Figure 2-2-1-1 Edge computing concept

(Source) "Study Report on a Structural Analysis of the ICT Industry in the IoT Era and Verification of ICT's Multifaceted Contributions to Economic Growth," MIC (2016)

Edge or fog computing, when combined with deep learning and other AI technologies, should lead to the implementation of various services and applications. One leading example is the FANUC Intelligent Edge Link and Drive (FIELD) System, a shared IoT development platform for manufacturers created in Japan that automatically controls machines running in factories. The FIELD System was announced by FANUC, Cisco Systems, Preferred Networks, and Rockwell Automation. FANUC is a Japanese electronics manufacturer involved in machine tool robotics and industrial robots. Preferred Networks is a Japanese startup specialized in

### 2. Networks

### (1) Fixed broadband and mobile communications services a. M2M market

Before the IoT had garnered any attention, machine-to-machine (M2M) communications that connect machines via communications carrier networks were in use in many fields. OECD statistics by country on the number and penetration rate of M2M connections using communications networks show that the United States leads the way, with 44 million connections, followed by Japan, with 12 million.

As the penetration of smartphones and other personal communications devices reaches saturation, communications carriers in many countries are moving ahead strategically with the provision of M2M services running on their own mobile communications services in anticipation of the IoT's emergence. Although no M2M or IoT business models have been established, risings costs, accompanying the increase in connections, is a pressing issue.

Because of this, communications carriers have 2 ma-business applications of real-time machine learning technologies, with a focus on the IoT. The FIELD System is a platform for developing applications to be posi-tioned in the fog layer. The platform is provided together with applications needed for factory workplaces or deep learning. The system takes data from computer numeric control (CNC) machines, robots, machine tools, and various sensors and realizes real-time connectivity be-tween machines through distributed cooperative ma-chine learning that processes data in the fog layer. Through this interconnectivity, the FIELD System aims to boost the productivity of industrial robots.

jor challenges: (1) creating unified platforms for M2M services and (2) cutting sales costs. The first challenge involves developing a common platform for M2M functions, instead of building separate M2M services for each customer, and using the platform as a model to lower service rollout and operation costs. Jasper Technologies is the largest platform provider and supplies platforms to many communications carriers. In Japan, NEC, Fujitsu, NTT Data, and others offer similar platforms. For the second challenge, the key to lowering sales costs is a B2B model that can capture large numbers of devices per contract — in particular, capturing global corporations with large user bases. But to capture global corporations and to resist gigantic communications carriers like Vodafone that possess their own global networks, communications carriers in many countries have to establish environments in which they can provide one-stop services around the world. To this end, communications carriers are forging stronger alliances with each other.