REVIEW PAPERS
Internet Plus and Networks Convergence ZENG Jianqiu, YANG Mengke* School of Economics & Management, Beijing University of Posts and Telecommunications, Beijing, 10086, China
Abstract: This paper discusses the relationship between Internet plus and networks convergence and highlights the development of ICT industry and the process of networks convergence. Based on Internet plus and the theory of networks convergence, this paper suggests to implement Internet plus action plan as a strategy to accelerate the construction of networks and application of Internet, promote the t raditional industry reform with ICT, increase competitive efficiency, standardize the market competition, and then realize the Internet plus strategy and networks convergence. Keywords: Internet plus; triple play; networks convergence
I. INTRODUCTION Internet plus was unveiled as an action plan in the government work report on March 5, 2015, and will accelerate the development of Internet and ICT industries and push forward Chinese economy as well. The plan aims to integrate mobile Internet, cloud computing, big data and the Internet of things with modern manufacturing, to encourage the development of e-commerce, industrial networks, and to help Internet companies increase international presence. The Internet plus strategy will change traditional industries and promote the process of networks convergence since China is marching towards the information society. China Communications • April 2015
Information society was proposed in 1964 by a Japanese scholar, Tadao Umesao, and 40 years later, the concept transformed into a kind of government strategy, Japan and South Korea put forward the informatization strategy in 2004 based on Internet of things, respectively called U-Japan and U-Korea. “U” refers to the English word “ubiquitous”, meaning “widespread, omnipresent”. The strategy is to create a new generation of information technology revolution, the ubiquitous and convenience society. The concept of strategy is people-oriented, to implement the connection among people and things. The information society is moving to the direction of the ubiquity, intelligent and integrated network information society (U informatization). U informatization is to the intelligent and integrated network information society, namely the ubiquitous network society [1]. U informatization is the main stream of the future network, and then networks convergence is the development trend to build a ubiquitous information society. Networks convergence means that originally separate, dedicated network platform can be a common network platform by the development of information and communication technologies such as digital technology, software technology, TCP/IP, broadband access technology, so as to provide basic similar services on an integrated network [2]. Internet plus is the development of networks convergence.
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This paper discussed the relationship between Internet plus and networks convergence and highlighted the development of ICT industry and the process of networks convergence.
II. THE DEVELOPMENT OF NETWORKS CONVERGENCE The development of networks convergence starts from FMC (Fixed Mobile Convergence), which is taken as one network convergence period, and followed by the two networks convergence period, Mobile Internet, and then the three networks convergence period, Triple Play. Finally, it will come to N networks convergence period with the development of network technology to promote Internet integrated with different industries, which is the proceeding of Internet plus.
2.1 FMC FMC means fixed line network and mobile or wireless network are integrated, referring to the integration of internal communication networks [3]. FMC is to provide the indiscriminate mobile and fixed services, such as mobile phone to provide value-added services like fixed communication, and fixed telephone to provide global mobility. And also the services can be provided under the condition of one number, one bill, and one service agreement within the one network convergence.
2.2 Mobile Internet Mobile communication and Internet have become the two fastest growing areas in communications and information industry globally. The rapid development of informa-
Fig.1 Triple play
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tion technology and the rising of the customer requirements, make the integration of the two big industries become an irreversible trend, namely, the generation of new type of mobile Internet industry. Mobile Internet is an experiencing change from the desktop Internet to the wireless Internet with the mobile phone network and Internet integrated together, which has rapidly become the leading industry in the field of communications and information based on the two networks convergence.
