Research On The Construction Of Industry Chain Of The IOT Dominated By Telecom Operator: From The Perspective Of Two-sided Markets Theory

The development path of IT is from the personal computer to Internet and mobilecommunications and to the IOT. The personal computer is created to solve information storage andcomputation problems. However from the fundamental point of view, information acquisition ofthese two stages are artificial collection to input to the computer network, the development of theIOT is to deepen the application of IT, gradually realize the automated information collection, isbound to radical innovation of the IT. Forrester predicts the IOT will bring30times greater thanthe value of the Internet industry. CCID Consulting forecasts the IOT market will reach to750billion RMB in2015.After the global economic crisis, the IOT industry around the world as a strategic industry anda new economic growth engine for the cultivation. American put forward 《A Strategy for AmericanInnovation》,the EU created《Internet of Things An action plan for Europe》,Japan raises U-Japanand I-Japan strategy, South Korea introduced the 《The infrastructure construction plan of theIOT》,Singapore developed 《Intelligent Nation2015》,they all regard the IOT as the engine toeconomic recovery. However the IOT is still in the formative stages of the business model, and lackof a clear industry chain form, which will constrain the development of the IOT industry. So how tobuild the industrial chain of IOT, select the appropriate business model, the reasonable marketingpricing strategy is the problem to solve at this stage.The two-sided markets theory is introduced in the IOT industry, this paper focus on the pricingstructure of the product and pricing strategy in the market. This paper is divided into six chapters. Inchapter1, the author divides the literature of the IOT into three aspects: industrial policy, industrialchain and business models, competitive strategy. In chapter2, the author summarizes thedevelopment status of international, China, demonstrates the usefulness of the two-sided marketstheory for the IOT. A clear dominance position of the operators in the development of the industrychain at this stage is determined based on the advantage of the Internet of Things operators. Inchapter2, the author introduces the existing business model of the IOT and the trends of thebusiness model. In chapter4and5, the author builds software service providers--telecomoperator--user as the two-sided markets model, uses the Hotelling model to analysis the optimalprice structure in the market monopoly and competitive conditions, then uses the MATLAB software for numerical simulation. In chapter6, the author proposes five practical suggestions topromote the development of the internet of things industry based on the current situation of theinternet of things.The innovation of this paper is to bring the two-sided markets theory to the IOT industry,proposed new perspectives and new connotation, and establish the simulation model of the pricestructure and market scale. However, because of the IOT industry is still in initial stage ofdevelopment, short of industry data, so further research directions to follow up the development ofthe IOT to promote the simulation model.