The third phase of 5G main equipment promotion "volume increase and price reduction", China's 5G construction presents three major changes

The biggest popularization of the third phase of 5G main equipment is "volume increase and price reduction". China's 5G construction performance characteristics: network coverage demands higher than high-speed access, lower operation and maintenance costs demand far-reaching access capabilities, and 5G investment is shifting from wireless main equipment to other directions.

China Unicom’s 5G wireless master equipment (2.1G) four times China promotion results were released, so far the operator’s 5G third phase wireless master equipment popularization has been completed. The characteristic is "volume increase and price reduction". China's 5G construction is showing major changes: network coverage demands greater high-speed access, operation and maintenance costs demand other access reductions, and 5G is shifting from wireless main equipment.

The IDC report pointed out that in 2021, operators snapped up 722 thousand main wireless equipment stations (including China Mobile and China Radio and Television's 48,700 million 5G base stations completed in two years), and the investment amount exceeded 580 yuan. Compared with the second phase of 5G last year (the three companies have increased by 480,000 stations, and the investment amount is 700 yuan), the obvious change is "volume increase and price decrease."

 

In addition, the entry and exit of equipment vendors and market changes in this popularization are the focus of market attention, but IDC believes that the future impact of technology and product prompts on China's 5G construction is more important. On the whole, I believe that IDC has the following three major changes:

 

Network coverage demands greater high-speed access. Network coverage demands greater high-speed access. The effective equipment popularized this time is driven by the 5G base station 700M from China Mobile, while the telecommunications 5G base station uses 2.1G bandwidth. The use of lower pixels can increase the network coverage and depth. This is also the inevitability of improving 5G network services, thereby increasing An important way of existing 5G user experience. In addition, 2.6G and 3.5G continue to be used to cover the areas of interest in the city (not overlapped with coverage).

Judging from the unit price of the latest equipment promoted this time, combined with the equipment capacity of this promotion, it can be fully converted from 32T32R/64T64R last year to 4T4R, which will fatally reduce baseband consumption and reduce operation and maintenance costs.

 

5G investment is shifting from wireless main equipment to other directions. Due to the model and parameters of the wireless main equipment purchased in the third phase of the 5G and the trend of change, the unit price of the equipment is not much contrasted, but overall, under the premise of a small increase in the overall investment scale of 5G, the 5G investment in the G wireless main equipment is decreasing. More 5G capital expenditures are used in other areas, such as online networks, core networks and 5G private network solutions.

 

Market changes and adjustments, IDC according to the "China 5G Capital Forecast, 2021-2025" report, and from 5G wireless access network, 5G core network, 5G function virtualized network infrastructure, 5G data communication and 5G optical backhaul Refinement and prospects for 5G in 5 dimensions.

IDC believes that China's 5G CAPEX market will have firm beliefs. Looking at the status quo of 5G in China, despite the rapid growth of 5G construction in 2020, combined with a number of comprehensive considerations such as technology, policy, commercialization, and industry standards, IDC believes that China's 5G will not happen overnight. 5G development will play a role in the application of 5G industry. With continuous deepening and fermentation, the 5G construction speed investment plan of Chinese operators is freely advanced, and the investment direction is adjusted annually to the needs of the urban development market. It is believed that through the continuous exploration and innovation of Chinese enterprises, operators and equipment vendors, China will continue to lead the development of the global market in terms of 5G construction and applications.

IDC China Telecom and Internet of Things Research Assistant Researcher Lei Kai said: "Looking forward, China's four major operators will maintain the continuity of 5G network investment, continue to promote the reduction of 5G network equipment unit prices, explore 5G application business models, and improve 5G networks 5G. High-speed network investment and return on investment. The high-speed investment of 5G network and the speed of 5G application development. New industry markets, the development of digital economy, especially the rise of business models after the new crown epidemic, 5G will become an important market killer in the digital transformation of the industry The first phase of technology. The transformation of commercial services to help operators overcome the operating pressure of being'pipelined' is also the core driving force for 5G construction."