2.3 Triple play Triple play, which is also well known as three networks convergence, refers to the convergence among telecommunication network, Internet network and television broadcasting network [4]. Triple play is a technological and marketing term for the provisioning, over a single broadband connection of telecoms, Internet access and TV broadcasting, as is shown in Figure 1. There are various integrated services, including mobile TV, broadband Internet access, interactive television and mobile video, and the service, internet connection with fixed and wireless technology such as Wi-Fi is the functions of networks convergence. As broadcasting network and telecommunications network have made the strategy for the next generation network (NGB/NGN) separately, the connectivity and the whole business could be realized through the network architecture and the convergence of technology standards. However, this depends on networks convergence as well. Since Chinese government takes triple-play as the state policy and its implement has also changed networks such as telecoms networks vigorously. The changes not only indicate to a simple transition or upgrade technology, but also to the role conversion on the basis of technological upgrading. It has become more and more evident that the networks convergence will develop towards a higher speed and broader network with the application of Internet. China Communications • April 2015
2.4 N networks convergence A new generation of broadband wireless mobile communication network covers the main content of triple play, and will promote four networks, five networks and then N networks convergence, which is the direction of the networks convergence. Take four networks convergence in China for instance, it may be electricity that has been constructed with existing three networks convergence, adding electricity network to the telecommunication, Internet and television broadcasting network, which is called four networks convergence. N networks convergence is a type of network in which anyone can enjoy information services through any kind of physical network conveniently, such as telecom network, Internet network, television broadcasting network, electricity network, traffic network and other networks (shown in Figure 2). All these networks can be integrated together to provide a comprehensive service, such as LiFi (Light Fidelity) to replace Wi-Fi, which is called N networks convergence. N networks convergence follows not only the technology route, but also the market rule of network development. N networks convergence can implement the Internet plus strategy, promote the integration with traditional industries and realize U informatization, and everyone can work as information producers, communicators, and consumers in the allround information society.
bundle and business integration. Business integration is a very important step to develop service convergence and also the basis of networks convergence. Terminal convergence: Terminal convergence refers to that the different network access layers can be achieved by multimode terminals through the establishment of a unified core bearing network to realize the real networks convergence, as is shown in Figure 3. Through the terminal convergence, seamless connection can be provided to realize the convergence among different networks. Terminal convergence sometimes is 3C (Computer, Communication, and Consumer Electrics) convergence. The terminal link can be activated by the digital information technology, and the information resources sharing and connectivity of 3C can be realized through some sort of agreement to meet the requirements of the
Fig.2 N networks convergence
III. THE STAGES OF NETWORKS CONVERGENCE From the perspective of the development level, the networks convergence can be divided into four stages: service convergence, terminal convergence, platform convergence and network convergence [5]. Service convergence：Service convergence means that users can choose different services flexibly according to their demands without replacing terminals or networks. It can be broken down into two phases: simple business
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Fig.3 Terminal convergence
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application of the information in any time, any place. Platform convergence：Three-dimensional digital information platform system will be constructed to link a wide range of media resources, content resources and other resources to support service providers. Networks convergence: Through the construction of the next generation of broadband communication network (NGB) and the next generation networks (NGN), the cable, telecommunication and other physical networks will be gradually homogenized because of the construction of network infrastructure in order to realize similar architecture, technology convergence, similar standard unification, and connectivity among different networks.
IV. THE CASES OF INTERNET PLUS AND NETWORKS CONVERGENCE 4.1 Triple play: “Internet plus media industry” “Internet plus media industry” means not just Internet entering into media industry, but a new media format which can provide integrated multimedia services such as voice and data image by Internet, telecoms network and cable television network. It can be developed based on the triple play, referring to three networks convergence among telecommunication, Inter-
net and television broadcasting. With the birth of triple play service, Internet has merged with media industry very well. Here are two cases of triple play to show the tendency of “Internet plus media industry”. 4.1.1 Case one: FMBC service of KDDI KDDI, a telecoms operator in Japan developed triple play technology and equipment to provide FMBC (Fixed Mobile and Broadcasting Convergence) service for customers in 2008 [6]. FMBC service includes fixed service, mobile service, broadcast service and convergence network service. The company integrated their fixed and wireless business, the radio of the cable TV companies and Internet business together, and won a success in the fierce market competition. KDDI developed digital mobile TV terminals and digital broadcast mobile terminals, and customers can watch TV, download software, load Internet data on the digital broadcasting, and deliver Internet media contents through digital broadcasting. In addition, KDDI can provide seamless integration of FMBC services, for instance, the users can make video calls in the car, reply in writing on the phone at the same time and switch the phone to TV to make video call on TV or make voice call on the cell phone when he is at home. Throughout the process, the user can switch services between different mediums under the condition of keeping original communication service uninterrupted. The success of KDDI in triple play shows the tendency of “Internet plus media industry”. 4.1.2 Case two: IPTV of CNTV
Fig.4 IPTV architecture
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IPTV is taken as the secure and reliable delivery to subscribers of entertainment video and related services. These services include, for example, Live TV, Video On Demand (VOD) and Interactive TV (iTV). These services are delivered across an access agnostic, packet switched network that employs the IP protocol to transport the audio, video and control signals based on the connection of telephone, television and computer, as is shown in Figure
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4[7]. CNTV (China Network Television), the operator of IPTV integrated broadcast control in China, has constructed an integrated control platform of network TV, mobile TV, Internet TV on its network platform and TV platform. It can provide customers with massive video programs on its integrated platform to realize the interactive communication. Take its famous “ipanda” program for instance, it has caused the global panda-mania since its release in 2013, and more than 40 million people have visited the panda channel in the world by the end of 2014. It has become the world’s largest new media platform of wildlife theme and also won a success in other fields because of the three networks convergence. The success of CNTV shows “ Internet plus media industry” and it can push the traditional media more open and interactive by the networks convergence.
