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Tokyo-based NTT Communications has unveiled a low-cost Internet of Things (IoT) network service to attract smaller businesses, and seek speedy adoption of the same.

NTT hopes that the low price design will lure small and mid-sized businesses interested in the field.

The Nippon Telegraph & Telephone subsidiary’s 89 cents monthly service will likely put pressure on prices across the board, helping to boost the use of IoT.

According to the Nikkei Asian Review, the Japanese telecom company will borrow networks from mobile phone carriers worldwide to run its service, which will be initially available in 25 countries including Japan, China, South Korea, the U.S. and Germany.

The telecom company ascertains that the service limits data usage to 1 megabyte per month, making it best suited for devices that infrequently transmit low levels of data. Intended uses include remote monitoring of household appliances and vending machines as well as tracking the whereabouts of children and the elderly. The goal is to connect 1 million devices by fiscal 2020.

NTT isn’t the only one offering such services; Kyocera Communication Systems and Tokyo-based startup Soracom are already in the business. However the Kyocera subsidiary’s 89 cents annual fee is available only to customers that connect more than 1 million devices, and the service’s applications are limited due to its slow transmission speed of 100 bits per second. 

This is where NTT could have an upper hand over its rivals; the Tokyo company will offer the same rate no matter how few devices a customer connects.

Network services for the internet of things are more widespread outside of Japan, thanks to companies such as French communications startup Sigfox, which provided its technology to Kyocera. NTT will initially target Japanese companies overseas by promoting its low price, high quality and network speed.

Image credits and content: Nikkei Asian Review

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