More Chinese mobile users are subscribing to the 4G technology. (Photo : Reuters)
Chinese telecom companies are preparing to jump the Internet of Vehicles (IOV) bandwagon by offering their 4G networks.
According to Ren Dakai, chief director of traffic products of China's biggest telecom company, China Mobile, the firm is aiming to provide service for 500,000 IOV users this year. Dakai also said that the company is gearing for the debut of their IOV 4G terminals in May.
Meanwhile, China Unicom, China Mobile's biggest competitor, is set to develop a new IOV project, partnering with U.S.'s Tesla Motors.
In this light, China's third largest telecom company, China Telecom, has established Internet of Things (IOT) and has already set IOV as the company's new focus of upgrade.
The three telecom companies have been capitalizing on the IOV business since 2012.
China Mobile's M2M debuted in Chongqing in Oct. 2012 to dabble in IOV operations. Also in the same month, the company launched a driving terminal system, servicing private car owners in Shandong Province.
Aside from these, in cooperation with General Motors, China Mobile has been offering 4G services for Cadillac, Chevrolet and Buick since the second half of 2014.
Not allowing itself to be left behind, rival China Unicom immediately signed contracts with more than 20 auto manufacturers and dealers to offer 4G services for over three million cars
China's telecom companies are outpacing one another in product and services growth, particularly in the IOV sector. These telecom giants are struggling to create their own niches in the industry's constantly fluctuating downstream while maintaining their core businesses.