4.2 Quadruple play: “Internet plus energy industr y” “Energy Internet” was first put forward by Jeremy Rifkin in 2013.He pointed out that Internet technology and renewable energy are merging to create a powerful “Third Industrial Revolution” [8].The merge of Internet and energy industry is also happening in today’s China. Quadruple play, known as the fourth network convergence, refers to the convergence of Internet, telecoms network, cable television network and the electricity network, has being put into practice. The entry of electric power optical fiber can realize unified signal transmission of telecommunication network, broadcasting television network and Internet network and provide with the comprehensive information services including broadband access, smart home, home security, property services and HD interactive video with application of Internet. Case: Smart grid service of China State Grid Corporation China State Grid Corporation(CSGC) has cooperated with telecom operators, including China Mobile, China Telecom, and launched China Communications • April 2015
smart grid service, including meter reading by wireless power, street lamp control, equipment monitoring, load management, intelligent inspection and mobile informatization management recently. The convergence of Internet, telecom network, cable television network and the electricity network can be achieved by the development of electric power optical fiber access technology in the short run. In the future, the energy can be transformed by the Internet technologies with cloud storage and Internet of Things, and then “Energy Internet”, the advanced form of “Internet plus energy industry” will come true.
4.3 N networks convergence: “Internet plus traffic industry” “Internet plus traffic industry” is the tendency of traffic development to provide innovative services relating to different modes of transport and traffic management and enable various users to be better informed and make safer, more coordinated, and smarter use of transport networks. It can be realized by the convergence of Internet, telecom network, cable television network, the traffic network and other networks, this proceeding is called N networks convergence. And it can be seen that more and more networks will join in this networks convergence to promote the Internet plus strategy in the future. Case: Internet of Vehicles in China IoV (Internet of Vehicles) refers to the dynamic mobile communication systems that communicate between vehicles and public networks using V2V (vehicle-to-vehicle), V2R (vehicle-to-road), V2H (vehicle-to-human) and V2S (vehicle-to-sensor) interactions. It is a converged technology to integrate networks that can realize the intelligent traffic management, intelligent dynamic information service network and the intelligent control of the vehicle based on the networks convergence of Internet, telecoms and traffic networks. It enables information sharing and the gathering of information on vehicles, roads and their surrounds. Moreover, it features the processing,
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computing, sharing and the secure release of information onto information platforms. The system can apply the cloud computing data and effectively guide and supervise vehicles, and provide abundant multimedia and mobile Internet application services for customers [9]. IoV has developed rapidly and Apple, Google, Baidu, Alibaba, Tencent and other Internet giants have all entered into the traffic industry. Take Baidu for example, it released its smart vehicle product “CarNet” in 2014 and launched its own IoV system “Carlife” on January 27, 2015. The automobile manufacturers including Audi, Modern and Shanghai GM have signed the strategic cooperation agreement with Baidu to promote the convergence of Internet plus traffic system. Internet, mobile Internet, big data and cloud computing will merge with the traffic industry to stimulate the transformation and upgrading of the traffic industry. In a word, due to the development of the new generation information technology, Internet plus is going to merge with not only the media, energy, traffic industry, but also manufacturing, medical, finance, education and the other traditional industries because of N networks convergence.
