IoT News – SIMCom CEO Yang Tao: Cat.1 booms, SIMCom Plans Ahead

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By SIMCom, a world chief within the mobile module area.

It’s inevitable that 2G and 3G can be discontinued, after which NB-IoT, 4G, 5G will tackle the duty of supporting the Web of Issues (IoT).

What is going to occur to module business? SIMCom CEO Yang Tao expressed his views on this.

In line with Mr. Yang Tao, Cat.1 is gaining standing and moving into the quick lane. At present, the distribution of mobile IoT connections is roughly 10% of excessive charge, 30% of medium charge, and 60% of low charge. 5G will tackle high-rate eventualities that require very massive bandwidth. NB-IoT will take over massive scale, voice-free, low-rate eventualities from 2G. 4G LTE is acknowledged within the business as a method that can primarily assist voice-oriented medium-rate eventualities.

Medium-rate IoT eventualities supported by LTE connections can undertake Cat.1 and Cat.4. Nonetheless, eventualities comparable to public intercoms, sharing financial system, cellular cost, wearables/trackers, good power and industrial management require a sure transmission charge (obtain velocity ≤ 10Mbps, add velocity ≤5Mbps), steady transmission throughout high-speed motion, low latency, voice assist, low value and low energy consumption. The benefits of Cat.1 are extra distinguished in these eventualities.

In Yang Tao’s opinion, the marketplace for Cat.1 may be very promising. Cat. 1 grew to become a star in a single day. This has so much to do with the fee discount on the community provider facet and within the Cat.1 module business chain upstream and downstream. First, on the community provider facet, Cat.1 can seamlessly connect with present LTE networks with nearly no extra building prices. There isn’t any have to improve or create new software program or {hardware} for base stations, and there’s no danger of incompatibility. The price of community protection may be very low. Subsequent, on the terminal facet, in contrast with NB-IoT and 2G modules in the identical state of affairs, LTE Cat.1 modules have robust benefits in transmission charge and time lag. In contrast with Cat.Four modules, Cat.1 modules have decrease energy consumption and extra apparent {hardware} value benefit.

The business info company TSR forecasts that LTE Cat.1 will proceed to develop quick; the annual common LTE shipments will exceed 80 million items within the international market within the subsequent few years; the annual common LTE Cat.1 module shipments will preserve greater than 30 million items sooner or later.

Because the intermediate hyperlink between upstream customary chips and downstream fragmented vertical utility fields, modules are essential to the applying and innovation of Cat.1 within the IoT market. Mr. Yang Tao says SIMCom has deliberate merchandise comprehensively. As early as in 2016, SIMCom developed the SIM7500 collection of Cat. 1 modules, which incorporates a number of subdivided regional variations that cowl all the world. Their shipments in lots of industries have exceeded hundreds of thousands. They’re primarily utilized in industrial gateways, trackers, industrial meters and public community intercoms. This 12 months, SIMCom launched a brand new Cat.1 module product line: A7600C1 collection and A7670 collection.

Yang Tao stated:
“Based mostly on our earlier profitable expertise in Cat.1 modules, we’re assured that we will higher perceive buyer purposes and serve our prospects higher.”

Carriers are an essential pressure driving the deployment of Cat.1 on a big scale. China Telecom is among the most energetic carriers in selling Cat.1 merchandise. As early as in 2016, China Telecom deliberate its LTE Cat.1 ecosystem forward of others. In line with Yang Tao, within the SIM7500 collection of SIMCom, a subdivided mannequin was custom-made for China Telecom at the moment. It additionally launched Cat. 1 DTU and realized the general end-to-end resolution of “terminal + channel + platform” with the assistance of the unified cloud platform independently developed by China Telecom. The answer has been efficiently utilized in a number of utility eventualities throughout the nation. SIMCom and China Telecom have a protracted historical past of deep cooperation. With the launch of cheaper home Cat.1 merchandise in A7600C1 collection and A7670 collection, SIMCom will work with China Telecom extra carefully sooner or later.

China Cellular has a lot of 2G prospects. SIMCom 2G modules within the SIM800 collection even have many shoppers within the home market. For purchasers that have to improve from 2G community to 4G community, SIMCom has launched the A7670 collection appropriate with the SIM800 collection to facilitate seamless upgraded on the terminal facet for purchasers. Within the meantime, the A7670 collection will actively cooperate with China Cellular’s acceptance checks and certification.

China Unicom additionally has made massive strikes within the Cat.1 area just lately. They’ve been inviting bids in public community intercom, DTU and so forth. SIMCom will actively take part within the bidding and prepare related merchandise as quickly as attainable for China Unicom’s acceptance checks and certification.

Going through the Worth Conflict, SIMCom Competes with Confidence

Unison, ASR and different chip makers have launched cheaper Cat.1 chips now, the costs of Cat.1 modules has turn out to be more and more aggressive the costs , Cat.1 modules available in the market have quickly dropped to ¥45-60. A number of days in the past, some makers even supplied a incredible flash sale worth of ¥45 for his or her Cat.1 module, the worth battle has already began.

Yang Tao stated, IoT business has developed quickly lately. Within the module market, competitors is fierce whereas prices and costs are comparatively clear. From the attitude of commerce, some B2C firms normally use some promotional means to draw folks’s consideration when launching new merchandise, comparable to reductions, free trials, restricted reductions, gross sales at a loss, and so forth. The truth is, the module business is especially B2B. B2B advertising and marketing is sort of completely different from B2C advertising and marketing. Nonetheless, with the intensification of market competitors, an increasing number of module makers are attempting B2C advertising and marketing when selling their manufacturers. On this approach, model consciousness could also be improved to some extent in a short while, and a few scattered markets or prospects could also be captured like B2C.

“However the module market remains to be primarily B2B. When choosing a module product, along with worth, a mature enterprise buyer additionally comprehensively evaluates the product’s features, efficiency, reliability and repair life, in addition to the module maker’s provide, service and danger management functionality, and so forth.”

Yang Tao additional identified that by way of value, most digital merchandise adjust to Moore’s regulation; as product integration turns into increased and better, scale impact will additional enhance the continual decline in product value.

“Though the Cat.1 market has simply emerged, it’s believed that the long run demand for Cat.1 modules will explode quickly and product value will drop quickly. From this perspective, present costs of Cat.1 modules are partly based mostly on future costing.”

Relating to SIMCom’s benefits, Yang Tao concluded:

“first, SIMCom has developed within the module business for 18 years, collected wealthy expertise in B2B customer support. SIMCom not solely has a forward-looking and distinctive perspective in product planning, but additionally has been on the forefront of the business in value management, high quality management, supply and operation. Second, SIMCom core workforce members have been deeply engaged within the IoT business for greater than 15 years. We not solely have a common product line that may cowl all industrial purposes, but additionally grasp deep core applied sciences comparable to reminiscence safety and self-repair, web search mechanism and communication community protocol. We not solely have a strict and continually bettering product analysis and improvement system and high quality assurance system, but additionally have environment friendly supply and operation capabilities and a top quality customer support workforce. Third, SIMCom has additionally progressively shaped strategic cooperation with many companions, together with suppliers, carriers, buyer and business associations, and so forth. Subsequently, we now have full confidence to take part within the Cat.1 module market competitors.”

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