Mobile operators know that, if they are to have more than a ‘dumb pipe’ role in the internet of things, they will need to cooperate, using their combined weight to influence standards and support global systems.
This is sparking a number of alliances and cooperation deals focused on applications such as smart grid, industrial internet and smart home, and also one of the most immediate IoT markets, the connected car. In this area, Deutsche Telekom and China Mobile have formed a joint venture focused on China’s exploding automotive sector.
The 50:50 JV, called Connected Car, will see the German telco contribute its existing automotive telematics platform, and China Mobile will provide the LTE network to support the services, plus integration and the resources of its widespread channel organization.
“Connected Car is a strategic initiative within Deutsche Telekom, while China is of strategic importance for our Connected Car business. The partnership with China Mobile is therefore strategically of utmost importance to Deutsche Telekom,” said Deutsche Telekom board member Reinhard Clemens, in a statement.
The venture will create a cloud-based platform based on DT’s technology and deploy network and hardware elements where these are needed on top of China Mobile’s existing infrastructure. The JV will also develop content services, and integrate and operate the systems.
The scale of the market is important for Deutsche Telekom to extend its reach beyond its own territories. There were 137m cars on the road in China at the end of 2013, up from 24m a decade ago, and DT claims the number of connected cars will reach 68m in 2018. The venture will work with the automotive sector to deploy services in new vehicles but also to retrofit existing ones. It will become operational at the beginning of 2015.