internet of Things". The Ministry of Industry and Information Technology adheres to the problem orientation, studies and issues the Notice, further strengthens the guidance, enhances the supply level, innovation and empowerment ability and overall value of the mobile Internet of Things industry, accelerates the development of the mobile Internet of Things from "Internet of Everything" to "Smart Web of Everything", and helps the digital transformation and new industrialization of the industry.

2. What are the main objectives of the Notice?

Based on the development rhythm of the mobile Internet of Things industry and the application status of the mobile Internet of Things in various industries, the Notice judges the development trend of the mobile Internet of Things and determines the development goals of the mobile Internet of Things. By the end of 2027, based on 4G (including LTE-Cat1, that is, the 4G network with rate category 1) and 5G (including NB-IoT, narrowband Internet of Things; RedCap (Lightweight) The integrated ecosystem of mobile Internet of Things with high and low collocation, ubiquity in Zhilian, safety and reliability has been further improved.

In terms of network infrastructure. For the key application scenarios of the mobile Internet of Things, 5G NB-IoT deep coverage is realized. Cities at or above the county level across the country will achieve the scale coverage of 5G RedCap, and further extend the coverage to key towns and villages.

In the aspect of integrating the application of quantitative intelligence. The number of mobile IOT terminal connections exceeded 3.6 billion, of which 4G/5G IOT terminal connections accounted for 95%. Cultivate a number of application fields with billion-level connections and create a number of application fields with tens of millions of connections.

In terms of industrial ecological prosperity and development. Support the construction of more than 5 mobile Internet of Things industrial clusters nationwide, and build more than 10 mobile Internet of Things industrial demonstration bases. Formulate no less than 30 mobile Internet of Things standards.

3. What are the key tasks deployed in the Notice?

Focusing on network, application, standards, industry, service, security and other aspects, the Notice puts forward four major tasks, namely, consolidating the network base of the Internet of Things, enhancing the industrial innovation capability, deepening the application of intelligent convergence, and creating a good development environment, so as to systematically promote the application scale expansion of the mobile Internet of Things and the industrial ecological prosperity.

The first is to tamp the base of the Internet of Things. In combination with the demand, we will build a mobile Internet of Things network in advance, improve the deep coverage level of 5GB-IoT in key areas as needed, and accelerate the scale coverage of 5G RedCap in cities above the county level. Actively explore the application and deployment of artificial intelligence technology in the mobile Internet of Things network, and do a good job in adapting to scenes such as urban Zhilian, low-altitude Zhilian and agricultural Zhilian. Strengthen network monitoring and optimization, carry out network capability testing, and promote the improvement of network quality.

The second is to enhance the ability of industrial innovation. Support basic telecom enterprises and mobile Internet of Things professional companies to give full play to their industrial advantages and cultivate chain owners who master key resources and core capabilities. Promote basic telecommunications enterprises to carry out innovative applications of artificial intelligence big models, rationally open the capabilities of IOT platforms, and promote data collection and effective utilization. Promote the construction of standard system, improve the ability of intelligent connection and reduce the complexity of industrial chain adaptation. Support the construction of mobile Internet of Things industrial clusters around the country.

The third is to deepen the application of intelligent fusion. We will promote the deployment of mobile Internet of Things in 10 industry sectors through three key directions: promoting the digital transformation of industries, promoting the intelligence of social governance, and helping people live intelligently, so as to empower vertical industry enterprises to improve quality, reduce costs and increase efficiency. Promote the integration and application of mobile Internet of Things in industrial manufacturing, transportation and logistics, smart grid and other fields, and improve production efficiency and management level. Promote the large-scale application of mobile Internet of Things in municipal, environmental protection, emergency and other fields, and improve public service capacity and social governance level. Promote the application of mobile Internet of Things in intelligent networked cars, medical health, smart homes and other fields, and promote people’s lives to be more convenient and comfortable.

The fourth is to create a good development environment. Promote basic telecom enterprises to optimize value evaluation methods, scientifically and reasonably reflect the business value of mobile Internet of Things, and create a favorable situation for the healthy development of the industrial chain. Promote basic telecommunications enterprises to improve the user complaint handling mechanism, announce the network coverage and improve the service quality of the industry. Promote the improvement of network security protection mechanism and improve the security protection level of Internet of Things cards, devices and data.

4. What considerations does the Notice have in optimizing the evaluation method of the mobile Internet of Things?

In recent years, China’s mobile Internet of Things business has developed rapidly. By the end of July, 2024, the number of mobile Internet of Things terminal users had reached 2.547 billion, an increase of 18.6% over the same period of last year. From January to July, 2024, the business revenue increased by 12.2% year-on-year, and the scale effect and empowerment role were prominent. However, according to the income statistics of basic telecom enterprises, the income from mobile Internet of Things is relatively low, and the direct income from terminals and platforms is not included in the income from communication services, and a large amount of income from computing and storage is not included in the income statistics of mobile Internet of Things. The value brought by massive connections is not fully reflected in the income statistics.

In order to scientifically and reasonably reflect the industrial value of the mobile Internet of Things and create a favorable situation for the healthy development of the industrial chain, the Notice clearly proposes to optimize the evaluation method of the mobile Internet of Things, promote basic telecommunications enterprises to comprehensively evaluate the overall value of the mobile Internet of Things, reflect the connection value of mobile Internet of Things cards, hardware terminals, software platforms and other service carriers, and drive the growth of computing, storage and other services; Optimize the revenue statistics caliber, include the terminal hardware and platform services of the Internet of Things into the communication service revenue, and include the driving business revenue into the mobile Internet of Things business statistics caliber.

V. How to ensure the implementation of the Notice?

In order to ensure the effective implementation of the tasks related to the mobile Internet of Things, the Notice puts forward three safeguard measures:

The first is to strengthen the protection of factors. Local communication administrations and competent departments of industry and information technology should, together with relevant local industry authorities, issue support policies around network construction, industry application and industrial development to form a joint force for promotion. Give play to the role of national industrial integration as a platform, and promote financial institutions to provide diversified investment and financing support for mobile Internet of Things enterprises and projects. Give play to the role of basic telecommunications enterprises, industrial alliances, scientific research institutions, etc., carry out vocational training and talent certification, and cultivate talents related to the mobile Internet of Things.

The second is to do a good job in monitoring and evaluation. China Information and Communication Research Institute should study the establishment of a monitoring index system for the development of the mobile Internet of Things, carry out the network capability test of the mobile Internet of Things, build a coordination platform for the application of the mobile Internet of Things, and promote the solution of the mismatch between supply and demand. Basic telecommunications enterprises should strengthen network construction, optimization and operation and maintenance, and promote network quality and service improvement. Support the summary and evaluation of the urban development of "Everything is Smart" and promote the local development of the mobile Internet of Things.

The third is to strengthen exchanges and promotion. The Ministry of Industry and Information Technology continues to organize the collection of typical cases of mobile Internet of Things, select a number of application cases with advanced technology, outstanding results and good application prospects, strengthen the publicity and promotion of typical cases, form a demonstration effect, and play a leading role in empowerment. Support the development of mobile Internet of Things phalanx to carry out related industrial activities, build a number of mobile Internet of Things technology and application innovation centers, and promote cooperation and exchange and transformation of achievements.