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2.3.4 Internet of things

The reality described in the next paragraph reflects the importance of creating mega‐connection for
future cities: "In 2012, there were 8.7 billion connected objects globally, constituting 0.6% of the
'things' in the world. In 2013, this number is exceeding 10.0 billion. Driven by reducing price per
connection and the consequent rapid growth in the number of machine‐to‐machine (M2M)
connections, one expects the number of connected objects to reach 50bn by 2020 (2.7% of things
in the world). The connectivity costs are expected to reduce at a rate of 25% CAGR during 2012‐20,
which is approximately equal to the growth in number of connected objects (implying price‐
elasticity demand of 1). Lastly, it is believed that more than 50% of the connected objects added
during 2013‐20 will be added in the last 3 years of the decade. This also implies that the maximum
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connected objects are likely to be added when the connectivity costs are the lowest" .
Internet of things (IoT) is a network constituted by all kind of devices, sensors, terminals which can
be part of a smart home, building, companies and SSC; which connect to each other mainly through
the Internet.

The IoT will constitute the nervous system of SCC, support the interconnection and the continuous
flow of information between the environment, machines, urban or rural infrastructure, and people.
Besides the technology subjects discussed earlier, in this particular case, the availability of IP
numbers that can be assigned to each "host" in the network is also importance. Hence this requires
a closer view to IPV6 protocol.

The IoT is a widely used term for a set of technologies, systems, and design principles associated
with the emerging wave of Internet‐connected things that are based on the physical environment.
In many respects, it can initially look, the same M2M communication – connecting sensors and other
devices to Information and Communication Technology (ICT) systems via wired or wireless networks.

In contrast to M2M, however, IoT also refers to the connection of such systems and sensors to the
broader Internet, as well as the use of general Internet technologies. In the longer term, it is
envisaged that an IoT eco‐system will emerge not dissimilar to today´s Internet, allowing things and
real world objects to connect, communicate, and interact with one another in the same way humans
do via the web today. Increased understanding of the complexity of the systems in question,
economies of scale, and methods for ensuring interoperability, in conjunction with key business
drivers and governance structures across value chains, will create wide‐scale adoption and
deployment of IoT solutions.
No longer will the Internet be only about people, media, and content, but it will also include all
real‐world assets as intelligent creatures exchanging information, interacting with people,
supporting business processes of enterprises, and creating knowledge. The IoT is not a new type of
Internet network; it is an extension to the existing Internet.
IoT is about the technology, the remote monitoring, and control, and also about where these
technologies are applied. IoT can have a focus on the open innovative promises of the technologies
at play, and also on advanced and complex processing inside very confined and close environments
such as industrial automation. When employing IoT technologies in more closed environments an
alternative interpretation of IoT then is "Internet of Things".

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ITU‐T's Technical Reports and Specifications 263