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One conclusion derived from practice is that the power line carrier communication is not suitable for Chinese AMRS (automatic meter reading system). Considering the rapid spread of Internet, the AMRS based on Internet is presented. The structure of system consists of server, data collectors and Internet. For a short distance transmission, data collector collects data from electricity meter using RS485 protocol. For a long distance transmission, from data collector to server, system uses Internet. As the core, data collector employs embedded technology and the uIP TCP/IP stack, and can communicate with the server through Internet directly by fixed IP address. The proposed system has been put into service. With simple construction, low cost, the system illustrates a good prospect of extension.