Before the Internet of Things industry due to the module price issue, resulting in no further prosperity of the market. However, with the rapid development of cellular internet of things in 2017, the NB-IoT application model accelerates and the industry chain of operators, chip makers, and manufacturers focus on building the NB-IoT platform, allowing the module price to drop from nearly 200 yuan to 35. yuan. In addition, the previous operator's collection and acquisition subsidies eventually triggered the butterfly effect and promoted the development of the NB-IoT locator on the scale of the NB-IoT module market.
Recently, Wang Zhiqin, the vice president of the China Institute of Information and Communication Technology, shared a set of data. She pointed out that 2017 is the first year of the development of the cellular Internet of Things, and the number of connections has reached 270 million, nearly three times that of 2016. At the same time, in China, the demonstration of NB-IoT application has been accelerated. Many provinces and cities have conducted demonstration applications of NB-IoT. By the end of 2017, the number of base stations covering municipalities and capital cities covered by the NB-IoT network reached 400,000.
At the network level, China Telecom's entire network supports NB-IoT networks, and China Mobile purchases the entire network, followed by China Unicom. In the chip field, commercial products such as Huawei, Qualcomm, ZTE, and MediaTek have entered the market one after another. On the platform side, the three major operators, Huawei, and other companies focused on creating the NB-IoT platform NB-IoT vehicle locator and gathered the industrial chain. The most important thing is that in the field of modules, the price dropped from nearly 200 yuan to 35 yuan.
In the past, the average sales price of NB-IoT modules on the market was generally around 68 yuan, which is not conducive to the expansion and reproduction of vertical industries. Based on this, in May 2017, China Telecom held a forum for the development of IoT development policies, clearly stating that it would provide 300 million yuan for special incentives for Internet of Things, with a focus on supporting NB-IoT and CAT1 products. Among them, 200 million yuan was used for the Internet of Things CAT1 single-mode products and NB-IoT product subsidies. CAT1 single-mode product subsidy is 40 yuan/module, NB-IoT product subsidy is 20 yuan/module. The project will subsidize 30 yuan per module, enough to see China Telecom's determination to develop the IoT industry.
In the second half of 2017, the three operators put forward specific requirements for the standardization of NB-IoT universal modules one after another, which led to the development of the scale of the NB-IoT module market and indirectly promoted the rapid decline in the composition of the NB-IoT module.
With the increase in the level of support for the entire industry, the Internet of Things (IoT) market has been developing rapidly with NB-IoT Internet of Things products, driven by operators and terminal module manufacturers. In terms of cellular internet of things, in 2017 as the first year of the development of cellular internet of things, the number of connections has reached 270 million, nearly three times that of 2016. At the same time, in China, the demonstration of NB-IoT application has been accelerated, and many provinces and cities have conducted demonstration applications of NB-IoT. By the end of 2017, the number of base stations covering municipalities and capital cities covered by NB-IoT network reached 400,000.