V. PROPOSAL TO PROMOTE INTERNET PLUS AND NETWORKS CONVERGENCE Internet plus with networks convergence is a
strategy that will cultivate new growth points for the development and the relative areas may include media, electricity, traffic and other industries. Based on the above discussion, the proposals to promote Internet plus and networks convergence are to construct Internet and communication infrastructure, reform the traditional industry with ICT, increase competitive efficiency, and standardize the market competition.
5.1 Construct Internet and communication infrastructure Constructing infrastructure including Internet and communication infrastructure can not only promote the N networks convergence, but also stimulate economic growth and employment, and improve people’s livelihood. While the Internet backbone interconnection is a way for the cooperation of network construction, Internet and communication infrastructure construction mainly depends on the backbone network interconnection. Nowadays, the global Internet is interconnected by thousands of independently owned and operated networks. There are two basic forms of interconnecting links: transit and peering, which is shown in Figure 5. Many countries and regions have expanded their Internet traffic to exchange capabilities through one or more local IXPs (Internet exchange points). The development of IXPs around the world has benefited backbone providers by facilitating distributed interconnection between peers and transit customers, which improves the quality of service and reduces traffic carrying costs. There are 89 countries up till now that possess their own IXPs to exchange national and regional Internet traffic, and thus lower the costs associated with international Internet access. It is interesting to note that this evolution does not require specific regulatory intervention, but the commercial solutions..
5.2 Reform the traditional industry with ICT Fig.5 The interconnection of Internet backbone
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Internet plus strategy can provide opportuniChina Communications • April 2015
ties for China and for the world as well, and it is related to ICT, meanwhile it is also closely related to other industries such as logistics, medical, finance, education and so on. On the one hand, mobile Internet, cloud computing, big data and the Internet of Things should be integrated with modern manufacturing to change the traditional industry. On the other hand, new model of information services should be fostered to promote the innovation of business and service mode in the traditional industry. To be more specific, Internet thinking is the vitality of industrialization development that will drive small, medium-sized enterprises and the big business at home and abroad.
5.3 Increase competitive efficiency With the promotion of Internet plus strategy, ICT industry is gradually transforming to the new digital business ecosystem (new environment with reconstruction, competitiveness, and collaboration internationally). Rapidly changing environment makes a competitive advantage for enterprises and ICT companies need adjust their strategic direction timely according to changes in a competitive environment. The key strategy is to improve the ability to integrate the different industry, elevate derivative business, make good use of resources, and improve comprehensive competitiveness.
5.4 Standardize market competition Internet plus and networks convergence need to satisfy the market requirements and it is necessary to standardize market competition. On the one hand, to make market competition rules and establish an arbitration mechanism, drafting controversial Internet plus information services market approach. On the other hand, to do adjustment for regulation policy since management of Internet and telecommunications regulatory system may bring some conflicts to different industries and to regulatory problems. It is necessary to understand that regulation, deregulation and now reregulation asked to make clear what regulation or deregulation is required in order to meet the China Communications • April 2015
development of Internet plus and networks convergence.
VI. CONCLUSION The Internet plus action plan will integrate mobile Internet, cloud computing, big data and the Internet of Things with networks convergence. Internet plus and networks convergence have very close relationship and Internet plus will be implemented on the basis of networks convergence .Internet plus as a strategy will accelerate the process of networks convergence, and four proposals to promote the development of industries and economy are put forward.
ACKNOWLEDGEMENTS This work was supported in part by National Social Science Fund Foundation of China under Grant No.10@ZH002; National Science and Technology Major Project of China under Grant No. 2011BAH16B07.
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Biographies ZENG Jianqiu, received PhD degree from University of Cambridge. He is now a professor at the School of Economics & Management in Beijing University of Posts and Telecommunications. He has been involved in the research of technical and economic management, competition ability and strategy for about 30 years, and published more than 10 books like”
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Globalization and Competitiveness in the Telecom Industry”, “Network Integrated with the World: The Theory, Test and Information Security of Triple Play” and more than 100 academic papers. YANG Mengke*, a PhD student at the School of Economics & Management in Beijing University of Posts and Telecommunications. She has been involved in many scientific research including national key projects and enterprise consulting projects .And she was awarded National Distinguished Doctorates Scholarship by Chinese Ministry of Education for her excellent academic performance and scientific achievements in 2014. Her major research interests include information technology management, enterprise competitiveness, e-commerce and logistics. *The corresponding author. Email:
[email protected].
China Communications • April 2015
